Gentherm Story

THRM -- USA Stock

USD 77.37 0.73 0.95%

Macroaxis Story

Why analysts lower Gentherm buy or sell consensus to Sell? Gentherm is scheduled to announce its earnings today. The next earnings report is expected on the 6th of May 2021. As some millenniums are still trying to avoid consumer cyclical space, I will try to summarize Gentherm a little further in order to understand its potential as a viable investment. I will address why stakeholders ignored this entity since the beginning of the new economic outlook. Analysts now have less confidence in the firm as compared to a month ago. The current buy or sell recommendation of 4 analysts is Sell.

Published over a month ago

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What do analysts say about Gentherm?

On a scale of 0 to 100, Gentherm holds a performance score of 12. The company retains a Market Volatility (i.e. Beta) of 0.1859, which attests to not very significant fluctuations relative to the market. Let's try to break down what Gentherm's beta means in this case. As returns on the market increase, Gentherm returns are expected to increase less than the market. However, during the bear market, the loss on holding Gentherm will be expected to be smaller as well. Although it is vital to follow Gentherm current price history, it is good to be conservative about what you can do with the information regarding equity current price movements. The philosophy towards determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By evaluating Gentherm technical indicators, you can presently evaluate if the expected return of 0.36% will be sustainable into the future. Please utilizes Gentherm variance, value at risk, as well as the relationship between the Value At Risk and skewness to make a quick decision on whether Gentherm current trending patterns will revert.

What is the right price you would pay to acquire a share of Gentherm? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.

Please read more on our stock advisor page.

What is happening with Gentherm this year

Annual and quarterly reports issued by Gentherm are formal financial statements that are published yearly and quarterly and sent to Gentherm stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.

Companies such as Gentherm often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Gentherm utilizes its cash?

To perform a cash flow analysis of Gentherm, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Gentherm is receiving and how much cash it distributes out in a given period. The Gentherm cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Gentherm Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 90.25 Million

A Deeper Perspective

Average experts consensus on the entity has changed. Currently, most analysts have less confidence in the stock as compared to a month ago. The current buy or sell recommendation of 4 analysts is Sell.

Is Gentherm a risky opportunity?

Let's check the volatility. Gentherm is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Gentherm (NASDAQ:THRM) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Gentherm stock makes you a part-owner of that company.

Gentherm Current Consensus

Here is the new trade recommendation based on an ongoing consensus estimate among financial analysis covering Gentherm. The Gentherm consensus assessment is calculated by taking the average estimates from all of the analysts covering Gentherm

Strong Buy

Hold

Strong Sell

Strong Buy	1	25.0
Buy	0	0.0
Hold	1	25.0
Sell	0	0.0
Strong Sell	2	50.0

Will Gentherm continue to hike?

The variance is down to 4.12 as of today. 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 Final Takeaway

While many other companies under the auto parts industry are still a bit expensive, Gentherm may offer a potential longer-term growth to stakeholders. While some stakeholders may not share our view we believe it may be a good time to sell Gentherm as the risk-reward trade off is not appealing enough to hold a position. 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

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

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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