| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 66 | 102.1x | 17.3x | Around median | |
Growth | 20 | 8.8% | 7.1% | Bottom tier | |
Quality | 31 | 2.6% | 4.5% | Bottom tier | |
Safety | 72 | 1.1x | 2.6x | Top tier | |
Capital Return | 7 | 0.00% | 0.06% | Bottom tier | |
Momentum | 44 | -1.2% | -1.6% | Around median | |
Sentiment | 90 | 5 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
83% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Gentherm develops thermal management technologies and comfort solutions, with its core business coming from the automotive segment through heating, cooling, and comfort products such as climate, seating, lumbar support, and massage solutions. The company seeks to extend its thermal technologies into other markets; in home and office furniture, it deployed its technologies with five customers in less than a year, while in the medical segment its portfolio includes ThermAffyx for patient warming and ThermaZone for hot and cold thermal therapy following its acquisition of Innovative Medical Equipment on July 1, 2026.
In Q2 FY2026, Gentherm posted record quarterly revenue of $416.2 million, up 11% year over year, and gross profit of $96.4 million, equivalent to a gross margin of approximately 23.2%. Net income was $4.4 million and GAAP diluted earnings per share were $0.14, while adjusted earnings per share were $0.75, up 39% year over year; reported earnings were affected by approximately $0.55 per share in merger and restructuring expenses.
The core business drove the operating mix in Q2 FY2026; revenue from automotive climate and comfort solutions grew 14.1% year over year, or 12.7% excluding currency effects, while revenue from lumbar support and massage solutions increased 38%. Adjusted EBITDA was $48.8 million, or 11.7% of sales versus 12.2% a year earlier, while liquidity was $502 million and net leverage was 0.3 times at quarter-end.
The average analyst price target is $47.67, close to the upper end of the 52-week range of $48.35, while the target range extends from $34 to $59 and reflects meaningful variation in assessments of the impact of growth and the combination. The consensus rating is “Buy,” but the wide target range, the low end of $34, and expected margin pressure in Q3 FY2026 all indicate that achieving the target value depends on executing the Modine transaction and recovering profitability. The stock's 52-week range is between $27 and $48.35, highlighting the valuation's sensitivity to integration progress and the sustainability of the automotive business's above-market growth.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Revenue reached $416.2 million in Q2 FY2026, up 11% year over year, driven by higher automotive volumes. Revenue from automotive climate and comfort solutions grew 14.1%, or 12.7% excluding currency effects, while lumbar support and massage solutions increased 38%. Gross profit was $96.4 million and net income was $4.4 million, while adjusted earnings per share reached $0.75 versus $0.54 a year earlier.
The transaction aims to transform Gentherm into a broader thermal management and precision flow company, adding exposure to commercial vehicles, off-highway equipment, and power generation. Management expects light vehicles' share of the mix to decline from approximately 97% to 63%, and the combined company's revenue to exceed $3.5 billion by 2030. It is also targeting more than $100 million in cross-selling revenue by 2030 and more than $1 billion in cumulative unlevered free cash flow through the same year, with closing expected in early Q4 FY2026.
Automated analysis for informational purposes only — not investment advice.
ThermAffyx received FDA 510(k) clearance and combines air-free conductive patient warming with positioning technology during robotic surgeries. Management stated on July 23, 2026, that production had begun and clinical trials were targeting more than 50 hospitals, with initial sales expected in Q3 FY2026. On July 1, 2026, Gentherm completed the $34 million acquisition of Innovative Medical Equipment, adding ThermaZone and access to more than 200 Department of Veterans Affairs hospitals and clinics.
Management expects revenue with a midpoint of $1.6 billion in FY2026, equivalent to growth of approximately 5% versus an expected decline of about 3% in light-vehicle production. The adjusted EBITDA range is between $185 million and $200 million, with a margin of approximately 12% at the midpoint. It also expects adjusted free cash flow of between $85 million and $100 million and capital expenditures of between $45 million and $55 million, with weaker margins in Q3 followed by a recovery in Q4 FY2026.
Gentherm ended Q2 FY2026 with liquidity of $502 million and net leverage of 0.3 times. It secured $800 million in committed financing, consisting of a $550 million five-year revolving credit facility and a $250 million term loan, with net leverage expected to be approximately one time at transaction closing. On July 23, 2026, the company announced a new authorization to repurchase up to $400 million of shares over three years, with purchases expected to begin after the Modine transaction closes.