THRMGentherm Incorporated
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.5×).
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Efficiency-driven, thin margins turned over fast (the retail model). ROE 3% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is THRM?
Gentherm Incorporated earns 5.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 3.6 points below what the capital costs: growth destroys value
- Operating margin
- 3.4%
Operating margin · Auto Parts median 5.8% · 12 months to Q3 2026
- Cash conversion
- 1.52×
Cash conversion · 1.78× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.25%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 9.8% |
| FY2021 | 11% |
| FY2022 | 4.0% |
| FY2023 | 5.3% |
| FY2024 | 7.3% |
| FY2025 | 5.5% |
Details›
- Gross margin12 months to Q3 2026
- 24%
- Operating margin12 months to Q3 2026
- 3.4%
- Net margin12 months to Q3 2026
- 0.57%
- Free cash flow margin
- 1.3%
- R&D as % of revenue
- 5.9%
- Revenue, trailing twelve months
- $1.60B
- Free cash flow, trailing twelve months
- $20M
- Net income, trailing twelve months
- $9.0M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from THRM and who it buys from, as the companies report it.
- LEALear Corporation16%
Share of revenue · FY2025 10-K
- ADNTAdient plc11%
Share of revenue · FY2025 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; THRM’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.