# Gentherm (THRM.US)

Canonical: https://gigainvestors.com/s/THRM

Analysis as of: 2026-10-16T07:32:23.369Z. Financial observations: FY1998–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $29.81 per share; close as of 2026-10-15.

Estimated value: low $23.10 per share, central $25.47 per share, high $28.62 per share. Buy at or below the central value $25.47 per share. Valuation as of 2026-10-16T07:32:23.369Z; scenarios are not confidence intervals.

Expected annual return: 8.7% at the stated quote. About 8.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.34×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.10×

- FY2018: 0.07×

- FY2019: 0.09×

- FY2020: 0.10×

- FY2021: 0.11×

- FY2022: 0.04×

- FY2023: 0.05×

- FY2024: 0.07×

- FY2025: 0.05×

- LTM to Jun 2026: 0.04×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 10.4%

- ROIC, second-lowest year: 5.3%

- Typical minus recent gross margin: 3.3 pp

- Typical gross margin (annual median): 26.8%

- Recent gross margin (lower of latest and 3-year median): 23.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.5%

- ROIC including acquisitions, ten-year median: 7.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 12.0%

- FY2018: 10.0%

- FY2019: 11.9%

- FY2020: 13.8%

- FY2021: 20.5%

- FY2022: 4.7%

- FY2023: 8.9%

- FY2024: 10.7%

- FY2025: 6.8%

- LTM to Jun 2026: 5.3%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.99×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $238M

- Net income, five-year total: $241M

- Return on incremental invested capital: -25.0%

- Working capital / revenue, annual change: -0.0 pp

- Working capital / revenue, change between three-year averages: -0.4 pp

- Working capital / revenue, final three-year average: 20.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.17×

- FY2023: 1.31×

- FY2024: 0.69×

- FY2025: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 12.0% vs 8.9%

- Per-share earnings: 2.09 to 1.22 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.6%

- Ordinary dilution, 5-year annual growth: -1.3%

- Market cap gain: -$126M

- Cumulative retained earnings: $457M

- Diluted shares, 10-year annual growth: -1.6%

- Diluted shares, 5-year annual growth: -1.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -6.5%

- Per-share value change: -$0.87

- Per-share value, starting three-year median: $2.09

- Per-share value, ending three-year median: $1.22

- Buybacks concentrated in cheaper years (correlation): -0.09

- Average buyback yield: 2.8%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $369M

- Cumulative net income, 10 years: $492M

- ROIC, first three-year median: 12.0%

- ROIC, last three-year median: 8.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.09

- FY2017: $0.96

- FY2018: $1.16

- FY2019: $1.13

- FY2020: $1.81

- FY2021: $2.79

- FY2022: $0.73

- FY2023: $1.22

- FY2024: $2.06

- FY2025: $0.59

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -7.1%

- Receivables to sales index (DSRI): 1.07×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 10.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 6.39×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.22×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.8%

- FY2017: -1.7%

- FY2018: -9.5%

- FY2019: -11.0%

- FY2020: -5.0%

- FY2021: -5.3%

- FY2022: 0.8%

- FY2023: -6.4%

- FY2024: -3.6%

- FY2025: -7.1%

## Holders

## Price story

Down 66% since Jan 2022 · "Gentherm Non-GAAP EPS of $0.54, revenue of $375M, narrows FY guidance" (seekingalpha.com, Jul 2025) · sales +5.4%

Story as of 2026-10-16T09:59:41.718Z; price observation 2026-10-15.

Price needs cash profits to grow 3.4% a year for ten years

- 2025-07-24: Gentherm Non-GAAP EPS of $0.54, revenue of $375M, narrows FY guidance ([seekingalpha.com](https://seekingalpha.com/news/4471239-gentherm-non-gaap-eps-of-054-revenue-of-375m-narrows-fy-guidance?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-10-23: Gentherm raises 2025 revenue guidance to $1.47B–$1.49B while advancing strategic market expansion ([seekingalpha.com](https://seekingalpha.com/news/4507820-gentherm-raises-2025-revenue-guidance-to-1_47b-1_49b-while-advancing-strategic-market?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-04-23: Gentherm tops Q1 estimates; reaffimrs FY26 outlook ([seekingalpha.com](https://seekingalpha.com/news/4578490-gentherm-tops-q1-estimates-reaffimrs-fy26-outlook?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-07-23: Gentherm soars after Q2 beat and raised outlook ([seekingalpha.com](https://seekingalpha.com/news/4617475-gentherm-soars-after-q2-beat-and-raised-outlook?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales +5.4%; source https://www.sec.gov/Archives/edgar/data/903129/000119312526059602/thrm-20251231.htm; observed 2026-02-19.

- FY2017: $986M 

- FY2018: $1.0B 

- FY2019: $972M 

- FY2020: $913M 

- FY2021: $1.0B 

- FY2022: $1.2B 

- FY2023: $1.5B 

- FY2024: $1.5B 

- FY2025: $1.5B 

- FY2026: $1.6B 

### Gross margin · FY2026

gross margin 23.4%; source https://www.sec.gov/Archives/edgar/data/903129/000119312526059602/thrm-20251231.htm; observed 2026-02-19.

