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 93 industry peers in the Electrical Equipment industry. THR scores excellent on profitability, but there are some minor concerns on its financial health. THR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year THR was profitable.
THR had a positive operating cash flow in the past year.
In the past 5 years THR has always been profitable.
Each year in the past 5 years THR had a positive operating cash flow.
1.2 Ratios
THR's Return On Assets of 6.11% is amongst the best of the industry. THR outperforms 85.87% of its industry peers.
THR has a better Return On Equity (9.54%) than 81.52% of its industry peers.
With an excellent Return On Invested Capital value of 7.95%, THR belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for THR is below the industry average of 9.87%.
The 3 year average ROIC (7.10%) for THR is below the current ROIC(7.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 9.54% | ||
| ROIC | 7.95% |
ROA(3y)5.02%
ROA(5y)3.43%
ROE(3y)7.98%
ROE(5y)5.52%
ROIC(3y)7.1%
ROIC(5y)5.35%
1.3 Margins
THR has a Profit Margin of 9.48%. This is amongst the best in the industry. THR outperforms 85.87% of its industry peers.
THR's Profit Margin has improved in the last couple of years.
The Operating Margin of THR (14.62%) is better than 86.96% 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 43.89%, THR belongs to the top of the industry, outperforming 93.48% 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 | 14.62% | ||
| PM (TTM) | 9.48% | ||
| GM | 43.89% |
OM growth 3Y64.38%
OM growth 5Y5.6%
PM growth 3Y217.51%
PM growth 5Y13.55%
GM growth 3Y1.61%
GM growth 5Y0.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so THR is destroying value.
The number of shares outstanding for THR has been increased compared to 1 year ago.
THR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for THR is higher compared to a year ago.
2.2 Solvency
THR has an Altman-Z score of 3.93. This indicates that THR is financially healthy and has little risk of bankruptcy at the moment.
THR has a Altman-Z score of 3.93. This is amongst the best in the industry. THR outperforms 81.52% of its industry peers.
The Debt to FCF ratio of THR is 2.67, which is a good value as it means it would take THR, 2.67 years of fcf income to pay off all of its debts.
THR has a Debt to FCF ratio of 2.67. This is in the better half of the industry: THR outperforms 78.26% of its industry peers.
THR has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
THR's Debt to Equity ratio of 0.28 is in line compared to the rest of the industry. THR outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 3.93 |
ROIC/WACC0.95
WACC8.38%
2.3 Liquidity
THR has a Current Ratio of 2.56. This indicates that THR is financially healthy and has no problem in meeting its short term obligations.
THR has a better Current ratio (2.56) than 70.65% of its industry peers.
A Quick Ratio of 1.71 indicates that THR should not have too much problems paying its short term obligations.
THR's Quick ratio of 1.71 is fine compared to the rest of the industry. THR outperforms 68.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.56 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
THR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.17%.
The Earnings Per Share has been growing by 9.05% on average over the past years. This is quite good.
THR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.46%.
THR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.69% yearly.
EPS 1Y (TTM)-12.17%
EPS 3Y74.93%
EPS 5Y9.05%
EPS Q2Q%-5.08%
Revenue 1Y (TTM)0.46%
Revenue growth 3Y21.44%
Revenue growth 5Y3.69%
Sales Q2Q%-1.52%
3.2 Future
The Earnings Per Share is expected to grow by 8.32% on average over the next years. This is quite good.
Based on estimates for the next years, THR will show a small growth in Revenue. The Revenue will grow by 4.93% on average per year.
EPS Next Y1.28%
EPS Next 2Y5.75%
EPS Next 3Y8.32%
EPS Next 5YN/A
Revenue Next Year0.12%
Revenue Next 2Y4.29%
Revenue Next 3Y4.93%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.25, the valuation of THR can be described as rather expensive.
Based on the Price/Earnings ratio, THR is valued cheaper than 82.61% of the companies in the same industry.
THR is valuated rather cheaply when we compare the Price/Earnings ratio to 29.75, which is the current average of the S&P500 Index.
THR is valuated correctly with a Price/Forward Earnings ratio of 14.07.
Compared to the rest of the industry, the Price/Forward Earnings ratio of THR indicates a rather cheap valuation: THR is cheaper than 82.61% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.44. THR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.25 | ||
| Fwd PE | 14.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, THR is valued cheaper than 82.61% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of THR indicates a rather cheap valuation: THR is cheaper than 83.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.85 | ||
| EV/EBITDA | 11.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates THR does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of THR may justify a higher PE ratio.
