Gentherm Inc (THRM, Financial) has recently caught the attention of investors with its notable stock performance. The company's market capitalization stands at $1.73 billion, with the current stock price at $54.59. Over the past week, Gentherm's stock has experienced a 5.85% gain, and looking at the past three months, the stock has seen an impressive 10.80% gain. When compared to the GF Value of $98.34, up from the past GF Value of $96.87, Gentherm is currently considered significantly undervalued, maintaining this valuation status from three months ago. This suggests that the stock may have considerable upside potential from its current price level.
Introduction to Gentherm Inc
Gentherm Inc, operating within the Vehicles & Parts industry, is a manufacturer of automotive parts, specializing in climate comfort systems, cable systems, battery solutions, and electronics/software for the automotive and medical sectors. The company's business is primarily divided into Automotive and Medical segments, with the former being the major revenue generator. Gentherm's geographical reach extends to the United States, China, South Korea, Germany, Japan, the Czech Republic, and other countries, indicating a diverse and global presence.
Assessing Gentherm's Profitability
With a Profitability Rank of 8/10, Gentherm Inc stands out in its sector. The company's operating margin is at 6.92%, which is better than 61.68% of 1,284 companies in the industry. Its return on equity (ROE) is 6.06%, surpassing 44.32% of its peers, while the return on assets (ROA) at 3.25% is better than 49.35% of the industry. Furthermore, the return on invested capital (ROIC) is at 8.68%, which is higher than 68.76% of the companies in the same space. Impressively, Gentherm has maintained profitability for the past 10 years, a feat better than 99.92% of 1,222 companies in the industry.
Growth Trajectory of Gentherm
The company's Growth Rank is 5/10. Gentherm's 3-Year Revenue Growth Rate per Share stands at 17.10%, outperforming 74.61% of 1,217 companies. The 5-Year Revenue Growth Rate per Share is 8.60%, which is better than 70.36% of 1,120 companies. However, the 3-Year EPS without NRI Growth Rate is at -2.80%, and the 5-Year EPS without NRI Growth Rate is at -4.40%, indicating some challenges in earnings growth in recent years.
Key Shareholders in Gentherm
Among the significant shareholders of Gentherm Inc, Barrow, Hanley, Mewhinney & Strauss leads with 948,584 shares, representing a 2.89% stake in the company. Mairs and Power (Trades, Portfolio) holds 395,006 shares, accounting for 1.2% of the company, while Chuck Royce (Trades, Portfolio) owns 139,503 shares, translating to a 0.43% share percentage. These holders reflect a strong interest from institutional investors and industry veterans.
Competitive Landscape
In comparison to its competitors, Gentherm Inc holds its ground with a market cap of $1.73 billion. XPEL Inc (XPEL, Financial) has a market cap of $1.49 billion, Fox Factory Holding Corp (FOXF, Financial) is valued at $1.64 billion, and Phinia Inc (PHIN, Financial) stands at $1.84 billion. This places Gentherm in a competitive position within the industry, with a market capitalization that is on par with its closest competitors.
Conclusion
In summary, Gentherm Inc's stock performance has been robust, with significant gains over the past week and three months. The company's valuation remains significantly undervalued according to the GF Value, suggesting potential for future appreciation. Gentherm's profitability is strong, with a high Profitability Rank and solid margins and returns. While growth in EPS has been challenged, revenue growth remains healthy. The company's shareholder base includes notable institutions, reflecting confidence in its business model. Finally, when placed in the context of its competitors, Gentherm's market capitalization indicates that it is holding its own in a competitive market. Investors may find Gentherm an intriguing option, given its current valuation and solid fundamentals.
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.
