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Gentex (GTX) AI Stock Analysis

CH:GTX

Gentex

(BX Swiss:GTX)

Rating:―N/A
Action:N/A
Date:―

No summary available

Positive Factors
Advanced-feature adoptionRevenue growth despite lower regional vehicle production indicates that Gentex is increasing content per vehicle through advanced mirrors and related technologies. This supports stronger customer integration, better product mix, and a durable growth path beyond simple industry volume expansion.
Negative Factors
Sharp revenue contractionThe substantial TTM revenue decline shows that Gentex is facing a meaningful demand and volume reset rather than merely normal quarterly volatility. Lower revenue also reduces operating leverage, limits reinvestment capacity, and makes recovery dependent on delayed launches and future content adoption.

Gentex (GTX) vs. iShares MSCI Switzerland ETF (EWL)

0%5%10%15%20%CH:GTX0.00%EWL+18.98%
Market Cap
CHF 4.19B
Dividend Yield
2.18%
Average Volume (3M)
1,100
Price to Earnings (P/E)
10.7
Beta (1Y)
0.29
Revenue Growth
1.12%
EPS Growth
2.82%
Country
Switzerland
Employees
6,398
Sector
Consumer Cyclical
Sector Strength
61
Industry
Auto - Parts

Gentex Business Overview & Revenue Model

Company Description

Gentex Corporation, established in 1974 and headquartered in Zeeland, Michigan, is a global innovator specializing in the design, development, production, marketing, and distribution of advanced technology solutions. Its diverse product portfolio enc...

Gentex Earnings Call Summary

Earnings Call Date:Oct 22, 2026(Q3-2026)|% Change Since:0.00%|Next Earnings Date:Jan 21, 2027
Earnings Call SentimentNeutral

The call presented a mixed outlook. Gentex reported resilient underlying automotive performance, strong premium audio and nonautomotive growth, continued advanced-feature launches, a maintained 2027 revenue outlook, and a new approximately $180 million annualized PCBA award. However, these positives were balanced by lower third-quarter revenue and earnings, reduced 2026 revenue guidance, lower gross margin, working-capital-driven cash flow declines, China and Volkswagen headwinds, and severe electronics, PCB, and precious-metal cost and supply pressures. Overall, the strategic growth outlook was constructive, but near-term operating and margin conditions remained challenging.

Positive Updates

North American Automotive Outgrowth
North American automotive revenue increased approximately 3% despite a 5% decline in regional light vehicle production, driven by continued adoption of advanced feature content.

Negative Updates

Third-Quarter Revenue Below Forecast
Third-quarter net sales were $647.7 million compared with $655.2 million in the third quarter of last year. Automotive revenue came in approximately $35 million below the beginning-of-quarter forecast due to certain customer issues and delayed launches.

Company Guidance

The company’s light vehicle production assumptions are based on the mid-October 2026 S&P Global Mobility Outlook: global light vehicle production is forecast to decline approximately 4% in the fourth quarter of 2026 and approximately 2% for full year 2026, while global production is expected to increase approximately 1% in 2027 and production in North America, Europe, and Japan Korea is forecast to decline approximately 1%. Consolidated revenue is now expected to be approximately $2.5 billion for 2026, gross margin between 34%-34.5%, including an estimated $10 million to $15 million of incremental cost increases expected in the fourth quarter, operating expenses, excluding severance and impairments, between $395 million and $410 million, the tax rate between 16% and 16.5%, capital expenditures between $101 million to $115 million, and depreciation and amortization between $100 million and $105 million. The company is maintaining its 2027 revenue outlook of $2.8 billion to $2.9 billion, representing a 6% to 9% revenue growth, and expects $80 million to $100 million revenue from DMS and ICMS for 2027; full display mirror unit increase in 2026 is still on target at 200 thousand to 400 thousand over what was shipped in 2025, the first dimmable visor program has a start of production plan for the fourth quarter of 2027, and the first PCBA award is annualized at about $180 million a year roughly with production expected to begin in 2029. Steven R. Downing said, “next year is probably more in that 33 to 34% range,” while China is expected to be at “kind of a stable level” with “likely a little bit of headwinds yet” and “not expecting any tailwinds anytime soon.”

Gentex Risk Analysis

Gentex disclosed 26 risk factors in its most recent earnings report. Gentex reported the most risks in the "Tech & Innovation" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Tech & Innovation - Risks related to the company’s reliance on technology and ability to make innovative products

Latest Risks Added

0 New Risks

Gentex Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

CH:GTX against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
LEALEA69Neutral$5.84B10.3211.52%2.60%3.52%40.59%
ALVALV67Neutral$8.46B14.0424.54%2.96%4.26%-13.85%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
VCVC59Neutral$1.81B19.766.44%1.91%1.94%-67.19%
MBLYMBLY51Neutral$5.07B-1.20-44.22%―3.41%-1093.47%
APTVAPTV48Neutral$9.12B41.842.41%―-5.40%-75.68%

* Consumer Cyclical Sector Average

Performance Comparison

-40%-20%0%20%40%CH:GTXALVAPTVLEAVCMBLY
CH:GTX and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
CH:GTXGentex Corp17.460.000.00%
ALVAutoliv117.541.381.19%
APTVAptiv PLC43.93-24.56-35.86%
LEALear Corp.118.4414.4113.85%
VCVisteon73.32-30.75-29.55%
MBLYMobileye Global, Inc. Class A5.96-6.49-52.13%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.