Stock Analysis · Gentex Corporation (GNTX)
Overview
Gentex Corporation designs and manufactures products used mainly in vehicles, with a long-standing focus on mirrors that automatically dim to reduce glare. Over time, the company has expanded what it can add around that “mirror” position in the car, such as integrated electronics and features that support driver convenience and safety. Gentex sells primarily to automotive manufacturers (OEMs) and typically ships its products as part of new-vehicle production.
In simple terms, Gentex’s business depends on (1) how many vehicles are produced, (2) how widely its features are adopted on those vehicles, and (3) its ability to keep improving products so automakers keep choosing Gentex for future vehicle programs.
Based on how the company reports its business in its filings, revenue is concentrated in automotive-related products, with other activities smaller by comparison. Where filings provide detail, the mix is generally described along these lines:
- Automotive (primary): Auto-dimming mirrors and related electronics/features sold to vehicle manufacturers (the dominant share of revenue).
- Other / non-automotive (smaller): Activities outside core automotive, depending on the period and how the company classifies them in its reports.
From an income “flow” perspective, Gentex has historically combined meaningful gross profit with ongoing spending on research and development to sustain product upgrades and new feature rollouts.
Over the 2021–2025 period shown, total revenue rises overall (about $1.73B in 2021 to about $2.53B in 2025). During the same time, research and development spending increases (about $118M to about $203M), highlighting continued investment in product development. Net income remains positive each year, though it does not increase in a straight line.
Key Figures
| Metric | Value | Industry ⓘ |
|---|---|---|
| Date | Feb 08, 2026 | |
| Context | ||
| Sector | Consumer Cyclical | |
| Industry | Auto Parts | |
| Market Cap ⓘ | $5.29B | |
| Beta ⓘ | 0.76 | |
| Fundamental | ||
| P/E Ratio ⓘ | 13.86 | 25.56 |
| Profit Margin ⓘ | 15.18% | 3.38% |
| Revenue Growth ⓘ | 19.00% | 4.95% |
| Debt to Equity ⓘ | N/A | 66.87% |
| PEG ⓘ | 0.86 | |
| Free Cash Flow ⓘ | $470.90M | |
Gentex’s market capitalization is about $5.29B, and its beta of ~0.76 suggests the stock has historically been less volatile than the overall market. The company’s P/E ratio is ~13.9, which is below the auto parts industry median (~25.6) in the table. Profitability stands out: profit margin is ~15.2% versus an industry median of ~3.4%. Recent year-over-year revenue growth is ~19%, higher than the industry median (~5.0%). Free cash flow over the trailing twelve months is about $471M. Debt-to-equity is not shown for the company in the table, but the longer-term chart in the Risks section shows extremely low leverage versus the industry median.
Growth (medium)
Gentex operates in the auto parts industry, which tends to grow with global vehicle production and with the amount of technology content added per vehicle. This is not a “straight-line” growth industry: demand can swing with the economic cycle, interest rates, and automaker production schedules. That said, suppliers can still grow by increasing content per vehicle (more features per car) and by winning positions on new vehicle programs.
A key part of Gentex’s long-term logic is that its products are often integrated into vehicles during design and then remain in production for multiple years. When the company wins a program, it can create relatively durable revenue streams for the life of that model cycle, assuming the automaker maintains production volumes and the features remain in the build configuration.
Revenue growth has been uneven quarter-to-quarter, including periods of contraction, followed by several quarters with positive growth. The most recent value shown is ~19% year-over-year, but the history indicates variability consistent with an industry influenced by production cycles and supply chain dynamics.
Free cash flow shows a dip in the early part of the period displayed (around $455M in 2021 down to roughly $177M in 2023) and then a recovery (around $370M in 2024 and $367M in 2025). For long-term business durability, the ability to generate cash through different industry conditions is an important characteristic, since cash supports reinvestment, resilience during downturns, and shareholder returns (subject to management decisions and board authorization).
Risks (medium)
This article is for informational purposes only and does not constitute financial advice. Some content is AI-generated. See Disclaimer
