Gentex Corp. (GNTX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Visteon Corp.

Autoliv, Inc.

Gentex Corp.

Donaldson Co., Inc.

Lear Corp.

Brunswick Corp.

Dana, Inc.

Allison Transmission Holdings, Inc.

Adient plc

Fox Factory Holding Corp.

Aptiv Plc

Why is Gentex Corp. ?

High Management Efficiency with a high ROE of 17.05%

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 6.65% of over the last 5 years

Flat results in Jun 25

ROCE(HY) Lowest at 16.38%
CASH AND EQV(HY) Lowest at USD 448.19 MM
DEBT-EQUITY RATIO (HY) Highest at -5.27 %

With ROE of 16.01%, it has a fair valuation with a 1.94 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -26.83%, its profits have fallen by -8.4%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -26.83% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Gentex Corp. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Gentex Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gentex Corp.

-23.21%

-1.04

32.02%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.24%

EBIT Growth (5y)

6.65%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

0.96

Tax Ratio

14.64%

Dividend Payout Ratio

27.20%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

23.50%

ROE (avg)

17.05%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.94

EV to EBIT

9.90

EV to EBITDA

8.18

EV to Capital Employed

2.08

EV to Sales

1.96

PEG Ratio

Dividend Yield

232.80%

ROCE (Latest)

20.98%

ROE (Latest)

16.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.2% (YoY

NET SALES(Q)

Highest at USD 657.86 MM

OPERATING PROFIT(Q)

Highest at USD 152.68 MM

-5What is not working for the Company

ROCE(HY)

Lowest at 16.38%

CASH AND EQV(HY)

Lowest at USD 448.19 MM

DEBT-EQUITY RATIO (HY)

Highest at -5.27 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.38 times

Here's what is working for Gentex Corp.

Net Sales

Highest at USD 657.86 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 152.68 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Raw Material Cost

Fallen by -4.2% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 27.37 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Gentex Corp.

Cash and Eqv

Lowest at USD 448.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -5.27 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 3.38 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio