GENTEX CORP (GNTX) Stock Fundamental Analysis
NASDAQ:GNTX - Nasdaq - US3719011096 - Common Stock - Currency: USD
GNTX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 81 industry peers in the Automobile Components industry. Both the health and profitability get an excellent rating, making GNTX a very profitable company, without any liquidiy or solvency issues. GNTX is not valued too expensively and it also shows a decent growth rate. These ratings could make GNTX a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year GNTX was profitable.
GNTX had a positive operating cash flow in the past year.
GNTX had positive earnings in each of the past 5 years.
GNTX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GNTX has a Return On Assets of 17.70%. This is amongst the best in the industry. GNTX outperforms 100.00% of its industry peers.
The Return On Equity of GNTX (19.90%) is better than 95.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.83%, GNTX belongs to the top of the industry, outperforming 98.77% of the companies in the same industry.
GNTX had an Average Return On Invested Capital over the past 3 years of 16.39%. This is significantly above the industry average of 9.05%.
The last Return On Invested Capital (19.83%) for GNTX is above the 3 year average (16.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.7% | ||
| ROE | 19.9% | ||
| ROIC | 19.83% |
ROA(3y)14.7%
ROA(5y)15.27%
ROE(3y)16.54%
ROE(5y)17.08%
ROIC(3y)16.39%
ROIC(5y)16.87%
1.3 Margins
Looking at the Profit Margin, with a value of 17.04%, GNTX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of GNTX has declined.
With an excellent Operating Margin value of 20.25%, GNTX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of GNTX has declined.
The Gross Margin of GNTX (33.31%) is better than 91.36% of its industry peers.
In the last couple of years the Gross Margin of GNTX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.25% | ||
| PM (TTM) | 17.04% | ||
| GM | 33.31% |
OM growth 3Y-5.06%
OM growth 5Y-5.07%
PM growth 3Y-5.63%
PM growth 5Y-5.25%
GM growth 3Y-2.35%
GM growth 5Y-2.08%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GNTX is creating value.
GNTX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GNTX has less shares outstanding
There is no outstanding debt for GNTX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 12.96 indicates that GNTX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.96, GNTX belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
There is no outstanding debt for GNTX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 12.96 |
ROIC/WACC2.08
WACC9.55%
2.3 Liquidity
GNTX has a Current Ratio of 4.08. This indicates that GNTX is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 4.08, GNTX belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
GNTX has a Quick Ratio of 2.55. This indicates that GNTX is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of GNTX (2.55) is better than 91.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.08 | ||
| Quick Ratio | 2.55 |
3. Growth
3.1 Past
The earnings per share for GNTX have decreased by -7.41% in the last year.
Measured over the past 5 years, GNTX shows a small growth in Earnings Per Share. The EPS has been growing by 1.76% on average per year.
GNTX shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.58%.
GNTX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.47% yearly.
EPS 1Y (TTM)-7.41%
EPS 3Y6.5%
EPS 5Y1.76%
EPS Q2Q%-10.64%
Revenue 1Y (TTM)23.58%
Revenue growth 3Y10.14%
Revenue growth 5Y4.47%
Sales Q2Q%-2.28%
3.2 Future
The Earnings Per Share is expected to grow by 14.94% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.66% on average over the next years.
EPS Next Y-8.7%
EPS Next 2Y1.77%
EPS Next 3Y3.62%
EPS Next 5Y14.94%
Revenue Next Year2.64%
Revenue Next 2Y4.88%
Revenue Next 3Y5.29%
Revenue Next 5Y7.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
GNTX is valuated correctly with a Price/Earnings ratio of 13.22.
Compared to the rest of the industry, the Price/Earnings ratio of GNTX is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.45. GNTX is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 12.41, which indicates a correct valuation of GNTX.
The rest of the industry has a similar Price/Forward Earnings ratio as GNTX.
When comparing the Price/Forward Earnings ratio of GNTX to the average of the S&P500 Index (21.90), we can say GNTX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.22 | ||
| Fwd PE | 12.41 |
4.2 Price Multiples
GNTX's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GNTX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.48 | ||
| EV/EBITDA | 7.15 |
4.3 Compensation for Growth
The excellent profitability rating of GNTX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.53
EPS Next 2Y1.77%
EPS Next 3Y3.62%
5. Dividend
5.1 Amount
GNTX has a Yearly Dividend Yield of 2.08%. Purely for dividend investing, there may be better candidates out there.
GNTX's Dividend Yield is comparable with the industry average which is at 4.32.
Compared to an average S&P500 Dividend Yield of 2.38, GNTX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
5.2 History
The dividend of GNTX has a limited annual growth rate of 1.12%.
GNTX has paid a dividend for at least 10 years, which is a reliable track record.
GNTX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.12%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
22.32% of the earnings are spent on dividend by GNTX. This is a low number and sustainable payout ratio.
