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 81 industry peers in the Automobile Components industry. Both the health and profitability get an excellent rating, making GNTX a very profitable company, without any liquidiy or solvency issues. GNTX has a decent growth rate and is not valued too expensively. With these ratings, GNTX could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
GNTX had positive earnings in the past year.
GNTX had a positive operating cash flow in the past year.
Each year in the past 5 years GNTX has been profitable.
Each year in the past 5 years GNTX had a positive operating cash flow.
1.2 Ratios
GNTX has a Return On Assets of 18.31%. This is amongst the best in the industry. GNTX outperforms 100.00% of its industry peers.
GNTX has a Return On Equity of 20.48%. This is amongst the best in the industry. GNTX outperforms 97.53% of its industry peers.
GNTX has a Return On Invested Capital of 20.32%. This is amongst the best in the industry. GNTX outperforms 98.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GNTX is significantly above the industry average of 8.98%.
The 3 year average ROIC (16.39%) for GNTX is below the current ROIC(20.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.31% | ||
| ROE | 20.48% | ||
| ROIC | 20.32% |
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
Looking at the Profit Margin, with a value of 17.41%, GNTX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of GNTX has declined.
The Operating Margin of GNTX (20.59%) 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 (33.52%) is better than 91.36% of its industry peers.
In the last couple of years the Gross Margin of GNTX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.59% | ||
| PM (TTM) | 17.41% | ||
| GM | 33.52% |
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
The number of shares outstanding for GNTX has been reduced compared to 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 12.92. This indicates that GNTX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GNTX (12.92) is better than 98.77% 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 | 12.92 |
ROIC/WACC2.24
WACC9.09%
2.3 Liquidity
A Current Ratio of 4.11 indicates that GNTX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.11, GNTX belongs to the top of the industry, outperforming 93.83% of the companies in the same industry.
A Quick Ratio of 2.38 indicates that GNTX has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.38, GNTX belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.11 | ||
| Quick Ratio | 2.38 |
3. Growth
3.1 Past
The earnings per share for GNTX have decreased by -6.88% in the last year.
Measured over the past 5 years, GNTX shows a small growth in Earnings Per Share. The EPS has been growing by 1.76% on average per year.
The Revenue has been growing slightly by 0.61% in the past year.
The Revenue has been growing slightly by 4.47% on average over the past years.
EPS 1Y (TTM)-6.88%
EPS 3Y6.5%
EPS 5Y1.76%
EPS Q2Q%-8.51%
Revenue 1Y (TTM)0.61%
Revenue growth 3Y10.14%
Revenue growth 5Y4.47%
Sales Q2Q%-2.28%
3.2 Future
The Earnings Per Share is expected to grow by 15.33% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.16% on average over the next years. This is quite good.
EPS Next Y3.39%
EPS Next 2Y8.66%
EPS Next 3Y9.2%
EPS Next 5Y15.33%
Revenue Next Year6.28%
Revenue Next 2Y6.76%
Revenue Next 3Y7.23%
Revenue Next 5Y8.16%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.26, which indicates a correct valuation of GNTX.
Compared to the rest of the industry, the Price/Earnings ratio of GNTX is on the same level as its industry peers.
When comparing the Price/Earnings ratio of GNTX to the average of the S&P500 Index (28.22), we can say GNTX is valued rather cheaply.
The Price/Forward Earnings ratio is 10.15, which indicates a very decent valuation of GNTX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GNTX is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.86. GNTX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 10.15 |
4.2 Price Multiples
GNTX's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as GNTX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.12 | ||
| EV/EBITDA | 6.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of GNTX may justify a higher PE ratio.
PEG (NY)3.61
PEG (5Y)6.98
EPS Next 2Y8.66%
EPS Next 3Y9.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.22%, GNTX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.40, GNTX has a dividend in line with its industry peers.
GNTX's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
5.2 History
The dividend of GNTX has a limited annual growth rate of 1.12%.
GNTX has been paying a dividend for at least 10 years, so it has 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
21.85% of the earnings are spent on dividend by GNTX. This is a low number and sustainable payout ratio.
