📊 THRM Key Takeaways
Is Gentherm Inc (THRM) a Good Investment?
Gentherm demonstrates solid cash generation ($61.1M FCF) and conservative balance sheet management, but profitability has deteriorated sharply (net income -71.8% YoY) with extremely thin net margins (1.2%) and poor capital returns (2.5% ROE, 1.3% ROA). The massive revenue growth (+10950%) is acquisition-driven and masks underlying operational challenges, warranting caution until integration proves successful and margins stabilize.
Why Buy Gentherm Inc Stock? THRM Key Strengths
- Strong free cash flow generation of $61.1M with 4.1% FCF margin demonstrates operational cash conversion
- Conservative capital structure with 0.26x debt/equity ratio and $160.8M cash balance providing financial flexibility
- Good liquidity position with 1.92x current ratio and 1.30x quick ratio buffering operational uncertainties
- Gross margin of 24.2% is sustainable for automotive parts sector base
THRM Stock Risks: Gentherm Inc Investment Risks
- Dramatic net income decline of 71.8% YoY despite revenue surge signals severe integration challenges or underlying business deterioration
- Critically thin net margin of 1.2% leaves minimal buffer for operational disruptions or market downturns
- Extremely poor capital returns (2.5% ROE, 1.3% ROA) indicate the company is not generating adequate value from its $1.4B asset base
- Operating margin of 5.5% is modest and operating cash flow may not sustain if working capital headwinds emerge post-integration
Key Metrics to Watch
- Net margin trajectory—will profitability recover toward pre-acquisition levels as integration completes
- Return on equity trend—must improve above 5% to justify equity capital deployment
- Free cash flow sustainability—verify $61.1M can be maintained without sacrificing capital investment needs
- Working capital management—monitor receivables and inventory trends for hidden balance sheet stress from acquisition
Gentherm Inc (THRM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.1% FCF margin may limit capital allocation flexibility.
THRM Profit Margin, ROE & Profitability Analysis
THRM vs Automotive Sector: How Gentherm Inc Compares
How Gentherm Inc compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Gentherm Inc Stock Overvalued? THRM Valuation Analysis 2026
Based on fundamental analysis, Gentherm Inc has mixed fundamental signals relative to the Automotive 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.
Gentherm Inc Balance Sheet: THRM Debt, Cash & Liquidity
THRM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Gentherm Inc's revenue has grown significantly by 43% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.22 reflects profitable operations.
THRM Revenue Growth, EPS Growth & YoY Performance
THRM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $371.5M | -$128.0K | $0.49 |
| Q2 2025 | $375.1M | -$128.0K | $0.01 |
| Q1 2025 | $353.9M | -$128.0K | $0.00 |
| Q3 2024 | $366.2M | -$1.6M | $0.48 |
| Q2 2024 | $372.3M | -$1.6M | $-0.05 |
| Q1 2024 | $356.0M | $8.0M | $0.24 |
| Q3 2023 | $333.0M | -$1.6M | $0.29 |
| Q2 2023 | $260.7M | -$1.6M | $-0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Gentherm Inc Dividends, Buybacks & Capital Allocation
THRM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Gentherm Inc (CIK: 0000903129)
📋 Recent SEC Filings
❓ Frequently Asked Questions about THRM
What is the AI rating for THRM?
Gentherm Inc (THRM) has an AI rating of HOLD with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are THRM's key strengths?
Claude: Strong free cash flow generation of $61.1M with 4.1% FCF margin demonstrates operational cash conversion. Conservative capital structure with 0.26x debt/equity ratio and $160.8M cash balance providing financial flexibility.
What are the risks of investing in THRM?
Claude: Dramatic net income decline of 71.8% YoY despite revenue surge signals severe integration challenges or underlying business deterioration. Critically thin net margin of 1.2% leaves minimal buffer for operational disruptions or market downturns.
What is THRM's revenue and growth?
Gentherm Inc reported revenue of $1.5B.
Does THRM pay dividends?
Gentherm Inc does not currently pay dividends.
Where can I find THRM SEC filings?
Official SEC filings for Gentherm Inc (CIK: 0000903129) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is THRM's EPS?
Gentherm Inc has a diluted EPS of $0.59.
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 rating reflects both perspectives for balanced insights.
Is THRM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Gentherm Inc has a HOLD rating with 65% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is THRM stock overvalued or undervalued?
Valuation metrics for THRM: ROE of 2.5% (sector avg: 12%), net margin of 1.2% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy THRM stock in 2026?
Our dual AI analysis gives Gentherm Inc a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is THRM's free cash flow?
Gentherm Inc's operating cash flow is $116.8M, with capital expenditures of $55.7M. FCF margin is 4.1%.
How does THRM compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 1.2% (avg: 6%), ROE 2.5% (avg: 12%), current ratio 1.92 (avg: 1.2).