Gentex Corp (NASDAQ: GNTX)

Sector: Consumer Cyclical Industry: Auto Parts CIK: 0000355811
Market Cap 5.47 Bn
P/B 2.19
P/E 14.42
P/S 2.25
ROIC (Qtr) 15.05
Div Yield % 2.45
Rev 1y % (Qtr) 7.68
Total Debt (Qtr) 4.13 Mn
Debt/Equity (Qtr) 0.00

About

Gentex Corporation, a prominent name in the securities market with the symbol GNTX, operates in the automotive, aviation, and fire protection industries. The company specializes in the design, development, manufacturing, marketing, and supply of digital vision, connected car, dimmable glass, and fire protection technologies. Gentex's core business activities span across the automotive and aviation sectors, as well as the fire protection industry. In the automotive sector, the company concentrates on the production of interior and exterior electrochromic...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 616.02M provides robust 149.13x coverage of total debt 4.13M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 178.59M provide 43.23x coverage of short-term debt 4.13M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 616.02M provides strong 17.50x coverage of stock compensation 35.20M, indicating sustainable incentive practices.
  • Strong tangible asset base of 2.31B provides 558.72x coverage of total debt 4.13M, indicating robust asset backing and low credit risk.
  • Strong operating cash flow of 616.02M provides 3.88x coverage of SG&A expenses 158.66M, showing efficient operational cost management.

Bear case

  • Operating cash flow of 616.02M barely covers its investment activities of (272.48M), with a coverage ratio of -2.26, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (272.48M) provide weak support for R&D spending of 197.09M, which is -1.38x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 616.02M provides thin coverage of dividend payments of (107.88M) with a -5.71 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 178.59M provide limited coverage of acquisition spending of (204.81M), which is -0.87x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 616.02M shows concerning coverage of minority interest expenses of (470340), which is -1309.74x, suggesting complex corporate structure risks.

Product and Service Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Auto Parts
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ORLY O Reilly Automotive Inc 80.07 Bn 32.23 4.59 8.40 Bn
2 AZO Autozone Inc 57.24 Bn 23.23 2.97 12.05 Bn
3 APTV Aptiv PLC 19.67 Bn 66.67 0.98 8.03 Bn
4 GPC Genuine Parts Co 17.83 Bn 22.05 0.74 6.40 Bn
5 MGA Magna International Inc 15.86 Bn 15.36 0.38 7.48 Bn
6 ALV Autoliv Inc 9.72 Bn 12.92 0.92 2.19 Bn
7 MBLY Mobileye Global Inc. 9.47 Bn -28.17 4.88 0.00 Bn
8 BWA Borgwarner Inc 8.87 Bn 66.21 0.63 3.90 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.82 1.16
EV to Cash from Ops. EV/CFO 8.70 9.30
EV to Debt EV to Debt 1,297.21 34.64
EV to EBIT EV/EBIT 11.96 4.45
EV to EBITDA EV/EBITDA 9.81 7.40
EV to Free Cash Flow [EV/FCF] EV/FCF 11.30 17.25
EV to Market Cap EV to Market Cap 0.98 1.58
EV to Revenue EV/Rev 2.20 3.42
Price to Book Value [P/B] P/B 2.19 -0.33
Price to Earnings [P/E] P/E 14.42 11.70
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.52 1.64
Dividend Payout Ratio % Div Payout % (Qtr) 28.20 12.18
Dividend per Basic Share Div per Share (Qtr) 0.48 0.41
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 22.21 13.70
Interest Coverage Interest Coverage 0.00 -110.44
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 14.13 -13.49
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -0.58 27.17
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 1.96
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -12.50 5.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -8.34 -8.06
EBIT Growth (1y) % EBIT 1y % (Qtr) -12.23 -22.36
EBT Growth (1y) % EBT 1y % (Qtr) -12.23 -123.98
EPS Growth (1y) % EPS 1y % (Qtr) -10.05 -110.42
FCF Growth (1y) % FCF 1y % (Qtr) 36.15 24.26
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2.53 16.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.83 0.92
Cash Payout Ratio Cash Payout (Qtr) 0.14 -0.25
Cash Ratio Cash Ratio (Qtr) 0.45 0.69
Current Ratio Curr Ratio (Qtr) 2.96 2.88
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.22
Interest Cover Ratio Interest Cover Ratio 0.00 -110.44
Times Interest Earned Times Interest Earned 0.00 -110.44
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 22.60 -952.44
EBIT Margin % EBIT Margin % (Qtr) 18.42 -997.37
EBT Margin % EBT Margin % (Qtr) 18.42 -987.56
Gross Margin % Gross Margin % (Qtr) 33.70 -122.43
Net Profit Margin % Net Margin % (Qtr) 15.60 -979.78