GNTX Stock Risk & Deep Value Analysis
Gentex Corp
Consumer Cyclical • Auto Parts
DVR Score
out of 10
What You Need to Know About GNTX Stock
We analyzed Gentex Corp using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran GNTX through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate. Here's what we found.
GNTX Risk Analysis & Red Flags
What Could Go Wrong
The cyclical nature of the automotive industry means a significant global vehicle production slowdown or unforeseen supply chain disruptions could pressure revenue and margins. While Gentex holds a strong market position, sustained headwinds in its primary market could lead to flat or declining growth, preventing any significant multiple expansion.
Risk Matrix
Overall
Moderate
Financial
Low
Market
Medium
Competitive
Medium
Execution
Medium
Regulatory
Low
Red Flags
- ⚠
Notable insider selling by CEO and CTO mentioned, though specific details are unavailable for full assessment.
- ⚠
Q4 2025 revenue slightly missed analyst estimates, indicating potential challenges in meeting market expectations despite overall growth.
Upcoming Risk Events
- 📅
Potential slowdown in global automotive production
- 📅
Supply chain disruptions or significant commodity price increases impacting margins
When to Reconsider
- 🚪
Exit if quarterly revenue growth turns negative for two consecutive quarters, excluding seasonal factors.
- 🚪
Sell if gross margins consistently fall below 30% for two or more quarters.
- 🚪
A sustained breakdown below $18.00 support level could indicate weakening fundamentals or market sentiment.
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What Does Gentex Corp (GNTX) Do?
Market Cap
$4.73B
Sector
Consumer Cyclical
Industry
Auto Parts
Employees
6,184
Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products in the United States, China, Germany, Japan, Mexico, the Republic of Korea, and internationally. It operates through Automotive Products and Other segments. The company offers automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming rearview mirrors for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, automotive suppliers, and various aftermarket and accessory customers; and HomeLink modules for the automotive industry. It also provides variable dimmable windows to aircraft manufacturers and airline operators. In addition, the company offers photoelectric smoke detectors and alarms, visual signaling alarms, photoelectric smoke alarms, electrochemical carbon monoxide alarms and detectors, audible and visual signaling appliances, and bells and speakers used in fire detection systems in office buildings, hotels, and other commercial and residential buildings. It sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. Further, the company is involved in the research and development of nanofiber chemical sensing products; and market and sale of eSight smart glasses to consumers with visual impairment or eye conditions, as well as of identity authentication and access control products that utilizes biometrics technology. Gentex Corporation was incorporated in 1974 and is headquartered in Zeeland, Michigan.
Visit Gentex Corp WebsiteInvestment Thesis
Gentex is a financially robust market leader in essential automotive components with a strong and durable narrow moat. Its consistent profitability, strong balance sheet, and dividend payments make it an attractive option for conservative investors seeking stability and long-term capital preservation, benefiting from the increasing technological content within modern vehicles, rather than seeking exponential growth.
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GNTX Price Targets & Strategy
12-Month Target
$26.00
Bull Case
$28.00
Bear Case
$20.00
Valuation Basis
Based on 13.7x forward P/E applied to an estimated FY26 EPS of $1.90, aligned with analyst targets.
Entry Strategy
Consider dollar-cost averaging near the current price of $21.69, or on dips towards the $20.00-$21.00 range, which has shown recent support.
Exit Strategy
Take profit on 25-50% of position near the $26.00-$28.00 target range; consider a stop-loss order if price drops below $19.50.
Portfolio Allocation
3-5% for conservative investors seeking stability and dividends, 1-3% for moderate investors where GNTX acts as a defensive anchor.
Price Targets & Strategy
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Is GNTX Financially Healthy?
Valuation
P/E Ratio
12.29
Forward P/E
12.28
Profitability
Gross Margin
34.29%
Operating Margin
18.14%
Net Margin
15.19%
Return on Equity
15.57%
Revenue Growth
9.55%
EPS
$1.76
Balance Sheet
Current Ratio
2.91
Quick Ratio
1.34
Debt/Equity
0.00
Cash Flow
Free Cash Flow
$424.90M
Other
Beta (Volatility)
0.78
Dividend Yield
2.19%
Does GNTX Have a Competitive Moat?
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🛡️ Narrow
Moat Trend
Stable
Moat Sources
3 Identified
The moat is highly durable due to Gentex's extensive patent portfolio in electrochromics, the high switching costs for OEMs to integrate new suppliers given safety and performance requirements, and its significant scale advantages in manufacturing, making it difficult for new entrants to compete effectively.
Moat Erosion Risks
- •Rapid shift in automotive design away from traditional mirrors towards camera-monitor systems that bypass Gentex's core strength.
- •Emergence of superior, cost-effective competing technologies (e.g., advanced LCDs or OLEDs) for interior displays/vision systems.
GNTX Competitive Moat Analysis
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GNTX Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral (GNTX is a mature, stable company and typically doesn't attract significant speculative retail interest or hype.)
