Gentex (GNTX)
NASDAQConsumer DiscretionaryAuto - PartsSnapshot 2026-09-09
$22.66-0.61%
Close 2026-09-09 · 1-day change
NASDAQConsumer DiscretionaryAuto - PartsSnapshot 2026-09-09
Intact: The reason to own it still holds.
Gentex grows revenue about 5% yearly, with Q1 revenue up 17%. Profit margins stay near 34-35%. The company keeps paying dividends steadily. Free cash flow yield is strong at 9%.
Revenue growth could slow below 5% if auto demand weakens. Margins might shrink from cost pressures. Dividend payments could be cut if cash flow weakens.
The price is about 5% below our fair value near $25. Analysts expect about 5% revenue growth. Our view aligns with these expectations.
Breaks if: dividend per share falls below $0.12
Breaks if: gross margin falls below 33.5%
Breaks if: operating income falls below $300M in FY25
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a stable management team. The current thesis state is intact, supported by recent earnings beats and a focus on technology and diversification for growth.
The market currently prices GNTX as cheap compared to its peers, with a slight expectations gap. There is a low level of fragility in the stock, indicating that the current valuation reflects a justified outlook based on recent performance.
Fundamentals are likely to show continued strength, with management making progress on gross margin expansion and disciplined expense management. However, there is a moderate risk of earnings misses given the high-miss-rate nature of the industry.
The long-term thesis hinges on management's ability to maintain revenue growth through technology and diversification, as well as external factors like inflation and sector performance. Key indicators will be earnings guidance and performance from sector bellwethers.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this improved outlook. There are no new threats impacting the thesis.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: revenue falls below $2.5B in FY26
Focus on increasing revenue growth through strategic initiatives.
Overall, GNTX appears to have a solid foundation for the next few years, but external pressures could impact its trajectory. Not investment advice.