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Gentex Corp (GNTX)
NASDAQ:GNTX
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Gentex
(NASDAQ:GNTX)
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Rating:77Outperform
Price Target:
$27.00
▲(14.16% Upside)
The score is driven primarily by strong financial performance (profitability, very low leverage, and solid cash generation). Valuation is supportive with a reasonable P/E and ~2% yield, while the latest call was broadly positive on guidance and margin/VOXX progress but tempered by material tariff/commodity and China-related risks. Technical indicators are neutral and do not add strong momentum support.
Positive Factors
Balance Sheet Strength
Gentex’s very low leverage and healthy equity ratio provide durable financial flexibility. Low debt reduces refinancing and interest risk across cycles, supports sustained R&D/capex spending, M&A integration (VOXX), and buybacks without materially increasing financial stress.
Cash Generation & Capital Allocation
Material operating cash flow growth and improved free cash flow underpin lasting capital deployment optionality. Strong cash generation funds disciplined capex, R&D and integration of acquisitions, supports dividends/repurchases, and absorbs cyclical downturns without reliance on external funding.
Product Diversification & Tech Momentum
Progress shifting beyond mirrors into driver monitoring, displays, dimmable sun visors and smart-home/security broadens addressable market. Multiple OEM wins and product commercialization reduce single-product dependence and increase long-term growth avenues across automotive, aerospace and home markets.
Negative Factors
Severe China Revenue Decline
Sustained China volume contraction from tariffs materially reduces growth in a key market and compresses margins where scale and supply-chain positioning were advantageous. Prolonged market access constraints could impair long-term revenue diversification and OEM program economics.
Tariff & Commodity Margin Pressure
Estimated $45–$50M of tariff/commodity headwinds and a ~150bp gross margin drag represent a structural profitability risk if sustained. Persistent input-cost or trade-policy shocks could force margin compression or require difficult OEM price negotiations, limiting durable margin expansion.
Working Capital & Liquidity Strain Post-Acquisition
VOXX acquisition and buybacks reduced cash and increased receivables and inventory, tightening liquidity. Elevated working capital burdens and lower cash buffers reduce resiliency to production swings, slowing ability to fund ops organically and increasing reliance on cash conversion or external financing.
Gentex (GNTX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.16B
Dividend Yield2.05%
Average Volume (3M)2.01M
Price to Earnings (P/E)13.9
Beta (1Y)0.57
Revenue Growth2.99%
EPS Growth-9.80%
CountryUS
Employees6,184
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.43
Shares Outstanding218,942,920
10 Day Avg. Volume2,327,229
30 Day Avg. Volume2,006,784
Financial Highlights & Ratios
PEG Ratio-4.21
Price to Book (P/B)2.63
Price to Sales (P/S)2.80
P/FCF Ratio18.34
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue2.00
Enterprise Value/Gross Profit5.95
Enterprise Value/Ebitda9.07
Forecast
1Y Price Target
$26.00Price Target Upside9.94% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.96
Revenue Forecast (FY)$2.65B
Gentex Business Overview & Revenue Model
Company DescriptionGentex 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 MoneyGentex generates revenue primarily through the sale of its automotive products, which include automatic-dimming mirrors and other electronic components that are often integrated into vehicles to enhance safety and comfort. The company has established strong relationships with major automotive manufacturers, which allows it to supply products for a wide range of vehicle models. In addition to the automotive sector, Gentex also earns revenue from its aerospace division, providing technologically advanced products for aircraft, including cockpit displays and lighting systems. The revenue model is further bolstered by ongoing investments in research and development to innovate and diversify its product offerings, as well as strategic partnerships with automotive and aerospace companies that enhance its market position and revenue potential.
Gentex Earnings Call Summary
Earnings Call Date:Jan 30, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a positive operational and strategic progression: consolidated revenue and operating cash flow grew, management hit stated gross margin targets (core gross margin up materially), key product launches and customer wins advanced, and VOXX integration is progressing toward targeted synergies. Material headwinds remain — notably steep China revenue declines from tariffs, tariff-driven margin pressure (~150 bps in Q4), commodity and memory cost inflation, higher effective tax rate, and near-term working capital impacts. On balance, achievements in margin recovery, product commercialization, cash generation, and acquisition integration outweigh the lowlights, though the company faces tangible macro and supply-chain risks that could constrain near-term upside.Q4-2025 Updates
Positive Updates
Consolidated Revenue Growth (Q4 & FY)
Consolidated net sales for Q4 2025 were $644.4 million, up 19% year-over-year (voxx contributed $103.4M). Consolidated revenue for calendar year 2025 was $2.53 billion, up 10% versus $2.31 billion in 2024 (includes nine months of VOXX). Core Gentex Q4 revenue was $541 million and core Gentex full-year sales were $2.27 billion.
