GENTHERM INC (THRM) Stock Fundamental Analysis
NASDAQ:THRM - Nasdaq - US37253A1034 - Common Stock - Currency: USD
Overall THRM gets a fundamental rating of 4 out of 10. We evaluated THRM against 81 industry peers in the Automobile Components industry. THRM scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. THRM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year THRM was profitable.
THRM had a positive operating cash flow in the past year.
In the past 5 years THRM has always been profitable.
THRM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.72%, THRM is doing worse than 61.73% of the companies in the same industry.
THRM has a worse Return On Equity (7.74%) than 64.20% of its industry peers.
THRM's Return On Invested Capital of 8.37% is on the low side compared to the rest of the industry. THRM is outperformed by 60.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for THRM is below the industry average of 8.96%.
The last Return On Invested Capital (8.37%) for THRM is above the 3 year average (6.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 7.74% | ||
| ROIC | 8.37% |
ROA(3y)3.48%
ROA(5y)5.25%
ROE(3y)6.8%
ROE(5y)8.98%
ROIC(3y)6.96%
ROIC(5y)8.02%
1.3 Margins
THRM has a Profit Margin of 3.44%. This is in the lower half of the industry: THRM underperforms 61.73% of its industry peers.
THRM's Profit Margin has declined in the last couple of years.
THRM has a Operating Margin of 8.33%. This is in the lower half of the industry: THRM underperforms 61.73% of its industry peers.
In the last couple of years the Operating Margin of THRM has declined.
THRM has a Gross Margin of 25.04%. This is in the lower half of the industry: THRM underperforms 62.96% of its industry peers.
In the last couple of years the Gross Margin of THRM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.33% | ||
| PM (TTM) | 3.44% | ||
| GM | 25.04% |
OM growth 3Y-9.51%
OM growth 5Y-3.44%
PM growth 3Y-20.65%
PM growth 5Y-2.38%
GM growth 3Y-4.64%
GM growth 5Y-3.24%
2. Health
2.1 Basic Checks
THRM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
THRM has less shares outstanding than it did 1 year ago.
THRM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for THRM has been reduced compared to a year ago.
2.2 Solvency
THRM has an Altman-Z score of 3.21. This indicates that THRM is financially healthy and has little risk of bankruptcy at the moment.
THRM has a better Altman-Z score (3.21) than 72.84% of its industry peers.
THRM has a debt to FCF ratio of 9.07. This is a negative value and a sign of low solvency as THRM would need 9.07 years to pay back of all of its debts.
The Debt to FCF ratio of THRM (9.07) is worse than 71.60% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that THRM is not too dependend on debt financing.
THRM has a Debt to Equity ratio of 0.41. This is in the lower half of the industry: THRM underperforms 69.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 9.07 | ||
| Altman-Z | 3.21 |
ROIC/WACC0.92
WACC9.11%
2.3 Liquidity
THRM has a Current Ratio of 2.16. This indicates that THRM is financially healthy and has no problem in meeting its short term obligations.
THRM has a better Current ratio (2.16) than 75.31% of its industry peers.
A Quick Ratio of 1.49 indicates that THRM should not have too much problems paying its short term obligations.
THRM has a better Quick ratio (1.49) than 79.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
The earnings per share for THRM have decreased strongly by -19.34% in the last year.
THRM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.26% yearly.
Looking at the last year, THRM shows a decrease in Revenue. The Revenue has decreased by -0.51% in the last year.
THRM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.43% yearly.
EPS 1Y (TTM)-19.34%
EPS 3Y-8.31%
EPS 5Y-0.26%
EPS Q2Q%-17.74%
Revenue 1Y (TTM)-0.51%
Revenue growth 3Y11.65%
Revenue growth 5Y8.43%
Sales Q2Q%-0.61%
3.2 Future
Based on estimates for the next years, THRM will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.37% on average per year.
THRM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.67% yearly.
EPS Next Y6.25%
EPS Next 2Y13.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.01%
Revenue Next 2Y0.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.81, the valuation of THRM can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as THRM.
THRM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.95.
THRM is valuated reasonably with a Price/Forward Earnings ratio of 9.50.
Compared to the rest of the industry, the Price/Forward Earnings ratio of THRM is on the same level as its industry peers.
THRM is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 9.5 |
4.2 Price Multiples
THRM's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, THRM is valued a bit more expensive than the industry average as 69.14% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.22 | ||
| EV/EBITDA | 5.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates THRM does not grow enough to justify the current Price/Earnings ratio.
