GENTHERM INCORPORATED Reports Strong Q2 Earnings for FY2023
August 26, 2023
☀️Earnings Overview
GENTHERM INCORPORATED ($NASDAQ:THRM) announced their financial results for the second quarter of FY2023, which ended on June 30 2023, on August 1 2023. Total revenue for the period was USD 372.3 million, representing an increase of 42.8% compared to the same quarter of the previous year. Net income was recorded at USD -1.6 million, a decrease from the 7.1 million reported in the same quarter of the prior year.
Stock Price
On Tuesday, GENTHERM INCORPORATED reported strong earnings for the second quarter of fiscal year 2023. The stock opened at $60.9 and closed at $66.1, a soar of 10.5% from the last closing price of 59.8. This marks a strong increase in the company’s stock prices and also marks the highest close since April 8th. GENTHERM INCORPORATED is a global leader in thermal management technologies and products, providing advanced thermal governance solutions at the component, sub-system, and system levels. The company supplies products to customers across multiple industries including automotive, medical, and telecommunications.
The strong earnings can be attributed to the company’s continued efforts to develop innovative products that meet market demand and expand its customer base. The strong Q2 earnings demonstrate GENTHERM INCORPORATED’s commitment to providing high quality services and products to its customers, as well as investing in research and development to maintain its competitive edge in the market. Going forward, the company plans to continue to focus on innovation and customer satisfaction in order to drive further growth and profitability in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Gentherm Incorporated. More…
| Total Revenues | Net Income | Net Margin |
| 1.41k | 12.03 | 2.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Gentherm Incorporated. More…
| Operations | Investing | Financing |
| 77.25 | -230.96 | 155.72 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Gentherm Incorporated. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.24k | 573.49 | 20.24 |
Key Ratios Snapshot
Some of the financial key ratios for Gentherm Incorporated are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.1% | 6.1% | 2.5% |
| FCF Margin | ROE | ROA |
| 2.7% | 3.2% | 1.7% |
Analysis
GoodWhale has conducted an analysis of GENTHERM INCORPORATED‘s wellbeing. Based on our Star Chart classification of GENTHERM INCORPORATED as a ‘Cheetah’, we can conclude that the company has achieved high revenue or earnings growth, but is considered less stable due to lower profitability. We believe that this type of company would be attractive to investors who are looking for potential for rapid growth but are comfortable with there being a greater risk. GENTHERM INCORPORATED’s health score of 8/10 is strong with regards to their cashflows and debt, indicating that they are able to pay off debt and fund future operations. We also see that they are strong in terms of profitability, medium in asset, growth and weak in dividend. More…
Peers
Its competitors are PPAP Automotive Ltd, CIE Automotive SA, and Bethel Automotive Safety Systems Co Ltd.
– PPAP Automotive Ltd ($BSE:532934)
PPAP Automotive Ltd is a Japanese company that manufactures and sells automotive parts and components. The company has a market cap of 2.91B as of 2022 and a Return on Equity of 3.09%. PPAP Automotive Ltd is a publicly traded company listed on the Tokyo Stock Exchange.
– CIE Automotive SA ($LTS:0DZC)
As of 2022, CIE Automotive SA has a market cap of 3.05B and a Return on Equity of 26.38%. The company manufactures and sells automotive components and systems. It operates in two segments: Components and Modules, and Systems. The Components and Modules segment manufactures and sells products such as suspension systems, motorized seats, cockpits, and security systems. The Systems segment provides services such as assembly, painting, and logistics.
– Bethel Automotive Safety Systems Co Ltd ($SHSE:603596)
Bethel Automotive Safety Systems Co Ltd is a company that manufactures automotive safety systems. The company has a market cap of 35.68B as of 2022 and a return on equity of 11.57%. The company’s products include airbags, seatbelts, and other safety systems.
Summary
Gentherm Incorporated‘s second quarter of FY2023 earnings report revealed total revenue of $372.3 million, representing a 42.8% year-over-year increase. Net income for the same period was reported at -$1.6 million, a decrease from the $7.1 million reported in the previous year. Despite the lower net income, investors were optimistic and the stock price rose the same day.
The strong revenue growth suggests that the company is performing well and its future prospects are promising. Investors may consider purchasing stocks in Gentherm Incorporated as a long-term investment option.
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