THERMON GROUP HOLDINGS INC (THR) Stock Fundamental Analysis
NYSE:THR - New York Stock Exchange, Inc. - US88362T1034 - Common Stock - Currency: USD
Taking everything into account, THR scores 6 out of 10 in our fundamental rating. THR was compared to 97 industry peers in the Electrical Equipment industry. While THR has a great profitability rating, there are some minor concerns on its financial health. THR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
THR had positive earnings in the past year.
THR had a positive operating cash flow in the past year.
In the past 5 years THR has always been profitable.
THR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
THR has a Return On Assets of 6.11%. This is amongst the best in the industry. THR outperforms 84.54% of its industry peers.
THR's Return On Equity of 9.54% is amongst the best of the industry. THR outperforms 81.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.95%, THR belongs to the top of the industry, outperforming 82.47% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for THR is below the industry average of 9.63%.
The last Return On Invested Capital (7.95%) for THR is above the 3 year average (7.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 9.54% | ||
| ROIC | 7.95% |
ROA(3y)5.02%
ROA(5y)3.43%
ROE(3y)7.98%
ROE(5y)5.52%
ROIC(3y)7.1%
ROIC(5y)5.35%
1.3 Margins
The Profit Margin of THR (9.48%) is better than 87.63% of its industry peers.
THR's Profit Margin has improved in the last couple of years.
The Operating Margin of THR (14.62%) is better than 87.63% of its industry peers.
In the last couple of years the Operating Margin of THR has grown nicely.
THR has a Gross Margin of 43.89%. This is amongst the best in the industry. THR outperforms 91.75% of its industry peers.
THR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.62% | ||
| PM (TTM) | 9.48% | ||
| GM | 43.89% |
OM growth 3Y64.38%
OM growth 5Y5.6%
PM growth 3Y217.51%
PM growth 5Y13.55%
GM growth 3Y1.61%
GM growth 5Y0.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so THR is destroying value.
THR has more shares outstanding than it did 1 year ago.
THR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, THR has a worse debt to assets ratio.
2.2 Solvency
THR has an Altman-Z score of 3.79. This indicates that THR is financially healthy and has little risk of bankruptcy at the moment.
THR's Altman-Z score of 3.79 is fine compared to the rest of the industry. THR outperforms 79.38% of its industry peers.
The Debt to FCF ratio of THR is 2.67, which is a good value as it means it would take THR, 2.67 years of fcf income to pay off all of its debts.
THR's Debt to FCF ratio of 2.67 is fine compared to the rest of the industry. THR outperforms 76.29% of its industry peers.
THR has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
THR has a Debt to Equity ratio of 0.28. This is comparable to the rest of the industry: THR outperforms 56.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 3.79 |
ROIC/WACC0.95
WACC8.33%
2.3 Liquidity
THR has a Current Ratio of 2.56. This indicates that THR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.56, THR is in the better half of the industry, outperforming 71.13% of the companies in the same industry.
A Quick Ratio of 1.71 indicates that THR should not have too much problems paying its short term obligations.
THR has a better Quick ratio (1.71) than 68.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.56 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
THR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.17%.
The Earnings Per Share has been growing by 9.05% on average over the past years. This is quite good.
Looking at the last year, THR shows a small growth in Revenue. The Revenue has grown by 0.46% in the last year.
The Revenue has been growing slightly by 3.69% on average over the past years.
EPS 1Y (TTM)-12.17%
EPS 3Y74.93%
EPS 5Y9.05%
EPS Q2Q%-5.08%
Revenue 1Y (TTM)0.46%
Revenue growth 3Y21.44%
Revenue growth 5Y3.69%
Sales Q2Q%-1.52%
3.2 Future
THR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.32% yearly.
THR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.93% yearly.
EPS Next Y1.28%
EPS Next 2Y5.75%
EPS Next 3Y8.32%
EPS Next 5YN/A
Revenue Next Year0.12%
Revenue Next 2Y4.29%
Revenue Next 3Y4.93%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.66, THR is valued correctly.
Based on the Price/Earnings ratio, THR is valued cheaply inside the industry as 80.41% of the companies are valued more expensively.
THR is valuated rather cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.59, THR is valued correctly.
Based on the Price/Forward Earnings ratio, THR is valued cheaper than 82.47% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.86. THR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.66 | ||
| Fwd PE | 13.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, THR is valued cheaper than 83.51% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, THR is valued cheaply inside the industry as 82.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.27 | ||
| EV/EBITDA | 10.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates THR does not grow enough to justify the current Price/Earnings ratio.
