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Gentex (GNTX)
NASDAQ:GNTX
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Gentex
(NASDAQ:GNTX)
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Rating:70Outperform
Price Target:
$24.50
▼(-0.73% Downside)
Gentex's overall stock score reflects strong financial performance and fair valuation, which are offset by technical weakness and mixed earnings call results. The company's robust balance sheet and cash flow provide stability, but international market challenges and current bearish technical indicators weigh on the score.
Positive Factors
Strategic Acquisition
The acquisition of VOXX International enhances Gentex's product portfolio and market reach, potentially increasing annual revenue by $325-$375 million and strengthening its position in both automotive and consumer electronics markets.
Cash Flow Generation
Strong cash flow generation provides a solid foundation for future investments and shareholder returns, showcasing effective cash management and ensuring financial stability.
Product Innovation
The introduction of advanced technologies like full display mirrors and driver monitoring systems positions Gentex for significant growth and strengthens its competitive edge in the automotive technology market.
Negative Factors
Decline in Sales
A decline in net sales reflects challenges in sales performance, which could impact revenue growth and profitability if not addressed through strategic initiatives.
Impact of Tariffs
Tariff impacts on the China market have led to production halts, reducing expected revenue and highlighting vulnerability to geopolitical risks, which could affect long-term market strategy.
Increased Operating Expenses
Rising operating expenses, driven by severance and merger costs, strain profitability and may require cost management strategies to maintain financial health.
Gentex (GNTX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.33B
Dividend Yield2.05%
Average Volume (3M)1.78M
Price to Earnings (P/E)14.6
Beta (1Y)0.57
Revenue Growth2.99%
EPS Growth-9.80%
CountryUS
Employees6,184
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.46
Shares Outstanding218,942,920
10 Day Avg. Volume1,564,229
30 Day Avg. Volume1,782,731
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 Cap1.11
Enterprise Value/Revenue2.44
Enterprise Value/Gross Profit7.26
Enterprise Value/Ebitda11.07
Forecast
1Y Price Target
$29.25Price Target Upside18.52% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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:Oct 24, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 30, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted several positive aspects such as overall sales growth, improved gross margins, and strong FDM performance. However, these were offset by declines in core Gentex revenue, substantial revenue drops in Europe and China, and a decrease in both income from operations and net income. The challenges in international markets and the impact of tariffs were significant concerns, balancing out the achievements.Q3-2025 Updates
Positive Updates
Overall Sales Growth
Consolidated net sales for Gentex and VOXX were $655.2 million in Q3 2025, an 8% increase compared to $608.5 million in Q3 of last year.
Gross Margin Improvement
Consolidated gross margin improved to 34.4% from 33.5% in the third quarter of last year. Core Gentex gross margin was 34.9%, a 140 basis point increase.
Strong Performance of Full Display Mirror (FDM)
Full Display Mirror sales showed strong growth, with expectations to sell 200,000 to 300,000 more units in 2025 compared to 2024.
Positive Cash Flow and Share Repurchase
Preliminary cash flow from operations was $146.9 million compared to $84.7 million in the same period last year. The company repurchased 1 million shares for $28.3 million during the quarter.
Negative Updates
Core Gentex Revenue Decline
Core Gentex revenue was $570.3 million, a 6% decline compared to the third quarter of last year, despite a 2% increase in light vehicle production in primary markets.
Revenue Decline in Europe and China
Revenue in Europe declined 14% quarter-over-quarter, driven by production challenges and weaker regional vehicle mix. China revenue was down 35% compared to the third quarter of last year, impacted by tariffs.
Decrease in Income from Operations
Consolidated income from operations was $122.3 million, a decrease compared to $125.7 million in the third quarter of last year.
Net Income Decline
Consolidated net income was $101 million, down from $122.5 million in the third quarter of last year, primarily due to the absence of a prior period one-time gain.
Company Guidance
During the Gentex Third Quarter 2025 Financial Results Conference Call, the company provided updated guidance based on current market conditions and the acquisition of VOXX. For the full year 2025, Gentex expects consolidated revenue to be between $2.5 billion and $2.6 billion, with a gross margin of 33.5% to 34%. Operating expenses, excluding severance, are anticipated to range from $380 million to $390 million, while the effective tax rate is projected to be between 16% and 16.5%. Capital expenditures are forecasted at $115 million to $125 million, and depreciation and amortization are expected to total $96 million to $99 million. These figures account for known tariffs as of October 23, 2025, and reflect the company's efforts to manage costs and improve margins despite challenges in the global automotive market.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 | 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
Positive
24.68
Price Trends
23.20
Positive
25.23
Negative
23.96
Positive
Market Momentum
0.25
Negative
69.18
Neutral
87.92
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNTX, the sentiment is Positive. The current price of 24.68 is above the 20-day moving average (MA) of 23.66, above the 50-day MA of 23.20, and above the 200-day MA of 23.96, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 69.18 is Neutral, neither overbought nor oversold. The STOCH value of 87.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $9.36B | 12.81 | 31.09% | 2.60% | 0.84% | 26.17% | |
75 Outperform | $3.80B | 15.97 | 18.19% | ― | 7.94% | 34.84% | |
75 Outperform | $6.30B | 15.44 | 8.96% | 2.63% | -1.90% | -13.86% | |
73 Outperform | $2.77B | 9.36 | 23.16% | 0.57% | -4.03% | -39.51% | |
70 Outperform | $5.33B | 14.60 | 15.23% | 2.05% | 2.99% | -9.80% | |
65 Neutral | $10.15B | 76.57 | 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
24.68
-2.03
-7.59%
ALV
Autoliv
123.97
31.43
33.96%
BWA
BorgWarner
47.79
16.67
53.57%
DORM
Dorman Products
128.33
5.15
4.18%
LEA
Lear
126.15
36.89
41.33%
VC
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104.17
21.35
25.77%
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.