The company's average rating is Buy from 6 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Gentex market sentiment investors' perception of the future value of Gentex. Let us look at a few aspects of Gentex technical analysis. The company has Profit Margin (PM) of
18.96 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is very large. Similarly, it shows Operating Margin (OM) of
28.5 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.28.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Gentex. In general, sophisticated investors focus on analyzing Gentex stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Gentex's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
Gentex's intrinsic value. In addition to deriving basic predictive indicators for Gentex, many experienced traders also check how macroeconomic factors affect Gentex price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Gentex's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Gentex. Your research has to be compared to or analyzed against Gentex's peers to derive any actionable benefits. When done correctly, Gentex's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Gentex.
How important is Gentex's Liquidity
Gentex
financial leverage refers to using borrowed capital as a funding source to finance Gentex ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Gentex financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Gentex's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Gentex's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Gentex's total debt and its cash.
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 Gentex's
gross profit and other
fundamental indicators for more details.
Closer look at Gentex Semi Variance
Gentex has current Semi Variance of 2.46. Semi-variance provides a good measure of downside volatility for equity or a portfolio. It is similar to variance, but it only looks at periods where the returns are less than the target or average level.
Semi-variance is the square of semi-deviation. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.
Semi Variance | = | SUM(RET DEV)2 N(ZERO) |
| = | 2.46 |
| SUM | = | Summation notation |
| RET DEV | = | Actual return deviation over selected period |
| N(ZERO) | = | Number of points with returns less than zero |
Let's now compare Gentex Semi Variance to its closest peers:
| GNTX | 2.4608134540965336 |
| GTXMQ | 4.72 |
| GT | 18.08 |
| DORM | 4.34 |
| ALV | 3.6 |
Gentex is projected to stay under $34 in March
Risk adjusted performance is down to 0.11. It may suggest a possible volatility slide. Gentex has relatively low volatility with skewness of -0.53 and kurtosis of 0.72. 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.
Our Final Takeaway
While some firms under the auto parts industry are still a bit expensive, Gentex may offer a potential longer-term growth to investors. While some investors may not share our view, we believe it may be a good time to increase your existing holdings in Gentex as the risk-reward trade off is appealing enough to hold a position. 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.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile 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 Gabriel Shpitalnik do not own shares of Gentex. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com