Quality Investor

Gentex Corporation

Rank #234Capital Return

GNTX · Nasdaq · Consumer Cyclical

Gentex Corporation (GNTX) — Rank #234 by gross profitability (GP/assets 0.29) · ROE 15.4% · Piotroski F-Score N/A.

As-of 2026-09-15 · 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

Price History

GNTX-20.3% · -4.4% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

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

Market Cap

$4.76B

P/E (annual)

12.9

P/S (annual)

1.9

P/B

1.9

P/OCF (annual)

8.1

Shareholder Yield

5.9%

Employees

6,398

Industry

Auto Parts

Exchange

Nasdaq

Signal Flags

2 green2 red
Revenue growth acceleratingGrowth rate increasing year over year
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Operating margin decliningOperating margin lower than prior year
Balance sheet deterioratingNet cash collapsed with receivables or inventory outpacing revenue

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%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

-1.0%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -3.6% — per-share value needs a total required return of -4.6% once share-count change is priced in.

vs. own 6-year median revenue growth: 6.0%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-4.8%

r = 10% (base)

-1.0%

r = 12%

2.3%

Net debt / market cap: -9.8%

Base FCF: $458M3Y mean FCF: $388.4M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

13.7xCheap
13.7xmed 19.4x25.3x

P / S

Price / revenue per share

2.0xCheap
2.0xmed 3.8x5.1x

P / B

Price / book value per share

2.1xCheap
2.1xmed 3.6x4.4x

P / GP

Price / gross profit per share

6.0xCheap
6.0xmed 10.8x14.4x

P / FCF

Price / free cash flow per share

11.3xCheap
11.3xmed 20.3x34.1x

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

Profitability

Gross profitability (GP / assets)

0.29

Primary signal (Novy-Marx).

2nd of 12 SIC 3714 peers

Return on equity

15.4%

Gross margin

34.2%

3rd of 12 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%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.18

1st of 11 SIC 3714 peers (best = lowest)

Current ratio

3.04×

3rd of 12 SIC 3714 peers

Quick ratio

1.55×

Net cash

$477.59M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$458.04M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.19

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.4%

Stock-based comp intensity.

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

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20202025
Decline
Value
Capital Return