THR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)13.04
PEG (5Y)1.84
EPS Next 2Y5.75%
EPS Next 3Y8.32%
5. Dividend
5.1 Amount
No dividends for THR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.66
+0.91 (+3.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.72%
Inst Owner Change0.07%
Ins Owners2.3%
Ins Owner Change0.88%
Market Cap931.87M
Analysts80
Price Target37.23 (34.6%)
Short Float %1.04%
Short Ratio1.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.37%
Min EPS beat(2)0.35%
Max EPS beat(2)2.38%
EPS beat(4)4
Avg EPS beat(4)7.08%
Min EPS beat(4)0.35%
Max EPS beat(4)20.4%
EPS beat(8)7
Avg EPS beat(8)15.02%
EPS beat(12)11
Avg EPS beat(12)31.68%
EPS beat(16)14
Avg EPS beat(16)27.55%
Revenue beat(2)0
Avg Revenue beat(2)-3.27%
Min Revenue beat(2)-4.24%
Max Revenue beat(2)-2.3%
Revenue beat(4)0
Avg Revenue beat(4)-2.11%
Min Revenue beat(4)-4.24%
Max Revenue beat(4)-0.21%
Revenue beat(8)4
Avg Revenue beat(8)3%
Revenue beat(12)8
Avg Revenue beat(12)7.13%
Revenue beat(16)12
Avg Revenue beat(16)7.53%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)1.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.66 | ||
| Fwd PE | 13.59 | ||
| P/S | 1.89 | ||
| P/FCF | 16.27 | ||
| P/OCF | 13.79 | ||
| P/B | 1.91 | ||
| P/tB | 8.71 | ||
| EV/EBITDA | 10.75 |
EPS(TTM)1.66
EY6%
EPS(NY)2.04
Fwd EY7.36%
FCF(TTM)1.7
FCFY6.15%
OCF(TTM)2.01
OCFY7.25%
SpS14.6
BVpS14.51
TBVpS3.18
PEG (NY)13.04
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 9.54% | ||
| ROCE | 11% | ||
| ROIC | 7.95% | ||
| ROICexc | 8.45% | ||
| ROICexgc | 22.27% | ||
| OM | 14.62% | ||
| PM (TTM) | 9.48% | ||
| GM | 43.89% | ||
| FCFM | 11.64% |
ROA(3y)5.02%
ROA(5y)3.43%
ROE(3y)7.98%
ROE(5y)5.52%
ROIC(3y)7.1%
ROIC(5y)5.35%
ROICexc(3y)7.63%
ROICexc(5y)5.76%
ROICexgc(3y)20.15%
ROICexgc(5y)14.96%
ROCE(3y)9.95%
ROCE(5y)7.48%
ROICexcg growth 3Y96.89%
ROICexcg growth 5Y10.85%
ROICexc growth 3Y89.37%
ROICexc growth 5Y7.56%
OM growth 3Y64.38%
OM growth 5Y5.6%
PM growth 3Y217.51%
PM growth 5Y13.55%
GM growth 3Y1.61%
GM growth 5Y0.07%
F-Score9
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.67 | ||
| Debt/EBITDA | 1.43 | ||
| Cap/Depr | 45.78% | ||
| Cap/Sales | 2.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.57% | ||
| Profit Quality | 122.82% | ||
| Current Ratio | 2.56 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 3.79 |
F-Score9
WACC8.33%
ROIC/WACC0.95
Cap/Depr(3y)44.48%
Cap/Depr(5y)42.22%
Cap/Sales(3y)1.95%
Cap/Sales(5y)2.32%
Profit Quality(3y)122.26%
Profit Quality(5y)666.42%
High Growth Momentum
Growth
EPS 1Y (TTM)-12.17%
EPS 3Y74.93%
EPS 5Y9.05%
EPS Q2Q%-5.08%
EPS Next Y1.28%
EPS Next 2Y5.75%
EPS Next 3Y8.32%
EPS Next 5YN/A
Revenue 1Y (TTM)0.46%
Revenue growth 3Y21.44%
Revenue growth 5Y3.69%
Sales Q2Q%-1.52%
Revenue Next Year0.12%
Revenue Next 2Y4.29%
Revenue Next 3Y4.93%
Revenue Next 5YN/A
EBIT growth 1Y-10.55%
EBIT growth 3Y99.61%
EBIT growth 5Y9.5%
EBIT Next Year33.2%
EBIT Next 3Y16.67%
EBIT Next 5YN/A
FCF growth 1Y46.31%
FCF growth 3Y35.34%
FCF growth 5Y37.47%
OCF growth 1Y44.99%
OCF growth 3Y29.61%
OCF growth 5Y23.21%