GENTEX CORP (GNTX)
US3719011096 - Common Stock
We assign a fundamental rating of 7 out of 10 to GNTX. GNTX was compared to 82 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 valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make GNTX suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year GNTX was profitable.
In the past year GNTX had a positive cash flow from operations.
Each year in the past 5 years GNTX has been profitable.
In the past 5 years GNTX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 19.53%, GNTX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
GNTX has a Return On Equity of 22.10%. This is amongst the best in the industry. GNTX outperforms 95.06% of its industry peers.
The Return On Invested Capital of GNTX (22.04%) is better than 98.77% of its industry peers.
GNTX had an Average Return On Invested Capital over the past 3 years of 17.11%. This is significantly above the industry average of 9.39%.
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
GNTX has a better Profit Margin (18.10%) than 98.77% of its industry peers.
In the last couple of years the Profit Margin of GNTX has declined.
The Operating Margin of GNTX (21.42%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of GNTX has declined.
GNTX has a better Gross Margin (33.90%) 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 | 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.
Compared to 1 year ago, GNTX has less shares outstanding
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 15.57 indicates that GNTX is not in any danger for bankruptcy at the moment.
GNTX has a better Altman-Z score (15.57) than 98.77% 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 | 15.57 |
ROIC/WACC2.44
WACC9.05%
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.
GNTX has a Current ratio of 3.69. This is amongst the best in the industry. GNTX outperforms 91.36% of its industry peers.
A Quick Ratio of 2.11 indicates that GNTX has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.11, GNTX belongs to the best of the industry, outperforming 90.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.69 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
GNTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.36%, which is quite good.
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.
Looking at the last year, GNTX shows a very strong growth in Revenue. The Revenue has grown by 33.91%.
Measured over the past years, GNTX shows a small growth in Revenue. The Revenue has been growing by 4.62% on average per year.
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 10.78% on average per year.
The Revenue is expected to grow by 5.82% on average over the next years.
EPS Next Y3.11%
EPS Next 2Y7.84%
EPS Next 3Y8.2%
EPS Next 5Y10.78%
Revenue Next Year4.27%
Revenue Next 2Y5.07%
Revenue Next 3Y5.28%
Revenue Next 5Y5.82%
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
A Price/Earnings ratio of 15.98 indicates a correct valuation of GNTX.
GNTX's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.96. GNTX is valued slightly cheaper when compared to this.
GNTX is valuated correctly with a Price/Forward Earnings ratio of 13.96.
GNTX's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, GNTX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 13.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GNTX is valued a bit more expensive than 61.73% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GNTX is valued a bit more expensive than 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.95 | ||
| EV/EBITDA | 8.95 |
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)5.14
PEG (5Y)6.51
EPS Next 2Y7.84%
EPS Next 3Y8.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.58%, GNTX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.30, GNTX is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.23, GNTX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.19%
Div Incr Years0
Div Non Decr Years20
5.3 Sustainability
GNTX pays out 20.79% of its income as dividend. This is a sustainable payout ratio.
GNTX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.79%
EPS Next 2Y7.84%
EPS Next 3Y8.2%
GENTEX CORP
NASDAQ:GNTX (11/21/2024, 8:00:01 PM)
After market: 29.88 0 (0%)29.88
+0.38 (+1.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 13.96 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.14
PEG (5Y)6.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.53% | ||
| ROE | 22.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.42% | ||
| PM (TTM) | 18.1% | ||
| GM | 33.9% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.69 | ||
| Quick Ratio | 2.11 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)9.36%
EPS 3Y8.51%
EPS 5Y
EPS Q2Q%
EPS Next Y3.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)33.91%
Revenue growth 3Y10.85%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y