Gentherm Incorporated (THRM) Bundle
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 |
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