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Gentex
(NASDAQ:GNTX)
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Rating:53Neutral
Price Target:
$22.00
▼(-6.98% Downside)
Action:Reiterated
Date:10/23/26
The score is held back primarily by weakened financial performance (sharp TTM revenue contraction, deteriorating cash conversion, and a step-change higher in leverage) and a soft technical trend. Offsetting these risks are a comparatively attractive valuation (low P/E and a ~2.3% dividend) and an earnings-call outlook that is mixed—near-term cost and demand pressures, but maintained 2027 revenue targets supported by advanced-feature ramps and new long-dated program wins.
Positive Factors
Advanced-feature adoption
Revenue 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 contraction
The 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.
Read all positive and negative factors
Positive Factors
Negative Factors
Advanced-feature adoption
Revenue 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.
Read all positive factors
Gentex Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows operating profit produced by each business line, revealing which segments deliver the most margin and cash flow for Gentex. Highlights whether core automotive products or newer electronic solutions are driving profitability, and flags segments that may be weighing on overall margins or needing cost attention.
Shows operating profit produced by each business line, revealing which segments deliver the most margin and cash flow for Gentex. Highlights whether core automotive products or newer electronic solutions are driving profitability, and flags segments that may be weighing on overall margins or needing cost attention.
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The Fly
The FlyGentex (GNTX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.35B
Dividend Yield2.32%
Average Volume (3M)2.73M
Price to Earnings (P/E)11.2
Beta (1Y)0.45
Revenue Growth7.71%
EPS Growth9.67%
CountryUS
Employees6,398
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.88
Shares Outstanding210,683,330
10 Day Avg. Volume3,563,532
30 Day Avg. Volume2,726,100
Financial Highlights & Ratios
PEG Ratio-7.89
Price to Book (P/B)2.04
Price to Sales (P/S)2.00
P/FCF Ratio11.07
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue1.92
Enterprise Value/Gross Profit5.48
Enterprise Value/Ebitda8.55
Forecast
1Y Price Target
$24.60Price Target Upside4.02% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)2.08
Revenue Forecast (FY)$2.67B
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 ...
How the Company Makes Money
Gentex makes money mainly by selling automotive components to vehicle manufacturers (OEMs) and their supply chains. Its core revenue stream is the manufacture and sale of auto-dimming mirrors (interior and exterior) and mirror-based modules that c...
Gentex Earnings Call Summary
Earnings Call Date:Oct 23, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 22, 2027
Earnings Call Sentiment Neutral
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.
Read all updates
Q3-2026 Updates
Positive
Negative
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.
Read all positive updates
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 Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
36
Negative
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.63B | 2.53B | 2.31B | 2.30B | 1.92B | 1.73B |
| Gross Profit | 919.31M | 866.71M | 771.09M | 762.63M | 609.81M | 619.71M |
| EBITDA | 589.43M | 565.10M | 566.93M | 598.30M | 466.29M | 515.46M |
| Net Income | 407.07M | 384.84M | 404.49M | 428.40M | 318.76M | 360.80M |
Balance Sheet | ||||||
| Total Assets | 3.02B | 2.93B | 2.76B | 2.68B | 2.39B | 2.13B |
| Cash, Cash Equivalents and Short-Term Investments | 242.81M | 151.03M | 255.62M | 240.79M | 241.76M | 267.74M |
| Total Debt | 3.71B | 3.80M | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 476.85M | 437.66M | 288.72M | 365.67M | 323.58M | 193.40M |
| Stockholders Equity | 2.54B | 2.49B | 2.47B | 2.31B | 2.07B | 1.94B |
Cash Flow | ||||||
| Free Cash Flow | 496.65M | 458.04M | 353.54M | 353.57M | 191.77M | 293.33M |
| Operating Cash Flow | 594.15M | 587.13M | 498.21M | 537.25M | 338.20M | 362.17M |
| Investing Cash Flow | -134.14M | -266.90M | -202.08M | -299.42M | -172.74M | -113.11M |
| Financing Cash Flow | -346.34M | -407.90M | -289.25M | -230.15M | -209.02M | -410.12M |
Gentex Technical Analysis
Negative
23.65
Price Trends
22.18
Negative
23.21
Negative
22.96
Negative
Market Momentum
-0.34
Negative
39.73
Neutral
56.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNTX, the sentiment is Negative. The current price of 23.65 is above the 20-day moving average (MA) of 21.31, above the 50-day MA of 22.18, and above the 200-day MA of 22.96, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 39.73 is Neutral, neither overbought nor oversold. The STOCH value of 56.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GNTX.
Gentex Risk Analysis
Gentex disclosed 26 risk factors in its most recent earnings report. Gentex reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gentex Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $8.40B | 13.70 | 24.54% | 3.03% | 4.26% | -13.85% | |
69 Neutral | $5.76B | 10.83 | 10.90% | 2.64% | 3.55% | 25.67% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $1.89B | 20.58 | 6.44% | 1.83% | 1.94% | -67.19% | |
55 Neutral | $5.56B | -1.31 | -40.43% | ― | 5.00% | -36.49% | |
53 Neutral | $4.35B | 11.17 | 15.85% | 2.32% | 7.71% | 9.67% | |
53 Neutral | $8.86B | 40.66 | 2.41% | 0.97% | -5.40% | -75.68% |
* Consumer Cyclical Sector Average
GNTX
Gentex
20.66
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-11.04%
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APTV
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LEA
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VC
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76.37
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MBLY
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6.54
-6.83
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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.