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1. Company Snapshot

1.a. Company Description

Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products in the United States, Germany, Japan, Mexico, 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.


It also provides variable dimmable windows to aircraft manufacturers and airline operators.In addition, the company offers photoelectric smoke detectors and alarms, electrochemical carbon monoxide alarms and detectors, audible and visual signaling alarms, and bells and speakers used in fire detection systems in office buildings, hotels, and other commercial and residential buildings, as well as researches and develops nanofiber chemical sensing products.The company 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.


Gentex Corporation was incorporated in 1974 and is headquartered in Zeeland, Michigan.

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1.b. Last Insights on GNTX

Gentex Corporation's recent performance was negatively impacted by mixed Q3 2025 results, with revenue growth driven by the VOXX acquisition but core automotive sales declining. The company's EPS dropped from $0.53 to $0.46, and net profits fell to $101 million, missing analyst expectations. Despite short-term challenges, management raised full-year revenue and gross margin guidance, citing progress in tariff recovery and growth in advanced FDM products. A quarterly cash dividend of $0.12 per share was also declared. (Source: Gentex Corporation's Q3 2025 Earnings Call Transcript)

1.c. Company Highlights

2. Gentex's Q3 2025 Earnings: Navigating Tariff Impacts and Market Trends

Gentex reported an 8% increase in consolidated net sales to $655.2 million, driven by the inclusion of VOXX's $84.9 million in revenue. However, core Gentex revenue declined 6% to $570.3 million due to customer-specific production challenges and a weaker regional vehicle mix in Europe. The company's consolidated gross margin was 34.4%, with core Gentex gross margin increasing 140 basis points to 34.9% due to favorable customer and product mix, purchasing cost reduction, and operational efficiencies. Earnings per diluted share were $0.46, slightly below estimates of $0.47. Consolidated net income attributable to Gentex was $101 million.

Publication Date: Oct -27

📋 Highlights
  • Revenue Growth & Regional Disparities: Consolidated net sales rose 8% to $655.2M, with core Gentex declining 6% to $570.3M due to Europe’s 14% revenue drop and China’s 35% decline from tariffs.
  • Gross Margin Resilience: Core gross margin improved 140 bps to 34.9% via cost reductions and mix improvements, offsetting 90 bps of tariff-driven pressure, ending at 34.4%.
  • Share Repurchase Momentum: $230.5M spent repurchasing 9.8M shares YTD, with $39.6M remaining for buybacks as of Q3, signaling strong capital allocation focus.
  • 2025 Guidance & Tariff Mitigation: Full-year revenue guidance set at $2.5B–$2.6B, with gross margin of 33.5%–34%; 70–80% of Q2 tariff costs recovered by Q3.
  • VOXX Integration & FDM Growth: VOXX contributed $84.9M in Q3, with $40M annual free cash flow synergy target on track; FDM business to exceed 2024 by 200K–300K units in Q4.

Segment Performance

Gentex's automotive net sales were $558 million, with strong growth in advanced feature mirror sales in North America. The company continues to work through post-acquisition transition with VOXX, focusing on aligning product strategies and identifying operational synergies. European revenue declined 14% and Chinese revenue decreased 35% due to ongoing tariff impacts and a trend towards domestic suppliers.

Tariff Impacts and Cost Management

The company recovered 70-80% of Q2 tariff costs in Q3 and expects to be reimbursed for most of the remaining amount in Q4. Gentex's focus on business discipline, expense management, and operational improvements has helped improve margins despite incremental tariff headwinds. The company's gross margin is expected to be sustainable going into next year, with the current stance being that if tariffs stabilize, the company can maintain its margin profile.

Valuation and Growth Prospects

With a P/E Ratio of 13.31 and a P/S Ratio of 2.18, the market appears to be pricing in moderate growth expectations. Analysts estimate next year's revenue growth at 5.1%. Gentex is making progress on integrating VOXX, with the business being accretive to EPS and net income, and is on track to achieve its synergy targets. The company is focused on finding growth opportunities in a declining market by doubling down on new tech development.

Outlook and Challenges

Gentex updated its full-year 2025 guidance, expecting consolidated revenue to be between $2.5 billion and $2.6 billion. The company is preparing for potential headwinds in the China market and is working to overcome resistance to FDM adoption. With a Free Cash Flow Yield of 7.8%, Gentex appears to have a healthy cash generation profile, which should support its growth initiatives and shareholder returns.

