Gentherm Incorporated (THRM) AI Stock Analysis

Gentherm Incorporated specializes in the design, development, manufacturing, and global marketing of advanced thermal management technologies. Established in 1991 and based in Northville, Michigan, the company operates across two primary segments: Automotive and Medical. Within the Automotive segment, Gentherm provides climate comfort systems such as seat heaters, blowers, and thermoelectric devices for automotive seats and steering wheels. It also offers integrated electronic control units, neck conditioners, climate solutions for door panels, armrests, cupholders, and battery thermal management solutions. In the Medical segment, Gentherm develops patient temperature management systems for regulating body temperature. The company serves original equipment manufacturers, first-tier suppliers, automotive seat manufacturers, and aftermarket distributors.

Between FY2021 and FY2025, revenue grew from $1.05B to $1.49B, achieving a 5-year revenue CAGR of 10.4% from FY2020 to FY2025. Net income experienced volatility over this timeframe, decreasing from $93.4M in FY2021 to $18.3M in FY2025, with net margin declining from 8.9% to 1.2%. Gross margin dropped from 29.0% in FY2021 to 23.5% in FY2025, while operating margin contracted from 11.0% to 5.2%. For the trailing twelve months, revenue totaled $1.58B with an operating margin of 7.1%. In the latest quarter ended June 30, 2026, quarterly revenue grew 11.0% year-over-year, and quarterly earnings grew 798.1% year-over-year.

As of June 30, 2026, Gentherm reported $213.2M in cash and short-term investments alongside total debt of $325.1M, yielding net debt of $111.9M. Total assets stood at $1.49B against shareholders' equity of $723.1M. Financial leverage remains modest, with a debt-to-equity ratio of 0.45 and a current ratio of 2.06. In FY2025, the company generated $116.8M in operating cash flow and $61.1M in free cash flow. Cash deployment in FY2025 included capital expenditures of $55.7M and share buybacks of $10.0M, contributing to a 5-year share count reduction of 7.5%.

Trading at $29.04 as of October 16, 2026, Gentherm carries a market capitalization of $1.58B and an enterprise value of $1.20B. Its trailing P/E of 33.8x is elevated compared to the median of 18.0x for its US-listed Consumer Cyclical peers. However, its forward P/E of 11.1x and EV/EBITDA of 10.5x compare favorably to the peer medians of 14.1x and 11.1x, respectively. The stock carries a price-to-sales ratio of 1.0x and a PEG of 1.02. Over the past year, THRM declined 9.3% versus a 16.8% gain for the S&P 500, while its 5-year return of -64.3% lagged the index's 83.0% gain.

Wall Street sentiment leans positive, with 4 Strong Buy, 2 Buy, and 3 Hold ratings, and no Sell ratings. The mean price target of $48.00 represents a 65.3% premium over the last close of $29.04. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.61B and EPS of $2.90, reflecting expected EPS growth of 27.9%. For the following fiscal year, 8 analysts forecast revenue of $1.71B and EPS of $3.24. Gentherm beat EPS estimates in 3 of the last 4 quarters, with its next earnings release scheduled for October 22, 2026.

This page is an AI-written research summary of Gentherm Incorporated (THRM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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