Gentherm Inc. (THRM), Mid/Small Cap AI Study of the Week
July 18, 2024
Weekly AI Study from the S&P 400 or S&P 600
Company Overview
Gentherm Inc. is a global leader in thermal and pneumatic comfort technologies, primarily serving the automotive and medical sectors. In the automotive sector, the company offers a wide range of products including Climate Control Seats®, heated interior systems, and battery performance solutions, catering to major OEMs in North America, Europe, and Asia. Their advanced electronic devices, like memory seat modules and hands-on detection sensors, enhance safety and comfort in vehicles. Gentherm's innovative products such as WellSense™ and ClimateSense® are designed to provide personalized in-cabin comfort, which is expected to drive future revenue and profit growth.
In the medical sector, Gentherm provides patient temperature management systems used in hospitals worldwide, aiming to improve clinical outcomes and patient satisfaction. The company's Battery Thermal Management (BTM) systems support the growing needs of electrified vehicles by optimizing battery performance and efficiency. Gentherm also offers TrueTherm™ solutions for vehicle convenience, regulating the temperature of beverages and food items. Their diverse product portfolio includes essential automotive cable systems and valve technologies for critical engine and fuel management applications.
Gentherm's business strategy focuses on leveraging world-class talent, extending technology leadership, and pursuing growth in thermal and pneumatic comfort solutions. The company emphasizes innovation in connected devices, health and wellness, and shared mobility solutions, leveraging machine learning for personalized comfort. Despite facing inflationary pressures on raw material and labor costs, Gentherm maintains a competitive edge with a significant number of patents and a global manufacturing footprint. The company is committed to environmental sustainability, reducing its footprint through innovative products and minimizing resource use and emissions. Gentherm also emphasizes regulatory compliance to ensure product conformity and avoid penalties, while fostering a positive working environment focused on diversity, equity, inclusion, and employee safety.
By the Numbers
Annual 10-K Report Summary for Fiscal Year 2023:
Annual 10-K Report Summary (Year ending December 31, 2023):
- Product revenues increased by 21.9% to $1,469,076,000 from $1,204,656,000 in 2022.
- Cost of sales rose by 20.0% to $1,117,452,000.
