Gentex’s Q3 GAAP EPS falls short, but company still expects strong growth in 2023

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Gentex Corporation Intrinsic Stock Value – Gentex Corporation ($NASDAQ:GNTX) is a leading supplier of automatic-dimming rearview mirrors and electronics to the automotive industry, and also develops and manufactures a variety of other products for the commercial building products industry. The company’s third quarter results disappointed on the bottom line, with GAAP EPS of $0.31 missing analyst expectations by $0.07. Revenue of $493.64M was also below expectations, coming in $1.18M short.

Despite the miss, Gentex is still expecting strong growth in 2023, with calendar year revenue growth of approximately 15% 20% above the new 2022 revenue guidance of $1.90B. $1.95B. This is thanks in part to continued strong demand for the company’s products, as well as new business wins and market share gains.

Earnings

Looking ahead to the full year, the company still expects strong growth in 2023, despite the challenges posed by the pandemic. In the meantime, Gentex is focused on executing its growth strategy and delivering value to its shareholders.

Price History

Gentex’s stock price was up 2.5% on Friday, after media exposure mostly focused on the company’s negative aspects.

VI Analysis – Gentex Corporation Intrinsic Stock Value

Gentex Corporation is a leading global provider of automatic-dimming car mirrors and electronics for the automotive industry. The company’s products are used in a variety of vehicles, including cars, trucks, vans, and SUVs. Gentex is headquartered in Zeeland, Michigan, and has facilities in the United States, Germany, Japan, and China. The company has a solid financial position, with strong cash flow and low debt levels. Gentex is highly profitable, with an operating margin of over 20%.

The company also has a strong competitive position in its core markets. The intrinsic value of Gentex’s shares is around $30.3, based on a discounted cash flow analysis. This is significantly higher than the current share price of $26.3, which indicates that the shares are undervalued by 13%.

VI 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 is a leading provider of digital vision, connected car, and advanced driver assistance systems. The company’s products are used in a variety of automotive applications, including rearview mirrors, door mirrors, interior auto-dimming mirrors, and electronic dimmable aircraft windows. Gentex has a long history of innovation and has been a pioneer in the development of digital vision technologies. The company’s products are based on proprietary algorithms and sensing technologies that enable it to provide superior performance in a variety of applications. Investing in Gentex Corporation may provide investors with exposure to a company that is a leader in the development of digital vision technologies. The company’s products are used in a variety of automotive applications, which may benefit from continued growth in the automotive industry.

Additionally, Gentex has a history of strong financial performance and is expected to continue to generate strong growth in the future.