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 95 industry peers in the Electrical Equipment industry. THR scores excellent on profitability, but there are some minor concerns on its financial health. THR is valued quite cheap, but it does not seem to be growing. These ratings would make THR suitable for value investing!
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.
Of the past 5 years THR 4 years were profitable.
THR had a positive operating cash flow in 4 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 84.21% of its industry peers.
The Return On Equity of THR (9.54%) is better than 81.05% of its industry peers.
The Return On Invested Capital of THR (7.95%) is better than 78.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for THR is below the industry average of 10.08%.
The 3 year average ROIC (7.10%) for THR is below the current ROIC(7.95%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 9.48%, THR belongs to the best of the industry, outperforming 87.37% of the companies in the same industry.
In the last couple of years the Profit Margin of THR has grown nicely.
THR has a Operating Margin of 14.62%. This is amongst the best in the industry. THR outperforms 87.37% of its industry peers.
In the last couple of years the Operating Margin of THR has grown nicely.
THR has a better Gross Margin (43.89%) than 91.58% 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
THR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
THR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.94 indicates that THR is not in any danger for bankruptcy at the moment.
THR's Altman-Z score of 3.94 is fine compared to the rest of the industry. THR outperforms 76.84% 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.
With a decent Debt to FCF ratio value of 2.67, THR is doing good in the industry, outperforming 76.84% of the companies in the same industry.
THR has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of THR (0.28) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 3.94 |
ROIC/WACC0.93
WACC8.56%
2.3 Liquidity
A Current Ratio of 2.56 indicates that THR has no problem at all paying its short term obligations.
THR has a Current ratio of 2.56. This is in the better half of the industry: THR outperforms 70.53% of its industry peers.
A Quick Ratio of 1.71 indicates that THR should not have too much problems paying its short term obligations.
THR has a Quick ratio of 1.71. This is in the better half of the industry: THR outperforms 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.56 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
THR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.30%.
THR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.83% yearly.
EPS 1Y (TTM)3.3%
EPS 3Y29.28%
EPS 5Y20.83%
EPS Q2Q%64.71%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.03%
3.2 Future
The Earnings Per Share is expected to grow by 10.92% on average over the next years. This is quite good.
THR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.42% yearly.
EPS Next Y8.25%
EPS Next 2Y10.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.63%
Revenue Next 2Y7.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.09, which indicates a correct valuation of THR.
Based on the Price/Earnings ratio, THR is valued cheaper than 85.26% of the companies in the same industry.
When comparing the Price/Earnings ratio of THR to the average of the S&P500 Index (25.82), we can say THR is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.01, which indicates a correct valuation of THR.
Based on the Price/Forward Earnings ratio, THR is valued cheaply inside the industry as 82.11% of the companies are valued more expensively.
THR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 13.01 |
4.2 Price Multiples
THR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. THR is cheaper than 85.26% of the companies in the same industry.
THR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. THR is cheaper than 83.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.58 | ||
| EV/EBITDA | 11.51 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of THR may justify a higher PE ratio.
PEG (NY)1.71
PEG (5Y)0.68
EPS Next 2Y10.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
THR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.48
-2.39 (-8.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.72%
Inst Owner Change-1.42%
Ins Owners2.3%
Ins Owner Change7.95%
Market Cap892.11M
Analysts80
Price Target37.23 (40.6%)
Short Float %1.07%
Short Ratio1.9
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)3.59%
EPS NY rev (1m)0%
EPS NY rev (3m)0.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 13.01 | ||
| P/S | 1.81 | ||
| P/FCF | 15.58 | ||
| P/OCF | 13.2 | ||
| P/B | 1.83 | ||
| P/tB | 8.34 | ||
| EV/EBITDA | 11.51 |
EPS(TTM)1.88
EY7.1%
EPS(NY)2.04
Fwd EY7.69%
FCF(TTM)1.7
FCFY6.42%
OCF(TTM)2.01
OCFY7.58%
SpS14.6
BVpS14.51
TBVpS3.18
PEG (NY)1.71
PEG (5Y)0.68
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 | 3.94 |
F-Score9
WACC8.56%
ROIC/WACC0.93
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)3.3%
EPS 3Y29.28%
EPS 5Y20.83%
EPS Q2Q%64.71%
EPS Next Y8.25%
EPS Next 2Y10.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.03%
Revenue Next Year8.63%
Revenue Next 2Y7.42%
Revenue Next 3YN/A
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%