GNTX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.32%
EPS Next 2Y1.77%
EPS Next 3Y3.62%
23.13
-0.09 (-0.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners101.05%
Inst Owner Change2.57%
Ins Owners0.26%
Ins Owner Change14.1%
Market Cap5.20B
Analysts74.12
Price Target27.21 (17.64%)
Short Float %3.81%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
Yearly Dividend0.48
Dividend Growth(5Y)1.12%
DP22.32%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.89%
Min EPS beat(2)-12.61%
Max EPS beat(2)-1.18%
EPS beat(4)1
Avg EPS beat(4)-8.71%
Min EPS beat(4)-29.75%
Max EPS beat(4)8.7%
EPS beat(8)4
Avg EPS beat(8)-1.89%
EPS beat(12)5
Avg EPS beat(12)-4.03%
EPS beat(16)7
Avg EPS beat(16)-4.51%
Revenue beat(2)0
Avg Revenue beat(2)-6.15%
Min Revenue beat(2)-11.34%
Max Revenue beat(2)-0.97%
Revenue beat(4)1
Avg Revenue beat(4)-5.24%
Min Revenue beat(4)-11.34%
Max Revenue beat(4)0.75%
Revenue beat(8)3
Avg Revenue beat(8)-2.32%
Revenue beat(12)4
Avg Revenue beat(12)-2.17%
Revenue beat(16)5
Avg Revenue beat(16)-2.46%
PT rev (1m)1.27%
PT rev (3m)-14.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.73%
EPS NY rev (1m)1.25%
EPS NY rev (3m)-17.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-2.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.22 | ||
| Fwd PE | 12.41 | ||
| P/S | 1.8 | ||
| P/FCF | 14.48 | ||
| P/OCF | 10.06 | ||
| P/B | 2.1 | ||
| P/tB | 2.78 | ||
| EV/EBITDA | 7.15 |
EPS(TTM)1.75
EY7.57%
EPS(NY)1.86
Fwd EY8.06%
FCF(TTM)1.6
FCFY6.9%
OCF(TTM)2.3
OCFY9.94%
SpS12.86
BVpS11.01
TBVpS8.32
PEG (NY)N/A
PEG (5Y)7.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.7% | ||
| ROE | 19.9% | ||
| ROCE | 23.27% | ||
| ROIC | 19.83% | ||
| ROICexc | 22.59% | ||
| ROICexgc | 31.12% | ||
| OM | 20.25% | ||
| PM (TTM) | 17.04% | ||
| GM | 33.31% | ||
| FCFM | 12.42% |
ROA(3y)14.7%
ROA(5y)15.27%
ROE(3y)16.54%
ROE(5y)17.08%
ROIC(3y)16.39%
ROIC(5y)16.87%
ROICexc(3y)18.34%
ROICexc(5y)19.59%
ROICexgc(3y)26.09%
ROICexgc(5y)29.13%
ROCE(3y)19.23%
ROCE(5y)19.78%
ROICexcg growth 3Y-8.78%
ROICexcg growth 5Y-10.64%
ROICexc growth 3Y-5.13%
ROICexc growth 5Y-7.85%
OM growth 3Y-5.06%
OM growth 5Y-5.07%
PM growth 3Y-5.63%
PM growth 5Y-5.25%
GM growth 3Y-2.35%
GM growth 5Y-2.08%
F-Score8
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 163.98% | ||
| Cap/Sales | 5.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.82% | ||
| Profit Quality | 72.9% | ||
| Current Ratio | 4.08 | ||
| Quick Ratio | 2.55 | ||
| Altman-Z | 12.96 |
F-Score8
WACC9.55%
ROIC/WACC2.08
Cap/Depr(3y)172.18%
Cap/Depr(5y)129%
Cap/Sales(3y)7.51%
Cap/Sales(5y)6.03%
Profit Quality(3y)76.56%
Profit Quality(5y)85.99%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.41%
EPS 3Y6.5%
EPS 5Y1.76%
EPS Q2Q%-10.64%
EPS Next Y-8.7%
EPS Next 2Y1.77%
EPS Next 3Y3.62%
EPS Next 5Y14.94%
Revenue 1Y (TTM)23.58%
Revenue growth 3Y10.14%
Revenue growth 5Y4.47%
Sales Q2Q%-2.28%
Revenue Next Year2.64%
Revenue Next 2Y4.88%
Revenue Next 3Y5.29%
Revenue Next 5Y7.66%
EBIT growth 1Y14.37%
EBIT growth 3Y4.57%
EBIT growth 5Y-0.83%
EBIT Next Year4.82%
EBIT Next 3Y7.65%
EBIT Next 5Y12.95%
FCF growth 1Y108.11%
FCF growth 3Y6.42%
FCF growth 5Y-3.67%
OCF growth 1Y50.64%
OCF growth 3Y11.21%
OCF growth 5Y-0.31%