GNTX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.85%
EPS Next 2Y8.66%
EPS Next 3Y9.2%
21.57
-0.09 (-0.42%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners99.64%
Inst Owner Change-0.66%
Ins Owners0.21%
Ins Owner Change8.55%
Market Cap4.90B
Analysts74.12
Price Target28.52 (32.22%)
Short Float %3.63%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Yearly Dividend0.48
Dividend Growth(5Y)1.12%
DP21.85%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.95%
Min EPS beat(2)-12.61%
Max EPS beat(2)8.7%
EPS beat(4)1
Avg EPS beat(4)-9.16%
Min EPS beat(4)-29.75%
Max EPS beat(4)8.7%
EPS beat(8)5
Avg EPS beat(8)-0.39%
EPS beat(12)6
Avg EPS beat(12)-2.81%
EPS beat(16)7
Avg EPS beat(16)-4.88%
Revenue beat(2)1
Avg Revenue beat(2)-5.3%
Min Revenue beat(2)-11.34%
Max Revenue beat(2)0.75%
Revenue beat(4)1
Avg Revenue beat(4)-5.81%
Min Revenue beat(4)-11.34%
Max Revenue beat(4)0.75%
Revenue beat(8)4
Avg Revenue beat(8)-1.96%
Revenue beat(12)5
Avg Revenue beat(12)-1.53%
Revenue beat(16)5
Avg Revenue beat(16)-2.62%
PT rev (1m)-10.68%
PT rev (3m)-19.01%
EPS NQ rev (1m)-3.47%
EPS NQ rev (3m)-11.92%
EPS NY rev (1m)-4.2%
EPS NY rev (3m)-12.62%
Revenue NQ rev (1m)-1.36%
Revenue NQ rev (3m)-5.41%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)-1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 10.15 | ||
| P/S | 1.69 | ||
| P/FCF | 14.12 | ||
| P/OCF | 9.84 | ||
| P/B | 1.99 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | 6.7 |
EPS(TTM)1.76
EY8.16%
EPS(NY)2.13
Fwd EY9.85%
FCF(TTM)1.53
FCFY7.08%
OCF(TTM)2.19
OCFY10.17%
SpS12.78
BVpS10.86
TBVpS8.21
PEG (NY)3.61
PEG (5Y)6.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.31% | ||
| ROE | 20.48% | ||
| ROCE | 23.84% | ||
| ROIC | 20.32% | ||
| ROICexc | 22.63% | ||
| ROICexgc | 30.89% | ||
| OM | 20.59% | ||
| PM (TTM) | 17.41% | ||
| GM | 33.52% | ||
| FCFM | 11.95% |
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 Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 159.67% | ||
| Cap/Sales | 5.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.93% | ||
| Profit Quality | 68.64% | ||
| Current Ratio | 4.11 | ||
| Quick Ratio | 2.38 | ||
| Altman-Z | 12.92 |
F-Score8
WACC9.09%
ROIC/WACC2.24
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)-6.88%
EPS 3Y6.5%
EPS 5Y1.76%
EPS Q2Q%-8.51%
EPS Next Y3.39%
EPS Next 2Y8.66%
EPS Next 3Y9.2%
EPS Next 5Y15.33%
Revenue 1Y (TTM)0.61%
Revenue growth 3Y10.14%
Revenue growth 5Y4.47%
Sales Q2Q%-2.28%
Revenue Next Year6.28%
Revenue Next 2Y6.76%
Revenue Next 3Y7.23%
Revenue Next 5Y8.16%
EBIT growth 1Y20.61%
EBIT growth 3Y4.57%
EBIT growth 5Y-0.83%
EBIT Next Year19.54%
EBIT Next 3Y13.18%
EBIT Next 5Y13.61%
FCF growth 1Y-0.61%
FCF growth 3Y6.42%
FCF growth 5Y-3.67%
OCF growth 1Y-7.27%
OCF growth 3Y11.21%
OCF growth 5Y-0.31%