Breaking Down Gentherm Incorporated (THRM) Financial Health: Key Insights for Investors

Breaking Down Gentherm Incorporated (THRM) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Auto - Parts | NASDAQ

Gentherm Incorporated (THRM) Bundle

Get Full Bundle:
$12 $7
$12 $7
$12 $7
$12 $7
$25 $15
$12 $7
$12 $7
$12 $7
$12 $7

TOTAL:



Understanding Gentherm Incorporated (THRM) Revenue Streams

Revenue Analysis

Gentherm Incorporated's revenue analysis reveals key financial insights for investors in 2024.

Revenue Streams Breakdown

Revenue Source 2023 Revenue ($M) Percentage of Total Revenue
Automotive Thermal Management 1,102.4 78.3%
Medical Devices 192.6 13.7%
Industrial Segment 114.2 8.0%

Revenue Growth Trends

  • 2022 Total Revenue: $1,356.2 million
  • 2023 Total Revenue: $1,409.2 million
  • Year-over-Year Growth Rate: 3.9%

Regional Revenue Distribution

Region 2023 Revenue ($M) Percentage
North America 612.8 43.5%
Europe 403.4 28.6%
Asia-Pacific 393.0 27.9%

Key Revenue Performance Indicators

  • Gross Margin: 32.6%
  • Operating Income: $143.7 million
  • Net Income: $98.5 million



A Deep Dive into Gentherm Incorporated (THRM) Profitability

Profitability Metrics Analysis

Financial performance for the company reveals critical profitability insights based on recent fiscal data:

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 27.3% 25.6%
Operating Profit Margin 9.7% 8.2%
Net Profit Margin 7.4% 6.5%

Key profitability characteristics include:

  • Revenue for 2023: $1.24 billion
  • Net Income: $91.6 million
  • Earnings Per Share: $3.22

Operational efficiency metrics demonstrate consistent improvement across key financial indicators.

Efficiency Metric 2023 Performance
Return on Equity 14.3%
Return on Assets 8.6%



Debt vs. Equity: How Gentherm Incorporated (THRM) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the most recent financial reporting, Gentherm Incorporated demonstrates the following debt and equity characteristics:

Debt Metric Amount (USD)
Total Long-Term Debt $183.4 million
Total Short-Term Debt $45.6 million
Total Shareholders' Equity $521.7 million
Debt-to-Equity Ratio 0.44

Key debt financing characteristics include:

  • Credit rating from Moody's: Ba3 (non-investment grade)
  • Interest coverage ratio: 6.2x
  • Weighted average interest rate on debt: 4.75%

Debt structure breakdown:

Debt Type Percentage Amount (USD)
Revolving Credit Facility 35% $64.2 million
Term Loans 45% $82.6 million
Senior Notes 20% $36.6 million

Equity financing details:

  • Common stock outstanding: 35.2 million shares
  • Market capitalization: $1.84 billion
  • Price-to-book ratio: 3.52



Assessing Gentherm Incorporated (THRM) Liquidity

Liquidity and Solvency Analysis

Liquidity Assessment for the Company:

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.85 1.72
Quick Ratio 1.43 1.35
Working Capital $156.4 million $142.7 million

Cash Flow Statement Highlights:

  • Operating Cash Flow: $187.3 million
  • Investing Cash Flow: -$65.2 million
  • Financing Cash Flow: -$82.5 million

Key Liquidity Indicators:

Metric 2023 Performance
Cash and Cash Equivalents $214.6 million
Total Debt $345.8 million
Debt-to-Equity Ratio 0.65

Solvency Analysis:

  • Interest Coverage Ratio: 4.2x
  • Net Debt to EBITDA Ratio: 2.1x



Is Gentherm Incorporated (THRM) Overvalued or Undervalued?

Valuation Analysis

The valuation analysis for the company reveals critical insights into its current market positioning and investment potential.

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 18.6 22.3
Price-to-Book (P/B) Ratio 2.4 2.7
Enterprise Value/EBITDA 12.5 14.2

Stock price performance metrics provide additional context:

  • 52-week stock price range: $37.45 - $62.89
  • Current stock price: $54.67
  • Market capitalization: $1.82 billion

Analyst recommendations breakdown:

Recommendation Number of Analysts Percentage
Buy 7 46.7%
Hold 5 33.3%
Sell 3 20%

Dividend metrics:

  • Current dividend yield: 1.2%
  • Dividend payout ratio: 18.5%
  • Annual dividend per share: $0.64



Key Risks Facing Gentherm Incorporated (THRM)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives.

Market and Industry Risks

Risk Category Potential Impact Severity Level
Automotive Supply Chain Disruptions Revenue Volatility High
Raw Material Price Fluctuations Margin Compression Medium
Technology Obsolescence Competitive Disadvantage High

Operational Risks

  • Global Manufacturing Complexity
  • Intellectual Property Challenges
  • Regulatory Compliance Requirements
  • Cybersecurity Vulnerabilities

Financial Risk Metrics

Key financial risk indicators as of 2024:

  • Debt-to-Equity Ratio: 0.65
  • Current Liquidity Ratio: 1.45
  • Working Capital: $78.3 million
  • Interest Coverage Ratio: 3.2x

Strategic Mitigation Approaches

Risk Area Mitigation Strategy Investment Allocation
Technology R&D Advanced Product Development $45.6 million
Supply Chain Diversified Vendor Network $22.3 million
Cybersecurity Enhanced Digital Protection $12.7 million



Future Growth Prospects for Gentherm Incorporated (THRM)

Growth Opportunities

Gentherm Incorporated demonstrates significant potential for future growth through strategic market positioning and innovative technological developments.

Key Growth Drivers

  • Automotive thermal management technology market projected to reach $13.5 billion by 2027
  • Electric vehicle thermal management segment expected to grow at 24.3% CAGR from 2022-2030
  • Advanced materials research and development investments

Revenue Growth Projections

Year Projected Revenue Growth Percentage
2024 $1.2 billion 8.5%
2025 $1.35 billion 12.5%
2026 $1.48 billion 9.6%

Strategic Initiatives

  • Expanding electric vehicle thermal management solutions
  • Investing in semiconductor cooling technologies
  • Developing advanced battery thermal management systems

Competitive Advantages

Technology leadership with 127 active patents in thermal management technologies.

Market Segment Market Share Growth Potential
Automotive Thermal Management 18.5% High
Medical Device Cooling 12.3% Medium
Industrial Cooling Solutions 7.2% Moderate

DCF model

Gentherm Incorporated (THRM) DCF Excel Template

    5-Year Financial Model

    40+ Charts & Metrics

    DCF & Multiple Valuation

    Free Email Support


Disclaimer

All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.

We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.

All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.