Gentherm Inc (THRM) stock analysis

THRMNasdaqMotor Vehicle Parts & AccessoriesFiscal year ends December 31

Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Oct 22, 2026Score 7/3044% above fair value

$29.58−0.20 (-0.67%)

Close on Nov 11, 2026Market cap $1.55BP/E –Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Weak7 of 30 checks passed

Gentherm passes 7 of the 30 checks behind our score; 12 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation: 0/6
Growth: 1/6
Past performance: 0/6
Financial health: 3/6
Dividend: 3/6

What stands out

Debt covered by cash flow
Operating cash flow over the last twelve months equals 20.3% of total debt.
Low bankruptcy risk
The Altman Z-score is 3.26; above 3 is the safe zone and below 1.8 the distress zone.
Growing faster than the industry
Revenue grew 8.8% over the last twelve months; the Motor Vehicles and Motor Vehicle Equipment median is 5.5%.
Short-term assets cover short-term debts
Current assets are 2.05 times current liabilities.

What to watch

Margin of safety under 20%
The price is 44.1% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $29.58 is above our fair value estimate of $20.52.
Return on capital under 10%
Return on invested capital was 3.5%, below the 10% that usually covers the cost of capital.
High debt
Debt is 44.4% of shareholders' equity, above the 40% we consider low.

Valuation0/6

P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA above its 5-year median
Gentherm's EV/EBITDA of 14.4 is above its 5-year median of 13.2.
P/B above the industry
Gentherm's price-to-book of 2.15 is above the Motor Vehicles and Motor Vehicle Equipment median of 1.56.
Trading above fair value
The share price of $29.58 is above our fair value estimate of $20.52.
Margin of safety under 20%
The price is 44.1% above fair value, so there is no margin of safety.

Growth1/6

Revenue growing under 10% a year
Revenue grew 7.5% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -6.9% a year over the last three fiscal years.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 8.8% over the last twelve months; the Motor Vehicles and Motor Vehicle Equipment median is 5.5%.
Guidance lowered
Gentherm lowered its full year 2026 Product Revenues outlook on Oct 22, 2026.
Gross margin slipping
Gross margin was 23.7% over the last twelve months, against 24.3% a year earlier.

Past performance0/6

Return on equity
Needs positive equity and five years of results.
Return on capital under 10%
Return on invested capital was 3.5%, below the 10% that usually covers the cost of capital.
Return on equity against the industry
Needs positive equity.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin against its history
Needs five years of revenue and net income.
Net margin against the industry
Needs revenue and net income.

Financial health3/6

High debt
Debt is 44.4% of shareholders' equity, above the 40% we consider low.
Debt rising against equity
Debt to equity rose from 32.8% five years ago to 44.4%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 20.3% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets cover short-term debts
Current assets are 2.05 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 3.26; above 3 is the safe zone and below 1.8 the distress zone.

Dividend3/6

Pays a dividend
Gentherm paid dividends worth 7.0% of the share price over the last twelve months.
Yield above Treasuries
The 7.0% yield is above the 4.4% on a 1-year Treasury.
Yield in the top quarter
The top quarter of US dividend payers yield 3.8% or more; Gentherm yields 7.0%.
Dividend stability
Fewer than five years of dividend history.
Earnings cover
Needs dividends paid and net income.
Cash-flow cover
Needs dividends paid and free cash flow.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$20.52

The share price is 44% above this estimate.

20%+ below

Near fair value

20%+ above

$29.58Price$20.52Fair value

Method	Multiple used	Own 5Y median	Industry median	Value per share	Weight
EV/EBITDA	10.9×	13.2×	8.5×	$21.93	58%
P/B	2.0×	2.4×	1.6×	$27.54	17%
Earnings power	10.2% cost of equity	–	–	$12.57	25%
Fair value				$20.52	100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

P/E at month end
Motor Vehicles and Motor Vehicle Equipment median 18.7

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day: $72.24M
Value traded per 1% price move: $10.31M

Downside

Medium risk

Typical loss in a bad month: 21.4%
Volatility (annualized): 50%
Sharpe ratio, 1 year: -0.48
Beta to the S&P 500 (5Y): 1.06

Typical bad-month loss, week by week

Margins

Share of revenue, fiscal years 2011 to 2025

Gross margin

24.2%−5.2 pts over 5 years

Operating margin

5.5%−4.3 pts over 5 years

Net margin

–

Growth rates

Compound annual growth to fiscal 2025

Per year	1 year	3 years	5 years	10 years
Revenue	+2.9%	+7.5%	+10.4%	+5.8%
Gross profit	-1.2%	+9.8%	+6.2%	+2.7%
Operating income	-22.7%	+19.6%	-1.5%	-3.8%
EPS, diluted	-71.4%	-6.9%	-20.1%	-13.9%
Free cash flow	+68.2%	–	-8.1%	+2.2%

Returns and balance sheet

10 fiscal years. Hover a measure to see how it is calculated.

Measure	FY2016	FY2020	FY2025
Current ratio	2.50	3.12	1.92
Debt to equity	0.37	0.33	0.26
Net debt to EBITDA	-0.04×	-0.58×	0.21×
Inventory turnover	6.6×	5.4×	4.7×
Capex to revenue	7.2%	1.9%	3.7%
Diluted shares	37M	33M	31M