THERMON GROUP HOLDINGS INC (THR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THR - US88362T1034 - Common Stock
42.71 USD
-0.44 (-1.02%)
Taking everything into account, THR scores 7 out of 10 in our fundamental rating. THR was compared to 91 industry peers in the Electrical Equipment industry. THR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. THR is not valued too expensively and it also shows a decent growth rate. These ratings would make THR suitable for quality investing!
1. Profitability
1.1 Basic Checks
- THR had positive earnings in the past year.
- In the past year THR had a positive cash flow from operations.
- THR had positive earnings in each of the past 5 years.
- In the past 5 years THR always reported a positive cash flow from operatings.
1.2 Ratios
- THR has a better Return On Assets (7.59%) than 83.52% of its industry peers.
- The Return On Equity of THR (11.46%) is better than 82.42% of its industry peers.
- THR's Return On Invested Capital of 9.15% is amongst the best of the industry. THR outperforms 83.52% 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 9.92%.
- The last Return On Invested Capital (9.15%) for THR is above the 3 year average (8.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 11.46% | ||
| ROIC | 9.15% |
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
- With an excellent Profit Margin value of 11.60%, THR belongs to the best of the industry, outperforming 86.81% of the companies in the same industry.
- In the last couple of years the Profit Margin of THR has grown nicely.
- With an excellent Operating Margin value of 15.93%, THR belongs to the best of the industry, outperforming 89.01% of the companies in the same industry.
- In the last couple of years the Operating Margin of THR has grown nicely.
- Looking at the Gross Margin, with a value of 45.31%, THR belongs to the top of the industry, outperforming 91.21% of the companies in the same industry.
- THR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.93% | ||
| PM (TTM) | 11.6% | ||
| GM | 45.31% |
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
- THR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, THR has less shares outstanding
- Compared to 5 years ago, THR has more shares outstanding
- Compared to 1 year ago, THR has an improved debt to assets ratio.
2.2 Solvency
- THR has an Altman-Z score of 5.18. This indicates that THR is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of THR (5.18) is better than 76.92% of its industry peers.
- THR has a debt to FCF ratio of 2.77. This is a good value and a sign of high solvency as THR would need 2.77 years to pay back of all of its debts.
- THR's Debt to FCF ratio of 2.77 is amongst the best of the industry. THR outperforms 82.42% of its industry peers.
- A Debt/Equity ratio of 0.26 indicates that THR is not too dependend on debt financing.
- THR has a better Debt to Equity ratio (0.26) than 62.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 5.18 |
ROIC/WACC1.07
WACC8.52%
2.3 Liquidity
- THR has a Current Ratio of 2.82. This indicates that THR is financially healthy and has no problem in meeting its short term obligations.
- THR has a better Current ratio (2.82) than 74.73% of its industry peers.
- A Quick Ratio of 1.74 indicates that THR should not have too much problems paying its short term obligations.
- The Quick ratio of THR (1.74) is better than 72.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.82 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 20.12% over the past year.
- THR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.83% yearly.
- THR shows a small growth in Revenue. In the last year, the Revenue has grown by 3.08%.
- THR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.37% yearly.
EPS 1Y (TTM)20.12%
EPS 3Y29.28%
EPS 5Y20.83%
EPS Q2Q%44.74%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y11.89%
Revenue growth 5Y5.37%
Sales Q2Q%14.89%
3.2 Future
- THR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.80% yearly.
- The Revenue is expected to grow by 4.73% on average over the next years.
EPS Next Y11.61%
EPS Next 2Y8.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.67%
Revenue Next 2Y4.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- THR is valuated rather expensively with a Price/Earnings ratio of 21.04.
- Based on the Price/Earnings ratio, THR is valued cheaply inside the industry as 86.81% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of THR to the average of the S&P500 Index (27.30), we can say THR is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 19.19, the valuation of THR can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, THR is valued cheaper than 83.52% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. THR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.04 | ||
| Fwd PE | 19.19 |
4.2 Price Multiples
- 86.81% of the companies in the same industry are more expensive than THR, based on the Enterprise Value to EBITDA ratio.
- THR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. THR is cheaper than 82.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.99 | ||
| EV/EBITDA | 14.71 |
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)1.81
PEG (5Y)1.01
EPS Next 2Y8.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- THR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
THERMON GROUP HOLDINGS INC / THR FAQ
Can you provide the ChartMill fundamental rating for THERMON GROUP HOLDINGS INC?
ChartMill assigns a fundamental rating of 7 / 10 to THR.
What is the valuation status of THERMON GROUP HOLDINGS INC (THR) stock?
ChartMill assigns a valuation rating of 6 / 10 to THERMON GROUP HOLDINGS INC (THR). This can be considered as Fairly Valued.
How profitable is THERMON GROUP HOLDINGS INC (THR) stock?
THERMON GROUP HOLDINGS INC (THR) has a profitability rating of 9 / 10.
How financially healthy is THERMON GROUP HOLDINGS INC?
The financial health rating of THERMON GROUP HOLDINGS INC (THR) is 7 / 10.
What is the expected EPS growth for THERMON GROUP HOLDINGS INC (THR) stock?
The Earnings per Share (EPS) of THERMON GROUP HOLDINGS INC (THR) is expected to grow by 11.61% in the next year.