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THRMGentherm Incorporated
$34.78$1.1B
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  4. Financial Ratios

Gentherm Incorporated (THRM) Financial Ratios

Latest Ratios: P/E Ratio 58.0x · EV/EBITDA 9.1x · ROE 2.7%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

THRM Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$1.1B$1.1B$1.3B$1.7B$2.2B$2.9B$2.2B$1.5B$1.4B$1.2B$1.2B
Enterprise Value$1.2B$1.3B$1.4B$1.8B$2.3B$2.8B$2.1B$1.5B$1.5B$1.2B$1.2B
P/E Ratio →57.9760.6219.3842.9289.4431.1536.0330.2034.4733.0716.20
P/S Ratio0.710.750.861.181.822.782.361.521.391.191.35
P/B Ratio1.491.562.042.693.254.453.673.053.022.112.69
P/FCF17.4418.4134.5821.42—30.0023.8515.5518.81—29.44
P/OCF9.139.6311.4614.52146.3520.3519.4612.4412.2123.4311.43

P/E links to full P/E history page with 30-year chart

THRM EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—0.840.951.241.912.662.311.561.491.231.34
EV / EBITDA9.149.598.6714.2424.7718.1116.1811.8112.538.528.57
EV / EBIT15.3825.3711.3117.9841.5723.4422.1915.6117.6612.4710.93
EV / FCF—20.6138.1822.62—28.7023.3415.9620.11—29.31

THRM Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin23.5%23.5%25.2%23.9%22.7%29.0%29.4%29.7%28.4%31.6%32.2%
Operating Margin5.2%5.2%7.3%5.3%4.0%11.0%9.8%8.7%7.0%9.9%11.6%
Net Profit Margin1.2%1.2%4.5%2.7%2.0%8.9%6.5%3.9%4.0%3.6%8.3%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE2.7%2.7%10.3%6.1%3.7%15.1%11.2%7.8%8.1%6.9%18.1%
ROA1.4%1.4%5.2%3.3%2.2%9.5%6.8%4.9%5.0%4.1%10.3%
ROIC7.3%7.3%10.8%7.6%5.5%16.2%12.6%11.5%9.3%13.9%20.1%
ROCE8.2%8.2%11.8%8.3%5.8%14.9%12.8%13.9%10.9%14.3%18.4%

THRM Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.410.410.430.380.390.100.380.190.290.260.37
Debt / EBITDA2.252.251.651.922.830.421.710.721.131.021.19
Net Debt / Equity—0.190.210.150.16-0.19-0.080.080.210.07-0.01
Net Debt / EBITDA1.021.020.820.761.17-0.82-0.350.300.810.29-0.04
Debt / FCF—2.193.601.20—-1.30-0.510.411.30—-0.13
Interest Coverage3.593.598.016.9512.8643.1020.8420.4017.7219.8834.65

THRM Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio1.921.922.012.122.392.663.122.392.532.692.52
Quick Ratio1.301.301.341.481.631.912.531.631.881.981.98
Cash Ratio0.400.400.390.460.540.891.300.340.230.600.92
Asset Turnover—1.071.171.190.971.120.891.321.291.121.09
Inventory Turnover4.524.524.795.434.274.665.275.776.615.565.92
Days Sales Outstanding—68.6472.9572.6184.7772.1296.4970.1460.9468.5367.66

THRM Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———————————
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield1.7%1.6%5.2%2.3%1.1%3.2%2.8%3.3%2.9%3.0%6.2%
FCF Yield5.7%5.4%2.9%4.7%—3.3%4.2%6.4%5.3%—3.4%
Buyback Yield0.9%0.9%4.1%5.3%0.3%0.7%0.4%4.4%10.3%0.6%0.1%
Total Shareholder Yield0.9%0.9%4.1%5.3%0.3%0.7%0.4%4.4%10.3%0.6%0.1%
Shares Outstanding—$31M$31M$33M$34M$34M$33M$33M$36M$37M$37M

Key Metrics

Growth RegimeMixed
ProfitabilityStrained
Balance SheetHealthy
Cash FlowMixed
Top Statement Risk

OEM pricing and margin compression

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Valuation Disconnect Amid Cyclical Uncertainty

According to current market data, Gentherm trades at a trailing P/E of 59.05, which appears significantly elevated compared to its forward P/E of 13.07, suggesting that investors are pricing in a substantial recovery in earnings power that has yet to materialize in recent quarterly results.

The wide spread between trailing and forward multiples indicates that the market is discounting current earnings volatility as transitory. However, given the company's reliance on automotive production cycles, this valuation assumes a successful pivot toward higher-margin EV battery thermal management that remains speculative.

Capital Efficiency Constrained by Margins

Based on reported financial figures, Gentherm's ROIC has struggled to maintain momentum, hovering near 1.0% to 1.3% in recent quarters, which is notably lower than the levels observed in 2024 and suggests that the company is currently failing to generate returns above its cost of capital.

The compression in ROIC reflects the difficulty in scaling proprietary thermal technology while absorbing the costs of recent acquisitions like Alfmeier. Investors should monitor whether the company can improve asset utilization as these new product lines reach higher production volumes.

Working Capital Friction Impedes Cash

As reported in recent filings, Gentherm's cash conversion cycle has fluctuated between 63 and 77 days over the last ten quarters, indicating that the company faces persistent challenges in optimizing its inventory and receivables management relative to its automotive OEM customer base.

The variability in the CCC suggests that Gentherm lacks the leverage to dictate terms to its larger automotive partners, leading to lumpy cash inflows. This inefficiency forces the company to maintain higher liquidity buffers than would otherwise be necessary for a business of this size.

Conservative Leverage Amid Operational Headwinds

Based on the provided balance sheet data, Gentherm maintains a disciplined debt-to-equity ratio of 0.38 as of 2026Q1, which provides a necessary cushion against the volatility of its thin net margins and the cyclical nature of the automotive parts industry.

While the low leverage is a positive indicator of financial health, it also highlights that the company has not yet utilized its balance sheet to aggressively fund growth. This conservative stance appears prudent given the current inability to consistently convert operating income into free cash flow.

Misapplication of P/E Multiples

The P/E ratio is frequently misapplied to Gentherm because it obscures the impact of lumpy R&D investments and non-recurring integration costs, which artificially depress current earnings and make the company appear more expensive than its underlying cash-generating potential would suggest.

Analysts should instead focus on EV/EBITDA or P/FCF to better capture the company's operational performance, as these metrics normalize for the accounting distortions inherent in the automotive supplier model. Relying on P/E risks missing the potential value of the company's proprietary thermal IP.

Download Financial Ratios Data

Includes 30+ ratios · 30 years · Updated daily

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THRM — Frequently Asked Questions

Quick answers to the most common questions about buying THRM stock.

What is Gentherm Incorporated's P/E ratio?

Gentherm Incorporated's current P/E ratio is 58.0x. The historical average is 39.4x. This places it at the 81th percentile of its historical range.

What is Gentherm Incorporated's EV/EBITDA?

Gentherm Incorporated's current EV/EBITDA is 9.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.6x.

What is Gentherm Incorporated's ROE?

Gentherm Incorporated's return on equity (ROE) is 2.7%. The historical average is -27.2%.

Is THRM stock overvalued?

Based on historical data, Gentherm Incorporated is trading at a P/E of 58.0x. This is at the 81th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What are Gentherm Incorporated's profit margins?

Gentherm Incorporated has 23.5% gross margin and 5.2% operating margin.

How much debt does Gentherm Incorporated have?

Gentherm Incorporated's Debt/EBITDA ratio is 2.2x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.