Recent News
On July 20, 2026 Gentherm announced FDA 510(k) clearance for its ThermAffyx™ Patient Safety System. On July 22, 2026 the company completed acquisition of Innovative Medical Equipment, LLC (ThermaZone®), expanding the medical product portfolio and distribution channels. On September 10, 2026 Gentherm shareholders approved the proposed combination with Modine’s Performance Technologies business, with the transaction expected to close in early October 2026.
Technical Analysis
ADX at 15.57 indicates no established trend; this low strength limits potential for large, sustained directional moves and supports a consolidation-biased outlook tied to valuation pressure.
Directional indicators display bearish bias: DI+ at 23.27 trending down while DI- at 26.23 shows a dip-and-reversal (DI- increasing), a combination that historically signals sellers gaining control and reinforces near-term downside pressure on price.
MACD sits negative at -1.06, below its signal line (-0.56) and trending lower, signaling declining momentum and increasing probability of continued short-term selling pressure relative to recent levels.
MRO registers 3.82 and is decreasing; the positive MRO implies price currently sits above modeled target, favoring a move lower toward equilibrium and adding technical pressure that complements the MACD signal.
RSI at 46.1 and falling reflects weakening internals without reaching oversold territory, consistent with rotational selling and suggesting limited immediate rebound risk absent fresh catalysts.
Price trades below key short-term averages (12-day EMA $37.03, 20-day avg $37.81, 50-day avg $39.80) and sits near the lower Bollinger band (lower 1x $35.75, lower 2x $33.70), which together imply the stock remains under distribution and vulnerable to further pullback while volatility stays moderate.
Ichimoku components (Tenkan $37.09, Kijun $38.86, Senkou A $41.29, Senkou B $40.66) keep price under the cloud, reinforcing bearish technical posture that weighs on the near-term outlook relative to the current valuation.
Fundamental Analysis
Profitability: EBIT equals $10,614,000, producing an EBIT margin of 2.55%, which trails the industry peer mean of 10.68% and the industry peer median of 6.36%. QoQ margin change tightened by -2.04% while YoY EBIT margin expanded +45.47%, indicating improving margin leverage versus one year ago but still below peer centroids.
Revenue and growth: Total revenue reached $416,166,000. YoY revenue growth stands at -4.93% while QoQ growth reads +100.04% (as provided), a sequence that reflects recent timing effects and transactional activity rather than steady organic expansion; the reported revenue growth of 5.71% sits marginally above the industry peer mean of 4.16% on the provided composite metric.
Cash flow and balance sheet: Cash and short-term investments total $213,173,000 against total debt of $325,080,000 and reported net debt of $60,085,000. Operating cash flow showed $7,315,000 while free cash flow came in negative at -$1,487,000, producing a free cash flow yield of -0.14% and an abrupt free cash flow decline year-over-year (-86.10%). Current and quick ratios sit at 2.06 and 1.49 respectively, supporting near-term liquidity, but debt-to-EBITDA at 12.93 raises leverage concerns relative to profitability levels.
Returns and margins: Gross margin equals 23.17% while operating margin measures 4.00% and return on equity registers 0.61%, all implying modest conversion of revenue into shareholder returns. Return-on-invested-capital stands low at 0.64% despite YoY improvements noted in the return series.
Valuation and earnings: Reported EPS of $0.75 beat the $0.56 estimate by $0.19, an EPS surprise of +33.93%. Trailing P/E sits at 45.65 while forward P/E approximates 43.22; P/E exceeds the industry peer mean of 41.10, reflecting a multiple premium. Price-to-book at 1.45 falls slightly below the industry peer mean of 1.65 and the industry peer median of 1.49. EV/revenue of 2.79 and an enterprise multiple of 46.22 both suggest a valuation rich relative to current cash-flow generation. The current valuation, as determined by WMDST, rates the stock over-valued.
