Gentherm Operating Margin vs. EBITDA

THRM Stock  USD 41.99  0.14  0.33%   
Taking into consideration Gentherm's profitability measurements, Gentherm is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Gentherm's ability to earn profits and add value for shareholders.

Gentherm Operating Profit Margin

0.0553

At this time, Gentherm's Days Sales Outstanding is very stable compared to the past year. As of the 7th of December 2024, Operating Cash Flow Sales Ratio is likely to grow to 0.09, while EV To Sales is likely to drop 1.17. At this time, Gentherm's Operating Income is very stable compared to the past year. As of the 7th of December 2024, Net Income Applicable To Common Shares is likely to grow to about 35.8 M, while Income Before Tax is likely to drop about 37.1 M.
For Gentherm profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Gentherm to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Gentherm utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Gentherm's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Gentherm over time as well as its relative position and ranking within its peers.
  

Gentherm's Revenue Breakdown by Earning Segment

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To learn how to invest in Gentherm Stock, please use our How to Invest in Gentherm guide.
Is Automotive Parts & Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Gentherm. If investors know Gentherm will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Gentherm listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.063
Earnings Share
2.12
Revenue Per Share
46.587
Quarterly Revenue Growth
0.015
Return On Assets
0.0638
The market value of Gentherm is measured differently than its book value, which is the value of Gentherm that is recorded on the company's balance sheet. Investors also form their own opinion of Gentherm's value that differs from its market value or its book value, called intrinsic value, which is Gentherm's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Gentherm's market value can be influenced by many factors that don't directly affect Gentherm's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Gentherm's value and its price as these two are different measures arrived at by different means. Investors typically determine if Gentherm is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gentherm's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Gentherm EBITDA vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Gentherm's current stock value. Our valuation model uses many indicators to compare Gentherm value to that of its competitors to determine the firm's financial worth.
Gentherm is rated second in operating margin category among its peers. It is rated below average in ebitda category among its peers totaling about  1,272,112,527  of EBITDA per Operating Margin. At this time, Gentherm's Operating Profit Margin is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Gentherm by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Gentherm EBITDA vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Gentherm

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.09 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Gentherm

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
119.83 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Gentherm EBITDA Comparison

Gentherm is currently under evaluation in ebitda category among its peers.

Gentherm Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Gentherm, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Gentherm will eventually generate negative long term returns. The profitability progress is the general direction of Gentherm's change in net profit over the period of time. It can combine multiple indicators of Gentherm, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-30.2 M-28.7 M
Operating Income77.4 M81.3 M
Income Before Tax55 M37.1 M
Total Other Income Expense Net-22.5 M-21.4 M
Net Income40.3 M22 M
Income Tax Expense14.6 MM
Net Income Applicable To Common Shares28.1 M35.8 M
Net Income From Continuing Ops18.1 M17.1 M
Non Operating Income Net Other-5.1 M-4.8 M
Interest Income2.2 M2.1 M
Net Interest Income-12.5 M-11.8 M
Change To Netincome16.5 M10.1 M
Net Income Per Share 1.23  1.29 
Income Quality 2.96  1.54 
Net Income Per E B T 0.73  1.07 

Gentherm Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Gentherm. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Gentherm position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Gentherm's important profitability drivers and their relationship over time.

Use Gentherm in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Gentherm position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Gentherm will appreciate offsetting losses from the drop in the long position's value.

Gentherm Pair Trading

Gentherm Pair Trading Analysis

The ability to find closely correlated positions to Gentherm could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Gentherm when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Gentherm - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Gentherm to buy it.
The correlation of Gentherm is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Gentherm moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Gentherm moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Gentherm can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Gentherm position

In addition to having Gentherm in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Restaraunts Hotels Motels
Restaraunts Hotels Motels Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Restaraunts Hotels Motels theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Restaraunts Hotels Motels Theme or any other thematic opportunities.
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When determining whether Gentherm is a strong investment it is important to analyze Gentherm's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Gentherm's future performance. For an informed investment choice regarding Gentherm Stock, refer to the following important reports:
Check out World Market Map.
To learn how to invest in Gentherm Stock, please use our How to Invest in Gentherm guide.
You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
To fully project Gentherm's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Gentherm at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Gentherm's income statement, its balance sheet, and the statement of cash flows.
Potential Gentherm investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Gentherm investors may work on each financial statement separately, they are all related. The changes in Gentherm's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Gentherm's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.