NORTHVILLE, Mich. - Gentherm (NASDAQ: NASDAQ:THRM), a leader in thermal management and pneumatic comfort technologies, announced today it has been awarded its first production vehicle contract for its Puls.A technology by Hyundai (OTC:HYMTF) for a future Genesis full-size SUV.
The Puls.A system, a novel pneumatic massage technology, delivers deep pulsating massages through micro air pressure bursts, designed to stimulate muscles and alleviate pain and tension.
The technology, aiming to enhance health and wellness for vehicle occupants, also offers customization and over-the-air (OTA) updates. Phil Eyler, President and CEO of Gentherm, expressed excitement about the new partnership, anticipating growth in the demand for pneumatic solutions.
Gentherm, which also specializes in medical patient temperature management systems, serves the automotive industry with products such as Climate Control Seats, heated interior systems, battery performance solutions, and other electronic devices. The company employs over 14,000 people across various global facilities.
This new contract with Hyundai represents a significant step for Gentherm as it continues to innovate in the automotive space, particularly at a time when comfort and wellness features are becoming increasingly important to consumers.
The information for this article is based on a press release statement from Gentherm Inc.
InvestingPro Insights
Gentherm (NASDAQ: THRM) has recently secured a significant contract with Hyundai, which could be a harbinger of positive momentum for the company. According to InvestingPro data, Gentherm has a market capitalization of $1.73 billion and is operating with a moderate level of debt, which suggests a stable financial foundation as it embarks on this new venture. The company's revenue growth over the last twelve months as of Q1 2024 stands at 12.37%, indicating a solid trajectory in its financial performance.
InvestingPro Tips highlight that Gentherm is trading at a low P/E ratio relative to near-term earnings growth, with an adjusted P/E ratio of 24.98, which could mean the stock is undervalued given its growth prospects. Additionally, the company's liquid assets exceed its short-term obligations, providing it with financial flexibility to invest in new technologies such as the Puls.A system. With analysts predicting profitability for the company this year, and the fact that it has been profitable over the last twelve months, Gentherm appears to be in a strong position to capitalize on its new partnership with Hyundai.
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