Net assessment: Improving YoY margin trends and recurring medical product wins (FDA clearance, IME acquisition) support medium-term revenue diversification, but negative free cash flow, elevated debt-to-EBITDA, low returns, and high earnings multiples create a structural disconnect between price and financial cash-generation capacity that underpins the WMDST over-valued determination.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-06-30 |
| REPORT DATE: | 2026-07-23 |
| NEXT REPORT DATE: | 2026-10-22 |
| CASH FLOW | Begin Period Cash Flow | $ 177.4 M |
| Operating Cash Flow | $ 7.3 M | |
| Capital Expenditures | $ -8.80 M | |
| Change In Working Capital | $ -14.94 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 35.8 M | |
| End Period Cash Flow | $ 213.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 416.2 M | |
| Forward Revenue | $ 588.4 M | |
| COSTS | ||
| Cost Of Revenue | $ 319.7 M | |
| Depreciation | $ 14.5 M | |
| Depreciation and Amortization | $ 14.5 M | |
| Research and Development | $ 24.1 M | |
| Total Operating Expenses | $ 399.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 96.4 M | |
| EBITDA | $ 25.1 M | |
| EBIT | $ 10.6 M | |
| Operating Income | $ 16.7 M | |
| Interest Income | — | |
| Interest Expense | $ 3.3 M | |
| Net Interest Income | $ -3.29 M | |
| Income Before Tax | $ 7.3 M | |
| Tax Provision | $ 2.9 M | |
| Tax Rate | 39.7 % | |
| Net Income | $ 4.4 M | |
| Net Income From Continuing Operations | $ 4.4 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.56 | |
| EPS Actual | $ 0.75 | |
| EPS Difference | $ 0.19 | |
| EPS Surprise | 33.929 % | |
| Forward EPS | $ 0.82 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.5 B | |
| Intangible Assets | $ 156.8 M | |
| Net Tangible Assets | $ 566.3 M | |
| Total Current Assets | $ 880.0 M | |
| Cash and Short-Term Investments | $ 213.2 M | |
| Cash | $ 213.2 M | |
| Net Receivables | $ 338.9 M | |
| Inventory | $ 244.5 M | |
| Long-Term Investments | $ 43.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 270.4 M | |
| Short-Term Debt | $ 868.0 K | |
| Total Current Liabilities | $ 426.3 M | |
| Net Debt | $ 60.1 M | |
| Total Debt | $ 325.1 M | |
| Total Liabilities | $ 770.1 M | |
| EQUITY | ||
| Total Equity | $ 723.1 M | |
| Retained Earnings | $ 722.7 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 23.58 | |
| Shares Outstanding | 30.667 M | |
| Revenue Per-Share | $ 13.57 | |
| VALUATION | Market Capitalization | $ 1.0 B |
| Enterprise Value | $ 1.2 B | |
| Enterprise Multiple | 46.217 | |
| Enterprise Multiple QoQ | 9.395 % | |
| Enterprise Multiple YoY | -19.681 % | |
| Enterprise Multiple IPRWA | high: 64.556 THRM: 46.217 mean: 26.012 median: 21.535 low: -4.974 |
|
| EV/R | 2.792 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.065 | |
| Asset To Liability | 1.939 | |
| Debt To Capital | 0.31 | |
| Debt To Assets | 0.218 | |
| Debt To Assets QoQ | 13.883 % | |
| Debt To Assets YoY | 9.694 % | |
| Debt To Assets IPRWA | high: 0.514 THRM: 0.218 median: 0.207 mean: 0.196 low: 0.001 |
|
| Debt To Equity | 0.45 | |
| Debt To Equity QoQ | 17.794 % | |
| Debt To Equity YoY | 16.425 % | |
| Debt To Equity IPRWA | high: 1.46 median: 0.55 mean: 0.523 THRM: 0.45 low: 0.001 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.452 | |
| Price To Book QoQ | 10.932 % | |
| Price To Book YoY | 2.236 % | |
| Price To Book IPRWA | high: 2.579 mean: 1.651 median: 1.49 THRM: 1.452 low: 0.32 |
|
| Price To Earnings (P/E) | 45.645 | |
| Price To Earnings QoQ | 25.397 % | |
| Price To Earnings YoY | -96.873 % | |
| Price To Earnings IPRWA | high: 84.947 THRM: 45.645 mean: 41.1 median: 34.621 low: -39.387 |
|
| PE/G Ratio | -4.26 | |
| Price To Sales (P/S) | 2.523 | |
| Price To Sales QoQ | 5.92 % | |
| Price To Sales YoY | -4.777 % | |
| Price To Sales IPRWA | high: 8.699 mean: 3.217 THRM: 2.523 median: 2.11 low: 0.408 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 43.22 | |
| Forward PE/G | -4.034 | |
| Forward P/S | 1.834 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 0.628 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.285 | |
| Asset Turnover Ratio QoQ | 2.204 % | |
| Asset Turnover Ratio YoY | 2.683 % | |
| Asset Turnover Ratio IPRWA | high: 0.437 median: 0.33 mean: 0.297 THRM: 0.285 low: 0.085 |
|
| Receivables Turnover | 1.289 | |
| Receivables Turnover Ratio QoQ | -3.749 % | |
