Thermon Group Holdings Inc. Common Stock (THR)
FairStock Score: 43/100 — MIXED
Key Financials
| Current Price | $61.14 |
| Market Cap | $1.8B |
| P/E Ratio | 44.96 |
| ROE | 8.62% |
| Dividend Yield | —% |
| Sector | Industrials |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
At the close on 2026-05-29, Thermon traded at $61.14, with a market cap of $1.8B. The business sells engineered industrial heating and heat-tracing solutions. In the latest reported quarter, the one labeled 2026-Q1, revenue was $148.3M and net income was $2.7M, a 1.85% net margin. That is a thin profit for a $1.8B enterprise. The valuation is demanding: FairStock calculations show a P/E of 44.96, P/B of 3.73, EV/EBITDA of 19.63, and a Graham Number of $22.39, leaving the price about 173% above that asset-and-earnings reference. Free cash flow is positive at $32.9M, but the FCF yield is only 1.9%. Returns are unimpressive: ROE 8.62% and ROCE 5.57%, so the business does not earn exceptional returns on the capital employed. The balance sheet is reasonable, with D/E of 0.29, and an Altman Z-Score of 4.79, and beta of 0.83, suggests it is less volatile than the market. But Piotroski is 4/9, and FairStock's Lynch category is none because only 0 years of filed results are available, needing 3. I see a decent industrial niche, but not a wide margin of safety. At this price, the market is already assuming a strong recovery in profitability; the latest quarter's tiny margin and low ROCE make that a leap. Graham would demand a discount, not a premium.
In plain English: Thermon makes engineered industrial heating systems for process industries. It has positive cash generation and modest debt, but its latest reported quarter showed a very thin profit and low returns on the money invested. The stock price looks expensive compared with those profits and accounting value, and it pays no dividend.
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Data as of 2026-05-29 close · note generated 2026-10-15 · model deepseek-flash
Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer