📊 THR Key Takeaways
Is Thermon Group Holdings, Inc. (THR) a Good Investment?
Thermon demonstrates solid financial health with a fortress balance sheet (0.23x debt/equity), strong liquidity, and positive free cash flow generation. However, the company's growth quality is deteriorating: revenue grew 7.6% while net income remained flat and EPS declined 13.4%, indicating margin compression and operational challenges that overshadow the balance sheet strength.
Thermon Group Holdings, Inc. Key Strengths (THR)
- Fortress balance sheet with low leverage (0.23x debt/equity) and minimal solvency risk
- Strong liquidity position with current ratio of 2.69x and quick ratio of 1.76x
- Excellent interest coverage of 13.4x provides debt service cushion
- Healthy gross margins at 45.3% demonstrate competitive pricing power in electrical industrial equipment
- Positive free cash flow generation of $32.9M with FCF conversion ratio exceeding net income
THR Stock Risks: Thermon Group Holdings, Inc. Investment Risks
- Margin compression evident as revenue grew 7.6% YoY while net income growth remained flat (0%), suggesting operational headwinds or cost inflation
- Diluted EPS declined 13.4% YoY indicating share dilution or increased cost burden offsetting revenue growth
- Modest return metrics with ROE of 8.3% and ROA of 5.4% suggest underutilization of asset and equity base
- Large gap between gross margin (45.3%) and net margin (8.3%) indicates elevated SG&A or financing costs consuming profit
- FCF margin of 6.1% is relatively thin relative to gross margin, limiting financial flexibility
Key Metrics to Watch
- Net income growth trajectory and gross margin sustainability in coming quarters
- Operating expense ratio and SG&A management effectiveness to close the gross-to-net margin gap
- Return on equity trend and capital allocation efficiency
- Free cash flow conversion and working capital management
- Revenue growth acceleration or deceleration relative to peer industrial equipment manufacturers
Thermon Group Holdings, Inc. (THR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.69x current ratio provides a solid financial cushion.
THR Profit Margin, ROE & Profitability Analysis
THR vs Utilities Sector: How Thermon Group Holdings, Inc. Compares
How Thermon Group Holdings, Inc. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Thermon Group Holdings, Inc. Stock Overvalued? THR Valuation Analysis 2026
Based on fundamental analysis, Thermon Group Holdings, Inc. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Thermon Group Holdings, Inc. Balance Sheet: THR Debt, Cash & Liquidity
THR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Thermon Group Holdings, Inc.'s revenue has grown significantly by 40% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.51 reflects profitable operations.
THR Revenue Growth, EPS Growth & YoY Performance
THR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $134.4M | $8.5M | $0.54 |
| Q2 2026 | $114.6M | $8.5M | $0.28 |
| Q1 2026 | $108.9M | $8.5M | $0.25 |
| Q3 2025 | $134.4M | $8.5M | $0.46 |
| Q2 2025 | $114.6M | $8.5M | $0.28 |
| Q1 2025 | $106.9M | $8.5M | $0.25 |
| Q3 2024 | $122.1M | $8.4M | $0.25 |
| Q2 2024 | $100.6M | N/A | $0.33 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Thermon Group Holdings, Inc. Dividends, Buybacks & Capital Allocation
THR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Thermon Group Holdings, Inc. (CIK: 0001489096)
📋 Recent SEC Filings
❓ Frequently Asked Questions about THR
What is the AI rating for THR?
Thermon Group Holdings, Inc. (THR) has an AI grade of B with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are THR's key strengths?
Claude: Fortress balance sheet with low leverage (0.23x debt/equity) and minimal solvency risk. Strong liquidity position with current ratio of 2.69x and quick ratio of 1.76x.
What are the risks of investing in THR?
Claude: Margin compression evident as revenue grew 7.6% YoY while net income growth remained flat (0%), suggesting operational headwinds or cost inflation. Diluted EPS declined 13.4% YoY indicating share dilution or increased cost burden offsetting revenue growth.
What is THR's revenue and growth?
Thermon Group Holdings, Inc. reported revenue of $536.3M.
Does THR pay dividends?
Thermon Group Holdings, Inc. does not currently pay dividends.
Where can I find THR SEC filings?
Official SEC filings for Thermon Group Holdings, Inc. (CIK: 0001489096) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is THR's EPS?
Thermon Group Holdings, Inc. has a diluted EPS of $1.36.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is THR's fundamental grade?
Based on our AI fundamental analysis in June 2026, Thermon Group Holdings, Inc. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is THR stock overvalued or undervalued?
Valuation metrics for THR: ROE of 8.3% (sector avg: 10%), net margin of 8.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is THR's AI grade for 2026?
Our dual AI analysis gives Thermon Group Holdings, Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is THR's free cash flow?
Thermon Group Holdings, Inc.'s operating cash flow is $46.8M, with capital expenditures of $13.9M. FCF margin is 6.1%.
How does THR compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 8.3% (avg: 12%), ROE 8.3% (avg: 10%), current ratio 2.69 (avg: 0.8).