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Gentex
(NASDAQ:GNTX)
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Rating:60Neutral
Price Target:
$25.00
▲(9.17% Upside)
Action:Downgraded
Date:08/05/26
GNTX scores as a moderate-quality opportunity: valuation support (low-teens P/E and a ~2% yield) and a generally constructive earnings outlook with improved margin guidance help, but the overall score is constrained most by weaker recent financial trajectory—sharp TTM revenue contraction, deteriorated cash conversion, and a notable increase in leverage. Technicals are broadly neutral, suggesting no strong momentum tailwind to offset those fundamental risks.
Positive Factors
Margin Resilience
Sustained gross and net margins near historical highs indicate structural pricing power from differentiated, electronics-rich mirror modules and favorable product mix. Persistent mid-30s gross margins provide a durable earnings cushion through vehicle volume cycles and support reinvestment and returns.
Negative Factors
Revenue Decline / Demand Reset
A pronounced TTM revenue drop signals exposure to cyclical light-vehicle production and program timing. Lower volumes erode operating leverage and can compress margins, strain cash conversion, and force tougher capital allocation choices if higher-content adoption doesn't offset base mirror volume weakness.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Resilience
Sustained gross and net margins near historical highs indicate structural pricing power from differentiated, electronics-rich mirror modules and favorable product mix. Persistent mid-30s gross margins provide a durable earnings cushion through vehicle volume cycles and support reinvestment and returns.
Read all positive factors
Gentex Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks revenue down by region to show where Gentex earns sales and where demand is strongest or weakest. Highlights geographic concentration risk, exposure to local auto-market cycles and currency swings, and identifies regions that could drive future growth or pose downside risk.
Breaks revenue down by region to show where Gentex earns sales and where demand is strongest or weakest. Highlights geographic concentration risk, exposure to local auto-market cycles and currency swings, and identifies regions that could drive future growth or pose downside risk.
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The Fly
The FlyGentex (GNTX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.97B
Dividend Yield2.05%
Average Volume (3M)2.62M
Price to Earnings (P/E)12.4
Beta (1Y)0.48
Revenue Growth10.13%
EPS Growth6.72%
CountryUS
Employees6,398
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.89
Shares Outstanding212,951,840
10 Day Avg. Volume2,435,342
30 Day Avg. Volume2,620,756
Financial Highlights & Ratios
PEG Ratio-7.89
Price to Book (P/B)2.05
Price to Sales (P/S)2.02
P/FCF Ratio11.15
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$26.25Price Target Upside14.63% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)2.08
Revenue Forecast (FY)$2.68B
Gentex Business Overview & Revenue Model
Company Description
Gentex Corporation, established in 1974 and headquartered in Zeeland, Michigan, is a global innovator specializing in the design, development, production, marketing, and distribution of advanced technology solutions. Its diverse product portfolio ...
How the Company Makes Money
Gentex makes money primarily by selling automotive components—most notably automatic-dimming interior and exterior mirrors and mirror-integrated electronic features—directly to vehicle OEMs and, where applicable, through OEM-tier supply arrangemen...
Gentex Earnings Call Summary
Earnings Call Date:Jul 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
The call presented a mixed operational picture: meaningful margin expansion, record EPS, strong cash flow, product launch momentum and disciplined capital allocation are clear positives. These strengths were balanced against top-line pressures—most notably significant China revenue declines, softness in European base mirror shipments, lost programs, tariff and commodity headwinds, and revenue coming in below the quarter forecast. Management maintained consolidated revenue guidance and raised gross margin guidance while outlining strategic mitigations (Morocco plant, EMS initiative and diversified product ramps) that support medium-term growth, leading to a generally constructive outlook despite near-term regional challenges.Positive Updates
Record EPS and Net Income Growth
Diluted EPS of $0.54, up 26% year-over-year (from $0.43). Net income attributable to Gentex was $114.7M, up 19% from $96.0M.
Negative Updates
Top-Line Pressure and Automotive Revenue Decline
Consolidated net sales declined 1% YoY to $651.3M; automotive net sales declined ~3% YoY to $560.1M driven by lower light vehicle production and reduced base auto-dimming mirror shipments.
Read all updates
Q2-2026 Updates
Positive
Negative
Record EPS and Net Income Growth
Diluted EPS of $0.54, up 26% year-over-year (from $0.43). Net income attributable to Gentex was $114.7M, up 19% from $96.0M.
