Latest Ratios: P/E Ratio 45.6x · EV/EBITDA 24.1x · ROE 8.6%. (2009–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.0B | $1.7B | $949M | $1.1B | $841M | $543M | $650M | $500M | $810M | $735M | $680M |
| Enterprise Value | $2.1B | $1.8B | $1.1B | $1.3B | $934M | $643M | $771M | $647M | $990M | $918M | $718M |
| P/E Ratio → | 45.63 | 37.61 | 17.74 | 21.67 | 24.92 | 27.00 | 741.06 | 41.86 | 35.52 | 62.25 | 46.31 |
| P/S Ratio | 3.76 | 3.12 | 1.90 | 2.25 | 1.91 | 1.53 | 2.35 | 1.30 | 1.96 | 2.38 | 2.57 |
| P/B Ratio | 3.77 | 3.11 | 1.91 | 2.35 | 2.01 | 1.36 | 1.72 | 1.44 | 2.29 | 2.12 | 2.14 |
| P/FCF | 61.28 | 50.94 | 17.94 | 20.29 | 17.43 | 23.07 | 29.33 | 8.34 | 72.39 | 61.73 | 37.64 |
| P/OCF | 43.04 | 35.78 | 15.03 | 16.90 | 14.57 | 18.88 | 21.45 | 7.06 | 34.88 | 33.54 | 25.72 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.32 | 2.13 | 2.53 | 2.12 | 1.81 | 2.79 | 1.69 | 2.40 | 2.98 | 2.72 |
| EV / EBITDA | 24.11 | 20.25 | 10.39 | 13.31 | 12.54 | 10.97 | 27.41 | 10.62 | — | 16.06 | 17.82 |
| EV / EBIT | 29.96 | 24.53 | 13.19 | 16.38 | 16.94 | 18.78 | 80.82 | 20.80 | 20.41 | 28.05 | 31.98 |
| EV / FCF | — | 54.16 | 20.06 | 22.82 | 19.34 | 27.33 | 34.80 | 10.81 | 88.48 | 77.11 | 39.72 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 45.3% | 45.3% | 44.7% | 42.8% | 42.0% | 39.4% | 42.3% | 42.1% | 42.6% | 46.6% | 42.4% |
| Operating Margin | 13.2% | 13.2% | 16.0% | 15.2% | 12.5% | 10.8% | 2.7% | 8.5% | -11.8% | 10.6% | 8.5% |
| Net Profit Margin | 8.3% | 8.3% | 10.7% | 10.4% | 7.6% | 5.6% | 0.3% | 3.1% | 5.5% | 3.9% | 5.5% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.6% | 8.6% | 11.0% | 11.5% | 8.2% | 5.2% | 0.2% | 3.4% | 6.5% | 3.6% | 4.7% |
| ROA | 5.6% | 5.6% | 7.0% | 7.3% | 5.2% | 3.2% | 0.1% | 1.9% | 3.5% | 2.1% | 3.4% |
| ROIC | 8.5% | 8.5% | 9.8% | 10.0% | 8.2% | 5.8% | 1.1% | 4.8% | -6.8% | 5.6% | 5.0% |
| ROCE | 10.5% | 10.5% | 12.3% | 12.6% | 10.1% | 6.9% | 1.3% | 5.7% | -8.2% | 6.5% | 6.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.29 | 0.29 | 0.31 | 0.39 | 0.31 | 0.35 | 0.43 | 0.55 | 0.60 | 0.63 | 0.25 |
| Debt / EBITDA | 1.80 | 1.80 | 1.49 | 1.99 | 1.72 | 2.42 | 5.74 | 3.13 | — | 3.80 | 2.00 |
| Net Debt / Equity | — | 0.20 | 0.23 | 0.29 | 0.22 | 0.25 | 0.32 | 0.43 | 0.51 | 0.53 | 0.12 |
| Net Debt / EBITDA | 1.20 | 1.20 | 1.10 | 1.47 | 1.24 | 1.71 | 4.31 | 2.42 | — | 3.20 | 0.93 |
| Debt / FCF | — | 3.21 | 2.12 | 2.53 | 1.92 | 4.26 | 5.47 | 2.46 | 16.09 | 15.38 | 2.08 |
| Interest Coverage | 9.08 | 9.08 | 7.79 | 8.65 | 9.39 | 5.89 | 0.93 | 2.18 | 3.09 | 3.64 | 6.38 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.69 | 2.69 | 2.43 | 2.51 | 2.28 | 3.02 | 3.92 | 3.59 | 3.28 | 3.53 | 3.79 |
| Quick Ratio | 1.76 | 1.76 | 1.64 | 1.72 | 1.53 | 2.13 | 2.71 | 2.60 | 2.39 | 2.51 | 3.14 |
| Cash Ratio | 0.41 | 0.41 | 0.35 | 0.45 | 0.32 | 0.51 | 0.76 | 0.71 | 0.43 | 0.54 | 0.82 |
| Asset Turnover | — | 0.65 | 0.66 | 0.64 | 0.68 | 0.56 | 0.45 | 0.62 | 0.63 | 0.47 | 0.58 |
| Inventory Turnover | 2.48 | 2.48 | 3.09 | 3.28 | 3.11 | 3.01 | 2.50 | 3.68 | 3.65 | 2.58 | 4.47 |
| Days Sales Outstanding | — | 103.60 | 94.69 | 92.71 | 96.96 | 122.69 | 124.38 | 100.14 | 120.44 | 132.95 | 97.73 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.2% | 2.7% | 5.6% | 4.6% | 4.0% | 3.7% | 0.1% | 2.4% | 2.8% | 1.6% | 2.2% |
| FCF Yield | 1.6% | 2.0% | 5.6% | 4.9% | 5.7% | 4.3% | 3.4% | 12.0% | 1.4% | 1.6% | 2.7% |
| Buyback Yield | 1.0% | 1.2% | 2.5% | 0.2% | 0.1% | 0.1% | 0.1% | 0.2% | 0.1% | 0.1% | 0.1% |
| Total Shareholder Yield | 1.0% | 1.2% | 2.5% | 0.2% | 0.1% | 0.1% | 0.1% | 0.2% | 0.1% | 0.1% | 0.1% |
| Shares Outstanding | — | $33M | $34M | $34M | $34M | $34M | $33M | $33M | $33M | $33M | $33M |
Cyclical project revenue volatility
Based on current market data, Thermon's forward P/E of 28.98 suggests investors are pricing in significant future earnings expansion, a valuation that appears elevated compared to the broader industrial machinery sector and historical averages, warranting caution regarding the sustainability of such aggressive growth assumptions in cyclical markets.
