THERMON GROUP HOLDINGS INC (THR) Stock Fundamental Analysis
NYSE:THR - New York Stock Exchange, Inc. - US88362T1034 - Common Stock - Currency: USD
Taking everything into account, THR scores 6 out of 10 in our fundamental rating. THR was compared to 94 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making THR a very profitable company, without any liquidiy or solvency issues. THR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
THR had positive earnings in the past year.
THR had a positive operating cash flow in the past year.
THR had positive earnings in each of the past 5 years.
THR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of THR (7.08%) is better than 87.23% of its industry peers.
The Return On Equity of THR (10.80%) is better than 81.91% of its industry peers.
THR has a better Return On Invested Capital (9.43%) than 82.98% of its industry peers.
THR had an Average Return On Invested Capital over the past 3 years of 8.99%. This is in line with the industry average of 9.89%.
The last Return On Invested Capital (9.43%) for THR is above the 3 year average (8.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.08% | ||
| ROE | 10.8% | ||
| ROIC | 9.43% |
ROA(3y)6.33%
ROA(5y)4.46%
ROE(3y)9.9%
ROE(5y)7%
ROIC(3y)8.99%
ROIC(5y)6.64%
1.3 Margins
THR has a Profit Margin of 10.74%. This is amongst the best in the industry. THR outperforms 88.30% of its industry peers.
In the last couple of years the Profit Margin of THR has grown nicely.
THR's Operating Margin of 15.95% is amongst the best of the industry. THR outperforms 89.36% of its industry peers.
In the last couple of years the Operating Margin of THR has grown nicely.
Looking at the Gross Margin, with a value of 44.74%, THR belongs to the top of the industry, outperforming 92.55% of the companies in the same industry.
In the last couple of years the Gross Margin of THR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.95% | ||
| PM (TTM) | 10.74% | ||
| GM | 44.74% |
OM growth 3Y16.37%
OM growth 5Y13.34%
PM growth 3Y23.88%
PM growth 5Y28.19%
GM growth 3Y4.69%
GM growth 5Y1.21%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), THR is creating some value.
Compared to 1 year ago, THR has less shares outstanding
The number of shares outstanding for THR has been increased compared to 5 years ago.
Compared to 1 year ago, THR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.12 indicates that THR is not in any danger for bankruptcy at the moment.
THR's Altman-Z score of 4.12 is fine compared to the rest of the industry. THR outperforms 73.40% of its industry peers.
The Debt to FCF ratio of THR is 2.62, which is a good value as it means it would take THR, 2.62 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.62, THR is doing good in the industry, outperforming 79.79% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that THR is not too dependend on debt financing.
THR has a Debt to Equity ratio (0.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 4.12 |
ROIC/WACC1.12
WACC8.45%
2.3 Liquidity
A Current Ratio of 2.43 indicates that THR has no problem at all paying its short term obligations.
THR has a Current ratio of 2.43. This is in the better half of the industry: THR outperforms 67.02% of its industry peers.
THR has a Quick Ratio of 1.64. This is a normal value and indicates that THR is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.64, THR is doing good in the industry, outperforming 62.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
THR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.30%.
Measured over the past years, THR shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.83% on average per year.
Looking at the last year, THR shows a small growth in Revenue. The Revenue has grown by 0.71% in the last year.
The Revenue has been growing slightly by 5.37% on average over the past years.
EPS 1Y (TTM)3.3%
EPS 3Y29.28%
EPS 5Y20.83%
EPS Q2Q%64.71%
Revenue 1Y (TTM)0.71%
Revenue growth 3Y11.89%
Revenue growth 5Y5.37%
Sales Q2Q%5.03%
3.2 Future
Based on estimates for the next years, THR will show a small growth in Earnings Per Share. The EPS will grow by 7.39% on average per year.
The Revenue is expected to grow by 5.65% on average over the next years.
EPS Next Y0.73%
EPS Next 2Y7.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.9%
Revenue Next 2Y5.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.49, THR is valued correctly.
Based on the Price/Earnings ratio, THR is valued cheaply inside the industry as 90.43% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of THR to the average of the S&P500 Index (27.45), we can say THR is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.38, which indicates a correct valuation of THR.
THR's Price/Forward Earnings ratio is rather cheap when compared to the industry. THR is cheaper than 85.11% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. THR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.49 | ||
| Fwd PE | 15.38 |
4.2 Price Multiples
90.43% of the companies in the same industry are more expensive than THR, based on the Enterprise Value to EBITDA ratio.
86.17% of the companies in the same industry are more expensive than THR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.23 | ||
| EV/EBITDA | 10.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of THR may justify a higher PE ratio.
