NasdaqGS:THRM

Stock Analysis Report

Executive Summary

Gentherm Incorporated designs, develops, and manufactures thermal management technologies.


Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Gentherm's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: THRM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.5%

THRM

1.1%

US Auto Components

0.8%

US Market


1 Year Return

11.8%

THRM

1.9%

US Auto Components

25.1%

US Market

Return vs Industry: THRM exceeded the US Auto Components industry which returned 1.9% over the past year.

Return vs Market: THRM underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

THRMIndustryMarket
7 Day2.5%1.1%0.8%
30 Day6.4%-4.1%3.1%
90 Day12.1%1.8%10.9%
1 Year11.8%11.8%3.4%1.9%27.7%25.1%
3 Year36.9%36.9%-2.3%-12.3%51.3%41.6%
5 Year29.2%29.2%19.2%2.4%77.2%57.6%

Price Volatility Vs. Market

How volatile is Gentherm's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gentherm undervalued compared to its fair value and its price relative to the market?

40.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: THRM ($46.81) is trading above our estimate of fair value ($43.4)

Significantly Below Fair Value: THRM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: THRM is poor value based on its PE Ratio (39.6x) compared to the Auto Components industry average (18.2x).

PE vs Market: THRM is poor value based on its PE Ratio (39.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: THRM is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: THRM is overvalued based on its PB Ratio (3.4x) compared to the US Auto Components industry average (1.3x).


Next Steps

Future Growth

How is Gentherm forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

46.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: THRM's forecast earnings growth (46.6% per year) is above the savings rate (1.7%).

Earnings vs Market: THRM's earnings (46.6% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: THRM's revenue (5.1% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: THRM's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: THRM's Return on Equity is forecast to be low in 3 years time (16.4%).


Next Steps

Past Performance

How has Gentherm performed over the past 5 years?

-19.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: THRM has a large one-off loss of $29.9M impacting its September 30 2019 financial results.

Growing Profit Margin: THRM's current net profit margins (4%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: THRM's earnings have declined by -19.5% per year over the past 5 years.

Accelerating Growth: THRM's earnings growth over the past year (65.1%) exceeds its 5-year average (-19.5% per year).

Earnings vs Industry: THRM earnings growth over the past year (65.1%) exceeded the Auto Components industry 4.1%.


Return on Equity

High ROE: THRM's Return on Equity (8.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gentherm's financial position?


Financial Position Analysis

Short Term Liabilities: THRM's short term assets ($384.8M) exceed its short term liabilities ($170.5M).

Long Term Liabilities: THRM's short term assets ($384.8M) exceed its long term liabilities ($115.6M).


Debt to Equity History and Analysis

Debt Level: THRM's debt to equity ratio (22.1%) is considered satisfactory.

Reducing Debt: THRM's debt to equity ratio has reduced from 36.7% to 22.1% over the past 5 years.

Debt Coverage: THRM's debt is well covered by operating cash flow (132.4%).

Interest Coverage: THRM's interest payments on its debt are well covered by EBIT (19.2x coverage).


Balance Sheet

Inventory Level: THRM has a high level of physical assets or inventory.

Debt Coverage by Assets: THRM's debt is covered by short term assets (assets are 3.9x debt).


Next Steps

Dividend

What is Gentherm's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate THRM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate THRM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if THRM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if THRM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of THRM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Gentherm's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Phil Eyler (48yo)

2.1yrs

Tenure

US$2,401,825

Compensation

Mr. Phillip Eyler, also known as Phil, has been President and Chief Executive Officer of Gentherm Incorporated since December 4, 2017. Mr. Eyler has been an Executive Vice President and President of Connec ...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD2.40M) is below average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: Phil's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.2yrs

Average Tenure

48yo

Average Age

Experienced Management: THRM's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

4.0yrs

Average Tenure

54yo

Average Age

Experienced Board: THRM's board of directors are considered experienced (4 years average tenure).


