GENTEX CORP (GNTX) Stock Fundamental Analysis
NASDAQ:GNTX - Nasdaq - US3719011096 - Common Stock - Currency: USD
We assign a fundamental rating of 8 out of 10 to GNTX. GNTX was compared to 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 has a correct valuation and a medium growth rate. These ratings would make GNTX suitable 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.
In the past 5 years GNTX has always been profitable.
In the past 5 years GNTX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GNTX (18.31%) is better than 100.00% of its industry peers.
GNTX's Return On Equity of 20.48% is amongst the best of the industry. GNTX outperforms 97.53% of its industry peers.
With an excellent Return On Invested Capital value of 20.32%, GNTX belongs to the best of the industry, outperforming 98.77% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GNTX is significantly above the industry average of 8.88%.
The last Return On Invested Capital (20.32%) for GNTX is above the 3 year average (16.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.31% | ||
| ROE | 20.48% | ||
| ROIC | 20.32% |
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
GNTX's Profit Margin of 17.41% is amongst the best of the industry. GNTX outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of GNTX has declined.
GNTX's Operating Margin of 20.59% is amongst the best of the industry. GNTX outperforms 100.00% of its industry peers.
GNTX's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 33.52%, GNTX belongs to the best of the industry, outperforming 91.36% of the companies in the same industry.
In the last couple of years the Gross Margin of GNTX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.59% | ||
| PM (TTM) | 17.41% | ||
| GM | 33.52% |
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
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
An Altman-Z score of 12.88 indicates that GNTX is not in any danger for bankruptcy at the moment.
GNTX's Altman-Z score of 12.88 is amongst the best of the industry. GNTX outperforms 98.77% of its industry peers.
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 | 12.88 |
ROIC/WACC2.25
WACC9.02%
2.3 Liquidity
A Current Ratio of 4.11 indicates that GNTX has no problem at all paying its short term obligations.
The Current ratio of GNTX (4.11) is better than 93.83% of its industry peers.
GNTX has a Quick Ratio of 2.38. This indicates that GNTX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.38, GNTX belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.11 | ||
| Quick Ratio | 2.38 |
3. Growth
3.1 Past
GNTX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.17%.
GNTX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.76% yearly.
Looking at the last year, GNTX shows a very strong growth in Revenue. The Revenue has grown by 26.28%.
The Revenue has been growing slightly by 4.47% on average over the past years.
EPS 1Y (TTM)-2.17%
EPS 3Y6.5%
EPS 5Y1.76%
EPS Q2Q%-14%
Revenue 1Y (TTM)26.28%
Revenue growth 3Y10.14%
Revenue growth 5Y4.47%
Sales Q2Q%-8.06%
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 15.33% on average per year.
GNTX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.16% yearly.
EPS Next Y3.39%
EPS Next 2Y8.66%
EPS Next 3Y9.2%
EPS Next 5Y15.33%
Revenue Next Year5.74%
Revenue Next 2Y6.45%
Revenue Next 3Y7.23%
Revenue Next 5Y8.16%
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 reasonably with a Price/Earnings ratio of 11.98.
GNTX's Price/Earnings ratio is in line with the industry average.
GNTX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 11.58 indicates a reasonable 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.
GNTX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 11.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GNTX is on the same level as its industry peers.
GNTX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.12 | ||
| EV/EBITDA | 6.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of GNTX may justify a higher PE ratio.
PEG (NY)3.53
PEG (5Y)6.82
EPS Next 2Y8.66%
EPS Next 3Y9.2%
5. Dividend
5.1 Amount
GNTX has a Yearly Dividend Yield of 2.23%.
The stock price of GNTX dropped by -22.92% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.71, GNTX has a dividend in line with its industry peers.
GNTX's Dividend Yield is comparable with the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
The dividend of GNTX has a limited annual growth rate of 1.12%.
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)1.12%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
21.85% 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.
