Gentherm Story

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THRM -- USA Stock  

USD 76.78  0.35  0.45%

Gentherm is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 1st of March 2021. Gentherm Average Equity is relatively stable at the moment as compared to the past year. The company's current value of Average Equity is estimated at 330.44 Million. Enterprise Value is expected to hike to about 1.6 B this year, although the value of Calculated Tax Rate will most likely fall to 29.93. As many investors are getting excited about consumer cyclical space, it is fair to summarize Gentherm as an investment option. Let's try to summarize if Gentherm shares are reasonably priced going into March.
Published over a month ago
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You think Gentherm (NASDAQ:THRM) debt is an issue for stakeholders?
The company currently holds 215.81 M in liabilities with Debt to Equity (D/E) ratio of 0.42, which is about average as compared to similar companies.
Macroaxis provides unbiased trade recommendations on Gentherm that should be used to complement current analysts and expert consensus on Gentherm. Our advice engine determines the entity's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon.
Gentherm financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Gentherm, including all of Gentherm's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Gentherm assets, the company is considered highly leveraged. Understanding the composition and structure of overall Gentherm debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Gentherm Total Liabilities

Gentherm liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Gentherm has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Gentherm balance sheet include debt obligations and money owed to different Gentherm vendors, workers, and loan providers. Below is the chart of Gentherm short long-term liabilities accounts currently reported on its balance sheet.
You can use Gentherm financial leverage analysis tool to get a better grip on understanding its financial position

How important is Gentherm's Liquidity

Gentherm financial leverage refers to using borrowed capital as a funding source to finance Gentherm ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Gentherm financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Gentherm's total debt and its cash.

A Deeper Perspective

Gentherm reported the previous year's revenue of 854.6 M. Net Income was 36.15 M with profit before overhead, payroll, taxes, and interest of 288.33 M.

Asset Breakdown

219.6 M
Assets Non Current
74 M
315.2 M
Current Assets
Total Assets590.44 Million
Current Assets315.22 Million
Assets Non Current219.64 Million
Goodwill74.02 Million
Tax Assets27.98 Million

Possible March turnaround of Gentherm?

New semi deviation is at 1.4. Gentherm has relatively low volatility with skewness of 0.24 and kurtosis of -0.27. However, we advise all investors to independently investigate Gentherm to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Gentherm's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Gentherm's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Takeaway on Gentherm Investment

While some other firms under the auto parts industry are still a bit expensive, Gentherm may offer a potential longer-term growth to stakeholders. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to quit some or all of your Gentherm holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Gentherm.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Gentherm. Please refer to our Terms of Use for any information regarding our disclosure principles.

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