Gentherm Inc ($THRM) Cautious Buy or Hold to $56 Confident Investor Rating: Fair

Company name Gentherm Inc
Stock ticker THRM
Live stock price [stckqut]THRM[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $69.63
Target stock price (averages with growth) $76.95
Target stock price (averages with no growth) $34.93
Target stock price (manual assumptions) $68.14

The following company description is from Google Finance: http://www.google.com/finance?q=thrm

Gentherm Incorporated (Gentherm) is engaged in the design, development and manufacturing of thermal management technologies. The Company’s segments are: Automotive, Industrial. The Automotive segment represents Gentherm’s three geographic operating segments: North America, Europe and Asia. The Automotive segment includes automotive seat comfort systems, specialized automotive cable systems, and other automotive and non-automotive thermal convenience products. The Industrial segment includes Gentherm Global Power Technologies (GPT) and Gentherm’s advanced research and product development division. The advanced research and product development division is engaged in projects to improve the efficiency of thermal management technologies and to develop, market and distribute products based on these new technologies.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Gentherm Inc as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Gentherm Inc calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $45.09
  • Growth: 0.2
  • Current EPS (TTM): $2.1
  • P/E: 21
  • Future EPS Calc: $5.22
  • Future Stock Price Calc: $109.73
  • Target stock price: $68.13

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I hope that this makes you a Confident Investor.

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