Gentherm, Inc. (THRM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Visteon Corp.

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Lear Corp.

Gentherm, Inc.

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Adient plc

Fox Factory Holding Corp.

Garrett Motion, Inc.

Why is Gentherm, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 11.77% of over the last 5 years

Flat results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 1,077.05
NET PROFIT(Q) At USD 1.08 MM has Fallen at -93.36%
INVENTORY TURNOVER RATIO(HY) Lowest at 4.74 times

With ROE of 10.99%, it has a very expensive valuation with a 1.29 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -17.61%, its profits have fallen by -14.3%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -17.61% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Gentherm, Inc. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Gentherm, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gentherm, Inc.

-10.31%

-0.87

36.83%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.72%

EBIT Growth (5y)

11.77%

EBIT to Interest (avg)

17.65

Debt to EBITDA (avg)

0.39

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

1.62

Tax Ratio

41.84%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

15.84%

ROE (avg)

10.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.29

EV to EBIT

7.62

EV to EBITDA

5.36

EV to Capital Employed

1.25

EV to Sales

0.65

PEG Ratio

Dividend Yield

ROCE (Latest)

16.40%

ROE (Latest)

10.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 114.52 MM

-25What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,077.05

NET PROFIT(Q)

At USD 1.08 MM has Fallen at -93.36%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.74 times

RAW MATERIAL COST(Y)

Grown by 10.82% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.53 times

INTEREST(Q)

Highest at USD 3.73 MM

PRE-TAX PROFIT(Q)

Lowest at USD 5.72 MM

Here's what is working for Gentherm, Inc.

Operating Cash Flow

Highest at USD 114.52 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Here's what is not working for Gentherm, Inc.

Interest Coverage Ratio

Lowest at 1,077.05 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At USD 5.72 MM has Fallen at -79.91%

over average net sales of the previous four periods of USD 28.47 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 1.08 MM has Fallen at -93.36%

over average net sales of the previous four periods of USD 16.21 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 3.73 MM has Grown at 14.66%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Inventory Turnover Ratio

Lowest at 4.74 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at USD 3.73 MM

in the last five periods and Increased by 14.66% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

Lowest at USD 5.72 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Debtors Turnover Ratio

Lowest at 4.53 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 10.82% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales