Gentherm looks cheap on valuation and cash-conversion metrics, but a death cross the engine treats as a hard block, alongside failed momentum and asymmetry gates and consecutive earnings misses, keeps the setup unattractive for now.
Thesis pillars
- Thin Upside Margin↓Deteriorating
- Attractive Valuation Low Peg↓Deteriorating
- Death Cross Hard Block↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Gentherm Inc (THRM) Stock Analysis
Consumer Cyclical · Auto Parts
Hold if already holding. Not a fresh buy at $42.40, but acceptable to hold if already in. Reasons: Concentration risk — Product: Automotive segment (97.0%); Concentration risk — Geographic: sales outside the United States (66.0%).
Gentherm is a global thermal management and pneumatic comfort technology supplier to the automotive industry, with products including Climate Control Seats, Climate Control Interiors, and Lumbar and Massage Comfort Solutions, plus a Medical segment selling patient temperature... Read more
Hold if already holding. Not a fresh buy at $42.40, but acceptable to hold if already in. Reasons: Concentration risk — Product: Automotive segment (97.0%); Concentration risk — Geographic: sales outside the United States (66.0%). Chart setup: No clear chart pattern; technical signals are mixed. Mixed signals. Hold existing position. Score 5.9/10, moderate confidence.
Passes 6/8 gates (positive momentum, clean insider activity, news boost analyst 0.60, earnings proximity 88d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About Gentherm Inc
About Gentherm Inc
Gentherm's Automotive segment, spanning Climate Control Seats, Climate Control Interiors, and Lumbar and Massage Comfort Solutions, made up 97% of product revenue in 2025, with the Medical segment's patient temperature management systems accounting for the remainder. Lear Corporation and Adient plc, the company's two largest customers, generated $234 million and $164 million, respectively — 16% and 11% of product revenue — while sales to customers outside the United States, including Europe and Asia, made up 66% of product revenue. Gentherm employs 14,174 people across more than 30 locations in 13 countries, with Mexico (5,546 employees) its largest single-country workforce.
Gentherm sells primarily to Tier 1 automotive suppliers and OEMs under a business-award model in which winning a vehicle platform typically takes one to three years to reach mass production and then continues for the five-to-ten-year platform life; the company carries no meaningful order backlog because revenue is driven by just-in-time purchase orders close to production. Customer contracts generally include annual price-down requirements, so Gentherm must offset those reductions with its own cost savings to protect margins. On the input side, the company sources raw materials globally, including semiconductor chips and copper that cannot be substituted, and some components are single-sourced, creating supply-disruption risk under the industry's just-in-time manufacturing model. On January 29, 2026, Gentherm agreed to acquire Modine Manufacturing's Performance Technologies business through a Reverse Morris Trust structure, pending shareholder approval, financing for the spun-off entity, an IRS tax ruling, and other regulatory approvals.
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Two geographies carry disproportionate operational risk relative to their revenue share. Gentherm's Vynohradiv, Ukraine facility, near the Hungary border, produced approximately 5% of 2025 total revenue in cables, seat heaters, and steering wheel heaters, and the company has built a severity-level contingency plan with certain customers to relocate equipment if the war disrupts the plant or the Ukraine-Hungary border crossing its products depend on for delivery. Separately, more than 15% of 2025 product revenue came from China, a market where domestic OEMs are gaining share with lower-cost products and where Chinese government regulation can constrain repatriation of cash and favor domestic suppliers — meaning U.S.-China trade tensions and Chinese OEM pricing pressure both sit outside Gentherm's control even as the company treats China as a core growth market.
See also: Consumer Cyclical · Auto Parts
From Gentherm Inc's most recent 10-K filing, extracted July 6, 2026.
Recent developments
updated 2026-07-25Recent Developments — Gentherm Inc
Latest news
- NEWS J.P. Morgan Maintains Gentherm(THRM.US) With Hold Rating, Maintains Target Price $41 - Moomoo — Moomoo neutral
- NEWS Gentherm: Q2 Earnings Snapshot - kare11.com — kare11.com neutral
- NEWS Gentherm (THRM) Expands Reach with Acquisition of Innovative Med - GuruFocus — GuruFocus positive
- NEWS What is the Gentherm-Modine Reverse Morris Trust, and Why is it Happening - Kavout | AI — Kavout | AI neutral
- NEWS Gentherm (THRM) Earnings Expected to Grow: Should You Buy? - Yahoo Finance — Yahoo Finance positive
Generated 2026-07-25T14:12:25Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWCustomerLear Corporation16%10-K Item 1: 'our revenues from sales to our two largest customers, Lear Corporation ("Lear") and Adient plc ("Adient") were $234 million and $164 million, respectively, representing 16% and 11% of our product revenues, respectively.'
- LOWCustomerAdient plc11%10-K Item 1: 'our revenues from sales to our two largest customers, Lear Corporation ("Lear") and Adient plc ("Adient") were $234 million and $164 million, respectively, representing 16% and 11% of our product revenues, respectively.'
- HIGHProductAutomotive segment97%10-K Item 1A: 'Our Automotive segment represents 97% of our product revenues for each of the years ended December 31, 2025, 2024 and 2023.'
- HIGHGeographicsales outside the United States66%10-K Item 1A: 'In 2025, 66% of our product revenue was generated from sales to customers outside the United States (based on shipment destination), including Europe and Asia.'
- LOWGeographicUkraine manufacturing facility5.0%10-K Item 1A: 'In 2025, 2024 and 2023, products manufactured at our Ukraine facility represented approximately 5%, 6% and 6% of the Company's total revenue'
Material Events(8-K, last 90d)
- 2026-05-19Item 5.02LOWShareholders approved an amendment to the 2023 Equity Incentive Plan increasing shares available for issuance by 1,700,000 at the May 14, 2026 annual meeting. Routine, board-approved plan amendment.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
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Price Targets
Position Sizing
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Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $42.40, but acceptable to hold if already in. Reasons: Concentration risk — Product: Automotive segment (97.0%); Concentration risk — Geographic: sales outside the United States (66.0%). Chart setup: No clear chart pattern; technical signals are mixed. Mixed signals. Hold existing position. Target $47.38 (+11.7%), stop $39.70 (−6.8%), A.R:R -0.5:1. Score 5.9/10, moderate confidence.
Take-profit target: $47.38 (-6.8% upside). Target $47.38 (+11.7%), stop $39.70 (−6.8%), A.R:R -0.5:1. Stop-loss: $39.70.
Concentration risk — Product: Automotive segment (97.0%); Concentration risk — Geographic: sales outside the United States (66.0%); Analyst target reached - limited upside remaining.
Gentherm Inc trades at a P/E of 53.4 (forward 13.5). TrendMatrix value score: 6.9/10. Verdict: Hold.
14 analysts cover THRM with a consensus score of 3.9/5. Average price target: $46.
What does Gentherm Inc do?Gentherm is a global thermal management and pneumatic comfort technology supplier to the automotive industry, with...
Gentherm is a global thermal management and pneumatic comfort technology supplier to the automotive industry, with products including Climate Control Seats, Climate Control Interiors, and Lumbar and Massage Comfort Solutions, plus a Medical segment selling patient temperature management systems like Blanketrol. Automotive represents 97% of product revenue, with Lear Corporation and Adient plc as the two largest customers at 16% and 11% of 2025 product revenue, respectively, and 66% of product revenue coming from outside the United States. On January 29, 2026, Gentherm agreed to acquire Modine