GENTEX CORP (GNTX) Stock Fundamental Analysis
NASDAQ:GNTX - Nasdaq - US3719011096 - Common Stock - Currency: USD
GNTX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 80 industry peers in the Automobile Components industry. GNTX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GNTX has a decent growth rate and is not valued too expensively. These ratings would make GNTX suitable for quality investing!
1. Profitability
1.1 Basic Checks
GNTX had positive earnings in the past year.
In the past year GNTX had a positive cash flow from operations.
Each year in the past 5 years GNTX has been profitable.
GNTX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 17.70%, GNTX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 19.90%, GNTX belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
GNTX's Return On Invested Capital of 19.83% is amongst the best of the industry. GNTX outperforms 98.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GNTX is significantly above the industry average of 8.78%.
The last Return On Invested Capital (19.83%) for GNTX is above the 3 year average (16.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.7% | ||
| ROE | 19.9% | ||
| ROIC | 19.83% |
ROA(3y)14.7%
ROA(5y)15.27%
ROE(3y)16.54%
ROE(5y)17.08%
ROIC(3y)16.39%
ROIC(5y)16.87%
1.3 Margins
GNTX has a Profit Margin of 17.04%. This is amongst the best in the industry. GNTX outperforms 100.00% of its industry peers.
GNTX's Profit Margin has declined in the last couple of years.
The Operating Margin of GNTX (20.25%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of GNTX has declined.
The Gross Margin of GNTX (33.31%) is better than 91.25% of its industry peers.
GNTX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.25% | ||
| PM (TTM) | 17.04% | ||
| GM | 33.31% |
OM growth 3Y-5.06%
OM growth 5Y-5.07%
PM growth 3Y-5.63%
PM growth 5Y-5.25%
GM growth 3Y-2.35%
GM growth 5Y-2.08%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GNTX is creating value.
Compared to 1 year ago, GNTX has less shares outstanding
GNTX has less shares outstanding than it did 5 years ago.
GNTX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
GNTX has an Altman-Z score of 15.06. This indicates that GNTX is financially healthy and has little risk of bankruptcy at the moment.
GNTX has a better Altman-Z score (15.06) than 95.00% of its industry peers.
There is no outstanding debt for GNTX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 15.06 |
ROIC/WACC2.03
WACC9.79%
2.3 Liquidity
A Current Ratio of 4.08 indicates that GNTX has no problem at all paying its short term obligations.
GNTX's Current ratio of 4.08 is amongst the best of the industry. GNTX outperforms 92.50% of its industry peers.
A Quick Ratio of 2.55 indicates that GNTX has no problem at all paying its short term obligations.
GNTX has a better Quick ratio (2.55) than 91.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.08 | ||
| Quick Ratio | 2.55 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.35% over the past year.
The Earnings Per Share has been growing slightly by 1.76% on average over the past years.
Looking at the last year, GNTX shows a small growth in Revenue. The Revenue has grown by 0.61% in the last year.
GNTX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.47% yearly.
EPS 1Y (TTM)3.35%
EPS 3Y6.5%
EPS 5Y1.76%
EPS Q2Q%27.03%
Revenue 1Y (TTM)0.61%
Revenue growth 3Y10.14%
Revenue growth 5Y4.47%
Sales Q2Q%14.82%
3.2 Future
The Earnings Per Share is expected to grow by 14.94% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.66% on average over the next years.
EPS Next Y-8.7%
EPS Next 2Y1.77%
EPS Next 3Y3.62%
EPS Next 5Y14.94%
Revenue Next Year4.83%
Revenue Next 2Y5.33%
Revenue Next 3Y5.28%
Revenue Next 5Y7.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
GNTX is valuated correctly with a Price/Earnings ratio of 15.09.
Compared to the rest of the industry, the Price/Earnings ratio of GNTX is on the same level as its industry peers.
GNTX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.93.
GNTX is valuated correctly with a Price/Forward Earnings ratio of 14.98.
Based on the Price/Forward Earnings ratio, GNTX is valued a bit more expensive than the industry average as 61.25% of the companies are valued more cheaply.
GNTX is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.09 | ||
| Fwd PE | 14.98 |
4.2 Price Multiples
GNTX's Enterprise Value to EBITDA is on the same level as the industry average.
GNTX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.48 | ||
| EV/EBITDA | 8.73 |
4.3 Compensation for Growth
GNTX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)8.6
EPS Next 2Y1.77%
EPS Next 3Y3.62%
5. Dividend
5.1 Amount
GNTX has a Yearly Dividend Yield of 1.75%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.29, GNTX has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.32, GNTX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
The dividend of GNTX has a limited annual growth rate of 1.12%.
GNTX has paid a dividend for at least 10 years, which is a reliable track record.
GNTX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.12%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
GNTX pays out 22.32% of its income as dividend. This is a sustainable payout ratio.
