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Gentex (GNTX)
NASDAQ:GNTX
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Gentex
(NASDAQ:GNTX)
Rating:66Neutral
Price Target:―
Positive Factors
Market Position
Gentex increased its growth outlook for advanced products, indicating better market traction.
Operational Efficiency
The company's improved gross margin was driven by reductions in purchase costs and enhanced operational efficiencies.
Revenue Performance
Gentex reported revenue of $658 million, exceeding both Goldman Sachs estimates and market expectations.
Negative Factors
Guidance and Expectations
The company's 2025 guidance is significantly below consensus estimates, adversely affecting the stock rating.
International Revenue
Gentex's revenue in China is likely to remain below historical levels due to tariffs and increased competition.
Stock Performance
Gentex's softer-than-expected fourth-quarter results led to an 8.2% stock sell-off.
Gentex (GNTX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.08B
Dividend Yield1.73%
Average Volume (3M)2.56M
Price to Earnings (P/E)15.7
Beta (1Y)0.70
Revenue Growth2.43%
EPS Growth-1.25%
CountryUS
Employees6,184
SectorConsumer Cyclical
Sector Strength75
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.47
Shares Outstanding219,489,360
10 Day Avg. Volume2,081,737
30 Day Avg. Volume2,563,541
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.77
Enterprise Value/Revenue2.05
Enterprise Value/Gross Profit6.19
Enterprise Value/Ebitda8.53
Forecast
1Y Price Target
$28.86Price Target Upside4.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Gentex Business Overview & Revenue Model
Company DescriptionGentex Corporation is a technology company primarily operating in the automotive sector. It specializes in the design, development, and manufacturing of automatic-dimming rearview mirrors and electronics for the automotive industry. The company's product lines extend to include advanced driver-assistance systems (ADAS), digital vision, connected car features, and other high-tech automotive components.
How the Company Makes MoneyGentex 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 Earnings Call Summary
Earnings Call Date:Jul 25, 2025
(Q2-2025)
| % Change Since: 17.33%|
Next Earnings Date:Oct 24, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with significant revenue growth, improved margins, and successful integration of the VOXX acquisition. Despite challenges in the China market and increased operating expenses, the overall outlook is strong due to strategic initiatives and new product launches.Q2-2025 Updates
Positive Updates
Significant Revenue Growth
Consolidated net sales were $657.9 million, representing a 15% increase over the second quarter of last year. Core Gentex revenue was $579 million, a 1% growth rate despite a 2% decline in light vehicle production in primary markets.
Improvement in Gross Margins
Consolidated gross margin for the quarter was 34.2%, up from 32.9% last year. Core Gentex gross margin improved by 240 basis points to 35.3%.
Successful Acquisition Integration
Gentex completed the acquisition of VOXX, contributing $78.8 million in revenue for the quarter. The acquisition helps offset challenges with tariffs and reduced sales in China.
Strong Earnings Performance
Adjusted net income was $105.8 million, a 23% increase versus last year. Adjusted earnings per share were $0.47, a 27% increase over last year.
New Product Launches
18 net new nameplate launches of interior and exterior auto-dimming mirrors, including advanced features like Full Display Mirror and HomeLink.
Share Repurchase Program
Repurchased 5.7 million shares in the quarter, with a new authorization for an additional 40 million shares.
Negative Updates
Challenges in China Market
Sales into China were approximately $33 million, below the forecast of $50 million to $60 million, affected by tariffs and reduced demand.
Increased Operating Expenses
Operating expenses were $106.8 million, up from $73.7 million last year, primarily due to the VOXX acquisition and associated costs.
Weak Light Vehicle Production Outlook
Global light vehicle production is expected to decline by approximately 6% in the fourth quarter, with primary markets projected to be down 3% for the year.
Company Guidance
During the Gentex second quarter 2025 earnings call, the company provided updated guidance reflecting their recent acquisition of VOXX and the current economic environment. Consolidated revenue for the full year 2025 is now expected to be between $2.44 billion and $2.61 billion, up from the previous estimate of $2.15 billion to $2.32 billion. Core Gentex revenue, excluding VOXX, is projected to be $2.1 billion to $2.2 billion. VOXX is expected to contribute $240 million to $280 million, while China revenue is forecasted at $100 million to $125 million due to tariff impacts. Consolidated gross margin is anticipated to be 33% to 34%, with core Gentex margins expected to improve to 34% to 34.5%. Operating expenses are estimated at $370 million to $390 million, with core Gentex expenses unchanged at $300 million to $310 million. The effective tax rate is anticipated to be 16% to 17%, and capital expenditures remain at $100 million to $125 million.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.74
Positive
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.65
Positive
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.81
Very Positive
| 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 |
| EBITDA | 563.31M | 589.05M | 466.57M | 508.89M | 504.30M |
| Net Income | 404.49M | 428.40M | 318.76M | 360.80M | 347.56M |
Balance Sheet | |||||
| Total Assets | 2.76B | 2.61B | 2.33B | 2.13B | 2.20B |
| Cash, Cash Equivalents and Short-Term Investments | 255.62M | 240.79M | 237.76M | 267.74M | 450.54M |
| Total Debt | 4.68M | 0.00 | 0.00 | 0.00 | 0.00 |
| 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
Positive
27.69
Price Trends
23.73
Positive
22.88
Positive
25.14
Positive
Market Momentum
1.09
Negative
70.85
Negative
93.28
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 27.69 is above the 20-day moving average (MA) of 26.08, above the 50-day MA of 23.73, and above the 200-day MA of 25.14, indicating a bullish trend. The MACD of 1.09 indicates Negative momentum. The RSI at 70.85 is Negative, neither overbought nor oversold. The STOCH value of 93.28 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $3.32B | 11.59 | 22.96% | ― | -3.26% | -45.84% | |
77 Outperform | $4.76B | 21.20 | 17.38% | ― | 6.76% | 34.97% | |
76 Outperform | $5.50B | 12.07 | 9.51% | 2.98% | -3.12% | -8.23% | |
75 Outperform | $8.91B | 12.69 | 29.99% | 2.34% | -0.98% | 21.64% | |
72 Outperform | $8.97B | 44.26 | 3.66% | 1.06% | -2.12% | -69.42% | |
66 Neutral | $6.08B | 15.69 | 16.38% | 1.73% | 2.43% | -1.25% | |
61 Neutral | $17.24B | 11.48 | -5.97% | 3.08% | 1.37% | -15.54% |
* Consumer Cyclical Sector Average
Performance Comparison
GNTX
Gentex
27.69
-1.38
-4.75%
ALV
Autoliv
118.94
21.76
22.39%
BWA
BorgWarner
41.45
9.25
28.73%
DORM
Dorman Products
155.82
50.38
47.78%
LEA
Lear
103.32
-5.98
-5.47%
VC
Visteon
121.61
24.38
25.07%
Gentex Corporate Events
M&A TransactionsBusiness Operations and Strategy
Gentex Completes Strategic Acquisition of VOXX International
Positive
Apr 1, 2025
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.
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.