Gentex Corp (GNTX) stock analysis

P/E below its 5-year median

Gentex's P/E of 10.5 is below its own 5-year median of 18.0.

P/E below the industry

Gentex's P/E of 10.5 is below the Motor Vehicles and Motor Vehicle Equipment median of 18.7.

EV/EBITDA below its 5-year median

Gentex's EV/EBITDA of 6.6 is below its 5-year median of 12.2.

P/S above the industry

Gentex's price-to-sales of 1.58 is above the Motor Vehicles and Motor Vehicle Equipment median of 0.67 (book value is negative, so we use sales).

Trading below fair value

The share price of $19.58 is below our fair value estimate of $31.04.

Margin of safety over 20%

The price is 36.9% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 9.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 8.6% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 4.5% over the last twelve months, against a 5-year average of 2.1% a year.

Growing faster than the industry

Revenue grew 7.7% over the last twelve months; the Motor Vehicles and Motor Vehicle Equipment median is 5.5%.

Guidance raised

Gentex raised its 2026 Annual Consolidated Revenue outlook on Oct 23, 2026.

Gross margin improving

Gross margin was 34.8% over the last twelve months, against 33.7% a year earlier.

Return on equity over 15%

Return on equity was 15.9% over the last twelve months and averaged 17.3% over five years.

Return on capital over 10%

Return on invested capital was 18.1%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Gentex's return on equity of 15.9% is above the Motor Vehicles and Motor Vehicle Equipment median of 3.5%.

Earnings grew over 5 years

Net income grew 2.1% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 15.1% over the last twelve months, against a 5-year average of 17.8%.

Net margin above the industry

Gentex's net margin of 15.1% is above the Motor Vehicles and Motor Vehicle Equipment median of 1.9%.

No debt

Gentex has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 2.92 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 7.89; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Gentex paid dividends worth 2.5% of the share price over the last twelve months.

Yield below Treasuries

The 2.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Gentex yields 2.5%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 26.0% of net income.

Covered by free cash flow

Dividends take 22.9% of free cash flow.