Gentherm Inc Common Stock (THRM)

FairStock Score: 30/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Gentherm as a cyclical auto-parts supplier, and the disclosed numbers do not yet show the kind of durable franchise I want. It sells thermal comfort and pneumatic systems into vehicle programs and medical applications, but the Lynch category is CYCLICAL - Auto Parts: earnings follow the economic cycle. Revenue has scale: fiscal Q3 2026 revenue was $405.1M versus $386.9M in fiscal Q3 2025, and FY2025 revenue was $1.5B. Yet profit quality is inconsistent: fiscal Q3 2026 net income was -$2.6M, or diluted EPS -$0.08, versus $14.9M and $0.49 in fiscal Q3 2025; FY2025 net income was $18.3M versus $64.9M in FY2024 and $40.3M in FY2023. At the 2026-10-26 close of $28.59, FairStock's P/E is 33.24 on EPS of $0.86 and P/B is 1.21. The Graham Number is $16.01, implying a -78.64% margin of safety, and the FCF yield is only 1.3% on $19.7M trailing FCF. ROE of 3.74% and ROCE of 3.89% are weak; D/E of 0.45 is manageable. FairStock's Piotroski is 3/9, Altman Z is 2.38, and FairStock Score is 30/100. Top-line scale improved in fiscal Q3 2026 versus fiscal Q3 2025, but profits fell sharply and the latest quarter lost money. I see no clear moat in these numbers. I would want evidence of normalized margins and better cash returns before calling the price a bargain.

In plain English: Gentherm makes heating, cooling and comfort systems for car seats and steering wheels, plus some medical thermal products. Revenue is sizable, but profits have weakened and the latest quarter showed a loss. At the 2026-10-26 closing price of $28.59, the shares look expensive compared with recent profits and the company's asset value, even after falling from the 52-week high of $48.35.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-09-30) · fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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