- FY2017: 31.6% 

- FY2018: 28.4% 

- FY2019: 29.7% 

- FY2020: 29.4% 

- FY2021: 29.0% 

- FY2022: 22.7% 

- FY2023: 23.9% 

- FY2024: 25.2% 

- FY2025: 23.5% 

- FY2026: 23.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in auto parts; annual sales are USD 1.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/903129/000119312526059602/thrm-20251231.htm (filed 2026-02-19); FY2025: revenue 1494616000; grossProfit 351673000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); THRM.US: 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 neck and shoulder conditioners, and climate control systems for door panels and armrests. It also provides automotive cable technology, such as ready-made individual cables and ready-to-install cable networks used to connect components to power sources; battery performance solutions consist of cell connecting devices and battery cable technologies used for various types of batteries and thermal management products; valve systems for brake and engine systems, and fuel management; and electronic and software systems include electronic control units for climate and comfort systems, and electronic control units for memory seat modules and other devices. In addition, the company offers patient temperature management systems under the Blanketrol and Astotherm brands for hyper-hypothermia therapy in intensive care, normothermia in surgical procedures, and additional warming/cooling therapies. It serves light vehicle original equipment manufacturers and tier 1, and medical industry. Gentherm Incorporated was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. The company was incorporated in 1991 and is headquartered in Northville, Michigan.

### Why customers stay

Margins ranged from 23.5% to 25.2% during 2023–25; it earns 10.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: grossProfit / revenue = 23.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: grossProfit / revenue = 25.2%.

- Source: https://www.sec.gov/Archives/edgar/data/903129/000119312526059602/thrm-20251231.htm (filed 2026-02-19); FY2025: grossProfit / revenue = 23.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); 10-year return on capital observations [[2017,0.12005969342915733],[2018,0.10001589178446521],[2019,0.11944292390799434],[2020,0.13814765197971718],[2021,0.2045647116692432],[2022,0.047475449246656636],[2023,0.0891496600394065],[2024,0.10734860643847033],[2025,0.06805242380627256],[2026,0.05264461186348937]]; median 0.10368224911146777. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 12.5% of cash earnings on expansion; paid dividends in 7 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2016: growth capex 8053973.734989844; upkeep 58262026.265010156; cash acquisitions 73593000; owner earnings 56099973.734989844. Growth capex plus acquisitions / owner earnings = 1.4553834574091113.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2017: growth capex 5813000; upkeep 44972000; cash acquisitions 66994000; owner earnings 35227000. Growth capex plus acquisitions / owner earnings = 2.066795355835013.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2018: growth capex 0; upkeep 41541000; cash acquisitions 15000; owner earnings 50996000. Growth capex plus acquisitions / owner earnings = 0.00029414071691897403.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2019: growth capex 0; upkeep 23729000; cash acquisitions 14823000; owner earnings 58023000. Growth capex plus acquisitions / owner earnings = 0.25546765937645416.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2020: growth capex 0; upkeep 20360000; owner earnings 80444000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2021: growth capex 7245000; upkeep 38780000; cash acquisitions 2827000; owner earnings 93434000. Growth capex plus acquisitions / owner earnings = 0.10779801785217373.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2022: growth capex 0; upkeep 40198000; cash acquisitions 205487000; owner earnings 28637000. Growth capex plus acquisitions / owner earnings = 7.175577050668715.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: growth capex 0; upkeep 38417000; owner earnings 52874000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: growth capex 0; upkeep 73314000; owner earnings 44608000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/903129/000119312526059602/thrm-20251231.htm (filed 2026-02-19); FY2025: growth capex 2294000; upkeep 53379000; owner earnings 18285000. Growth capex / owner earnings = 0.12545802570412906.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Dividend observations: [[2016,112704000],[2017,0],[2018,104885000],[2019,16556999],[2020,16552000],[2021,8279000],[2022,5471000],[2023,263000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/903129/000119312526059602/thrm-20251231.htm (filed 2026-02-19); FY2025: cash repurchases 10015000 USD.

### Are managers owners

Insiders own 1.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); THRM.US SharesStats.PercentInsiders = 1.113 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits grow 3.4% yearly over ten years; actual decline was 11.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Ten-year compound average after fade. Initial solved rate 0.035820327694838894. Price 29.81; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.0912580132716987 → FY2025 0.5911183092018484. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $28.15 per share