Read all positive updates
Company Guidance
Gentex updated full‑year 2026 guidance to consolidated revenue of $2.65–$2.75 billion, gross margin of 34.5%–35.5%, operating expenses of $405–$415 million, an effective tax rate of 16%–17%, capital expenditures of $115–$125 million and depreciation & amortization of $100–$110 million; that outlook reflects the mid‑July Mobility forecast of global light‑vehicle production down ~2% in Q3 and ~3% for 2026 (roughly flat in 2027) and management’s expectation of $2.8–$2.9 billion revenue in 2027. The company expects 200k–400k incremental Full Display Mirror units year‑over‑year, DMS/ICMS ramps (DMS contribution roughly $50–$60 million as it ramps in H2), plans a Morocco plant with targeted start of production in 2028, and anticipates an initial electronics‑manufacturing award in the $100–$200 million range with SOP late‑2028/early‑2029. Non‑automotive businesses continue to represent about 14% of revenue and management is positioning launches and operational discipline to offset market headwinds.Gentex Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
36
Negative
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.63B | 2.53B | 2.31B | 2.30B | 1.92B | 1.73B |
| Gross Profit | 919.31M | 866.71M | 771.09M | 762.63M | 609.81M | 619.71M |
| EBITDA | 563.66M | 566.14M | 563.31M | 598.30M | 466.29M | 515.46M |
| Net Income | 407.07M | 384.84M | 404.49M | 428.40M | 318.76M | 360.80M |
Balance Sheet | ||||||
| Total Assets | 3.02B | 2.93B | 2.76B | 2.68B | 2.39B | 2.13B |
| Cash, Cash Equivalents and Short-Term Investments | 242.81M | 151.03M | 255.62M | 240.79M | 241.76M | 267.74M |
| Total Debt | 3.71B | 3.80M | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 476.85M | 437.66M | 288.72M | 365.67M | 323.58M | 193.40M |
| Stockholders Equity | 2.54B | 2.49B | 2.47B | 2.31B | 2.07B | 1.94B |
Cash Flow | ||||||
| Free Cash Flow | 496.65M | 458.04M | 353.54M | 353.57M | 191.77M | 293.33M |
| Operating Cash Flow | 594.15M | 587.13M | 498.21M | 537.25M | 338.20M | 362.17M |
| Investing Cash Flow | -134.14M | -266.90M | -202.08M | -299.42M | -172.74M | -113.11M |
| Financing Cash Flow | -346.34M | -407.90M | -289.25M | -230.15M | -209.02M | -410.12M |
Gentex Technical Analysis
Negative
22.90
Price Trends
24.41
Negative
23.34
Positive
23.29
Positive
Market Momentum
-0.17
Negative
45.63
Neutral
74.96
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 22.9 is below the 20-day moving average (MA) of 23.85, below the 50-day MA of 24.41, and below the 200-day MA of 23.29, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 45.63 is Neutral, neither overbought nor oversold. The STOCH value of 74.96 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 26 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $9.02B | 14.44 | 25.10% | 2.94% | 5.89% | -7.00% | |
67 Neutral | $6.54B | 12.13 | 9.19% | 2.14% | 3.55% | 25.67% | |
66 Neutral | $3.98B | 21.34 | 14.76% | ― | 5.04% | -10.80% | |
64 Neutral | $13.07B | 37.06 | 7.37% | 1.06% | 2.36% | 34.03% | |
63 Neutral | $2.79B | 18.67 | 9.71% | 1.23% | -1.13% | -47.30% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $4.97B | 12.36 | 16.24% | 2.10% | 10.13% | 6.72% |
* Consumer Cyclical Sector Average
GNTX
Gentex
23.54
-2.59
-9.91%
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120.57
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DORM
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137.58
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2.13%
LEA
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119.08
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VC
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103.20
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-8.13%
Gentex Corporate Events
Executive/Board ChangesShareholder Meetings
Gentex Shareholders Approve Directors, Auditor and Incentive Plan
Positive
May 26, 2026
On May 21, 2026, Gentex held its 2026 annual meeting of shareholders, at which investors elected nine directors, including Leslie Brown, Steve Downing, and John C. Kennedy, to one-year terms expiring in 2027. The results indicate broad support for...
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.