NasdaqGS:GNTX

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with proven track record 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


Market Performance


7 Day Return

6.8%

GNTX

8.5%

US Auto Components

2.3%

US Market


1 Year Return

45.6%

GNTX

-3.4%

US Auto Components

5.6%

US Market

Return vs Industry: GNTX exceeded the US Auto Components industry which returned -3.4% over the past year.

Return vs Market: GNTX exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

GNTXIndustryMarket
7 Day6.8%8.5%2.3%
30 Day0.4%-0.6%-1.0%
90 Day17.0%3.9%-0.7%
1 Year48.6%45.6%-1.9%-3.4%7.9%5.6%
3 Year67.7%58.2%10.1%-1.3%45.6%36.3%
5 Year94.9%76.4%20.7%3.9%65.8%47.6%

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?

16.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: GNTX ($27.59) is trading above our estimate of fair value ($21.96)

Significantly Undervalued: GNTX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GNTX is poor value based on its PE Ratio (16.7x) compared to the Auto Components industry average (16.7x).

PE vs Market: GNTX is good value based on its PE Ratio (16.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: GNTX is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: GNTX is overvalued based on its PB Ratio (3.7x) compared to the US Auto Components industry average (1.2x).


Next Steps

Future Growth

How is Gentex forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GNTX's forecast earnings growth (5% per year) is above the savings rate (2.7%).

Earnings vs Market: GNTX's earnings (5% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: GNTX's earnings are forecast to grow, but not significantly.

Revenue vs Market: GNTX's revenue (5.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: GNTX's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if GNTX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Gentex performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GNTX's earnings have grown by 10.5% 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 (-2.8%) over the past year, making it difficult to compare to the Auto Components industry average (8.1%).


Return on Equity

High ROE: GNTX's Return on Equity (22.6%) is considered high.


Return on Assets

ROA vs Industry: GNTX has a higher Return on Assets than the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: GNTX has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Gentex's financial position?


Financial Position Analysis

Short Term Liabilities: GNTX's short term assets ($930.4M) exceeds its short term liabilities ($177.6M)

Long Term Liabilities: GNTX's short term assets (930.4M) exceeds its long term liabilities (60.9M)


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 18.1%.

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

Inventory Level: GNTX has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if GNTX's debt is covered by short term assets.


Next Steps

Dividend

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

1.67%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.5%markettop25%3.8%industryaverage1.9%forecastin3Years1.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GNTX's dividend (1.67%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: GNTX's dividend (1.67%) is low compared to the top 25% of dividend payers in the US market (3.76%).

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 (27.3%), GNTX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Gentex's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Steve Downing (41yo)

1.8yrs

Tenure

US$3,427,450

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 served as Interim Chief Financial Office ...


CEO Compensation Analysis

Compensation vs. Market: Steve has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Steve's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.6yrs

Average Tenure

48.5yo

Average Age

Experienced Management: GNTX's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