Institutional Sentiment
Neutral (Freedom Capital Markets initiated Buy, but UBS lowered its target post-Q4 2025, indicating mixed views.)
Insider Activity (Form 4)
Notable insider selling by CEO and CTO has been mentioned, but without specific Form 4 details (dates, amounts, value) from the research, the impact cannot be precisely quantified beyond being a potential flag.
Options Flow
Normal options activity (No specific data on unusual options activity or put/call ratio direction was provided in the research.)
Earnings Intelligence
Next Earnings
2026-04-24
Surprise Probability
Medium
Historical Earnings Pattern
Gentex typically reacts moderately to earnings reports. Positive surprises or strong guidance may lead to modest gains, while misses or cautious outlooks can result in slight pullbacks, reflecting its stable, less volatile nature.
Key Metrics to Watch
Competitive Position
Top Competitor
Magna International (MGA)
Market Share Trend
Stable (Gentex maintains a dominant market share in its core electrochromic mirror segment and is growing its presence in advanced automotive electronics.)
Valuation vs Peers
Trading at a P/E multiple (12.5x TTM) that is generally in line with or slightly below some diversified automotive suppliers, reflecting its strong niche dominance but also the maturity of its primary markets.
Competitive Advantages
- •Proprietary electrochromic technology and extensive patent portfolio (Intangible Assets/IP)
- •Deep-rooted, long-term relationships with major global automotive OEMs (Switching Costs)
- •Efficient, vertically integrated manufacturing processes (Cost Advantages)
Market Intelligence
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What Could Drive GNTX Stock Higher?
Near-Term (0-6 months)
- •Q1 2026 Earnings release on 2026-04-24
- •Q4 2025 Dividend payment on 2026-04-22
Medium-Term (6-18 months)
- •Continued adoption of advanced driver-assistance systems (ADAS) in new vehicle models
- •Market penetration of new display technologies and smart surfaces beyond mirrors
Long-Term (18+ months)
- •Integration of electro-optical technologies into future autonomous vehicle architectures
- •Expansion of non-automotive segments (aerospace, fire protection) via new product development
Catalysts & Growth Drivers
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What's the Bull Case for GNTX?
- ✓
Acceleration in content per vehicle growth rates beyond global vehicle production figures.
- ✓
New design wins or significant announcements in non-mirror advanced electronics products (e.g., in-cabin monitoring, display technologies).
- ✓
Confirmation of sustained global automotive production growth.
Bull Case Analysis
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Competing with GNTX
See how Gentex Corp compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
Gentex Corp GNTX | $4.7B | 0.5 | 12.3 | $2.4B | 15.2% | 9.6% | |
Amazon.com Inc AMZN | $2.8T | 2.0 | 30.4 | $638.0B | 12.2% | 14.2% | Compare → |
Home Depot Inc HD | — | 0.5 | — | — | — | — | Compare → |
McDonald's Corp MCD | $221.1B | 0.1 | 26.4 | — | — | — | Compare → |
Nike Inc NKE | $65.8B | 1.0 | 29.2 | $46.3B | 4.8% | -2.7% | Compare → |
Tesla Inc TSLA | $1.5T | 4.2 | 380.1 | $94.8B | 4.0% | 2.3% | Compare → |
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How Gentex Corp Makes Money
Gentex Corp specializes in designing, developing, manufacturing, and marketing high-tech electro-optical products, primarily for the automotive industry. The company's main revenue driver is its proprietary auto-dimming mirrors and advanced camera-based vision systems, which are supplied directly to global automotive manufacturers to enhance driver safety and comfort. Beyond automotive, Gentex also applies its technology in dimmable aircraft windows for the aerospace industry and provides fire protection products, diversifying its revenue base with niche, technology-driven solutions.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Gentex Corp (GNTX)?
As of April 16, 2026, Gentex Corp has a DVR Score of 0.5 out of 10, placing it in the "Distressed" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Gentex Corp?
Gentex Corp's market capitalization is approximately $4.7B. The company operates in the Consumer Cyclical sector within the Auto Parts industry.
What ticker symbol does Gentex Corp use?
GNTX is the ticker symbol for Gentex Corp. The company trades on the NMS.
What is the risk level for GNTX stock?
Our analysis rates Gentex Corp's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of GNTX?
Gentex Corp currently has a price-to-earnings (P/E) ratio of 12.3. This is below the market average, which could indicate the stock is undervalued or facing headwinds.
Does Gentex Corp pay a dividend?
Yes, Gentex Corp pays a dividend with a current yield of approximately 2.19%.
Is Gentex Corp's revenue growing?
Gentex Corp has reported revenue growth of 9.6%. The company is growing at a moderate pace.
Is GNTX stock profitable?
Gentex Corp has a profit margin of 15.2%. The company is profitable but margins are modest.
How often is the GNTX DVR analysis updated?
Our AI-powered analysis of Gentex Corp is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on April 16, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for GNTX (Gentex Corp) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.