- 2016-11: $31.85 per share

- 2016-12: $33.85 per share

- 2017-01: $35.40 per share

- 2017-02: $36.25 per share

- 2017-03: $39.25 per share

- 2017-04: $37.15 per share

- 2017-05: $37.70 per share

- 2017-06: $38.80 per share

- 2017-07: $33.45 per share

- 2017-08: $31.15 per share

- 2017-09: $37.15 per share

- 2017-10: $33.50 per share

- 2017-11: $36.00 per share

- 2017-12: $31.75 per share

- 2018-01: $32.00 per share

- 2018-02: $30.80 per share

- 2018-03: $33.95 per share

- 2018-04: $33.80 per share

- 2018-05: $35.40 per share

- 2018-06: $39.30 per share

- 2018-07: $45.30 per share

- 2018-08: $49.20 per share

- 2018-09: $45.45 per share

- 2018-10: $43.64 per share

- 2018-11: $46.43 per share

- 2018-12: $39.98 per share

- 2019-01: $42.56 per share

- 2019-02: $41.00 per share

- 2019-03: $36.86 per share

- 2019-04: $42.36 per share

- 2019-05: $37.38 per share

- 2019-06: $41.83 per share

- 2019-07: $40.91 per share

- 2019-08: $36.70 per share

- 2019-09: $41.09 per share

- 2019-10: $41.77 per share

- 2019-11: $41.85 per share

- 2019-12: $44.39 per share

- 2020-01: $46.11 per share

- 2020-02: $40.78 per share

- 2020-03: $31.40 per share

- 2020-04: $37.44 per share

- 2020-05: $40.70 per share

- 2020-06: $38.90 per share

- 2020-07: $38.77 per share

- 2020-08: $45.23 per share

- 2020-09: $40.90 per share

- 2020-10: $46.29 per share

- 2020-11: $56.86 per share

- 2020-12: $65.22 per share

- 2021-01: $61.26 per share

- 2021-02: $70.79 per share

- 2021-03: $74.11 per share

- 2021-04: $71.20 per share

- 2021-05: $72.53 per share

- 2021-06: $71.05 per share

- 2021-07: $82.93 per share

- 2021-08: $85.82 per share

- 2021-09: $80.93 per share

- 2021-10: $73.63 per share

- 2021-11: $84.45 per share

- 2021-12: $86.90 per share

- 2022-01: $87.39 per share

- 2022-02: $84.84 per share

- 2022-03: $73.04 per share

- 2022-04: $67.42 per share

- 2022-05: $68.94 per share

- 2022-06: $62.41 per share

- 2022-07: $64.56 per share

- 2022-08: $59.90 per share

- 2022-09: $49.73 per share

- 2022-10: $58.42 per share

- 2022-11: $71.59 per share

- 2022-12: $65.29 per share

- 2023-01: $74.43 per share

- 2023-02: $63.51 per share

- 2023-03: $60.42 per share

- 2023-04: $59.65 per share

- 2023-05: $54.96 per share

- 2023-06: $56.51 per share

- 2023-07: $59.77 per share

- 2023-08: $60.21 per share

- 2023-09: $54.26 per share

- 2023-10: $40.22 per share

- 2023-11: $45.92 per share

- 2023-12: $52.36 per share

- 2024-01: $48.15 per share

- 2024-02: $56.86 per share

- 2024-03: $57.58 per share

- 2024-04: $50.57 per share

- 2024-05: $53.94 per share

- 2024-06: $49.32 per share

- 2024-07: $55.18 per share

- 2024-08: $50.54 per share

- 2024-09: $46.55 per share

- 2024-10: $41.95 per share

- 2024-11: $42.10 per share

- 2024-12: $39.93 per share

- 2025-01: $38.15 per share

- 2025-02: $33.08 per share

- 2025-03: $26.74 per share

- 2025-04: $26.01 per share

- 2025-05: $27.37 per share

- 2025-06: $28.29 per share

- 2025-07: $32.04 per share

- 2025-08: $36.77 per share

- 2025-09: $34.06 per share

- 2025-10: $36.80 per share

- 2025-11: $35.67 per share

- 2025-12: $36.37 per share

- 2026-01: $31.96 per share

- 2026-02: $32.77 per share

- 2026-03: $27.78 per share

- 2026-04: $30.10 per share

- 2026-05: $34.69 per share

- 2026-06: $34.11 per share

- 2026-07: $40.58 per share

- 2026-08: $39.29 per share

- 2026-09: $33.30 per share

- 2026-10: $29.81 per share

## Annual estimated value (USD per share)

- FY2016: low $25.18 per share, central $34.11 per share, high $39.31 per share

- FY2017: low $24.52 per share, central $34.06 per share, high $39.61 per share

- FY2018: low $24.38 per share, central $34.60 per share, high $40.55 per share

- FY2019: low $24.70 per share, central $34.85 per share, high $40.76 per share

- FY2020: low $25.62 per share, central $28.10 per share, high $31.42 per share

- FY2021: low $28.66 per share, central $36.37 per share, high $41.71 per share

- FY2022: low $27.76 per share, central $31.57 per share, high $36.07 per share

- FY2023: low $34.97 per share, central $42.31 per share, high $48.75 per share

- FY2024: low $21.53 per share, central $24.04 per share, high $27.38 per share

- FY2025: low $20.41 per share, central $22.64 per share, high $25.61 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/903129/000119312526059602/thrm-20251231.htm); period 2025-12-31, filed 2026-02-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.