Quality Investor

Gentex Corporation

Rank #226Capital ReturnWatchlistCompare with other stocks

GNTX · Nasdaq · Consumer Cyclical

Gentex Corporation (GNTX) — Rank #226 by gross profitability (GP/assets 0.29) · ROE 15.4% · Piotroski F-Score N/A.

As-of 2026-10-30 · CIK 0000355811 · all metrics point-in-time as of the filing date.

About

Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, fire protection technologies, audio products, medical devices, and consumer electronics.

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It operates through Automotive Products, Audio Products, and Other segments. The company offers automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming rearview mirrors for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, automotive suppliers, and various aftermarket and accessory customers; and HomeLink modules for the automotive industry. It also provides variable dimmable windows to aircraft manufacturers and airline operators. In addition, the company offers photoelectric smoke detectors and alarms, visual signaling alarms, photoelectric smoke alarms, electrochemical carbon monoxide alarms and detectors, audible and visual signaling appliances, and bells and speakers used in fire detection systems in office buildings, hotels, and other commercial and residential buildings. It sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. Further, the company is involved in the research and development of nanofiber chemical sensing products; and market and sale of eSight smart glasses to consumers with visual impairment or eye conditions, as well as of identity authentication and access control products that utilizes biometrics technology. It operates in the United States, China, Germany, Japan, Mexico, South Korea, and internationally.

Gentex Corporation was incorporated in 1974 and is headquartered in Zeeland, Michigan.

Industry
Auto Parts
Sector
Consumer Cyclical
State
MI
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
gentex.com

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

6,398

Industry

Auto Parts

Exchange

Nasdaq

10/12

Flags passed

GNTX fails 2 critical flags

Passes 10 of 12 quality flags

  • FAIL
    Operating margin declining

    Operating margin lower than prior year

  • FAIL
    Balance sheet deteriorating

    Net cash collapsed with receivables or inventory outpacing revenue

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.29
Return on equity
15.4%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.18
Current ratio
3.04×
Net cash
$477.59M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.4%

Growth

2/2 pass
Revenue growth
9.6%
Piotroski F-Score
N/A
Share dilution
-3.6%

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Does it make money well?

Warning: Operating margin declining · GP/assets 0.29

Gross profitability (GP / assets)

0.29

Primary signal (Novy-Marx).

2nd of 11 SIC 3714 peers

Return on equity

15.4%

Gross margin

34.2%

2nd of 11 SIC 3714 peers

Revenue growth (YoY)

9.6%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

9.7%

Revenue CAGR (5Y)

8.5%

Earnings CAGR (3Y)

6.5%

FCF CAGR (3Y)

33.7%

Cash Flow Health

Is the cash real?

No warning flags · FCF 19% above net income

Free cash flow

$458.04M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

19.0%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.4%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

Warning: Balance sheet deteriorating · net cash $477.59M

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.18

1st of 10 SIC 3714 peers (best = lowest)

Current ratio

3.04×

2nd of 11 SIC 3714 peers

Quick ratio

1.55×

Net cash

$477.59M

Cash & equivalents minus total debt.

Piotroski F-Score

N/A

Only 8/9 components determinable.

Valuation

Is the price reasonable?

No warning flags

Dividend safety

Composite score

3.0 / 5

Good
Payout ratio
27.8%5/5 Strong
FCF coverage
4.29×5/5 Strong
Dividend growth streak
0 yr0/5 Weak
Balance-sheet health
D/E 0.18 · IC N/A2/5 Fair

Capital allocation quality

Composite score

1.7 / 5

Weak
Share count trend(net buybacks)
-3.6%4/5 Strong
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr0/5 Weak
Net debt trajectory
-6.0%1/5 Weak

Lifecycle Phase History

20202025
Decline
Value
Capital Return

Price History

GNTX-22.6% · -5.0% CAGRSPY+82.9% · +12.8% CAGR