Motor Vehicle Parts & Accessories
Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products in the United States, Germany, Japan, Mexico, and internationally. It operates through Automotive Products and Other segments. The company offers automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming rearview mirrors for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, automotive suppliers, and various aftermarket and accessory customers. It also provides variable dimmable windows to aircraft manufacturers and airline operators. In addition, the company offers photoelectric smoke detectors and alarms, electrochemical carbon monoxide alarms and detectors, audible and visual signaling alarms, and bells and speakers used in fire detection systems in office buildings, hotels, and other commercial and residential buildings, as well as researches and develops nanofiber chemical sensing products. It sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. The company was incorporated in 1974 and is headquartered in Zeeland, Michigan.
Discounted Cash Flow Valuation of Gentex Corp
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
The average Net Margin over the past 5 years is +21.24%.
The trend of Net Margin over the past 5 years is -1.19%.
The average ROA over the past 5 years is +20.84%.
The trend of ROA over the past 5 years is -1.58%.
The average ROE over the past 5 years is +19.5%.
The trend of ROE over the past 5 years is -1.17%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
The Debt/FCF trailing twelve month is -.
The trend of Debt/FCF over the past 5 years is -0.06.
Graham’s Stability measure stands at 0.82.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
The Revenue CAGR over the past 5 years is +1.35%.
The trend of Revenue growth rate over the past 5 years is -1.61%.
The Earnings CAGR over the past 5 years is -4.76%.
The trend of Earnings growth rate over the past 5 years is -4.31%.
The Equity CAGR over the past 5 years is +0.16%.
The trend of Equity growth rate over the past 5 years is -1.7%.
The FCF CAGR over the past 5 years is -13.54%.
The trend of FCF growth rate over the past 5 years is -5.27%.