Gentherm Incorporated is a global developer and marketer of innovative thermal management technologies for a broad range of heating and cooling and temperature control applications. The company was founded in 1968 and is based in Northville, Michigan.
THRM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for GENTHERM Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that GENTHERM Inc ranked in the 72th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 224% on a DCF basis. The most interesting components of our discounted cash flow analysis for GENTHERM Inc ended up being:
THRM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 31.28% of tickers in our DCF set.
GENTHERM Inc's effective tax rate, as measured by taxes paid relative to net income, is at 24 -- greater than 86.28% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Consumer Cyclical), GENTHERM Inc has a reliance on debt greater than only 16.04% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as THRM, try FLXS, LZB, DISH, GEF, and LEA.
Gentherm's earnings results were released earlier this morning, and a copy of the release is available at gentherm.com Additionally, a webcast replay of today's call will be available later today on the Investor Relations section of Gentherm's website. Please see Gentherm's SEC filings, including the latest 10-K and subsequent reports, for disclosures of our risk factors and other risks and uncertainties underlying such forward-looking statements.