Stock Analysis · Gentex Corporation (GNTX)
Overview
Gentex Corporation designs and manufactures electronic products best known for auto-dimming rearview mirrors and related driver-assistance features used in vehicles. The company has built its business around products that improve visibility, safety, convenience, and increasingly the in-cabin digital experience. Its customer base is primarily global automakers, and its products are installed mainly in light vehicles produced in North America, Europe, Asia, and other international markets.
Gentex generates most of its revenue from automotive products, with much smaller contributions from dimmable aircraft windows and fire protection technologies. Based on the company’s recent annual reporting, the revenue mix is approximately:
- Automotive products: about 97% of revenue. This includes auto-dimming interior and exterior mirrors, camera-based and display-integrated mirrors, HomeLink vehicle-to-home connectivity, lighting and electronic features, and other connected or sensing technologies sold to vehicle manufacturers.
- Aerospace products: about 2% of revenue. This business mainly includes electronically dimmable aircraft windows supplied to the commercial aviation market.
- Fire protection and other: about 1% of revenue. This includes smoke alarms and signaling devices, along with a small amount of other activity.
That concentration makes Gentex easy to understand: it is fundamentally an automotive supplier with a niche specialization in high-value mirrors, vision systems, and electronics. Over the last several years, sales have grown from roughly $1.7 billion in 2021 to about $2.5 billion in 2025, while research and development spending has also increased, showing that management is still investing to keep its products relevant as vehicles add more technology.
The overall cost structure also stands out. Gross profit has remained substantial even as the company increased spending on research, development, and selling expenses, which suggests Gentex still has room to fund innovation while preserving solid profitability.
Key Figures
| Metric | Value | Sector ⓘ |
|---|---|---|
| Date | Oct 31, 2026 | |
| Context | ||
| Sector | Consumer Cyclical | |
| Industry | Auto Parts | |
| Market Cap ⓘ | $4.40B | |
| Beta ⓘ | 0.85 | |
Value (Cheapness) | ||
| P/E Ratio ⓘ | 10.92 | 17.02 |
| P/B Ratio ⓘ | 1.71 | 1.61 |
| FCF Yield ⓘ | 11.30% | 8.71% |
| Dividend Yield ⓘ | 2.32% | 2.66% |
| EBIT / EV ⓘ | 11.03% | 6.51% |
| PEG ⓘ | 0.61 | |
Growth (Business expansion) | ||
| Revenue Growth ⓘ | -1.10% | 5.50% |
| RPS Growth (5Y CAGR) ⓘ | 12.29% | 9.01% |
| EPS Growth (5Y CAGR) ⓘ | 3.19% | -16.46% |
| BVPS Growth (5Y CAGR) ⓘ | 8.63% | 5.64% |
| Margin Growth (5Y Trend) ⓘ | -5.86% | -0.17% |
| FCF Growth (5Y CAGR) ⓘ | 11.79% | 5.33% |
| DPS Growth (5Y CAGR) ⓘ | 0.17% | 10.21% |
Quality (Business durability) | ||
| ROIC (Latest) ⓘ | 16.37% | 12.02% |
| ROA (Latest) ⓘ | 13.52% | 5.51% |
| ROIC (5Y Median) ⓘ | 16.92% | 10.72% |
| ROA (5Y Median) ⓘ | 14.87% | 5.44% |
| Net Debt / EBIT (Latest) ⓘ | 7.06 | 2.17 |
| Net Debt / EBIT (5Y Median) ⓘ | -0.49 | 2.30 |
| Net Debt / EBITDA (Latest) ⓘ | -0.25 | 1.49 |
| Net Debt / Assets ⓘ | -4.64% | 21.53% |
| EBITDA / Interest ⓘ | N/A | 9.26 |
| Operating Margin (Latest) ⓘ | 18.72% | 9.01% |
| Operating Margin (5Y Median) ⓘ | 20.41% | 9.56% |
| Debt to Equity (Latest) ⓘ | 146.05% | 75.88% |
| Profit Margin (Latest) ⓘ | 15.15% | 5.30% |
| Free Cash Flow (Latest) ⓘ | $496.65M | |
Momentum (Price trend) | ||
| 3Y Return ⓘ | -24.02% | +22.25% |
| 12M Return (excl. last month) ⓘ | -20.28% | -4.14% |
| 6M Return ⓘ | -14.40% | -0.38% |
| Price vs. 200-Day MA ⓘ | -11.82% | -1.19% |
Gentex is a mid-sized auto parts company with relatively low share-price volatility, as reflected by a beta below 1. In the factor summary, the clearest strengths are profitability and cash generation. Returns on capital and assets are above the sector median, operating margins remain well above most peers, and free cash flow yield also screens favorably. The weaker areas are recent price momentum and near-term growth, as revenue growth has recently softened and the stock has lagged much of the broader sector.
Growth
Gentex operates in a part of the auto industry that is still supported by long-term structural trends. Vehicles continue to add more safety content, more electronic features, more cameras, more displays, and more connectivity. Even when total vehicle production grows slowly, suppliers can still expand if the dollar content per vehicle rises. That is the main logic behind the company’s strategy.
Gentex’s growth case is therefore less about selling more basic mirrors and more about increasing the value of each vehicle program it serves. Features such as Full Display Mirror, integrated camera and sensing systems, digital vision products, HomeLink connectivity, and other electronic modules are designed to raise content per vehicle. This matters because global auto production can be cyclical, but higher feature penetration can still support expansion over time.
Recent revenue growth has not followed a straight line. After a strong rebound through 2022, 2023, and parts of 2025, the latest year-over-year readings moved slightly negative again. That suggests Gentex is still exposed to automaker production schedules, model launches, and broader vehicle demand. Still, the longer view is more constructive: five-year revenue-per-share growth has outpaced the sector median, showing that the company has created value over a full cycle even if recent quarters have been mixed.
Cash generation adds an important layer to the growth picture. Free cash flow has improved materially from the lower levels seen earlier in the period and is now running near the upper end of its recent range. For a company like Gentex, this is meaningful because it provides flexibility to keep funding product development, manufacturing upgrades, dividends, and share repurchases without relying heavily on external financing.
As for catalysts, a few stand out. Gentex continues to target more advanced mirror and digital vision systems, and wider adoption of those features could lift average revenue per vehicle. The aerospace segment is smaller, but recovery in aircraft production and cabin upgrade activity can still provide an incremental boost. The company has also continued to introduce new vehicle-integrated electronics and smart access features, which broadens its opportunity beyond traditional mirrors and helps defend relevance as car interiors become more digital.
Risks
This article is for informational purposes only and does not constitute financial advice. Some content is AI-generated. See Disclaimer
