Important note
This AI stock analysis for Gentherm is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!
Gentherm - AI Stock Analysis
Analysis generated January 10, 2025
Gentherm Incorporated is a global leader in thermal management technologies, serving the automotive and healthcare sectors with innovative heating, cooling, and temperature control solutions. The company is known for its products like heated and ventilated seats, heated steering wheels, and battery thermal management systems. Gentherm's cutting-edge technologies provide enhanced comfort and energy efficiency, making it a key player in its industry.
Fundamental Analysis
Revenue for the last quarter was $358 million. This represents a decrease of 3.52% compared to the previous quarter, indicating potential concerns about the company's ability to generate consistent revenue. Compared to the same quarter last year, there is a decrease of 1.81%, which should be monitored closely.
Net income for the last quarter was $16 million, a decrease of 15.42% compared to the previous quarter. This decline may highlight underlying challenges in maintaining profitability. However, compared to the same quarter last year, net income saw an increase of 0.76%, suggesting a slight year-over-year improvement.
EBITDA for the last quarter was $46 million, showing a slight decrease of 0.47% compared to the previous quarter. Despite this, there is an impressive year-over-year increase of 26.23%, indicating positive growth in operational performance.
The current P/E ratio is 18.52, which appears to be within a normal range, neither particularly overvalued nor undervalued at present. However, recent insider selling could be a bearish signal, implying that some insider stakeholders might be losing confidence in the company's near-term prospects.
Technical Analysis
Today's stock price is $39.26, representing a decrease of 9.79% compared to a month ago. This short-term decline might raise alarms for investors seeking stability. On a longer-term perspective, the stock has decreased by 19.60% over the past year, potentially pointing to broader issues affecting the company's valuation.
The stock is currently exhibiting a bearish trend. The current SMA10 is 39.47, which is slightly lower than the previous SMA10 of 39.54, suggesting a potential downward trend in price movement. The RSI is 44.4, indicating a neutral condition, which doesn't provide a clear buy or sell signal but suggests caution.
Alternative Data Analysis
Gentherm has 25 open positions, up by 39% in the last couple of months. This hiring trend indicates a potentially healthy sign of expansion and growth. However, employee sentiment appears low, with only 43% of employees having a positive outlook on the company's future, down by 9% in the last couple of months, which is concerning.
The company’s customer acquisition metrics show 26,000 visitors to their webpage, down by 30% in the last couple of months. This decline might signal a loss of consumer interest or engagement. On social media, Gentherm has 1,000 Instagram followers with no significant change and 830 Twitter followers, down by 3%, suggesting a potential dip in public interest.
AltIndex’s AI score stands at 22, which is a strong sell signal based on the analysis of fundamental, technical, and alternative data factors. This suggests an overall bearish outlook for Gentherm's stock.
Conclusion and Recommendation
Based on the comprehensive analysis, Gentherm appears to be facing several challenges that investors should monitor closely. The decline in revenue and net income quarter-over-quarter, alongside insider selling and bearish technical trends, represent potential red flags. Despite some operational growth reflected in the EBITDA increase, the overall sentiment from employees and public engagement metrics are worrisome.
While the company is taking steps to expand, as indicated by increased job postings, these positive actions are currently overshadowed by broader negative trends. Considering these mixed signals, monitoring the company's performance in upcoming quarters is crucial before making significant investment decisions.
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.
