GENTEX CORP (GNTX) Stock Fundamental Analysis
NASDAQ:GNTX - Nasdaq - US3719011096 - Common Stock
Overall GNTX gets a fundamental rating of 7 out of 10. We evaluated GNTX against 83 industry peers in the Automobile Components industry. GNTX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. GNTX is quite expensive at the moment. It does show a decent growth rate. These ratings would make GNTX suitable for quality investing!
1. Profitability
1.1 Basic Checks
GNTX had positive earnings in the past year.
GNTX had a positive operating cash flow in the past year.
GNTX had positive earnings in each of the past 5 years.
In the past 5 years GNTX always reported a positive cash flow from operatings.
1.2 Ratios
GNTX has a Return On Assets of 19.53%. This is amongst the best in the industry. GNTX outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 22.10%, GNTX belongs to the top of the industry, outperforming 95.18% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 22.04%, GNTX belongs to the top of the industry, outperforming 98.80% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GNTX is significantly above the industry average of 9.42%.
The 3 year average ROIC (17.11%) for GNTX is below the current ROIC(22.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.53% | ||
| ROE | 22.1% | ||
| ROIC | 22.04% |
ROA(3y)15.44%
ROA(5y)16.25%
ROE(3y)17.26%
ROE(5y)18.17%
ROIC(3y)17.11%
ROIC(5y)17.91%
1.3 Margins
The Profit Margin of GNTX (18.10%) is better than 100.00% of its industry peers.
GNTX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 21.42%, GNTX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
GNTX's Operating Margin has declined in the last couple of years.
GNTX's Gross Margin of 33.90% is amongst the best of the industry. GNTX outperforms 90.36% of its industry peers.
GNTX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.42% | ||
| PM (TTM) | 18.1% | ||
| GM | 33.9% |
OM growth 3Y-3.76%
OM growth 5Y-4.89%
PM growth 3Y-3.29%
PM growth 5Y-5.12%
GM growth 3Y-2.78%
GM growth 5Y-2.5%
2. Health
2.1 Basic Checks
GNTX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for GNTX has been reduced compared to 1 year ago.
Compared to 5 years ago, GNTX has less shares outstanding
GNTX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
GNTX has an Altman-Z score of 15.07. This indicates that GNTX is financially healthy and has little risk of bankruptcy at the moment.
GNTX has a better Altman-Z score (15.07) than 97.59% of its industry peers.
GNTX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 15.07 |
ROIC/WACC2.38
WACC9.25%
2.3 Liquidity
GNTX has a Current Ratio of 3.69. This indicates that GNTX is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of GNTX (3.69) is better than 92.77% of its industry peers.
A Quick Ratio of 2.11 indicates that GNTX has no problem at all paying its short term obligations.
GNTX has a better Quick ratio (2.11) than 89.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.69 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.36% over the past year.
Measured over the past 5 years, GNTX shows a small growth in Earnings Per Share. The EPS has been growing by 2.45% on average per year.
GNTX shows a strong growth in Revenue. In the last year, the Revenue has grown by 33.91%.
GNTX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.62% yearly.
EPS 1Y (TTM)9.36%
EPS 3Y8.51%
EPS 5Y2.45%
EPS Q2Q%17.78%
Revenue 1Y (TTM)33.91%
Revenue growth 3Y10.85%
Revenue growth 5Y4.62%
Sales Q2Q%5.67%
3.2 Future
Based on estimates for the next years, GNTX will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.22% on average per year.
The Revenue is expected to grow by 7.45% on average over the next years.
EPS Next Y3.16%
EPS Next 2Y7.59%
EPS Next 3Y8.21%
EPS Next 5Y11.22%
Revenue Next Year4.31%
Revenue Next 2Y5.66%
Revenue Next 3Y5.94%
Revenue Next 5Y7.45%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GNTX is valuated correctly with a Price/Earnings ratio of 14.90.
Compared to the rest of the industry, the Price/Earnings ratio of GNTX is on the same level as its industry peers.
When comparing the Price/Earnings ratio of GNTX to the average of the S&P500 Index (28.29), we can say GNTX is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.08, which indicates a correct valuation of GNTX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GNTX is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of GNTX to the average of the S&P500 Index (24.44), we can say GNTX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.9 | ||
| Fwd PE | 13.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GNTX is valued a bit more expensive than the industry average as 61.45% of the companies are valued more cheaply.
60.24% of the companies in the same industry are cheaper than GNTX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.61 | ||
| EV/EBITDA | 8.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GNTX does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of GNTX may justify a higher PE ratio.
PEG (NY)4.72
PEG (5Y)6.07
EPS Next 2Y7.59%
EPS Next 3Y8.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.75%, GNTX has a reasonable but not impressive dividend return.
GNTX's Dividend Yield is comparable with the industry average which is at 4.18.
GNTX's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
The dividend of GNTX has a limited annual growth rate of 2.19%.
GNTX has been paying a dividend for at least 10 years, so it has a reliable track record.
