Gentex Story

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GNTX -- USA Stock  

USD 33.02  0.74  2.29%

Gentex Quick Ratio is fairly stable at the moment as compared to the past year. Gentex reported Quick Ratio of 3.91 in 2019. Net Current Assets as percentage of Total Assets is likely to rise to 43.22 in 2020, whereas Net Income Per Employee is likely to drop slightly above 64.3 K in 2020. Gentex is scheduled to announce its earnings today. The next earnings report is expected on the 29th of January 2021. As some conservatives are trying to avoid consumer cyclical space, we'll break down Gentex a little further and explain its current market possibilities. We will evaluate why we are still confident in anticipation of a recovery. Gentex current chance of distress is under 1 percent. Will investors continue to be optimistic, or should we expect a sell-off?
Published over a month ago
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Check the odds of Gentex (NASDAQ:GNTX) to slide in November
Gentex has performance score of 7 on a scale of 0 to 100. The company retains a Market Volatility (i.e. Beta) of 0.3007, which attests to possible diversification benefits within a given portfolio. Let's try to break down what Gentex's beta means in this case. As returns on the market increase, Gentex returns are expected to increase less than the market. However, during the bear market, the loss on holding Gentex will be expected to be smaller as well. Although it is extremely important to respect Gentex current price history, it is better to be realistic regarding the information on equity current price movements. The philosophy towards determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By evaluating Gentex technical indicators, you can presently evaluate if the expected return of 0.15% will be sustainable into the future. Gentex right now retains a risk of 1.44%. Please check out Gentex maximum drawdown, as well as the relationship between the skewness and day typical price to decide if Gentex will be following its current trending patterns.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Gentex income statement, its balance sheet, and the statement of cash flows. Potential Gentex investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Gentex investors may use each financial statement separately, they are all related. The changes in Gentex's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Gentex's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of Gentex fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Gentex performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Gentex shares is the value that is considered the true value of the share. If the intrinsic value Gentex is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Gentex. Please read more on our fundamental analysis page.

Are Gentex Earnings Expected to grow?

The future earnings power of Gentex involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Gentex factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Gentex stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Gentex expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Gentex earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Gentex dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Gentex one year expected dividend income is about $0.27 per share.
Dividend Yield is likely to rise to 0.0167 in 2020, whereas Payment of Dividends and Other Cash Distributions is likely to drop (125.5 M) in 2020.
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-116.3 M-125.5 M
Dividend Yield 0.016  0.0167 
Dividends per Basic Common Share 0.46  0.42 
Investing in dividend-paying stocks, such as Gentex is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Gentex must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Gentex. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How Gentex utilizes its cash?

To perform a cash flow analysis of Gentex, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Gentex is receiving and how much cash it distributes out in a given period. The Gentex cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Gentex Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Gentex reported Net Cash Flow from Operations of 505.97 Million in 2019

Gentex Gross Profit

Gentex Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Gentex previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Gentex Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Exercise or conversion by Neil Boehm of 4968 shares of Gentex subject to Rule 16b-3

Legal trades by Gentex insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Gentex insider trading alert for exercise of employee stock option (right to buy) by Neil Boehm, Chief Technology Officer, on 20th of November 2020. This event was filed by Gentex Corp with SEC on 2020-11-20. Statement of changes in beneficial ownership - SEC Form 4. Neil Boehm currently serves as cto, vice president - engineering of Gentex [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Gentex Investor Appetite?

There are few distinct groups of Gentex stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of Gentex is distributed among investors.

Ownership Allocation

Gentex secures a total of 245.78 Million outstanding shares. The majority of Gentex outstanding shares are owned by outside corporations. These institutional investors are usually referred to as non-private investors looking to purchase positions in Gentex to benefit from reduced commissions. Consequently, third-party entities are subject to a different set of regulations than regular investors in Gentex. Please pay attention to any change in the institutional holdings of Gentex as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Retail Investors
Retail Investors13.71
 2019 2020 (projected)
Long Term Debt to Equity0.110.15
Interest Coverage63.8354.78

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Gentex has an asset utilization ratio of 174.5 percent. This suggests that the company is making $1.74 for each dollar of assets. An increasing asset utilization means that Gentex is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
986.5 M
Assets Non Current
1.2 B
544 M
Current Assets986.53 Million36.65
Assets Non Current1.16 Billion43.14
Goodwill544 Million20.21

Over 3 percent rise for Gentex. What does it mean for investors?

Current Total Risk Alpha is up to -0.02. Price may slide again. Gentex has relatively low volatility with skewness of -0.43 and kurtosis of 1.38. However, we advise all investors to independently investigate Gentex to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

While some firms under the auto parts industry are still a bit expensive, Gentex may offer a potential longer-term growth to investors. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to trade some or all of your Gentex holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Gentex.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Gentex. Please refer to our Terms of Use for any information regarding our disclosure principles.

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