74yo

Average Age

Experienced Board: GNTX's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: GNTX insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$219,92302 Oct 19
Neil Boehm
EntityIndividual
Role
Chief Technology Officer
CTO & VP of Engineering
Shares8,000
Max PriceUS$27.49
SellUS$329,88502 Oct 19
Kevin Nash
EntityIndividual
Role
Chief Financial Officer
VP of Finance
Shares12,000
Max PriceUS$27.49
BuyUS$32930 Sep 19
Neil Boehm
EntityIndividual
Role
Chief Technology Officer
CTO & VP of Engineering
Shares14
Max PriceUS$23.52
BuyUS$2,49330 Sep 19
Matthew Chiodo
EntityIndividual
Role
Head of Sales
Vice President of Sales
Shares106
Max PriceUS$23.52
BuyUS$2,49330 Sep 19
Steven Downing
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares106
Max PriceUS$23.52
BuyUS$2,49330 Sep 19
Scott Ryan
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Corporate Secretary
Shares106
Max PriceUS$23.52
SellUS$260,42016 Sep 19
John Mulder
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$28.08
BuyUS$31401 Jul 19
Neil Boehm
EntityIndividual
Role
Chief Technology Officer
CTO & VP of Engineering
Shares15
Max PriceUS$20.92
BuyUS$2,48901 Jul 19
Steven Downing
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares119
Max PriceUS$20.92
BuyUS$2,51001 Jul 19
Scott Ryan
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Corporate Secretary
Shares120
Max PriceUS$20.92
BuyUS$2,51001 Jul 19
Matthew Chiodo
EntityIndividual
Role
Head of Sales
Vice President of Sales
Shares120
Max PriceUS$20.92
BuyUS$12,49901 Apr 19
Scott Ryan
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Corporate Secretary
Shares711
Max PriceUS$17.58
BuyUS$9,98501 Apr 19
Kevin Nash
EntityIndividual
Role
Chief Financial Officer
VP of Finance
Shares568
Max PriceUS$17.58
BuyUS$12,49901 Apr 19
Steven Downing
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares711
Max PriceUS$17.58
BuyUS$2,49601 Apr 19
Matthew Chiodo
EntityIndividual
Role
Head of Sales
Vice President of Sales
Shares142
Max PriceUS$17.58
BuyUS$10,33701 Apr 19
Neil Boehm
EntityIndividual
Role
Chief Technology Officer
CTO & VP of Engineering
Shares588
Max PriceUS$17.58
BuyUS$2,51231 Dec 18
Steven Downing
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares149
Max PriceUS$16.86
BuyUS$2,49531 Dec 18
Matthew Chiodo
EntityIndividual
Role
Head of Sales
Vice President of Sales
Shares148
Max PriceUS$16.86
BuyUS$32031 Dec 18
Neil Boehm
EntityIndividual
Role
Chief Technology Officer
CTO & VP of Engineering
Shares19
Max PriceUS$16.86
BuyUS$2,49531 Dec 18
Scott Ryan
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Corporate Secretary
Shares148
Max PriceUS$16.86
BuyUS$20,40622 Oct 18
Kathleen Starkoff
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$20.41

Ownership Breakdown


Management Team

  • Fred Bauer (76yo)

    Founder

    • Tenure: 1.8yrs
    • Compensation: US$1.68m
  • Paul Flynn (54yo)

    Vice President of Operations

    • Tenure: 7.8yrs
    • Compensation: US$322.84k
  • Steve Downing (41yo)

    President & CEO

    • Tenure: 1.8yrs
    • Compensation: US$3.43m
  • Kevin Nash (44yo)

    VP of Finance

    • Tenure: 1.7yrs
    • Compensation: US$990.24k
  • Joe Matthews (50yo)

    VP of Purchasing & Diversity Officer

    • Tenure: 5.3yrs
    • Compensation: US$335.91k
  • Neil Boehm (47yo)

    CTO & VP of Engineering

    • Tenure: 1.7yrs
    • Compensation: US$958.01k
  • Scott Ryan (38yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 2.6yrs
    • Compensation: US$926.75k
  • Matt Chiodo (54yo)

    Vice President of Sales

    • Tenure: 2.8yrs
    • Compensation: US$955.23k
  • Josh O'Berski

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Brian Walker (57yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$27.70k
  • Fred Bauer (76yo)

    Founder

    • Tenure: 1.8yrs
    • Compensation: US$1.68m
  • John Mulder (82yo)

    Independent Director

    • Tenure: 27.8yrs
    • Compensation: US$117.45k
  • Fred Sotok (84yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$124.95k
  • Richard Schaum (72yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$133.70k
  • Gary Goode (74yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$148.70k
  • Jim Wallace (76yo)

    Chairman & Lead Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$209.95k
  • Kathy Starkoff (61yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$40.84k
  • Leslie Brown (65yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$121.53k
  • Jim Hollars (74yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$117.45k

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$7.028b
  • Shares outstanding: 254.78m
  • 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 designs, develops, manufactures, and markets automotive products, including interior an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:34
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.