Overall Score

Revenue Model

THR trades at an EV/Sales of 3.95x, indicating a reasonable but not cheap revenue multiple for a specialty industrial business.

Gross margin is 45.3% and EBITDA margin is 17.7%, showing a workable but not exceptional monetization profile.

Revenue quality is mixed, with operating cash flow conversion at 36.9% of sales and free cash flow conversion at 70.2% of operating cash flow.

Cost Structure

SG&A remains elevated at 29.6% of revenue, which limits operating leverage despite solid gross margins.

Stock-based compensation is low at 0.7% of revenue, so dilution pressure appears contained.

Capex intensity is modest at 2.6% of revenue, supporting a relatively asset-light cost structure.

Customer Economics

Receivables days of 103.6 and inventory days of 147.1 point to a long working-capital cycle and slower cash conversion.

The cash conversion cycle is 199.5 days, suggesting customer and inventory economics are not especially efficient.

Working capital turnover of 2.53x indicates acceptable but not strong efficiency in converting capital into sales.

Capital Efficiency

ROIC is 6.9% and ROCE is 10.1%, indicating only moderate returns on invested capital.

Asset turnover of 0.65x and ROA of 5.4% suggest the business is generating steady but unspectacular productivity from its asset base.

Balance-sheet leverage is manageable with net debt to EBITDA at 1.12x and a current ratio of 2.69x.