Gentherm Inc (NASDAQ:THRM) has experienced a remarkable surge in its stock price, with a 22.29% gain over the past week and an impressive 28.69% increase over the past three months. The company's market capitalization now stands at $1.87 billion, and the current stock price is $59.25. When compared to the GF Value of $97.83, Gentherm's stock is considered significantly undervalued, a sentiment that has remained consistent from the past GF Value of $95.83. This valuation suggests that investors may have an opportunity to invest in a company with strong potential for growth at a price less than its intrinsic value.
Introduction to Gentherm Inc
Gentherm Inc, operating in the Vehicles & Parts industry, is a leading manufacturer of automotive parts. The company specializes in climate comfort systems, cable systems, battery solutions, and electronics/software systems for the automotive sector. Additionally, Gentherm is involved in the medical industry, providing patient temperature management solutions. With a diverse geographical presence that includes the United States, China, South Korea, Germany, Japan, the Czech Republic, and other countries, Gentherm's business is well-positioned to cater to a global market.
Assessing Gentherm's Profitability
Gentherm's Profitability Rank is a robust 8 out of 10, indicating a strong ability to generate profits relative to its peers. The company's operating margin of 5.44% is better than 52.53% of its industry counterparts. Additionally, Gentherm's return on equity (ROE) of 2.73%, return on assets (ROA) of 1.45%, and return on invested capital (ROIC) of 4.90% all demonstrate the company's efficiency in utilizing its resources to generate profits, outperforming a significant portion of its industry peers. These figures underscore a decade of consistent profitability, which is a testament to the company's solid financial foundation and operational efficiency.
Growth Trajectory of Gentherm
The Growth Rank for Gentherm stands at an impressive 9 out of 10, reflecting the company's strong growth metrics. The 3-Year Revenue Growth Rate per Share is 7.20%, surpassing 52.7% of industry peers. Over a 5-year period, the Revenue Growth Rate per Share is 4.70%, better than 59.12% of competitors. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 11.80%, which is higher than 76.04% of industry peers. However, the 3-Year EPS without NRI Growth Rate shows a decline of 24.40%, which is an area that requires attention despite being better than 16.08% of industry peers. These growth indicators suggest that Gentherm is on a positive trajectory, with potential for continued expansion in the future.
Notable Shareholders in Gentherm
Among the notable holders of Gentherm stock, Barrow, Hanley, Mewhinney & Strauss leads with 948,584 shares, representing a 2.89% share percentage. Mairs and Power (Trades, Portfolio) holds 395,006 shares, accounting for 1.2% of the shares, while Chuck Royce (Trades, Portfolio) owns 139,503 shares, equating to a 0.43% share percentage. The presence of these significant investors underscores the confidence in Gentherm's market position and future prospects.
Competitive Landscape
When compared to its competitors, Gentherm holds its own in the Vehicles & Parts industry. XPEL Inc (XPEL, Financial) has a market cap of $1.54 billion, Phinia Inc (PHIN, Financial) is valued at $1.59 billion, and Dana Inc (DAN, Financial) has a market cap of $1.78 billion. Gentherm's market cap of $1.87 billion positions it as a strong competitor within this group, suggesting that it is well-regarded among companies with similar market capitalizations.
Conclusion: Gentherm's Market Position and Future Outlook
In summary, Gentherm Inc's recent stock performance has been impressive, with significant gains over the past week and three months. The company's valuation remains significantly undervalued according to the GF Value, indicating potential for further growth. Gentherm's strong profitability and growth ranks, coupled with its solid market position and favorable comparisons with industry peers, make it an attractive option for value investors. As the company continues to innovate and expand its product offerings, the future looks promising for Gentherm and its shareholders.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
