NYSE:THR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Thermon Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

5.1%

THR

8.2%

US Electrical

3.8%

US Market


1 Year Return

-29.4%

THR

13.1%

US Electrical

9.7%

US Market

Return vs Industry: THR underperformed the US Electrical industry which returned 9.2% over the past year.

Return vs Market: THR underperformed the US Market which returned 9.2% over the past year.


Shareholder returns

THRIndustryMarket
7 Day5.1%8.2%3.8%
30 Day14.8%18.5%11.4%
90 Day-7.7%7.3%6.8%
1 Year-29.4%-29.4%15.6%13.1%12.1%9.7%
3 Year-12.9%-12.9%27.2%19.7%36.2%27.2%
5 Year-27.9%-27.9%38.7%24.9%63.7%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

46.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: THR ($15.63) is trading above our estimate of fair value ($11.73)

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 (42.9x) compared to the Electrical industry average (17.7x).

PE vs Market: THR is poor value based on its PE Ratio (42.9x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: THR is poor value based on its PEG Ratio (1.2x)


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 (2x).


Next Steps

Future Growth

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

35.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: THR's forecast earnings growth (36.1% per year) is above the savings rate (2.2%).

Earnings vs Market: THR's earnings (36.1% per year) are forecast to grow faster than the US market (22.2% per year).

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

Revenue vs Market: THR's revenue is expected to decline over the next 3 years (-9.8% per year).

High Growth Revenue: THR's revenue is forecast to decline over the next 3 years (-9.8% 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


Next Steps

Past Performance

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

-18.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: THR has high quality earnings.

Growing Profit Margin: THR's current net profit margins (3.1%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: THR's earnings have declined by -18.2% per year over the past 5 years.

Accelerating Growth: THR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: THR had negative earnings growth (-47.5%) over the past year, making it difficult to compare to the Electrical industry average (-8.7%).


Return on Equity

High ROE: THR's Return on Equity (3.4%) is considered low.


Next Steps

Financial Health

How is Thermon Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: THR's short term assets ($217.9M) exceed its short term liabilities ($60.6M).

Long Term Liabilities: THR's short term assets ($217.9M) exceed its long term liabilities ($213.8M).


Debt to Equity History and Analysis

Debt Level: THR's debt to equity ratio (49.5%) is considered high.

Reducing Debt: THR's debt to equity ratio has increased from 39.2% to 49.5% over the past 5 years.

Debt Coverage: THR's debt is well covered by operating cash flow (41.2%).

Interest Coverage: THR's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Next Steps

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?

3.4yrs

Average management tenure


CEO

Bruce Thames (56yo)

4.17yrs

Tenure

US$3,114,461

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 ($USD3.11M) is above average for companies of similar size in the US market ($USD2.17M).

Compensation vs Earnings: Bruce's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bruce Thames
President4.17yrsUS$3.11m0.23% $1.3m
Jay Peterson
CFO, Senior VP of Finance9.92yrsUS$1.24m0.18% $993.9k
Johannes van der Salm
Senior Vice President of Global Operations9.17yrsUS$1.15m0.39% $2.2m
Thomas Cerovski
Senior Vice President of Global Sales1.42yrsUS$486.55kno data
Eric Reitler
Consultant1.42yrsUS$729.93k0.066% $364.2k
Ryan Tarkington
General Counsel & Corporate Secretaryno datano datano data
Kevin Fox
Vice President of Corporate Development1.25yrsno datano data
James Pribble
Senior Vice President of Thermon Heating Systems1.42yrsno data0.029% $163.7k
David Buntin
Senior Vice President of Thermon Heat Tracing3.42yrsno data0.021% $117.2k
Mark Roberts
Senior Vice President of Global Engineering & Project Services3.67yrsno data0.010% $57.6k

3.4yrs

Average Tenure

51yo

Average Age

Experienced Management: THR's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bruce Thames
President4.17yrsUS$3.11m0.23% $1.3m
Kevin McGinty
Independent Director8yrsUS$117.92k0.083% $462.8k
Marcus George
Independent Director10.17yrsUS$117.92k0.064% $355.7k
Charles Sorrentino
Independent Director10.17yrsUS$170.42k0.17% $934.5k
John Nesser
Independent Non-Executive Chairperson0.92yrUS$125.92k0.075% $413.6k
John Clarke
Independent Director0.92yrno data0.029% $161.0k
Roger Fix
Independent Director0.92yrno data0.021% $114.7k
Michael Press
Independent Director9.08yrsUS$125.42k0.12% $666.3k
Linda Dalgetty
Independent Director2.08yrsUS$111.77k0.023% $127.6k

4.2yrs

Average Tenure

66yo

Average Age

Experienced Board: THR's board of directors are considered experienced (4.2 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 company bio, 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$555.055m
  • Shares outstanding: 32.96m
  • Website: https://www.thermon.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
THRNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2011
8TGDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2011

Biography

Thermon Group Holdings, Inc. provides engineered industrial process heating solutions for process industries worldwide. Its products include various electric heat tracing cables, steam tracing components, tubing bundles, instrument and control products, process heaters, environmental heaters, and related products and services. The company offers self-regulating and power limiting heating cables that automatically regulate heat output as pipe temperature changes, as well as constant wattage heating cables; mineral insulated cables for highest temperature applications and harsh environments; skin effect trace heating systems; heat traced and insulated tubing bundles for environmental gas sampling systems; heat transfer compounds and steam tubing for steam tracing solutions; tank heating and insulation systems; control and monitoring systems for heat tracing applications; control and power distribution panels, and skid assemblies; and project engineering and management services to heat trace systems for industrial facilities. It also provides automation software that generates installed CAD drawings, bills-of-materials, and specification of large projects; construction and field services for the installation, operation, and maintenance of heat trace systems; explosion-proof gas catalytic heaters, convection heaters designed for rugged industrial applications, electric heaters engineered for industrial processes and environments, gas and liquid filtration systems, and heat transfer systems for rail track and switch equipment; and equipment for temporary electric power distribution and lighting products used in energy infrastructure construction projects and maintenance/turnaround projects. The company offers its solutions to oil and gas, chemical processing, power generation, transportation, mining, and other industrial markets through a network of sales and service professionals, and distributors. The company was founded in 1954 and is headquartered in Austin, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 04:56
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.