Gentex Corp

Consumer Discretionary
Auto Parts:O.E.M.
www.gentex.com

Earnings Score
Moat Score

Market Cap $6.73B
PE 16
Debt $NaN
Cash $179.64M
EV $NaN
FCF $348.15M

Earnings

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Sales & Net Margins

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Earnings	$433.76M
EBIT	$510.34M
ROE	18%
ROA	19%
FCF	$348.15M
Equity	$2.42B
Growth Stability	82%
PE	15.51
PEG	6.31
PB	2.78
P/FCF	19.32
P/S	2.85
Price/Cash	0.03
Net Margins	18%
Gross Margins	34%
Op. Margins	22%
Earnings CAGR	1%
Sales Growth YoY	6%
Sales Growth QoQ	6%
Sales CAGR	3%
FCF CAGR	-3%
Equity CAGR	3%
Earnings Stability	0.02
Earnings Growth YoY	17%
Earnings Growth QoQ	42%

Earnings CAGR 5Y	2%
Sales CAGR 5Y	8%
FCF CAGR 5Y	-8%
Equity CAGR 5Y	6%
Earnings CAGR 3Y	15%
Sales CAGR 3Y	15%
FCF CAGR 3Y	28%
Equity CAGR 3Y	10%
Market Cap	$6.73B
Revenue	$2.36B
Dividend Yield	2%
Payout Ratio	26%
Assets	$2.74B
Cash	$179.64M
Shares Outstanding	226M
Earnings Score	6%
Moat Score	95%
Working Capital	762.52M
Current Ratio	3.69
Gross Profit	$798.23M
Shares Growth 3y	-1%
Equity Growth QoQ	1%
Equity Growth YoY	7%

Assets & ROA

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Stockholders Equity & ROE

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Gentex was founded in 1974 to produce smoke-detection equipment. The company sold its first glare-control interior mirror in 1982 and its first model using electrochromic technology in 1987. Automotive revenue is about 98% of total revenue, and the company is constantly developing new applications for the technology to remain on top. Sales in 2021 totaled about $1.7 billion with 41.8 million mirrors shipped. The unit mix breaks out as 65% interior and 35% exterior, versus about 32% exterior in 2020. The company is based in Zeeland, Michigan.

SEC Filings

Direct access to Gentex Corp (GNTX) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Gentex Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Gentex Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 1%

Stability 2%

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Gentex Corp Discounted Cash Flow

Fully customizable DCF calculator online for Gentex Corp.

Years

Calculation mode

= $2.9B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$348M	$338M	$328M	$319M	$309M	$300M	$291M	$283M	$275M	$267M	$259M	$2.6B
DCF		$307M	$271M	$239M	$211M	$186M	$165M	$145M	$128M	$113M	$100M	$998M
Value	$2.9B

Competitiveness and MOAT

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	21%	21%	21%	23%	24%	23%	21%	21%	17%	19%	18%
ROA	-	21%	22%	23%	25%	23%	19%	20%	16%	19%	19%
ROE	-	18%	18%	20%	24%	22%	18%	19%	15%	19%	18%

Good Net Margins (17.88%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	0.92	0.53	0.2	0	0	0	-	-	-	-
Debt over Equity	0.17	0.14	0.1	0.04	0	0	0	-	-	-	-
Growth Stability	-	-	-	100%	100%	100%	82%	89%	84%	100%	82%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Neutral Graham’s Stability (82%)

The company has a stability in its earnings that is not too good nor too bad.

Growth

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	12%	9%	7%	2%	1%	-9%	3%	11%	20%	8%
Earnings YoY growth	-	10%	9%	17%	8%	-3%	-18%	4%	-12%	34%	2%
Equity YoY growth	-	10%	11%	7%	-9%	4%	1%	-1%	7%	12%	6%
FCF YoY growth	-	-0%	38%	13%	17%	-10%	-2%	-29%	-35%	84%	-8%