Gentherm's 15min chart shows Bollinger Bands expanding downward, bearish Marubozu pattern.

Based on Gentherm's 15-minute chart, the Bollinger Bands are currently expanding downward, indicating a bearish trend with a Marubozu pattern observed on September 19, 2025 at 11:30. This suggests that the market is being driven by selling pressure, with sellers in control, and it is likely that the bearish momentum will continue.

As the automotive sector continues to navigate through a landscape of tariff-related uncertainties, two key players in thermal management technologies—Modine Manufacturing Company (MOD) and Gentherm Incorporated (THRM)—stand out. Both companies cater to the automotive market, but their strategies, financial performance, and market positioning differ significantly.

Modine Manufacturing Company (MOD)

Modine has shown remarkable resilience and growth over the past few quarters. In the first quarter of fiscal 2026, the company reported net sales of $682.8 million, up 3% from the previous year, driven by strong performance in its Climate Solutions segment and HVAC Technologies group. Modine’s strategic acquisitions, including AbsolutAire, L.B. White, and Climate by Design International, have bolstered its position in the market. The company’s high return on equity (ROE) of 24% underscores its ability to generate strong shareholder value, even in the face of higher costs related to tariffs and rising material prices.

Modine is also investing in its data center cooling products. A $100 million investment over 12-18 months aims to expand U.S. manufacturing capabilities, boost engineering, testing, and product development. With data center revenues expected to approach $2 billion by fiscal 2028, Modine is well-positioned for long-term growth. The company’s forward sales multiple of 2.62X is close to its mean of 2.72X over the last five years, indicating a relatively fair valuation.

Gentherm Incorporated (THRM)

Gentherm has demonstrated steady revenue growth and strong performance in the automotive sector. In the second quarter of 2025, the company reported revenues of $375 million, with Automotive Climate and Comfort Solutions revenues growing 3.8% year over year. Gentherm’s strategic focus on narrowing the gap in Asia, particularly in China, is evident. By aligning more closely with Chinese domestic OEMs, the company expects a shift in market share from 80-20 in favor of global OEMs to 60-40 by next year. This strategic shift is crucial given the significant market potential in China.

Gentherm’s diversification into the medical sector through partnerships like DUOMED also provides an additional growth route. However, the company faces challenges with tariffs, which have narrowed its EBITDA margin guidance range to 11.7-12.5%. Gentherm’s ROE of 9.9% is lower than Modine’s, indicating a slight lag in profitability.

Price Performance and Valuation

Year-to-date, Modine shares have risen by roughly 31.5%, while Gentherm stock has lost 11%. Modine’s forward sales multiple of 2.62X is closer to its mean, suggesting a fair valuation. In contrast, Gentherm’s forward sales multiple of 0.73X is significantly below its median of 2.85X over the last five years, indicating a potential undervaluation.

Zacks Estimates

The Zacks Consensus Estimate for Modine’s fiscal 2026 EPS implies year-over-year growth of 14.3%, while Gentherm’s 2025 EPS estimate suggests a year-over-year decline of 4.3%. However, both companies have seen their EPS estimates trending northward over the past 60 days, indicating growing investor optimism.

Conclusion

Modine stands out as the more attractive pick between the two. Its solid top-line growth, strategic acquisitions, and significant investments in data center cooling position it well for future growth. Additionally, Modine’s high ROE underscores its ability to generate strong shareholder value. Gentherm, while demonstrating resilience and strategic execution, lags behind in profitability metrics and faces significant tariff pressures.

While MOD sports a Zacks Rank #1 (Strong Buy), THRM currently carries a Zacks Rank #3 (Hold). Investors should consider Modine’s stronger financial performance and clearer long-term growth strategy as they navigate the uncertainties of the automotive sector.

References

MOD vs. THRM: Which Thermal Management Stock is the Better Buy?^[1] https://www.nasdaq.com/articles/mod-vs-thrm-which-thermal-management-stock-better-buy