Significant Gross Margin Improvement
Consolidated gross margin in Q4 was 34.8% versus 32.5% last year (last year excluded VOXX). Core Gentex gross margin in Q4 was 35.5%, a 300 basis point improvement year-over-year and the highest since 2021. Core Gentex full-year gross margin was 34.7%, a 140 basis point increase versus prior year driven by favorable mix, operational efficiencies and purchasing cost reductions.
Stronger Profitability Metrics
Consolidated income from operations in Q4 was $120.1 million (versus $89.8M prior year). Core Gentex income from operations was $112.5 million, a 25.3% increase year-over-year. Consolidated Q4 net income was $93.0 million and EPS was $0.43 versus $0.39 last year (Q4).
Product Launches, Wins and Technology Momentum
Full display mirror shipments increased to 3.19 million units in 2025 (~8% increase vs 2024). Began shipping driver monitoring systems to Volvo and Polestar (and previously Rivian), and expect two additional OEM production programs in 2026. First customer launch for dimmable sun visors targeting 2027. CES showcase earned 26 awards across product lines including premium audio and new automotive technologies.
VOXX Acquisition Progress and Synergy Plan
VOXX contributed $267.2 million in revenue from April–Dec and $103.4 million in Q4. Integration is on track and management expects approximately $40 million per year in positive cash flow from VOXX cost improvements; management indicated they are roughly halfway to the targeted improvement entering 2026.
Strong Operating Cash Flow and Capital Deployment
Operating cash flow for 2025 was $587.3 million, up from $498.2 million in 2024. The company repurchased 13.6 million shares in 2025 for approximately $319 million (3.8M shares in Q4 at $23.43 average), with $35.9 million shares remaining under authorization.
Controlled CapEx and Depreciation Discipline
Net capital expenditures for the full year were $126 million versus $141.4 million in the prior year (Q4 CapEx $17.5M vs $38.0M prior year). Depreciation & amortization increased to $104.0 million for the year from $94.7 million as investment in product platforms continued.
Negative Updates
Severe China Revenue Decline
Sales into China for the quarter were $34.5 million, down 33% year-over-year due to tariff impacts. Management noted a ~29% year-over-year sales decline in China for the year, materially pressuring core Gentex sales and margins.
Tariff and Commodity Headwinds
Tariff-related costs reduced gross margin by approximately 150 basis points in Q4 versus last year. Management noted tariffs and commodity pressures (precious metals, copper, PCBs) represent a roughly $45–$50 million headwind entering 2026 (full-year impact).
Core Sales and Shipment Declines
Core Gentex full-year sales declined ~2% year-over-year to $2.27 billion. Auto-dimming mirror shipments fell 6% year-over-year for the full year, and Gentex Automotive net sales were slightly down ($2.22B in 2025 vs $2.26B in 2024).
Increased Operating Expenses and Other Losses
Consolidated operating expenses in Q4 were $104.4 million versus $86.5 million last year, primarily due to VOXX ($24.6M increase) and severance expenses. Total other loss was $8.7 million in Q4 versus other income of $8.0M last year; full-year other loss was $12.9M versus other income of $12.5M prior year.
Higher Effective Tax Rate
The effective tax rate increased to 16.3% in Q4 (from 10.3% prior year) and to 16.6% for the full year (from 14.3%), driven by lower tax benefits from stock-based compensation and reduced FDII deductions, raising tax expense versus prior periods.
Liquidity and Working Capital Changes
Cash and cash equivalents declined to $145.6 million at year-end (from $233.3M) driven by the VOXX acquisition and share repurchases. Accounts receivable increased to $368.5 million (from $295.3M) and consolidated inventory was $516.3 million (core Gentex inventory $392.2M). Preliminary Q4 operating cash flow was $125.7M versus $154.4M prior quarter due to working capital swings.
Supply Chain/Component Cost Pressures (DRAM & Memory)
Management reported elevated DRAM and memory pricing and some allocation risk (not a broad production stoppage but materially higher cost). Some products (DMS/DMS-related subsystems) use DDR3/DDR4 and face pricing pressure that will require negotiation with OEMs or other mitigation.
Full-Year Profitability Slightly Lower
Consolidated net income for 2025 was $384.8 million versus $404.5 million in 2024, and full-year diluted EPS was $1.74 versus $1.76 a year ago, indicating modest decline in net earnings despite consolidated revenue growth (fueled by acquisition).
