Gentex Corporation
Gentex Corporation Fundamental Analysis
Gentex Corporation (GNTX) shows moderate financial fundamentals with a PE ratio of 13.66, profit margin of 15.19%, and ROE of 15.56%. The company generates $2.5B in annual revenue with weak year-over-year growth of 0.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GNTX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGNTX demonstrates superior asset utilization.
Valuation Score
ModerateGNTX shows balanced valuation metrics.
Growth Score
WeakGNTX faces weak or negative growth trends.
Financial Health Score
ExcellentGNTX maintains a strong and stable balance sheet.
Profitability Score
ExcellentGNTX achieves industry-leading margins.
Key Financial Metrics
Is GNTX Expensive or Cheap?
P/E Ratio
GNTX trades at 13.66 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GNTX's PEG of 4.62 indicates potential overvaluation.
Price to Book
The market values Gentex Corporation at 2.11 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.59 times EBITDA. This is generally considered low.
How Well Does GNTX Make Money?
Net Profit Margin
For every $100 in sales, Gentex Corporation keeps $15.19 as profit after all expenses.
Operating Margin
Core operations generate 18.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.56 in profit for every $100 of shareholder equity.
ROA
Gentex Corporation generates $13.14 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gentex Corporation produces operating cash flow of $460.46M, showing steady but balanced cash generation.
Free Cash Flow
Gentex Corporation generates strong free cash flow of $357.30M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.63 in free cash annually.
FCF Yield
GNTX converts 6.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.91
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How GNTX Stacks Against Its Sector Peers
| Metric | GNTX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.66 | 25.25 | Better (Cheaper) |
| ROE | 15.56% | 1170.00% | Weak |
| Net Margin | 15.19% | 742.00% | Weak |
| Debt/Equity | 0.00 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 2.91 | 9.19 | Strong Liquidity |
| ROA | 13.14% | -6467.00% (disorted) | Strong |
GNTX outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Gentex Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
38.81%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
6.24%
Industry Style: Cyclical, Growth, Discretionary
GrowingFCF CAGR
9.83%
Industry Style: Cyclical, Growth, Discretionary
Growing