Gentex Corporation Intrinsic Value – Gentex Corporation Downgraded After Impressive Bull Run
December 27, 2023
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Gentex Corporation ($NASDAQ:GNTX) has experienced a sudden downgrade following an impressive bull run for their stock. The company, based in Zeeland, Michigan, manufactures high-quality automatic dimming rearview mirrors and other products for the automotive, commercial truck, and aerospace industries. They are a leading manufacturer of fire protection products and personal protection equipment.
However, in the past week, the stock took a sharp turn downward, dropping more than 10% in one day. Analysts have attributed this sudden downturn to weaker than expected results from some of the company’s key markets, and have downgraded the stock’s rating from “buy” to “hold”. Gentex Corporation has since made efforts to return the stock to its former glory by announcing new product launches and strategic partnerships. Despite these initiatives, analysts remain cautious about the company’s long-term prospects. Investors will be keeping a close eye on Gentex Corporation’s performance in the coming weeks and months to determine whether the stock can make a full recovery.
Market Price
On Tuesday, GENTEX CORPORATION stock opened at $32.7 and closed at $32.8, up by 0.3% from previous closing price of 32.7. Despite the positive close, a leading financial research firm downgraded the stock from a “buy” to a “hold” rating. Despite this downgrade, investors remain optimistic about the stock and market analysts expect GENTEX CORPORATION to continue to make gains in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Gentex Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 2.2k | 396.32 | 18.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Gentex Corporation. More…
| Operations | Investing | Financing |
| 390.71 | -172.74 | -209.02 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Gentex Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.56k | 289.87 | 9.41 |
Key Ratios Snapshot
Some of the financial key ratios for Gentex Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.2% | 9.5% | 20.7% |
| FCF Margin | ROE | ROA |
| 9.6% | 13.0% | 11.2% |
Analysis – Gentex Corporation Intrinsic Value
At GoodWhale, we’ve been examining the financials of GENTEX CORPORATION. After a thorough analysis, we believe that the fair value of GENTEX CORPORATION share is around $36.5. This figure was determined using our proprietary Valuation Line. As such, we feel GENTEX CORPORATION shares are an attractive investment opportunity at this time. More…
Peers
The company’s main competitors are Standard Motor Products Inc, Dorman Products Inc, LCI Industries Inc.
– Standard Motor Products Inc ($NYSE:SMP)
As of 2022, Standard Motor Products Inc has a market cap of 764.51M and a ROE of 12.67%. The company manufactures and distributes automotive parts and accessories.
– Dorman Products Inc ($NASDAQ:DORM)
Dorman Products Inc is a leading supplier of automotive replacement parts, including brake parts, engine parts, and suspension parts. The company has a market cap of 2.73B as of 2022 and a Return on Equity of 14.77%. Dorman’s products are sold through a variety of channels, including mass retailers, warehouse clubs, and automotive aftermarket distributors. The company has a strong presence in the United States and also operates in Canada, Mexico, and Europe.
– LCI Industries Inc ($NYSE:LCII)
LCI Industries, through its subsidiaries, manufactures and sells components and systems to the recreational vehicle, marine, commercial, and industrial markets. It operates through two segments, Original Equipment Manufacturing and Aftermarket. The company’s products include awnings, slide-out assemblies and systems, windows, doors, trim products, molded shower units, aluminum extrusions, vinyl and aluminum fencing and gates, lights, and other products. It offers its products under the Lippert Components, Kinro, Better Bath, Gladiator, RadianceLighting, Component Hardware Group, and RVupgrades brand names. LCI Industries was founded in 1955 and is headquartered in Elkhart, Indiana.
Summary
Gentex Corporation (GNTX) has seen its stock price soar over the past few months, but recently dropped after a downgrade from analysts. GNTX is a leading manufacturer and distributor of automotive products, primarily making components for rearview mirrors. Despite a strong financial position and consistently growing sales, investors may now be hesitant to buy into the stock as sentiment weakens and analysts downgrade their outlook. Investors should carefully consider the risks associated with investing in GNTX and decide whether or not it is worth taking a position in the stock at this time.