GNTX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.32%
EPS Next 2Y1.77%
EPS Next 3Y3.62%
27.92
+0.5 (+1.82%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners101.05%
Inst Owner Change-0.86%
Ins Owners0.26%
Ins Owner Change14.1%
Market Cap6.28B
Analysts74.12
Price Target27.55 (-1.33%)
Short Float %3.87%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend0.48
Dividend Growth(5Y)1.12%
DP22.32%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.89%
Min EPS beat(2)-12.61%
Max EPS beat(2)-1.18%
EPS beat(4)1
Avg EPS beat(4)-8.71%
Min EPS beat(4)-29.75%
Max EPS beat(4)8.7%
EPS beat(8)4
Avg EPS beat(8)-1.89%
EPS beat(12)5
Avg EPS beat(12)-4.03%
EPS beat(16)7
Avg EPS beat(16)-4.51%
Revenue beat(2)0
Avg Revenue beat(2)-6.15%
Min Revenue beat(2)-11.34%
Max Revenue beat(2)-0.97%
Revenue beat(4)1
Avg Revenue beat(4)-5.24%
Min Revenue beat(4)-11.34%
Max Revenue beat(4)0.75%
Revenue beat(8)3
Avg Revenue beat(8)-2.32%
Revenue beat(12)4
Avg Revenue beat(12)-2.17%
Revenue beat(16)5
Avg Revenue beat(16)-2.46%
PT rev (1m)1.26%
PT rev (3m)-3.37%
EPS NQ rev (1m)5.7%
EPS NQ rev (3m)-13.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.69%
Revenue NQ rev (1m)0.83%
Revenue NQ rev (3m)-0.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.09 | ||
| Fwd PE | 14.98 | ||
| P/S | 2.17 | ||
| P/FCF | 17.48 | ||
| P/OCF | 12.14 | ||
| P/B | 2.54 | ||
| P/tB | 3.36 | ||
| EV/EBITDA | 8.73 |
EPS(TTM)1.85
EY6.63%
EPS(NY)1.86
Fwd EY6.68%
FCF(TTM)1.6
FCFY5.72%
OCF(TTM)2.3
OCFY8.23%
SpS12.86
BVpS11.01
TBVpS8.32
PEG (NY)N/A
PEG (5Y)8.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.7% | ||
| ROE | 19.9% | ||
| ROCE | 23.27% | ||
| ROIC | 19.83% | ||
| ROICexc | 22.59% | ||
| ROICexgc | 31.12% | ||
| OM | 20.25% | ||
| PM (TTM) | 17.04% | ||
| GM | 33.31% | ||
| FCFM | 12.42% |
ROA(3y)14.7%
ROA(5y)15.27%
ROE(3y)16.54%
ROE(5y)17.08%
ROIC(3y)16.39%
ROIC(5y)16.87%
ROICexc(3y)18.34%
ROICexc(5y)19.59%
ROICexgc(3y)26.09%
ROICexgc(5y)29.13%
ROCE(3y)19.23%
ROCE(5y)19.78%
ROICexcg growth 3Y-8.78%
ROICexcg growth 5Y-10.64%
ROICexc growth 3Y-5.13%
ROICexc growth 5Y-7.85%
OM growth 3Y-5.06%
OM growth 5Y-5.07%
PM growth 3Y-5.63%
PM growth 5Y-5.25%
GM growth 3Y-2.35%
GM growth 5Y-2.08%
F-Score8
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 163.98% | ||
| Cap/Sales | 5.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.82% | ||
| Profit Quality | 72.9% | ||
| Current Ratio | 4.08 | ||
| Quick Ratio | 2.55 | ||
| Altman-Z | 15.06 |
F-Score8
WACC9.79%
ROIC/WACC2.03
Cap/Depr(3y)172.18%
Cap/Depr(5y)129%
Cap/Sales(3y)7.51%
Cap/Sales(5y)6.03%
Profit Quality(3y)76.56%
Profit Quality(5y)85.99%
High Growth Momentum
Growth
EPS 1Y (TTM)3.35%
EPS 3Y6.5%
EPS 5Y1.76%
EPS Q2Q%27.03%
EPS Next Y-8.7%
EPS Next 2Y1.77%
EPS Next 3Y3.62%
EPS Next 5Y14.94%
Revenue 1Y (TTM)0.61%
Revenue growth 3Y10.14%
Revenue growth 5Y4.47%
Sales Q2Q%14.82%
Revenue Next Year4.83%
Revenue Next 2Y5.33%
Revenue Next 3Y5.28%
Revenue Next 5Y7.66%
EBIT growth 1Y14.37%
EBIT growth 3Y4.57%
EBIT growth 5Y-0.83%
EBIT Next Year4.82%
EBIT Next 3Y7.65%
EBIT Next 5Y12.95%
FCF growth 1Y108.11%
FCF growth 3Y6.42%
FCF growth 5Y-3.67%
OCF growth 1Y50.64%
OCF growth 3Y11.21%
OCF growth 5Y-0.31%