Gentex (GNTX) AI Stock Analysis

• Market Cap: $4.82B
• Dividend Yield: 2.23%
• Average Volume (3M): 2.79M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.65
• Revenue Growth: 0.61%
• EPS Growth: -4.04%
• Country: US
• Employees: 6,184
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Auto - Parts
• EPS (TTM): 0.39
• Shares Outstanding: 226,262,120
• 10 Day Avg. Volume: 3,287,785
• 30 Day Avg. Volume: 2,786,684
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.35
• Price to Cash Flow (P/CF): 8.80
• P/FCF Ratio: 8.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $27.64
• Price Target Upside: 28.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Gentex's overall score reflects its solid financial foundation, highlighted by strong cash flow and profitability, alongside a strategic acquisition expected to drive further growth. However, technical analysis suggests short-term weakness in stock performance, which tempers the overall score. Valuation metrics are favorable, providing a cushion against market volatility.

Positive Factors

Financial Discipline

Management's increased focus on cost control, including reduced capital expenditure guidance, underscores a commitment to better financial discipline.

Growth

Gentex Corporation's outgrowth rebounded strongly, exceeding expectations with a 12% increase, which is expected to restore investor confidence.

Innovation

Gentex is recognized as a highly innovative technology company with a strong track record in developing new products and technologies.

Negative Factors

Earnings

Gentex's 4Q results were softer than expected, leading to an -8.2% stock sell-off.

Financial Performance

The company's 2025 guidance is materially lower than consensus estimates, impacting the stock rating.

Revenue

Adverse customer and segment mix negatively impacted Gentex's production, causing a revenue shortfall.

Gentex Business Overview & Revenue Model

Company Description

Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products in the United States, Germany, Japan, Mexico, and internationally. It operates through Automotive Products and Other segments. The company offers automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming rearview mirrors for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, automotive suppliers, and various aftermarket and accessory customers. It also provides variable dimmable windows to aircraft manufacturers and airline operators. In addition, the company offers photoelectric smoke detectors and alarms, electrochemical carbon monoxide alarms and detectors, audible and visual signaling alarms, and bells and speakers used in fire detection systems in office buildings, hotels, and other commercial and residential buildings, as well as researches and develops nanofiber chemical sensing products. The company sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. Gentex Corporation was incorporated in 1974 and is headquartered in Zeeland, Michigan.

How the Company Makes Money

Gentex makes money through the sale of its automotive products, particularly its automatic-dimming rearview mirrors which are widely adopted by major automobile manufacturers worldwide. Revenue is primarily generated from long-term supply agreements with these manufacturers. Additionally, Gentex earns income from its advanced electronic components and systems integrated into vehicles, such as camera-based driver assistance systems and digital vision technologies. The company's strategic partnerships with global automotive manufacturers play a crucial role in sustaining its revenue growth and market presence.

Gentex Financial Statement Overview

Summary

Gentex is financially robust with strong profitability and cash flow generation. The absence of debt enhances its financial stability, although potential growth through leverage is not utilized. Revenue and profit margins are healthy, though some fluctuations in growth rates suggest areas for strategic focus. Overall, Gentex is well-positioned in the vehicles industry, with a solid financial foundation.

Income Statement

Gentex shows a strong gross profit margin averaging around 33% over recent years, indicating effective cost management. The net profit margin has remained stable, suggesting consistent profitability. Revenue growth has been positive, though slightly fluctuating, with a notable increase in 2023. EBIT and EBITDA margins are healthy, reflecting good operational efficiency.

Balance Sheet

The company's balance sheet reflects strong equity levels with no reported debt, indicating a conservative financial structure. However, the absence of liabilities data for 2024 limits a comprehensive analysis. The equity ratio remains robust, suggesting financial stability, yet the lack of debt could also imply missed opportunities for leveraging growth.

Cash Flow

Gentex demonstrates strong cash flow generation, with significant free cash flow growth in recent years. The operating cash flow to net income ratio indicates efficient cash conversion. Free cash flow has consistently exceeded net income, showcasing effective cash management and providing a solid foundation for future investments or shareholder returns.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.31B	2.30B	1.92B	1.73B	1.69B
	Gross Profit
771.09M	762.63M	609.81M	619.71M	605.44M
	EBIT
459.73M	495.73M	273.44M	310.67M	294.82M
	EBITDA
563.31M	589.05M	466.57M	409.78M	399.56M
	Net Income Common Stockholders
404.49M	428.40M	318.76M	360.80M	347.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
255.62M	240.79M	237.76M	267.74M	450.54M
	Total Assets
2.76B	2.61B	2.33B	2.13B	2.20B
	Total Debt
0.00	3.57M	0.00	0.00	0.00
	Net Debt
-233.32M	-222.86M	-214.75M	-262.31M	-423.37M
	Total Liabilities
288.72M	298.92M	261.44M	193.40M	234.00M
	Stockholders Equity
2.47B	2.31B	2.07B	1.94B	1.96B
Cash Flow		Free Cash Flow
353.54M	353.57M	191.77M	293.33M	412.79M
	Operating Cash Flow
498.21M	537.25M	338.20M	362.17M	464.49M
	Investing Cash Flow
-202.08M	-299.42M	-172.74M	-113.11M	26.42M
	Financing Cash Flow
-289.25M	-230.15M	-209.02M	-410.12M	-363.86M

Gentex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNTX, the sentiment is Negative. The current price of 21.56 is below the 20-day moving average (MA) of 22.46, below the 50-day MA of 23.62, and below the 200-day MA of 28.14, indicating a bearish trend. The MACD of -0.84 indicates Positive momentum. The RSI at 40.09 is Neutral, neither overbought nor oversold. The STOCH value of 39.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GNTX.

Gentex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	75 Outperform	$1.84B	6.94	24.17%	―	-2.23%	-42.94%
ALV	73 Outperform	$6.21B	9.98	28.71%	3.20%	-2.29%	35.00%
DORM	72 Outperform	$3.40B	18.09	15.44%	―	4.11%	50.07%
GNTX	70 Outperform	$4.82B	12.08	16.69%	2.23%	0.61%	-4.04%
LEA	66 Neutral	$4.25B	8.85	10.81%	3.88%	-0.70%	-7.27%
BWA	63 Neutral	$5.75B	17.42	6.46%	1.66%	-11.11%	-46.32%
Sector *	60 Neutral	$6.54B	11.34	3.27%	4.27%	2.37%	-20.86%

Gentex Corporate Events

Gentex Completes Strategic Acquisition of VOXX International

On April 1, 2025, Gentex completed its acquisition of VOXX International, a global supplier of automotive and consumer electronics, as well as premium audio equipment. This strategic acquisition is expected to increase Gentex’s annual revenue by $325 million to $375 million. The acquisition includes VOXX’s expertise in consumer product distribution and premium audio solutions, which Gentex plans to leverage to expand its smart home product portfolio. Gentex aims to integrate its engineering and high-volume electronics manufacturing expertise with VOXX’s existing capabilities to enhance profitability and strengthen business units.