Company Guidance
Management provided 2026 guidance of consolidated revenue of $2.6–$2.7 billion (based on S&P Global Mobility’s mid‑January 2026 LVP forecast for North America, Europe, Japan, Korea and China), consolidated gross margin of 34–35%, consolidated operating expenses excluding severance of $410–$420 million, an effective tax rate of 16–18%, capital expenditures of $125–$140 million, and depreciation & amortization of $100–$110 million; they also guided 2027 revenue of $2.75–$2.85 billion. Management said results assume mostly flat light‑vehicle production in primary markets, include incremental sales from the VOXX acquisition (with integration actions targeting roughly $40 million per year in positive cash flow), and warned of tariff and commodity headwinds (cited roughly $45–$50 million of headwinds entering the year).Gentex Financial Statement Overview
Summary
Strong overall fundamentals: solid profitability (gross margin ~33–35%, net margin ~15–20%), very low leverage with a robust balance sheet, and healthy cash generation with improved free cash flow. Minor watch items include slightly softer TTM net margin and modest cash-flow efficiency slippage versus last year.Income Statement
Gentex demonstrates strong profitability with a consistent gross profit margin around 33-35% and a net profit margin of 15-20%. The company shows positive revenue growth, especially in the TTM period with a 1.96% increase. EBIT and EBITDA margins are stable, indicating efficient operations. However, there is a slight decline in net profit margin in the TTM compared to the previous year, which could be monitored.85
Very Positive
Balance Sheet
The balance sheet is robust with a very low debt-to-equity ratio, indicating minimal leverage and financial risk. Return on equity remains strong at around 15-18%, reflecting effective use of equity to generate profits. The equity ratio is healthy, suggesting a solid capital structure. Overall, the company maintains financial stability with strong equity backing.90
Very Positive
Cash Flow
Gentex's cash flow performance is solid, with a significant improvement in free cash flow growth in the TTM period. The operating cash flow to net income ratio is strong, indicating good cash generation relative to earnings. The free cash flow to net income ratio is healthy, though slightly below the previous year's levels, suggesting room for improvement in cash efficiency.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.43B | 2.31B | 2.30B | 1.92B | 1.73B | 1.69B |
| Gross Profit | 818.42M | 771.09M | 762.63M | 609.81M | 619.71M | 605.44M |
| EBITDA | 537.09M | 563.31M | 589.05M | 466.57M | 508.89M | 504.30M |
| Net Income | 379.55M | 404.49M | 428.40M | 318.76M | 360.80M | 347.56M |
Balance Sheet | ||||||
| Total Assets | 2.94B | 2.76B | 2.68B | 2.39B | 2.13B | 2.22B |
| Cash, Cash Equivalents and Short-Term Investments | 183.40M | 255.62M | 240.79M | 241.76M | 267.74M | 450.54M |
| Total Debt | 13.03M | 4.68M | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 441.22M | 288.72M | 365.67M | 323.58M | 193.40M | 260.28M |
| Stockholders Equity | 2.50B | 2.47B | 2.31B | 2.07B | 1.94B | 1.96B |
Cash Flow | ||||||
| Free Cash Flow | 470.90M | 353.54M | 353.57M | 191.77M | 293.33M | 412.79M |
| Operating Cash Flow | 616.02M | 498.21M | 537.25M | 338.20M | 362.17M | 464.49M |
| Investing Cash Flow | -272.48M | -202.08M | -299.42M | -172.74M | -113.11M | 26.42M |
| Financing Cash Flow | -341.79M | -289.25M | -230.15M | -209.02M | -410.12M | -363.86M |
Gentex Technical Analysis
Negative
23.65
Price Trends
23.38
Negative
24.64
Negative
24.08
Negative
Market Momentum
-0.02
Positive
41.52
Neutral
45.07
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 23.65 is below the 20-day moving average (MA) of 23.90, above the 50-day MA of 23.38, and below the 200-day MA of 24.08, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.52 is Neutral, neither overbought nor oversold. The STOCH value of 45.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GNTX.
Gentex Risk Analysis
Gentex disclosed 24 risk factors in its most recent earnings report. Gentex reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gentex Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $9.59B | 13.04 | 31.09% | 2.60% | 0.84% | 26.17% | |
77 Outperform | $5.16B | 13.95 | 15.23% | 2.05% | 2.99% | -9.80% | |
75 Outperform | $6.19B | 14.61 | 8.96% | 2.63% | -1.90% | -13.86% | |
73 Outperform | $3.74B | 15.37 | 18.19% | ― | 7.94% | 34.84% | |
73 Outperform | $2.48B | 8.18 | 23.16% | 0.57% | -4.03% | -39.51% | |
65 Neutral | $10.33B | 77.36 | 2.24% | 1.24% | 0.08% | -83.69% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
GNTX
Gentex
23.01
-2.38
-9.39%
ALV
Autoliv
121.24
27.31
29.07%
BWA
BorgWarner
47.41
15.99
50.89%
DORM
Dorman Products
124.20
-7.08
-5.39%
LEA
Lear
117.09
25.90
28.40%
VC
Visteon
90.86
7.22
8.63%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.