GNTX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.19%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
20.79% of the earnings are spent on dividend by GNTX. This is a low number and sustainable payout ratio.
The dividend of GNTX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP20.79%
EPS Next 2Y7.59%
EPS Next 3Y8.21%
GENTEX CORP
NASDAQ:GNTX (1/22/2025, 11:31:51 AM)
27.87
-0.48 (-1.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners95.97%
Inst Owner Change-0.23%
Ins Owners0.21%
Ins Owner Change0%
Market Cap6.34B
Analysts77.65
Price Target35.21 (26.34%)
Short Float %2.6%
Short Ratio4.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend0.48
Dividend Growth(5Y)2.19%
DP20.79%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.52%
Min EPS beat(2)-29.75%
Max EPS beat(2)8.7%
EPS beat(4)2
Avg EPS beat(4)-3.37%
Min EPS beat(4)-29.75%
Max EPS beat(4)10.56%
EPS beat(8)5
Avg EPS beat(8)0.52%
EPS beat(12)7
Avg EPS beat(12)-1.75%
EPS beat(16)8
Avg EPS beat(16)-3.29%
Revenue beat(2)1
Avg Revenue beat(2)-4.33%
Min Revenue beat(2)-9.41%
Max Revenue beat(2)0.75%
Revenue beat(4)2
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-9.41%
Max Revenue beat(4)2.99%
Revenue beat(8)4
Avg Revenue beat(8)-1.03%
Revenue beat(12)5
Avg Revenue beat(12)-0.61%
Revenue beat(16)6
Avg Revenue beat(16)-1.43%
PT rev (1m)0%
PT rev (3m)-5.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.9 | ||
| Fwd PE | 13.08 | ||
| P/S | 2.15 | ||
| P/FCF | 18.61 | ||
| P/OCF | 12.35 | ||
| P/B | 2.62 | ||
| P/tB | 3.51 | ||
| EV/EBITDA | 8.59 |
EPS(TTM)1.87
EY6.71%
EPS(NY)2.13
Fwd EY7.64%
FCF(TTM)1.5
FCFY5.37%
OCF(TTM)2.26
OCFY8.1%
SpS12.98
BVpS10.63
TBVpS7.95
PEG (NY)4.72
PEG (5Y)6.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.53% | ||
| ROE | 22.1% | ||
| ROCE | 25.78% | ||
| ROIC | 22.04% | ||
| ROICexc | 24% | ||
| ROICexgc | 32.93% | ||
| OM | 21.42% | ||
| PM (TTM) | 18.1% | ||
| GM | 33.9% | ||
| FCFM | 11.54% |
ROA(3y)15.44%
ROA(5y)16.25%
ROE(3y)17.26%
ROE(5y)18.17%
ROIC(3y)17.11%
ROIC(5y)17.91%
ROICexc(3y)19.41%
ROICexc(5y)21.45%
ROICexgc(3y)28.74%
ROICexgc(5y)32.89%
ROCE(3y)20.01%
ROCE(5y)20.94%
ROICexcg growth 3Y-6.95%
ROICexcg growth 5Y-9.27%
ROICexc growth 3Y-3.18%
ROICexc growth 5Y-6.59%
OM growth 3Y-3.76%
OM growth 5Y-4.89%
PM growth 3Y-3.29%
PM growth 5Y-5.12%
GM growth 3Y-2.78%
GM growth 5Y-2.5%
F-Score7
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 185.4% | ||
| Cap/Sales | 5.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.78% | ||
| Profit Quality | 63.74% | ||
| Current Ratio | 3.69 | ||
| Quick Ratio | 2.11 | ||
| Altman-Z | 15.07 |
F-Score7
WACC9.25%
ROIC/WACC2.38
Cap/Depr(3y)143.95%
Cap/Depr(5y)113.8%
Cap/Sales(3y)6.76%
Cap/Sales(5y)5.66%
Profit Quality(3y)74.58%
Profit Quality(5y)88.53%
High Growth Momentum
Growth
EPS 1Y (TTM)9.36%
EPS 3Y8.51%
EPS 5Y2.45%
EPS Q2Q%17.78%
EPS Next Y3.16%
EPS Next 2Y7.59%
EPS Next 3Y8.21%
EPS Next 5Y11.22%
Revenue 1Y (TTM)33.91%
Revenue growth 3Y10.85%
Revenue growth 5Y4.62%
Sales Q2Q%5.67%
Revenue Next Year4.31%
Revenue Next 2Y5.66%
Revenue Next 3Y5.94%
Revenue Next 5Y7.45%
EBIT growth 1Y38.28%
EBIT growth 3Y6.67%
EBIT growth 5Y-0.49%
EBIT Next Year24.91%
EBIT Next 3Y13.83%
EBIT Next 5Y13.1%
FCF growth 1Y111.26%
FCF growth 3Y-5.1%
FCF growth 5Y-5.4%
OCF growth 1Y71.58%
OCF growth 3Y4.97%
OCF growth 5Y-0.55%