Insider Trading

Insider Buying: THRM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$256,66306 Dec 19
Paul Giberson
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Sales
Shares6,000
Max PriceUS$42.78
SellUS$53,07513 Jun 19
Kenneth Phillips
EntityIndividual
Shares1,345
Max PriceUS$39.46
SellUS$396,79806 Jun 19
Frithjof Oldorff
EntityIndividual
Shares10,230
Max PriceUS$38.79
SellUS$468,80103 May 19
Kenneth Phillips
EntityIndividual
Shares11,222
Max PriceUS$41.78

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Barbara Runyon (48yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.4yrs
  • Yijing Brentano (46yo)

    Senior Vice President of Investor Relations

    • Tenure: 1.9yrs
    • Compensation: US$1.06m
  • Phil Eyler (48yo)

    President

    • Tenure: 2.1yrs
    • Compensation: US$2.40m
  • Ryan Gaul (43yo)

    Senior Vice President of Operations

    • Tenure: 1.6yrs
  • Jörg Evers

    Executive Vice President of Operations

    • Matteo Anversa (48yo)

      Executive VP of Finance

      • Tenure: 1yrs
    • Paul Giberson (38yo)

      Senior Vice President of Global Sales

      • Tenure: 1.2yrs
    • Mark Potesta (55yo)

      Senior VP & Chief Technology Officer

      • Tenure: 1.2yrs
    • Jaymi Wilson

      Vice President of Strategy

      • Tenure: 1yrs
    • Wayne Kauffman

      VP & General Counsel

      • Tenure: 0.5yrs

    Board Members

    • Maurice E. Gunderson (67yo)

      Independent Director

      • Tenure: 12.9yrs
      • Compensation: US$171.00k
    • Francois Castaing (73yo)

      Independent Chairman of the Board

      • Tenure: 2.7yrs
      • Compensation: US$205.00k
    • Chuck Kummeth (59yo)

      Independent Director

      • Tenure: 1.4yrs
      • Compensation: US$136.00k
    • John Stacey (54yo)

      Independent Director

      • Tenure: 1.7yrs
      • Compensation: US$156.00k
    • Yvonne Hao (45yo)

      Independent Director

      • Tenure: 4yrs
      • Compensation: US$166.00k
    • Ron Hundzinski (60yo)

      Independent Director

      • Tenure: 4yrs
      • Compensation: US$161.00k
    • Sophie Desormière (52yo)

      Independent Director

      • Tenure: 7.7yrs
      • Compensation: US$161.00k
    • Byron Shaw (51yo)

      Independent Director

      • Tenure: 7yrs
      • Compensation: US$166.00k
    • Phil Eyler (48yo)

      President

      • Tenure: 2.1yrs
      • Compensation: US$2.40m

    Company Information

    Gentherm Incorporated's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Gentherm Incorporated
    • Ticker: THRM
    • Exchange: NasdaqGS
    • Founded: 1991
    • Industry: Auto Parts and Equipment
    • Sector: Automobiles
    • Market Cap: US$1.571b
    • Shares outstanding: 32.74m
    • Website: https://www.gentherm.com

    Number of Employees


    Location

    • Gentherm Incorporated
    • 21680 Haggerty Road
    • Northville
    • Michigan
    • 48167
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    THRMNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJun 1993
    QA4ADB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1993

    Biography

    Gentherm Incorporated designs, develops, and manufactures thermal management technologies. The company operates through two segments, Automotive and Industrial. The Automotive segment offers climate comfort system solutions, including seat heaters; variable temperature climate control seats that are designed to provide individualized thermal comfort to automobile passengers; integrated electronic components, such as blowers and electronic control units; and steering wheel heaters, neck climate control systems, and surface climate control systems for doors, armrests, cupholders, and storage products. This segment also provides specialized automotive cable systems, battery thermal management products, and automotive electronic and software systems. This segment serves light vehicle original equipment manufacturers (OEMs), commercial vehicle OEMs, and automotive seat manufacturers, as well as aftermarket seat distributors and installers. The Industrial segment offers remote power generation systems, patient temperature management systems, and environmental testing equipment and services. The company provides its products and services in the United States, China, Germany, Japan, South Korea, Canada, the Czech Republic, the United Kingdom, Romania, and internationally. The company was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. Gentherm Incorporated was incorporated in 1991 and is headquartered in Northville, Michigan. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/21 23:45
    End of Day Share Price2020/01/21 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.