THRM's earnings are expected to grow with 13.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.05
PEG (5Y)N/A
EPS Next 2Y13.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
THRM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.32
+0.38 (+1.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners102.42%
Inst Owner Change-0.16%
Ins Owners1%
Ins Owner Change22.2%
Market Cap873.96M
Analysts76.67
Price Target40.03 (41.35%)
Short Float %2.55%
Short Ratio1.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-25.22%
Min EPS beat(2)-58.19%
Max EPS beat(2)7.76%
EPS beat(4)3
Avg EPS beat(4)-7.89%
Min EPS beat(4)-58.19%
Max EPS beat(4)12.09%
EPS beat(8)6
Avg EPS beat(8)10.01%
EPS beat(12)7
Avg EPS beat(12)3.18%
EPS beat(16)9
Avg EPS beat(16)5.72%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-3.97%
Max Revenue beat(2)-0.27%
Revenue beat(4)0
Avg Revenue beat(4)-2.08%
Min Revenue beat(4)-3.97%
Max Revenue beat(4)-0.27%
Revenue beat(8)1
Avg Revenue beat(8)-2.22%
Revenue beat(12)3
Avg Revenue beat(12)-1.36%
Revenue beat(16)6
Avg Revenue beat(16)-0.8%
PT rev (1m)-14.67%
PT rev (3m)-32.71%
EPS NQ rev (1m)-12%
EPS NQ rev (3m)-27.37%
EPS NY rev (1m)-2.42%
EPS NY rev (3m)-20.29%
Revenue NQ rev (1m)-3%
Revenue NQ rev (3m)-7.49%
Revenue NY rev (1m)-2.49%
Revenue NY rev (3m)-7.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 9.5 | ||
| P/S | 0.6 | ||
| P/FCF | 30.22 | ||
| P/OCF | 8.2 | ||
| P/B | 1.35 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | 5.55 |
EPS(TTM)2.21
EY7.8%
EPS(NY)2.98
Fwd EY10.53%
FCF(TTM)0.94
FCFY3.31%
OCF(TTM)3.46
OCFY12.2%
SpS47.11
BVpS20.95
TBVpS15.81
PEG (NY)2.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 7.74% | ||
| ROCE | 12.22% | ||
| ROIC | 8.37% | ||
| ROICexc | 10.02% | ||
| ROICexgc | 12.39% | ||
| OM | 8.33% | ||
| PM (TTM) | 3.44% | ||
| GM | 25.04% | ||
| FCFM | 1.99% |
ROA(3y)3.48%
ROA(5y)5.25%
ROE(3y)6.8%
ROE(5y)8.98%
ROIC(3y)6.96%
ROIC(5y)8.02%
ROICexc(3y)8.29%
ROICexc(5y)10.41%
ROICexgc(3y)10.63%
ROICexgc(5y)13.18%
ROCE(3y)10.16%
ROCE(5y)11.72%
ROICexcg growth 3Y-10.53%
ROICexcg growth 5Y-3.16%
ROICexc growth 3Y-10.82%
ROICexc growth 5Y-2.86%
OM growth 3Y-9.51%
OM growth 5Y-3.44%
PM growth 3Y-20.65%
PM growth 5Y-2.38%
GM growth 3Y-4.64%
GM growth 5Y-3.24%
F-Score6
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 9.07 | ||
| Debt/EBITDA | 1.51 | ||
| Cap/Depr | 149.18% | ||
| Cap/Sales | 5.34% | ||
| Interest Coverage | 9.44 | ||
| Cash Conversion | 61.56% | ||
| Profit Quality | 57.8% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 3.21 |
F-Score6
WACC9.11%
ROIC/WACC0.92
Cap/Depr(3y)102.05%
Cap/Depr(5y)94.87%
Cap/Sales(3y)3.68%
Cap/Sales(5y)3.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-19.34%
EPS 3Y-8.31%
EPS 5Y-0.26%
EPS Q2Q%-17.74%
EPS Next Y6.25%
EPS Next 2Y13.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.51%
Revenue growth 3Y11.65%
Revenue growth 5Y8.43%
Sales Q2Q%-0.61%
Revenue Next Year-3.01%
Revenue Next 2Y0.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.12%
EBIT growth 3Y1.03%
EBIT growth 5Y4.69%
EBIT Next Year47.62%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29019%
FCF growth 3Y-28.58%
FCF growth 5Y-17.94%
OCF growth 1Y161.98%
OCF growth 3Y-8.49%
OCF growth 5Y-1.59%