3. NewsRoom

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Gentex Announces Fourth Quarter 2025 Cash Dividend

Nov -28

Source: globenewswire.com

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Gentex Corporation $GNTX Stock Position Decreased by Boston Partners

Nov -27

Source: defenseworld.net

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Gentex Corporation (NASDAQ:GNTX) Given Consensus Recommendation of “Hold” by Brokerages

Nov -27

Source: defenseworld.net

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GENTEX AND GENIE PARTNER TO BRING CLOUD-BASED GARAGE DOOR ACTIVATION TO HOMELINK

Nov -20

Source: prnewswire.com

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Can Gentex Stock Jump 50%?

Nov -13

Source: forbes.com

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Gentex Corporation Secures Third Year Option on its Advanced Combat Helmet Generation II Contract Worth $38.4 Million

Nov -12

Source: businesswire.com

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Gentex SEMA 2025: Vehicle Unveils, Aftermarket Tech, and New Product Launch with Ringbrothers

Nov -04

Source: globenewswire.com

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Gentex Corporation (GNTX) Presents at 49th Annual Automotive Symposium Transcript

Nov -03

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.96%)

6. Segments

Automotive Products

Expected Growth: 8%

Gentex Corporation's 8% growth in Automotive Products is driven by increasing demand for advanced safety features, such as automatic dimming mirrors and driver-assist systems, in new vehicles. Additionally, growing adoption of autonomous vehicles and electrification of the automotive industry are fueling growth. Furthermore, Gentex's innovative products, such as smart rearview mirrors, are gaining traction with major OEMs, contributing to the segment's growth.

Other

Expected Growth: 6%

Gentex Corporation's 6% growth in 'Other' segment is driven by increasing demand for auto-dimming mirrors, expansion in global markets, and rising adoption of advanced driver-assistance systems (ADAS). Additionally, the company's diversification into new markets, such as aerospace and fire protection, contributes to its growth momentum.

7. Detailed Products

Night Vision Goggles

Gentex Corporation's Night Vision Goggles are designed for military and law enforcement use, providing enhanced visibility in low-light environments.

Ballistic Helmets

Gentex Corporation's Ballistic Helmets offer advanced protection for military and law enforcement personnel, providing superior impact resistance and fragmentation protection.

Communication Headsets

Gentex Corporation's Communication Headsets provide clear and reliable communication for military and law enforcement personnel, even in high-noise environments.

Advanced Combat Helmets

Gentex Corporation's Advanced Combat Helmets offer enhanced protection and comfort for military personnel, with advanced materials and design.

Flight Helmets

Gentex Corporation's Flight Helmets are designed for military and civilian pilots, providing advanced protection and comfort during flight operations.

Crew Served Weapon Mounts

Gentex Corporation's Crew Served Weapon Mounts provide stable and accurate weapon mounting solutions for military vehicles and platforms.

8. Gentex Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Gentex Corporation faces moderate threat from substitutes, as there are limited alternatives to its advanced helmet systems and communication equipment. However, the company's focus on innovation and quality helps to mitigate this threat.

Bargaining Power Of Customers

Gentex Corporation's customers, primarily military and law enforcement agencies, have limited bargaining power due to the specialized nature of the company's products and its strong brand reputation.

Bargaining Power Of Suppliers

Gentex Corporation's suppliers of raw materials and components have moderate bargaining power, as the company relies on a few key suppliers for critical components. However, the company's strong relationships with suppliers help to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low for Gentex Corporation, as the company's products require significant investment in research and development, and the barriers to entry are high due to the specialized nature of the industry.

Intensity Of Rivalry

The intensity of rivalry in the industry is high, as Gentex Corporation competes with other established players in the defense and aerospace industry. However, the company's strong brand reputation and focus on innovation help to differentiate it from competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.15%
Debt Cost 3.95%
Equity Weight 99.85%
Equity Cost 8.81%
WACC 8.80%
Leverage 0.15%

11. Quality Control: Gentex Corporation passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

23.33$

Current Price

23.33$

Potential

-0.00%

Expected Cash-Flows