Education
About Us
Working with TipRanks
Follow Us
Gentex (GNTX)
NASDAQ:GNTX
Top Page
Gentex
(NASDAQ:GNTX)59Neutral
Positive Factors
Financial Performance
Gentex Corporation's outgrowth rebounded strongly, exceeding expectations with a 12% increase, which is expected to restore investor confidence.
Innovation and Product Development
Gentex is recognized as a highly innovative technology company with a strong track record in developing new products and technologies.
Negative Factors
Financial Guidance
The company's 2025 guidance is materially lower than consensus estimates, impacting the stock rating.
Gentex (GNTX) vs. S&P 500 (SPY)
Market Cap
$5.53B
Dividend Yield1.98%
Average Volume (3M)2.06M
Price to Earnings (P/E)13.8
Beta (1Y)0.92
Revenue Growth0.61%
EPS Growth-4.04%
CountryUS
Employees6,245
SectorConsumer Cyclical
Sector Strength53
IndustryVehicles
Share Statistics
EPS (TTM)1.75
Shares Outstanding227,195,740
10 Day Avg. Volume1,875,437
30 Day Avg. Volume2,058,470
Financial Highlights & Ratios
PEG Ratio1.41
Price to Book (P/B)N/A
Price to Sales (P/S)2.39
Price to Cash Flow (P/CF)9.00
P/FCF Ratio9.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$30.75Price Target Upside28.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
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 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 | 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 | |||
| 498.21B | 353.57M | 191.77M | 293.33M | 412.79M | Operating Cash Flow |
| 498.21B | 537.25M | 338.20M | 362.17M | 464.49M | Investing Cash Flow |
| -202.08B | -299.42M | -172.74M | -113.11M | 26.42M | Financing Cash Flow |
| -289.25B | -230.15M | -209.02M | -410.12M | -363.86M |
Gentex Technical Analysis
Negative
24.00
Price Trends
26.63
Negative
28.32
Negative
29.99
Negative
Market Momentum
-0.73
Negative
30.60
Neutral
25.19
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 24 is below the 20-day moving average (MA) of 24.64, below the 50-day MA of 26.63, and below the 200-day MA of 29.99, indicating a bearish trend. The MACD of -0.73 indicates Negative momentum. The RSI at 30.60 is Neutral, neither overbought nor oversold. The STOCH value of 25.19 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 23 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $53.41B | 30.89 | 11.01% | 1.79% | -4.53% | -14.72% | |
74 Outperform | $7.19B | 11.51 | 28.38% | 2.87% | -0.80% | 39.95% | |
71 Outperform | $5.04B | 10.48 | 17.69% | 3.37% | -0.70% | -7.27% | |
71 Outperform | C$13.93B | 10.26 | 8.77% | 5.42% | 2.72% | 5.00% | |
62 Neutral | $6.15B | 18.70 | 6.11% | 1.53% | -11.10% | -46.32% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
59 Neutral | $5.53B | 13.78 | 16.39% | 1.98% | 0.61% | -4.04% |
* Consumer Cyclical Sector Average
Performance Comparison
GNTX
Gentex
24.00
-12.37
-34.01%
ALV
Autoliv
92.50
-22.56
-19.61%
BWA
BorgWarner
28.12
-3.40
-10.79%
JCI
Johnson Controls
80.90
21.63
36.49%
LEA
Lear
89.27
-47.01
-34.50%
TSE:MG
Magna International
49.45
-20.60
-29.41%
Gentex Earnings Call Summary
Earnings Call Date: Jan 31, 2025 | % Change Since: -14.95% | Next Earnings Date: Apr 25, 2025
Earnings Call Sentiment Neutral
While Gentex achieved record annual sales and strong growth in Full Display Mirror shipments, the fourth quarter was marked by revenue decline, decreased gross margins, and increased operating expenses. The company's showcase at CES 2025 highlights its commitment to innovation, but challenges in primary markets and a weaker product mix impacted short-term performance.Highlights
Record Annual Sales
Gentex achieved record annual sales with net sales reaching $2.31 billion for fiscal year 2024, marking a 1% increase from the previous year despite a 4% decrease in light vehicle production in primary markets.
Strong Growth in Full Display Mirror Shipments
Full Display Mirror shipments increased by 21% to 2.96 million units for the year, offsetting a 6% decrease in automotive mirror unit shipments.
CES 2025 Showcase
Gentex showcased various new and innovative technologies at CES 2025, including large dimming films on plastic substrates, wireless power and data technology, and a new generation of HomeLink.
Share Repurchase Program
The company repurchased 6.4 million shares of its common stock in 2024, totaling $206.1 million, demonstrating continued commitment to returning value to shareholders.
Lowlights
Quarterly Revenue Decline
Net sales for the fourth quarter of 2024 were $541.6 million, an 8% decrease compared to $589.1 million in the same quarter of the previous year.
Decreased Gross Margin
Gross margin for the fourth quarter of 2024 was 32.5%, down from 34.5% in the same quarter last year, primarily due to lower than expected sales levels and a weaker product mix.
Operating Expenses Increase
Operating expenses increased by 22% in the fourth quarter of 2024 to $86.5 million, driven by staffing, engineering fees, and intangible asset impairment charges.
Challenges in Primary Markets
Light vehicle production decreased by 6% quarter-over-quarter in primary markets, which contributed to a significant revenue shortfall.
Company Guidance
During the call, Gentex provided guidance for the fiscal year 2025, projecting revenue to be between $2.4 billion and $2.45 billion, with a gross margin expected to fall between 33.5% and 34.5%. Operating expenses are anticipated to range from $310 million to $320 million, and the effective tax rate is estimated between 15% and 17%. Capital expenditures are forecasted to be between $125 million and $150 million, while depreciation and amortization are expected to be between $85 million and $90 million. Additionally, the company is forecasting revenue for 2026 to be between $2.55 billion and $2.65 billion. The guidance does not account for any potential impact from the pending acquisition of VOXX International Corporation.Gentex Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Gentex Promotes Neil Boehm to Chief Operations Officer
Positive
Jan 2, 2025
Gentex Corporation announced the promotion of Neil Boehm to Chief Operations Officer, effective January 1, 2025. Boehm, who has been with Gentex since 2001 and served as Chief Technology Officer since 2018, will continue to hold his CTO position. This strategic move aims to align Gentex’s operations with its innovation strategies, supporting the company’s long-term growth plans and commitment to quality.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.