One-glance verdict
Within fair range
$27.87 our estimate vs market $28.59
Wall Street consensus: $48.00 (72.3% higher than our fair-value estimate)
3% above our estimate
Fundamentals snapshot
Gentherm Incorporated
THRM · NMS · Consumer Cyclical · Auto Parts
Current price
$28.59
52-week range
$25.31 - $48.35
Market cap
$1.56B
Balance sheet
Watch
7.05x Adequate
Net debt $118.66M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 6.6% last year.
- Reward Free cash flow was positive in 8/10 years.
- Risk Stock trades 91.4% above its 5-year average P/E.
- Risk Insider ownership is only 1.2% (peer median: 1.2%).
What this company does
Gentherm Incorporated
Gentherm makes comfort systems for cars, like seat heaters, and also equipment for controlling patient temperature in hospitals. Most of their money comes from selling these car comfort systems to car makers. This matters because it means their success is tied to how well the auto industry is doing.
How the company got here
Gentherm, originally Amerigon Incorporated, was founded in 1991 and has since evolved into a key player in thermal management technologies. The company's journey has been marked by a strategic focus on innovation within the automotive and medical sectors. A significant turning point was its name change to Gentherm in September 2012, reflecting its expanded scope beyond its initial offerings. This rebranding signaled a commitment to becoming a comprehensive provider of comfort and safety solutions through advanced thermal technologies.
What it actually does
Gentherm specializes in creating technologies that manage temperature and air flow for comfort and performance. Think of it as the company that makes your car seats warm or cool, or ensures medical equipment keeps patients at the right temperature. They develop and manufacture these systems, which are then integrated into vehicles by car manufacturers or used in hospitals and medical settings.
Automotive
This is Gentherm's largest business, focusing on making cars more comfortable for drivers and passengers. They create systems like heated and cooled seats, heated steering wheels, and climate control for different parts of the car, such as armrests and neck areas. Gentherm also provides solutions for battery performance and thermal management, which are increasingly important for electric vehicles. Additionally, they supply electronic control units and cable technologies that help power and manage these comfort systems. This segment is the primary revenue driver for the company.
Medical
In the medical field, Gentherm provides patient temperature management systems, primarily for use in hospitals and during surgical procedures. Brands like Blanketrol and Astotherm are used to carefully control a patient's body temperature, either warming them up (normothermia) or cooling them down (hyper-hypothermia therapy) as needed for treatment or recovery. This segment represents a smaller but vital part of Gentherm's overall business, focusing on critical care applications.
What management is betting on now
Gentherm's leadership is focused on expanding its thermal management solutions, particularly for the growing electric vehicle market. They are investing in technologies that improve battery performance and passenger comfort in EVs, recognizing these as key growth areas. The company is also looking to leverage its expertise in thermal technology to develop new applications and strengthen its position in both the automotive and medical sectors. This strategy aims to drive innovation and capture market share in evolving industries.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$13.60M
FY2025 Q1
$-28.21M
FY2025 Q2
$36.19M
FY2025 Q3
$46.47M
FY2025 Q4
$6.68M
FY2026 Q1
$-10.69M
FY2026 Q2
$-1.24M
FY2026 Q3
$25.38M
Revenue
$405.10M
Net income
—
Diluted EPS
-0.08
Operating cash flow
$33.73M
Free cash flow
$25.38M
Fetching…
Sources
Revenue
$416.17M
Net income
—
Diluted EPS
0.14
Operating cash flow
$7.32M
Free cash flow
$-1.24M
Fetching…
Sources
Revenue
$393.71M
Net income
—
Diluted EPS
0.14
Operating cash flow
$-5.04M
Free cash flow
$-10.69M
Fetching…
Sources
Revenue
$382.79M
Net income
—
Diluted EPS
0.08
Operating cash flow
$28.97M
Free cash flow
$6.68M
Fetching…
Sources
Revenue
$386.87M
Net income
—
Diluted EPS
0.49
Operating cash flow
$56.12M
Free cash flow
$46.47M
Fetching…
Sources
Revenue
$375.09M
Net income
—
Diluted EPS
0.02
Operating cash flow
$45.05M
Free cash flow
$36.19M
Fetching…
Sources
Revenue
$353.85M
Net income
—
Diluted EPS
0.00
Operating cash flow
$-13.34M
Free cash flow
$-28.21M
Fetching…
Sources
Revenue
$352.91M
Net income
—
Diluted EPS
0.48
Operating cash flow
$36.56M
Free cash flow
$13.60M
Fetching…
Sources
Is it cheap or expensive?
Fair value $27.87 vs current price $28.59
Wall Street consensus is the average analyst price target: $48.00 (72.3% higher than our fair-value estimate).
Our most-likely fair value is $27.87 a share — about 2.5% away from today's price of $28.59, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $118.7M. Interest coverage 7.1x.
Net debt
$118.66M
Interest coverage
7.05x
Gentherm Incorporated's profit covers its interest bill about 7.1 times over.
Watch
Worse cushion
Baseline
Better cushion
THRM
BASELINE
Gentherm Incorporated
Total debt $370.76M Interest coverage 7.05x This is the baseline the peer rows are being compared against.
Total debt $3.52B Interest coverage 7.71x +9% vs THRM Has roughly the same debt cushion as THRM.
Total debt $2.65B Interest coverage 2.18x -69% vs THRM Carries about 3.2x less debt cushion than THRM.
Total debt $6.47B Interest coverage 7.67x +9% vs THRM Has roughly the same debt cushion as THRM.
Total debt $671.40M Interest coverage 11.74x +67% vs THRM Carries about 1.7x more debt cushion than THRM.
Total debt $4.06B Interest coverage 13.36x +90% vs THRM Carries about 1.9x more debt cushion than THRM.
What you should know
The case for and against THRM
2 Rewards
2 Risks
Rewards
-
Revenue grew 6.6% last year.
-
Free cash flow was positive in 8/10 years.
Risks
-
Stock trades 91.4% above its 5-year average P/E.
-
Insider ownership is only 1.2% (peer median: 1.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
102.11x
Forward P/E
9.21x
P/B
1.22x
P/S
0.97x
EV/EBITDA
9.40x
PEG ratio
1.02x
Profitability
How much profit each dollar creates
Gross margin
23.7%
Operating margin
6.3%
Net margin
0.6%
ROE
1.3%
ROA
4.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.51x
Current ratio
2.05x
Quick ratio
1.37x
Total debt
$370.76M
Total cash
$252.10M
Growth
How the business has been compounding
Revenue TTM
$1.60B
Revenue 5Y CAGR
9.4%
EPS TTM
0.28
EPS 5Y CAGR
-6.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$64.98M
Free CF TTM
$61.12M
FCF margin
3.8%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2026-10-02