| Receivables Turnover Ratio YoY | -0.552 % | |
| Receivables Turnover Ratio IPRWA | high: 3.706 mean: 1.543 median: 1.426 THRM: 1.289 low: 0.313 |
|
| Inventory Turnover | 1.275 | |
| Inventory Turnover Ratio QoQ | 9.601 % | |
| Inventory Turnover Ratio YoY | 8.231 % | |
| Inventory Turnover Ratio IPRWA | high: 5.046 median: 2.35 mean: 1.902 THRM: 1.275 low: 0.302 |
|
| Days Sales Outstanding (DSO) | 70.814 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 63.749 | |
| Cash Conversion Cycle Days QoQ | -0.092 % | |
| Cash Conversion Cycle Days YoY | -6.537 % | |
| Cash Conversion Cycle Days IPRWA | high: 354.739 mean: 92.336 THRM: 63.749 median: 35.809 low: -84.237 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.917 | |
| CapEx To Revenue | -0.021 | |
| CapEx To Depreciation | -0.606 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 995.5 M | |
| Net Invested Capital | $ 996.4 M | |
| Invested Capital | $ 996.4 M | |
| Net Tangible Assets | $ 566.3 M | |
| Net Working Capital | $ 453.7 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.5 | |
| Current Ratio | 2.064 | |
| Current Ratio QoQ | 4.551 % | |
| Current Ratio YoY | 2.545 % | |
| Current Ratio IPRWA | high: 5.547 THRM: 2.064 mean: 2.02 median: 1.314 low: 1.097 |
|
| Quick Ratio | 1.491 | |
| Quick Ratio QoQ | 9.58 % | |
| Quick Ratio YoY | 10.083 % | |
| Quick Ratio IPRWA | high: 2.269 THRM: 1.491 mean: 1.163 median: 1.044 low: 0.386 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 12.932 | |
| Cost Of Debt | 0.607 % | |
| Interest Coverage Ratio | 3.226 | |
| Interest Coverage Ratio QoQ | -17.103 % | |
| Interest Coverage Ratio YoY | 98.317 % | |
| Interest Coverage Ratio IPRWA | high: 90.145 mean: 23.203 median: 17.189 THRM: 3.226 low: -26.005 |
|
| Operating Cash Flow Ratio | -0.017 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 84.241 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 4.398 % | |
| Revenue Growth | 5.705 % | |
| Revenue Growth QoQ | 100.035 % | |
| Revenue Growth YoY | -4.933 % | |
| Revenue Growth IPRWA | high: 29.646 % median: 5.77 % THRM: 5.705 % mean: 4.161 % low: -20.847 % |
|
| Earnings Growth | -10.714 % | |
| Earnings Growth QoQ | -115.0 % | |
| Earnings Growth YoY | -88.849 % | |
| Earnings Growth IPRWA | high: 128.889 % mean: 27.57 % median: 20.833 % THRM: -10.714 % low: -169.388 % |
|
| MARGINS | ||
| Gross Margin | 23.17 % | |
| Gross Margin QoQ | -6.175 % | |
| Gross Margin YoY | -3.18 % | |
| Gross Margin IPRWA | high: 46.13 % THRM: 23.17 % mean: 21.779 % median: 14.681 % low: 5.981 % |
|
| EBIT Margin | 2.55 % | |
| EBIT Margin QoQ | -2.036 % | |
| EBIT Margin YoY | 45.465 % | |
| EBIT Margin IPRWA | high: 30.639 % mean: 10.682 % median: 6.361 % THRM: 2.55 % low: 1.186 % |
|
| Return On Sales (ROS) | 4.002 % | |
| Return On Sales QoQ | -12.352 % | |
| Return On Sales YoY | -42.525 % | |
| Return On Sales IPRWA | high: 21.757 % mean: 9.311 % median: 5.601 % THRM: 4.002 % low: 1.152 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -1.49 M | |
| Free Cash Flow Yield | -0.142 % | |
| Free Cash Flow Yield QoQ | -87.544 % | |
| Free Cash Flow Yield YoY | -103.948 % | |
| Free Cash Flow Yield IPRWA | high: 12.542 % median: 3.731 % mean: 3.62 % THRM: -0.142 % low: -6.473 % |
|
| Free Cash Growth | -86.095 % | |
| Free Cash Growth QoQ | -67.921 % | |
| Free Cash Growth YoY | -61.91 % | |
| Free Cash Growth IPRWA | high: 306.531 % median: 42.795 % THRM: -86.095 % mean: -156.339 % low: -1186.038 % |
|
| Free Cash To Net Income | -0.336 | |
| Cash Flow Margin | -1.695 % | |
| Cash Flow To Earnings | -1.596 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.302 % | |
| Return On Assets QoQ | 1.342 % | |
| Return On Assets YoY | 762.857 % | |
| Return On Assets IPRWA | high: 4.161 % mean: 1.804 % median: 1.49 % THRM: 0.302 % low: -1.323 % |
|
| Return On Capital Employed (ROCE) | 0.995 % | |
| Return On Equity (ROE) | 0.006 | |
| Return On Equity QoQ | 3.735 % | |
| Return On Equity YoY | 798.529 % | |
| Return On Equity IPRWA | high: 0.059 median: 0.04 mean: 0.039 THRM: 0.006 low: -0.053 |
|
| DuPont ROE | 0.614 % | |
| Return On Invested Capital (ROIC) | 0.643 % | |
| Return On Invested Capital QoQ | -2.131 % | |
| Return On Invested Capital YoY | 12.413 % | |
| Return On Invested Capital IPRWA | high: 8.649 % mean: 3.421 % median: 3.102 % THRM: 0.643 % low: 0.287 % |
|