NasdaqGS:GNTX

Stock Analysis Report

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Executive Summary

Gentex Corporation provides digital vision, connected car, dimmable glass, and fire protection products worldwide. More Details


Snowflake Analysis

Flawless balance sheet with high growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Gentex's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GNTX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.8%

GNTX

-4.7%

US Auto Components

-4.1%

US Market


1 Year Return

-2.8%

GNTX

1.0%

US Auto Components

12.0%

US Market

Return vs Industry: GNTX underperformed the US Auto Components industry which returned 1% over the past year.

Return vs Market: GNTX underperformed the US Market which returned 12% over the past year.


Shareholder returns

GNTXIndustryMarket
7 Day-5.8%-4.7%-4.1%
30 Day7.7%8.3%-0.2%
90 Day2.7%14.7%2.8%
1 Year-1.0%-2.8%2.0%1.0%14.6%12.0%
3 Year52.3%43.8%-13.8%-23.3%35.8%26.8%
5 Year85.7%68.3%14.9%-4.0%75.2%55.6%

Price Volatility Vs. Market

How volatile is Gentex's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gentex undervalued compared to its fair value and its price relative to the market?

22.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GNTX ($27.73) is trading above our estimate of fair value ($22.04)

Significantly Below Fair Value: GNTX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GNTX is good value based on its PE Ratio (22.7x) compared to the US Auto Components industry average (42.8x).

PE vs Market: GNTX is poor value based on its PE Ratio (22.7x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: GNTX is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: GNTX is overvalued based on its PB Ratio (3.6x) compared to the US Auto Components industry average (1.7x).


Next Steps

Future Growth

How is Gentex forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

26.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GNTX's forecast earnings growth (26.6% per year) is above the savings rate (2.2%).

Earnings vs Market: GNTX's earnings (26.6% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GNTX's revenue (12.1% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: GNTX's revenue (12.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GNTX's Return on Equity is forecast to be high in 3 years time (24.3%)


Next Steps

Past Performance

How has Gentex performed over the past 5 years?

3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GNTX has high quality earnings.

Growing Profit Margin: GNTX's current net profit margins (18.6%) are lower than last year (22.9%).


Past Earnings Growth Analysis

Earnings Trend: GNTX's earnings have grown by 3.6% per year over the past 5 years.

Accelerating Growth: GNTX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GNTX had negative earnings growth (-30.1%) over the past year, making it difficult to compare to the Auto Components industry average (-15.1%).


Return on Equity

High ROE: GNTX's Return on Equity (16%) is considered low.


Next Steps

Financial Health

How is Gentex's financial position?


Financial Position Analysis

Short Term Liabilities: GNTX's short term assets ($975.3M) exceed its short term liabilities ($236.5M).

Long Term Liabilities: GNTX's short term assets ($975.3M) exceed its long term liabilities ($60.4M).


Debt to Equity History and Analysis

Debt Level: GNTX is debt free.

Reducing Debt: GNTX has no debt compared to 5 years ago when its debt to equity ratio was 13.9%.

Debt Coverage: GNTX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GNTX has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Gentex current dividend yield, its reliability and sustainability?

1.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GNTX's dividend (1.73%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: GNTX's dividend (1.73%) is low compared to the top 25% of dividend payers in the US market (4.78%).


Stability and Growth of Payments

Stable Dividend: GNTX's dividends per share have been stable in the past 10 years.

Growing Dividend: GNTX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.8%), GNTX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GNTX's dividends in 3 years are forecast to be well covered by earnings (23.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Steve Downing (42 yo)

2.75yrs

Tenure

US$3,059,702

Compensation

Mr. Steven R. Downing, also known as Steve, has been the Chief Executive Officer at Gentex Corp. since January 2018 and has been its President since August 2017. He has been Director of at Gentex Corp. sin ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD3.06M) is below average for companies of similar size in the US market ($USD7.41M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Steven Downing
President2.75yrsUS$3.06m0.054%
$ 3.7m
Kevin Nash
VP of Finance2.58yrsUS$1.15m0.012%
$ 832.9k
Neil Boehm
CTO & VP of Engineering2.58yrsUS$1.16m0.013%
$ 902.4k
Scott Ryan
VP, General Counsel & Corporate Secretary2.17yrsUS$1.01m0.013%
$ 853.3k
Matthew Chiodo
Vice President of Sales & Executive Officer3.75yrsUS$1.08m0.014%
$ 931.7k
Fred Bauer
Founder2.75yrsUS$1.68mno data
Paul Flynn
Vice President of Operations8.75yrsUS$322.84kno data
Josh O'Berski
Director of Investor Relationsno datano datano data
Joseph Matthews
VP of Purchasing & Diversity Officer6.33yrsUS$335.91k0.011%
$ 774.2k

2.8yrs

Average Tenure

49.5yo

Average Age

Experienced Management: GNTX's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Downing
President2.75yrsUS$3.06m0.054%
$ 3.7m
Fred Bauer
Founder2.75yrsUS$1.68mno data
Brian Walker
Independent Director1.92yrsUS$178.72k0.0034%
$ 234.5k
John Mulder
Independent Director28.75yrsUS$178.72k0.030%
$ 2.1m
Richard Schaum
Independent Director9.75yrsUS$201.22k0.0071%
$ 484.6k
Gary Goode
Independent Director17.75yrsUS$208.72k0.010%
$ 678.1k
James Wallace
Independent Chairman & Lead Independent Director2.75yrsUS$273.72k0.011%
$ 717.0k
Kathleen Starkoff
Independent Director2yrsUS$185.28k0.0039%
$ 262.4k
Leslie Brown
Independent Director4.75yrsUS$183.72k0.0047%
$ 317.6k
James Hollars
Independent Director6.75yrsUS$178.72k0.017%
$ 1.1m

3.8yrs

Average Tenure

74yo

Average Age

Experienced Board: GNTX's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GNTX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Gentex Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gentex Corporation
  • Ticker: GNTX
  • Exchange: NasdaqGS
  • Founded: 1974
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$6.815b
  • Shares outstanding: 245.78m
  • Website: https://www.gentex.com

Number of Employees


Location

  • Gentex Corporation
  • 600 North Centennial Street
  • Zeeland
  • Michigan
  • 49464
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GNTXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1981
GTXDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1981

Biography

Gentex Corporation provides digital vision, connected car, dimmable glass, and fire protection products worldwide. It operates through Automotive Products and Other segments. The company designs, develops, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 03:41
End of Day Share Price2020/10/29 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.