The current P/E of 45.63 and forward P/E of 28.98 indicate that the market is assigning a premium to Thermon, likely anticipating a successful transition toward higher-margin decarbonization and service-based revenue streams. However, given the historical volatility in earnings, this valuation may be vulnerable to downward revisions if project-based revenue fails to materialize as expected or if input cost pressures persist.
As reported in financial statements, Thermon's ROIC has struggled to consistently exceed 3.3% over the last ten quarters, a figure that suggests the company is currently failing to generate returns on invested capital that meaningfully surpass its cost of capital, indicating potential inefficiencies in asset deployment.
The low ROIC trend, peaking at only 3.3% in 2025Q3, implies that the company's capital-intensive engineering model has yet to achieve the scale necessary to drive superior returns. Investors should monitor whether management's focus on MRO and software-integrated solutions can improve these returns, or if the current asset base remains structurally underutilized.
According to recent quarterly filings, the company's cash conversion cycle has remained elevated, reaching 172 days in 2026Q4, which highlights significant inefficiencies in managing inventory and receivables compared to industry peers that typically operate with much tighter working capital requirements in similar industrial machinery segments.
The persistent DIO (days inventory outstanding) exceeding 100 days suggests that Thermon carries substantial inventory, likely to support its project-based delivery model, which ties up significant cash. This inefficiency in working capital management appears to be a structural drag on free cash flow, limiting the company's ability to self-fund growth without relying on external liquidity.
Based on reported figures, Thermon has maintained a disciplined debt-to-equity ratio of 0.29 as of 2026Q4, a conservative stance that provides the firm with a notable degree of financial flexibility to navigate industrial downturns or pursue opportunistic acquisitions in a high-interest-rate environment compared to more leveraged peers.
The company's ability to maintain low leverage while managing cyclical revenue streams is a key defensive characteristic. This balance sheet strength serves as a critical buffer, allowing Thermon to sustain operations and R&D investment even when large-scale capital projects are delayed by macroeconomic headwinds.
The P/E ratio is frequently misapplied to Thermon because it fails to account for the lumpy, project-based nature of the company's earnings, which can lead to distorted valuation conclusions during periods of significant non-recurring expenses or timing-related revenue recognition shifts common in industrial engineering contracts.
Investors should prioritize EV/EBITDA or free cash flow yield over P/E, as these metrics better capture the underlying cash-generating capacity of the business while neutralizing the impact of capital structure and non-cash accounting charges. Relying solely on P/E risks misinterpreting temporary earnings troughs as permanent declines in the company's competitive position.
Includes 30+ ratios · 18 years · Updated daily
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Quick answers to the most common questions about buying THR stock.
Thermon Group Holdings, Inc.'s current P/E ratio is 45.6x. The historical average is 33.0x. This places it at the 79th percentile of its historical range.
Thermon Group Holdings, Inc.'s current EV/EBITDA is 24.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.0x.
Thermon Group Holdings, Inc.'s return on equity (ROE) is 8.6%. The historical average is 15.7%.
Based on historical data, Thermon Group Holdings, Inc. is trading at a P/E of 45.6x. This is at the 79th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Thermon Group Holdings, Inc. has 45.3% gross margin and 13.2% operating margin. Operating margin between 10-20% is typical for established companies.
Thermon Group Holdings, Inc.'s Debt/EBITDA ratio is 1.8x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.