DP21.85%
EPS Next 2Y8.66%
EPS Next 3Y9.2%
21.56
+0.49 (+2.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners99.64%
Inst Owner Change-0.35%
Ins Owners0.21%
Ins Owner Change8.55%
Market Cap4.90B
Analysts76.47
Price Target31.24 (44.9%)
Short Float %2.4%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend0.48
Dividend Growth(5Y)1.12%
DP21.85%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.95%
Min EPS beat(2)-12.61%
Max EPS beat(2)8.7%
EPS beat(4)1
Avg EPS beat(4)-9.16%
Min EPS beat(4)-29.75%
Max EPS beat(4)8.7%
EPS beat(8)5
Avg EPS beat(8)-0.39%
EPS beat(12)6
Avg EPS beat(12)-2.81%
EPS beat(16)7
Avg EPS beat(16)-4.88%
Revenue beat(2)1
Avg Revenue beat(2)-5.3%
Min Revenue beat(2)-11.34%
Max Revenue beat(2)0.75%
Revenue beat(4)1
Avg Revenue beat(4)-5.81%
Min Revenue beat(4)-11.34%
Max Revenue beat(4)0.75%
Revenue beat(8)4
Avg Revenue beat(8)-1.96%
Revenue beat(12)5
Avg Revenue beat(12)-1.53%
Revenue beat(16)5
Avg Revenue beat(16)-2.62%
PT rev (1m)-2.16%
PT rev (3m)-11.29%
EPS NQ rev (1m)-3.47%
EPS NQ rev (3m)-11.92%
EPS NY rev (1m)-6.55%
EPS NY rev (3m)-12.62%
Revenue NQ rev (1m)-1.36%
Revenue NQ rev (3m)-5.41%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)-1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 11.58 | ||
| P/S | 1.69 | ||
| P/FCF | 14.12 | ||
| P/OCF | 9.83 | ||
| P/B | 1.98 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | 6.67 |
EPS(TTM)1.8
EY8.35%
EPS(NY)1.86
Fwd EY8.63%
FCF(TTM)1.53
FCFY7.08%
OCF(TTM)2.19
OCFY10.17%
SpS12.78
BVpS10.86
TBVpS8.21
PEG (NY)3.53
PEG (5Y)6.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.31% | ||
| ROE | 20.48% | ||
| ROCE | 23.84% | ||
| ROIC | 20.32% | ||
| ROICexc | 22.63% | ||
| ROICexgc | 30.89% | ||
| OM | 20.59% | ||
| PM (TTM) | 17.41% | ||
| GM | 33.52% | ||
| FCFM | 11.95% |
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 Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 159.67% | ||
| Cap/Sales | 5.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.93% | ||
| Profit Quality | 68.64% | ||
| Current Ratio | 4.11 | ||
| Quick Ratio | 2.38 | ||
| Altman-Z | 12.88 |
F-Score8
WACC9.02%
ROIC/WACC2.25
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)-2.17%
EPS 3Y6.5%
EPS 5Y1.76%
EPS Q2Q%-14%
EPS Next Y3.39%
EPS Next 2Y8.66%
EPS Next 3Y9.2%
EPS Next 5Y15.33%
Revenue 1Y (TTM)26.28%
Revenue growth 3Y10.14%
Revenue growth 5Y4.47%
Sales Q2Q%-8.06%
Revenue Next Year5.74%
Revenue Next 2Y6.45%
Revenue Next 3Y7.23%
Revenue Next 5Y8.16%
EBIT growth 1Y20.61%
EBIT growth 3Y4.57%
EBIT growth 5Y-0.83%
EBIT Next Year19.54%
EBIT Next 3Y13.18%
EBIT Next 5Y13.61%
FCF growth 1Y-0.61%
FCF growth 3Y6.42%
FCF growth 5Y-3.67%
OCF growth 1Y-7.27%
OCF growth 3Y11.21%
OCF growth 5Y-0.31%