PEG (NY)13.51
PEG (5Y)1.91
EPS Next 2Y5.75%
EPS Next 3Y8.32%
5. Dividend
5.1 Amount
THR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.64
-0.86 (-2.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.72%
Inst Owner Change0.98%
Ins Owners2.3%
Ins Owner Change0.87%
Market Cap964.88M
Analysts80
Price Target37.23 (29.99%)
Short Float %0.93%
Short Ratio1.81
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)1.37%
Min EPS beat(2)0.35%
Max EPS beat(2)2.38%
EPS beat(4)4
Avg EPS beat(4)7.08%
Min EPS beat(4)0.35%
Max EPS beat(4)20.4%
EPS beat(8)7
Avg EPS beat(8)15.02%
EPS beat(12)11
Avg EPS beat(12)31.68%
EPS beat(16)14
Avg EPS beat(16)27.55%
Revenue beat(2)0
Avg Revenue beat(2)-3.27%
Min Revenue beat(2)-4.24%
Max Revenue beat(2)-2.3%
Revenue beat(4)0
Avg Revenue beat(4)-2.11%
Min Revenue beat(4)-4.24%
Max Revenue beat(4)-0.21%
Revenue beat(8)4
Avg Revenue beat(8)3%
Revenue beat(12)8
Avg Revenue beat(12)7.13%
Revenue beat(16)12
Avg Revenue beat(16)7.53%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)3.06%
EPS NQ rev (3m)0%
EPS NY rev (1m)1.39%
EPS NY rev (3m)-0.68%
Revenue NQ rev (1m)1.21%
Revenue NQ rev (3m)-2.32%
Revenue NY rev (1m)-1.3%
Revenue NY rev (3m)-2.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.25 | ||
| Fwd PE | 14.07 | ||
| P/S | 1.96 | ||
| P/FCF | 16.85 | ||
| P/OCF | 14.28 | ||
| P/B | 1.97 | ||
| P/tB | 9.02 | ||
| EV/EBITDA | 11.43 |
EPS(TTM)1.66
EY5.8%
EPS(NY)2.04
Fwd EY7.11%
FCF(TTM)1.7
FCFY5.94%
OCF(TTM)2.01
OCFY7%
SpS14.6
BVpS14.51
TBVpS3.18
PEG (NY)13.51
PEG (5Y)1.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 9.54% | ||
| ROCE | 11% | ||
| ROIC | 7.95% | ||
| ROICexc | 8.45% | ||
| ROICexgc | 22.27% | ||
| OM | 14.62% | ||
| PM (TTM) | 9.48% | ||
| GM | 43.89% | ||
| FCFM | 11.64% |
ROA(3y)5.02%
ROA(5y)3.43%
ROE(3y)7.98%
ROE(5y)5.52%
ROIC(3y)7.1%
ROIC(5y)5.35%
ROICexc(3y)7.63%
ROICexc(5y)5.76%
ROICexgc(3y)20.15%
ROICexgc(5y)14.96%
ROCE(3y)9.95%
ROCE(5y)7.48%
ROICexcg growth 3Y96.89%
ROICexcg growth 5Y10.85%
ROICexc growth 3Y89.37%
ROICexc growth 5Y7.56%
OM growth 3Y64.38%
OM growth 5Y5.6%
PM growth 3Y217.51%
PM growth 5Y13.55%
GM growth 3Y1.61%
GM growth 5Y0.07%
F-Score9
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.67 | ||
| Debt/EBITDA | 1.43 | ||
| Cap/Depr | 45.78% | ||
| Cap/Sales | 2.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.57% | ||
| Profit Quality | 122.82% | ||
| Current Ratio | 2.56 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 3.93 |
F-Score9
WACC8.38%
ROIC/WACC0.95
Cap/Depr(3y)44.48%
Cap/Depr(5y)42.22%
Cap/Sales(3y)1.95%
Cap/Sales(5y)2.32%
Profit Quality(3y)122.26%
Profit Quality(5y)666.42%
High Growth Momentum
Growth
EPS 1Y (TTM)-12.17%
EPS 3Y74.93%
EPS 5Y9.05%
EPS Q2Q%-5.08%
EPS Next Y1.28%
EPS Next 2Y5.75%
EPS Next 3Y8.32%
EPS Next 5YN/A
Revenue 1Y (TTM)0.46%
Revenue growth 3Y21.44%
Revenue growth 5Y3.69%
Sales Q2Q%-1.52%
Revenue Next Year0.12%
Revenue Next 2Y4.29%
Revenue Next 3Y4.93%
Revenue Next 5YN/A
EBIT growth 1Y-10.55%
EBIT growth 3Y99.61%
EBIT growth 5Y9.5%
EBIT Next Year33.49%
EBIT Next 3Y19.31%
EBIT Next 5YN/A
FCF growth 1Y46.31%
FCF growth 3Y35.34%
FCF growth 5Y37.47%
OCF growth 1Y44.99%
OCF growth 3Y29.61%
OCF growth 5Y23.21%