Gentherm (THRM): Reassessing Valuation After a Multiyear Share Price Slide and Growing Earnings

Simply Wall St.12-11

Gentherm (THRM) has quietly drifted lower this year, leaving the stock down about 8% year to date and roughly 17% over the past year, even as earnings have grown. See our latest analysis for Gentherm....

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See our latest analysis for Gentherm....</p>\n\n<a href=\"https://simplywall.st/stocks/us/automobiles/nasdaq-thrm/gentherm/news/gentherm-thrm-reassessing-valuation-after-a-multiyear-share\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Gentherm (THRM): Reassessing Valuation After a Multiyear Share Price Slide and Growing Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGentherm (THRM): Reassessing Valuation After a Multiyear Share Price Slide and Growing Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-12-11 02:18 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/automobiles/nasdaq-thrm/gentherm/news/gentherm-thrm-reassessing-valuation-after-a-multiyear-share><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Gentherm (THRM) has quietly drifted lower this year, leaving the stock down about 8% year to date and roughly 17% over the past year, even as earnings have grown. See our latest analysis for Gentherm....</p>\n\n<a href=\"https://simplywall.st/stocks/us/automobiles/nasdaq-thrm/gentherm/news/gentherm-thrm-reassessing-valuation-after-a-multiyear-share\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"THRM","symbol_name":"Gentherm Inc","start_time":0,"source_url":"https://simplywall.st/stocks/us/automobiles/nasdaq-thrm/gentherm/news/gentherm-thrm-reassessing-valuation-after-a-multiyear-share","article_id":"2590532393","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4012000-choice2-main-header/1585186808051"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/automobiles/nasdaq-thrm/gentherm/news/gentherm-thrm-reassessing-valuation-after-a-multiyear-share","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2590532393","pubTimestamp":1765390718,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Gentherm (THRM) has quietly drifted lower this year, leaving the stock down about 8% year to date and roughly 17% over the past year, even as earnings have grown.\nSee our latest analysis for Gentherm.\nThat slide reflects fading momentum more than a broken story, with a modestly negative 90 day share price return and a three year total shareholder return that has been deeply underwater as investors reassess execution risk versus Gentherm's growth potential.\nIf Gentherm's recent drift has you...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"THRM":"Gentherm Inc"},"translate_title":"Gentherm(THRM)：在股价多年下滑和盈利增长后重新评估估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"THRM":1.5},"content_text":"Gentherm (THRM) has quietly drifted lower this year, leaving the stock down about 8% year to date and roughly 17% over the past year, even as earnings have grown. See our latest analysis for Gentherm. That slide reflects fading momentum more than a broken story, with a modestly negative 90 day share price return and a three year total shareholder return that has been deeply underwater as investors reassess execution risk versus Gentherm's growth potential. If Gentherm's recent drift has you rethinking your positioning in autos, this could be a good moment to explore auto manufacturers for other ideas across the space. With earnings climbing, a double digit discount to analyst targets, and a bruising multiyear return profile, is Gentherm quietly setting up as an overlooked value, or is the market correctly pricing in its future growth? AdvertisementMost Popular Narrative: 20.7% Undervalued With Gentherm last closing at $36.14 against a narrative fair value of $45.60, the valuation case leans firmly toward upside potential grounded in earnings expansion.  Operational efficiency initiatives and global footprint realignment, including automation and standardized business processes, are driving ongoing improvements in gross margins and operating margin, with anticipated margin expansion particularly visible in the fourth quarter and beyond.  Read the complete narrative. Want to see what kind of margin reset could justify this gap? The narrative leans on powerful earnings compounding and a surprisingly restrained future valuation multiple. Curious which assumptions do the heavy lifting? Dive in to see the full roadmap behind that fair value target. Result: Fair Value of $45.60 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, persistent margin pressure and slower than expected traction in Asia could easily derail those earnings upgrades and keep the multiple capped. Find out about the key risks to this Gentherm narrative. Another Lens on Value Analysts see upside, but our valuation work using the price to earnings ratio paints a tougher picture. At 36 times earnings, Gentherm trades at a hefty premium to the US Auto Components industry on 18.1 times and peers on 20.5 times, and even above our fair ratio of 22.6 times. Is the market overpaying for that future growth story? See what the numbers say about this price — find out in our valuation breakdown. NasdaqGS:THRM PE Ratio as at Dec 2025 Build Your Own Gentherm Narrative If you see Gentherm differently or want to stress test the numbers yourself, you can build a personalized view in just minutes: Do it your way. A great starting point for your Gentherm research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision. Ready for more high conviction ideas? Before you move on, put Simply Wall St to work and let curated stock shortlists point you toward opportunities you might otherwise overlook.  Capture potential mispricings by scanning these 897 undervalued stocks based on cash flows that combine solid fundamentals with attractive valuations. Position ahead of powerful themes by reviewing these 26 AI penny stocks targeting companies that are shaping the next wave of intelligent technology. Strengthen your income stream by assessing these 15 dividend stocks with yields > 3% offering resilient yields and consistent shareholder returns.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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