Thermon Group Holdings (THR) Stock Analysis & Winston Score

Thermon Group Holdings makes industrial heating systems used to keep pipes, tanks, and equipment from freezing or losing heat. Its core products are electric heat tracing cables and steam tracing systems, which are sold mainly to oil and gas companies, chemical plants, and power generation facilities. The company operates globally and is one of the larger specialized providers of process heating solutions for heavy industry.

Thermon earns revenue by selling heating systems, engineering services, and maintenance contracts to industrial customers. It operates across North America, Europe, Asia-Pacific, and other regions, with a meaningful portion of sales tied to energy infrastructure spending. Its competitive position comes from deep technical expertise and long-standing customer relationships in industries where reliability and safety are critical. The main risk is that its business is closely tied to capital spending cycles in oil and gas, meaning a prolonged downturn in energy investment could weigh heavily on demand.

Winston Score History

Politician Trades

3 trades / 12mo

2 Congressional buys and 1 sell on THR in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+5.0% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+70.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

7.7%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$40M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Thermon Group Holdings is growing revenue at 5% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

−0.9% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 33.5M (2022) → 33.2M (2026)

Score breakdown

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Quality

Gross Margin

44.3%

Healthy — 44.3% gross margin

Operating Margin

17.3%

Healthy — 17.3% operating margin

ROCE

3.7%

Weak — 3.7% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+6.1%

Slow sales growth (6.1% YoY)

EPS YoY

+29.0%

Earnings growing fast (29.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion

116%

Turns 116% of profit into real cash

FCF Margin

10.5%

Modest free cash flow (10.5%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

0.28

Conservative — low debt load (0.28)

Interest Cover

10.01x

Comfortably covers interest (10.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

34.3x

Pricey — P/E 34.3

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+7.3

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (34.3 → 27.1)

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Dividends

Not applicable for this business.

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