Gentherm Inc

Valuation Analysis

About the Company

Gentherm Incorporated designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies in the United States, China, Germany, Czech Republic, South Korea, Mexico, Slovakia, Romania, Japan, United Kingdom and internationally. It operates in two segments, Automotive and Medical. The company offers climate comfort systems, including seat heaters, blowers, and thermoelectric devices for variable temperature climate control seats and steering wheel heaters to provide thermal comfort to automobile passengers; integrated electronic components, such as electronic control units; pneumatic lumbar and massage comfort solutions comprising lumbar support, side bolster adjustment, multi-contour seats and massage systems; and other climate and comfort systems, including nec

Gentherm Inc Stock at a Glance

Gentherm Inc (THRM) is currently trading at $36.36 with a market capitalization of $1.1B. The trailing P/E ratio stands at 49.81x, with a forward P/E of 11.91x. The 52-week range spans from $27.00 to $39.48; the current price is 7.9% below the yearly high. Year-over-year revenue growth stands at +11.3%. The net profit margin stands at 1.47%.

💰 Dividend

Gentherm Inc currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

7 analysts rate Gentherm Inc (THRM) on consensus: Buy. The average price target is $40.57, implying +11.58% from the current price. Analyst price targets range from $34.00 to $53.00.

Gentherm Inc: The Investment Case in Detail

Gentherm Inc (THRM) operates in the Consumer Cyclical — specifically Auto Parts — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 11.3% pace year-over-year, suggesting the business model continues to find new customers and pricing power.

The Bear Case

With a net margin of just 1.47%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

The PEG ratio at 1.02 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric. The EV/EBITDA multiple of 7.22x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 11.91x is meaningfully below the trailing 49.81x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to market-like volatility.

Trading Data

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