Gentherm Incorporated (THRM): fair value, margin of safety and Wheel Score

Is THRM undervalued?

At 30.61 (close of 16 Oct 2026), THRM trades 11% under the GLS average fair value of 34.55. 5 of the 9 models that produced a value land above the price. A discount of this size counts as a positive margin of safety in every GLS screen; whether it is enough depends on the rest of the picture - the health score, the moat and the option premium below.

There is a wide gap between EPV (9.63) and GLS Growth (53.08). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.

The nightly engine files THRM under High Yield Income: a dividend yield above 4%.

Nine valuation models for THRM

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Gentherm Incorporated scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 4.7/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.

Returns on capital are thin or negative - ROIC 1.8%, ROE 2.5%, ROA 1.3% - with debt at 0.41 times equity and a free-cash-flow yield of 4.4%.

The dividend yield is high at 6.76% (payout ratio 0%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Automotive Segments 97%, Medical Segments 3% (quarter Q2 FY2026).

Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 71: Good

With a Wheel Score of 71 - the Good band - Gentherm Incorporated clears the Sunday Scan's "70 or higher" rule. The parts: Value 17/25, Health 11/20, Moat 7/15, Premium 20/20, Stability 15/20; Moat (7/15) scores lowest.

Implied volatility is 61% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (20 of 20) because volatility this high usually comes with a reason. Chain open interest is 8,432 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 2.1M shares a day on a market cap of $940M, with a beta of 1.37 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 15 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

Gentherm Incorporated reports earnings on 22 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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