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Gentherm - AI Stock Analysis

Analysis generated January 21, 2025

Gentherm Inc. specializes in thermal management technologies, offering a diverse range of products including heated and cooled seat systems, climate-controlled mattress systems, and thermal management systems for batteries in electric vehicles. Operating in the automotive sector, Gentherm has carved a niche for itself with its thermal expertise, positioning itself as a key player amid the growing demand for energy-efficient thermal solutions.

Fundamental Analysis

For the most recent quarter, Gentherm posted revenue of $358M. When compared to the previous quarter, this represents a decrease of 3.52%, necessitating caution as it signals potential challenges that the company might be facing in maintaining its revenue stream. On a year-over-year basis, the revenue has also seen a reduction of 1.81%, which could indicate longer-term issues with revenue growth.

Net income for the last quarter stood at $16M, a decrease of 15.42% from the quarter before, again a red flag for investors. However, compared to the same quarter last year, there is a slight increase of 0.76%, suggesting some improvements on an annual scale.

EBITDA, a key measure of a company's operational efficiency and profitability, was recorded at $46M for the most recent quarter. This is a decrease of 0.47% compared to the previous quarter, indicating potential concerns. Nevertheless, looking at a year-over-year comparison, EBITDA has increased by 26.23%, reflecting strong operational improvements over the past year.

Gentherm's current Price-to-Earnings (P/E) ratio stands at 18.93, which shows that the stock is trading at a value within the normal range. This valuation metric suggests that the stock is neither overvalued nor undervalued at present. However, recent insider selling is a bearish signal and may indicate a lack of confidence in the stock's future performance from those closest to the company.

Technical Analysis

Today's stock price is $40.14, an increase of 3.91% compared to a month ago, indicating a positive short-term trend. However, this price is down 17.25% compared to a year ago, potentially raising concerns over the stock's long-term performance.

The current Simple Moving Average (SMA10) is 39.59, which is higher than the previous SMA10 of 39.43. This indicates a potential upward trend in price movement. The Relative Strength Index (RSI) is 46.3, which falls into the neutral range, suggesting that the stock is neither overbought nor oversold at present.

Alternative Data Analysis

Looking at job postings and employee sentiment, Gentherm has 22 open positions, up by 47% over the last couple of months, indicating a company looking to grow and expand. This is a healthy sign for investors. However, only 43% of employees have a positive outlook on the business, a concerning sign. The business outlook among employees is also down by 9% in the last couple of months, which further raises red flags.

Customer acquisition appears to be on an upswing, with Gentherm’s webpage receiving an estimated 25,000 visitors, up by 92% in the last couple of months. This is a bullish signal as increased web traffic can correlate with customer interest and potential sales growth. However, customer engagement metrics show mixed results. Gentherm has 1,000 Instagram followers, with no significant changes recently, but they have 830 followers on Twitter, down by 3% recently, suggesting a slight loss of interest.

According to AltIndex’s AI score, which incorporates fundamental, technical, and alternative data, Gentherm has an AI score of 28, a strong sell signal, indicating potential downside risk.

Conclusion

Based on the data provided, Gentherm presents a mixed financial picture. While there are some positive trends, such as the year-over-year increase in EBITDA and a short-term upward trend in stock price, there are also significant concerns like the overall decline in revenue and net income, insider selling, and a low employee business outlook. The increase in job postings and web traffic offers some hope for future growth, but the AI score of 28 presents a strong sell signal. Given these factors, a cautious investment approach is recommended.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.