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THR

Thermon Group HoldingsNYSE:THR Stock Report

Market Cap

US$567.6m

7D

0.3%

1Y

49.1%

Updated

25 Oct, 2021

Data

Company Financials +
THR fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance4/6
Financial Health4/6
Dividends0/6

THR Overview

Thermon Group Holdings, Inc. provides engineered industrial process heating solutions for process industries worldwide.

Rewards

Earnings are forecast to grow 74% per year

Earnings grew by 85.2% over the past year

Risk Analysis

No risks detected for THR from our risk checks.

Thermon Group Holdings Competitors

nVent Electric

NYSE:NVT

US$5.6b

EnerSys

NYSE:ENS

US$3.3b

Price History & Performance

Summary of all time highs, changes and price drops for Thermon Group Holdings
Historical stock prices
Current Share PriceUS$17.03
52 Week HighUS$9.98
52 Week LowUS$22.61
Beta1.55
1 Month Change-2.74%
3 Month Change1.61%
1 Year Change49.12%
3 Year Change-25.31%
5 Year Change-7.09%
Change since IPO38.68%

Recent News & Updates

Aug 10

Thermon Seeing Signs Of Recovery With Additional Upside From Margins And Senate Bill 3

Thermon is a strong player in a niche market with good cash flow dynamics, making it a unique company with heavy O&G exposure. While FY21/CY20 results reflect end-market challenges from COVID-19, results are trending in the right direction and the outlook remains favorable. Assuming conservative underwriting assumptions for FY23/CY22, it's not unreasonable to see Thermon worth low- to mid-$20/share, suggesting upside of 30%+.

Jul 27
We Think Shareholders May Want To Consider A Review Of Thermon Group Holdings, Inc.'s (NYSE:THR) CEO Compensation Package

We Think Shareholders May Want To Consider A Review Of Thermon Group Holdings, Inc.'s (NYSE:THR) CEO Compensation Package

Thermon Group Holdings, Inc. ( NYSE:THR ) has not performed well recently and CEO Bruce Thames will probably need to up...

Jun 03
We Think Thermon Group Holdings (NYSE:THR) Is Taking Some Risk With Its Debt

We Think Thermon Group Holdings (NYSE:THR) Is Taking Some Risk With Its Debt

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

THRUS ElectricalUS Market
7D0.3%1.9%1.9%
1Y49.1%50.3%33.4%

Return vs Industry: THR exceeded the US Electrical industry which returned 45.4% over the past year.

Return vs Market: THR exceeded the US Market which returned 30.3% over the past year.

Price Volatility

Is THR's price volatile compared to industry and market?
THR volatility
THR Beta1.55
Industry Beta1.36
Market Beta1

Stable Share Price: THR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: THR's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19541,083Bruce Thameshttps://www.thermon.com

Thermon Group Holdings, Inc. provides engineered industrial process heating solutions for process industries worldwide. Its products include electric heating products, such as air heaters and heating accessories, boilers and calorifiers, controlling and monitoring solutions, heat tracing systems, tank heating systems, thermostats, and system accessories, as well as band, strip, tubular, immersion, and process heaters; and gas heating products, including enclosure and explosion proof gas catalytic heaters, gas fired blowers, and has heating accessories that comprise regulators, valves, mounting brackets, and battery cables. The company also offers specialty products, which include CEMS and analytical systems, commercial construction products and services, control panels, engineered products, compressed gas scrubbing systems, temporary power solutions, and snow clearing devices for rail track and switch equipment; and steam heating solutions comprising heat transfer compounds, steam heated bundles, steam supply and condensate return lines, steam tracing solutions, steam trace accessories, and tank heating products.

Thermon Group Holdings Fundamentals Summary

How do Thermon Group Holdings's earnings and revenue compare to its market cap?
THR fundamental statistics
Market CapUS$567.63m
Earnings (TTM)US$8.12m
Revenue (TTM)US$290.49m

69.9x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
THR income statement (TTM)
RevenueUS$290.49m
Cost of RevenueUS$173.90m
Gross ProfitUS$116.59m
ExpensesUS$108.48m
EarningsUS$8.12m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.24
Gross Margin40.14%
Net Profit Margin2.79%
Debt/Equity Ratio37.7%

How did THR perform over the long term?

See historical performance and comparison

Valuation

Is Thermon Group Holdings undervalued compared to its fair value and its price relative to the market?

69.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: THR ($17.03) is trading above our estimate of fair value ($1.17)

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


Price To Earnings Ratio

PE vs Industry: THR is poor value based on its PE Ratio (69.9x) compared to the US Electrical industry average (23.7x).

PE vs Market: THR is poor value based on its PE Ratio (69.9x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: THR is good value based on its PB Ratio (1.5x) compared to the US Electrical industry average (3.3x).


Future Growth

How is Thermon Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

74.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: THR's forecast earnings growth (74% per year) is above the savings rate (2%).

Earnings vs Market: THR's earnings (74% per year) are forecast to grow faster than the US market (14.7% per year).

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

Revenue vs Market: THR's revenue (8.8% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: THR's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if THR's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Thermon Group Holdings performed over the past 5 years?

-17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: THR has high quality earnings.

Growing Profit Margin: THR's current net profit margins (2.8%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: THR's earnings have declined by 17.7% per year over the past 5 years.

Accelerating Growth: THR's earnings growth over the past year (85.2%) exceeds its 5-year average (-17.7% per year).

Earnings vs Industry: THR earnings growth over the past year (85.2%) exceeded the Electrical industry 54.8%.


Return on Equity

High ROE: THR's Return on Equity (2.1%) is considered low.


Financial Health

How is Thermon Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: THR's short term assets ($214.5M) exceed its short term liabilities ($53.4M).

Long Term Liabilities: THR's short term assets ($214.5M) exceed its long term liabilities ($186.5M).


Debt to Equity History and Analysis

Debt Level: THR's debt to equity ratio (37.7%) is considered satisfactory.

Reducing Debt: THR's debt to equity ratio has increased from 29.9% to 37.7% over the past 5 years.

Debt Coverage: THR's debt is well covered by operating cash flow (20.3%).

Interest Coverage: THR's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Dividend

What is Thermon Group Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if THR'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 THR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Bruce Thames (58 yo)

5.5yrs

Tenure

US$2,312,584

Compensation

Mr. Bruce A. Thames has been the Chief Executive Officer and President of Thermon Group Holdings, Inc. since April 1, 2016. Mr. Thames served as the Chief Operating Officer and an Executive Vice President...


CEO Compensation Analysis

Compensation vs Market: Bruce's total compensation ($USD2.31M) is above average for companies of similar size in the US market ($USD1.69M).

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


Leadership Team

Experienced Management: THR's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: THR's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Thermon Group Holdings, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Thermon Group Holdings, Inc.
  • Ticker: THR
  • Exchange: NYSE
  • Founded: 1954
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: US$567.633m
  • Shares outstanding: 33.33m
  • Website: https://www.thermon.com

Number of Employees


Location

  • Thermon Group Holdings, Inc.
  • 7171 Southwest Parkway
  • Building 300
  • Austin
  • Texas
  • 78735
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 23:21
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.