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Gentherm Inc (THRM) Fundamental Analysis & AI Grade 2026

THRM Nasdaq Motor Vehicle Parts & Accessories MI CIK: 0000903129
Update Pending • Analysis: Apr 29, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
75% Confidence
N/A
C
75% Conf
Pending
Analysis scheduled

📊 THRM Key Takeaways

Revenue: $393.7M
Net Margin: 1.1%
Free Cash Flow: $-10.7M
Current Ratio: 1.97x
Debt/Equity: 0.31x
EPS: $0.14
AI Grade: C with 75% confidence
Gentherm Inc (THRM) receives a C fundamental grade with 75% confidence from our AI analysis based on SEC 10-K filings. With revenue of $393.7M, net profit margin of 1.1%, and return on equity (ROE) of 0.6%, Gentherm Inc demonstrates mixed fundamentals in the Automotive sector. Below is our complete THRM stock analysis for 2026.

Is Gentherm Inc (THRM) a Good Investment?

Claude

Gentherm exhibits distressed fundamentals masked by reported profitability. Negative operating cash flow of -5.0M despite 4.2M net income indicates poor earnings quality, likely from low-margin acquisition integration. Declining net income (-71.8% YoY) combined with razor-thin 1.1% net margins and unsustainable -10.7M free cash flow signal deteriorating operational health.

Gentherm Inc Key Strengths (THRM)

Claude
  • + Strong revenue scale at 393.7M supports operational footprint and market position
  • + Solid liquidity with 1.97x current ratio and 177.4M cash buffer provides near-term flexibility
  • + Moderate leverage at 0.31x debt/equity ratio preserves financial flexibility for restructuring

THRM Stock Risks: Gentherm Inc Investment Risks

Claude
  • ! Negative operating cash flow and negative free cash flow indicate unsustainable business model burning capital despite reported profits
  • ! Net income declined 71.8% YoY while revenue surged, suggesting poor acquisition quality or severe operational margin compression
  • ! Critically poor returns on capital (ROE 0.6%, ROA 0.3%) with razor-thin 1.1% net margin indicate inefficient asset deployment and zero error tolerance

Key Metrics to Watch

Claude
  • * Operating cash flow inflection point - must return to positive sustainability
  • * Cash position depletion rate against ongoing negative FCF trajectory
  • * Gross and net margin stabilization or further compression indicating structural deterioration

Gentherm Inc (THRM) Financial Metrics & Key Ratios

Revenue
$393.7M
Net Income
$4.2M
EPS (Diluted)
$0.14
Free Cash Flow
$-10.7M
Total Assets
$1.4B
Cash Position
$177.4M

💡 AI Analyst Insight

Gentherm Inc presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

THRM Profit Margin, ROE & Profitability Analysis

Gross Margin 24.7%
Operating Margin 2.9%
Net Margin 1.1%
ROE 0.6%
ROA 0.3%
FCF Margin -2.7%

THRM vs Automotive Sector: How Gentherm Inc Compares

How Gentherm Inc compares to Automotive sector averages

Net Margin
THRM 1.1%
vs
Sector Avg 6.0%
THRM Sector
ROE
THRM 0.6%
vs
Sector Avg 12.0%
THRM Sector
Current Ratio
THRM 2.0x
vs
Sector Avg 1.2x
THRM Sector
Debt/Equity
THRM 0.3x
vs
Sector Avg 1.0x
THRM Sector

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.

Return on Equity
0.6%
Sector avg: 12%
Net Profit Margin
1.1%
Sector avg: 6%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.31x
Sector avg: 1x

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

Current Ratio
1.97x
Quick Ratio
1.36x
Debt/Equity
0.31x
Debt/Assets
49.9%
Interest Coverage
N/A
Long-term Debt
$219.0M

THRM Revenue & Earnings Growth: 5-Year Financial Trend

THRM 5-year financial data: Year 2021: Revenue $1.0B, Net Income $48.9M, EPS $1.47. Year 2022: Revenue $1.2B, Net Income $59.7M, EPS $1.81. Year 2023: Revenue $1.5B, Net Income $93.4M, EPS $2.79. Year 2024: Revenue $1.5B, Net Income $24.4M, EPS $0.73. Year 2025: Revenue $1.5B, Net Income $40.3M, EPS $1.22.
Revenue
Net Income
EPS (right axis)

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

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-2.7%
Free cash flow / Revenue

THRM Quarterly Earnings & Performance

Quarterly financial performance data for Gentherm Inc including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $353.9M -$128.0K $0.00
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

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Gentherm Inc Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$5.0M
Cash generated from operations
Stock Buybacks
$10.0M
Shares repurchased (TTM)
Capital Expenditures
$5.7M
Investment in assets
Dividends
None
No dividend program

THRM SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Gentherm Inc (CIK: 0000903129)

📋 Recent SEC Filings

Date Form Document Action
May 19, 2026 8-K d90313d8k.htm View →
May 15, 2026 4 xslF345X06/ownership.xml View →
May 15, 2026 4 xslF345X06/ownership.xml View →
May 15, 2026 4 xslF345X06/ownership.xml View →
May 15, 2026 4 xslF345X06/ownership.xml View →

Frequently Asked Questions about THRM

What is the AI rating for THRM?

Gentherm Inc (THRM) has an AI grade of C with 75% confidence, based on fundamental analysis of SEC EDGAR filings.

What are THRM's key strengths?

Claude: Strong revenue scale at 393.7M supports operational footprint and market position. Solid liquidity with 1.97x current ratio and 177.4M cash buffer provides near-term flexibility.

What are the risks of investing in THRM?

Claude: Negative operating cash flow and negative free cash flow indicate unsustainable business model burning capital despite reported profits. Net income declined 71.8% YoY while revenue surged, suggesting poor acquisition quality or severe operational margin compression.

What is THRM's revenue and growth?

Gentherm Inc reported revenue of $393.7M.

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 $0.14.

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 THRM's fundamental grade?

Based on our AI fundamental analysis in June 2026, Gentherm Inc has a C grade with 75% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is THRM stock overvalued or undervalued?

Valuation metrics for THRM: ROE of 0.6% (sector avg: 12%), net margin of 1.1% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.

What is THRM's AI grade for 2026?

Our dual AI analysis gives Gentherm Inc a combined C grade 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 $-5.0M, with capital expenditures of $5.7M. FCF margin is -2.7%.

How does THRM compare to other Automotive stocks?

Vs Automotive sector averages: Net margin 1.1% (avg: 6%), ROE 0.6% (avg: 12%), current ratio 1.97 (avg: 1.2).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 29, 2026 | Data as of: 2026-03-31 | Powered by Claude AI