PEG (NY)21.18
PEG (5Y)0.74
EPS Next 2Y7.39%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for THR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.12
+0.18 (+0.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.64%
Inst Owner Change-1.45%
Ins Owners2.77%
Ins Owner Change9.55%
Market Cap963.58M
Analysts80
Price Target36.72 (26.1%)
Short Float %1%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.07%
Min EPS beat(2)0.35%
Max EPS beat(2)9.79%
EPS beat(4)4
Avg EPS beat(4)8.23%
Min EPS beat(4)0.35%
Max EPS beat(4)20.4%
EPS beat(8)8
Avg EPS beat(8)16.37%
EPS beat(12)11
Avg EPS beat(12)31.86%
EPS beat(16)15
Avg EPS beat(16)33.45%
Revenue beat(2)0
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-4.24%
Max Revenue beat(2)-0.67%
Revenue beat(4)0
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-4.24%
Max Revenue beat(4)-0.67%
Revenue beat(8)3
Avg Revenue beat(8)2.14%
Revenue beat(12)7
Avg Revenue beat(12)6.22%
Revenue beat(16)11
Avg Revenue beat(16)7.47%
PT rev (1m)-1.37%
PT rev (3m)-1.37%
EPS NQ rev (1m)-5.98%
EPS NQ rev (3m)-5.98%
EPS NY rev (1m)-6.95%
EPS NY rev (3m)-6.95%
Revenue NQ rev (1m)-1.13%
Revenue NQ rev (3m)-1.13%
Revenue NY rev (1m)-2.51%
Revenue NY rev (3m)-2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.49 | ||
| Fwd PE | 15.38 | ||
| P/S | 1.93 | ||
| P/FCF | 18.23 | ||
| P/OCF | 15.27 | ||
| P/B | 1.95 | ||
| P/tB | 8.33 | ||
| EV/EBITDA | 10.44 |
EPS(TTM)1.88
EY6.46%
EPS(NY)1.89
Fwd EY6.5%
FCF(TTM)1.6
FCFY5.49%
OCF(TTM)1.91
OCFY6.55%
SpS15.06
BVpS14.97
TBVpS3.5
PEG (NY)21.18
PEG (5Y)0.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.08% | ||
| ROE | 10.8% | ||
| ROCE | 12.36% | ||
| ROIC | 9.43% | ||
| ROICexc | 10.05% | ||
| ROICexgc | 27.1% | ||
| OM | 15.95% | ||
| PM (TTM) | 10.74% | ||
| GM | 44.74% | ||
| FCFM | 10.61% |
ROA(3y)6.33%
ROA(5y)4.46%
ROE(3y)9.9%
ROE(5y)7%
ROIC(3y)8.99%
ROIC(5y)6.64%
ROICexc(3y)9.63%
ROICexc(5y)7.12%
ROICexgc(3y)25.88%
ROICexgc(5y)18.89%
ROCE(3y)11.92%
ROCE(5y)8.78%
ROICexcg growth 3Y26.81%
ROICexcg growth 5Y18.45%
ROICexc growth 3Y23.46%
ROICexc growth 5Y15.81%
OM growth 3Y16.37%
OM growth 5Y13.34%
PM growth 3Y23.88%
PM growth 5Y28.19%
GM growth 3Y4.69%
GM growth 5Y1.21%
F-Score8
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.62 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 45.88% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 7.64 | ||
| Cash Conversion | 62.01% | ||
| Profit Quality | 98.79% | ||
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 4.12 |
F-Score8
WACC8.45%
ROIC/WACC1.12
Cap/Depr(3y)51.17%
Cap/Depr(5y)43.71%
Cap/Sales(3y)2.14%
Cap/Sales(5y)2.17%
Profit Quality(3y)116.16%
Profit Quality(5y)585.56%
High Growth Momentum
Growth
EPS 1Y (TTM)3.3%
EPS 3Y29.28%
EPS 5Y20.83%
EPS Q2Q%64.71%
EPS Next Y0.73%
EPS Next 2Y7.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.71%
Revenue growth 3Y11.89%
Revenue growth 5Y5.37%
Sales Q2Q%5.03%
Revenue Next Year5.9%
Revenue Next 2Y5.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y3.9%
EBIT growth 3Y30.2%
EBIT growth 5Y19.43%
EBIT Next Year36.58%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-3.77%
FCF growth 3Y30.98%
FCF growth 5Y-2.46%
OCF growth 1Y-4.3%
OCF growth 3Y29.97%
OCF growth 5Y-2.25%