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Home
Stocks
Gentex Corporation
EL7 Factor Analysis
How we score this
Overall92
Excellent — top fifth of the marketContrarianF 6/9SafeBetter than 92% of Market stocks, per EL7's model
FactorScoreDistributionValueAvgRank
▸
Valuation
86
12.1x▲17.8xTop tier
▸
Growth
62
10.1%▲7.1%Around median
▸
Quality
77
17.1%▲4.5%Top tier
▸
Safety
94
—2.6xTop tier
▸
Capital Return
52
2.11%2.12%Around median
▸
Momentum
42
-15.4%▼2.9%Around median
▸
Sentiment
72
5▲3Top tier
GNTX

GNTX Gentex Corporation

Gentex Corporation · NASDAQ
Market Closed
22.79
▲ ⁦+0.48%⁩ (+0.11)
Market Cap$4.8B
Beta0.80
52w Low52w High
20.4829.38
Last Week
⁦+2.98%⁩
Last Month
⁦-4.44%⁩
Last 3 Months
⁦-8.25%⁩
Last Year
⁦-20.62%⁩
Fair Value
Low confidenceCurrent price$23
Analyst target · 2 analysts
$26
⁦+14%⁩
See it undervalued
Range ⁦$26–$26⁩
vs
DCF (estimate)
$42
⁦+85%⁩
Sees it clearly undervalued
⁦7.9⁩% discount · ⁦1⁩% growth
Bottom lineThe two methods broadly agree — estimate range ⁦$26–$42⁩.

Estimates — analyst targets and a simplified DCF, not investment advice.

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Analyst Consensus

This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.

Price Target· 2 analysts setting price target
$26.00
⁦+14.1%⁩
Current Price $22.79·Median $26.00
Low
$26.00
High
$26.00
Street summary

Cautious stability in Gentex stock valuations

Data shows complete stability in price targets for Gentex (GNTX) stock at $26 over the past thirty days, with zero dispersion among analysts as the low, high, and mean targets align at the same value. This consistency reflects a state of temporary certainty regarding the stock's fair value, despite a slight price gap compared to the current price of $24.91.

As of 2026-07-16
Revisions momentum · 30d
⁦0.0%⁩
Average rating
★ 3.33
Hold
Analyst coverage
9
Buy conviction
33%
Target dispersion
0%
Analyst ratings over time9 analysts rating
3
6
Strong BuyBuyHoldSellStrong Sell
Rating trend — last 12 months3.38 → 3.33
Recent analyst moves
  • = Reiterate2026-07-09
    UBS
    Neutral
  • = Reiterate2026-04-27
    B. Riley
    Buy
  • = Reiterate2026-04-26
    UBS
    —· $26.00
Premium content
Key Financials

Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.

StockSector medianSector averagetypical sector range
MetricValuePosition within sectorVerdict
  • P/E (TTM)
    12.06x
    4.56x36.49x
    Cheap
  • Forward P/E
    10.44x
    3.79x30.29x
    Very cheap
  • EV / EBITDA
    7.51x
    2.75x22.03x
    Very cheap
  • FCF Yield
    10.3%
    -30.9%16.2%
    Strong
  • Revenue Growth YoY
    10.1%
    -13.8%31.9%
    Above average
  • EPS Growth YoY
    7.4%
    -156.9%135.6%
    Above average
  • Gross Margin
    35.0%
    12.0%66.5%
    Near median
  • ROIC
    17.1%
    -23.8%21.5%
    Strong
  • Net Debt / EBITDA
    —
    —
  • Dividend Yield
    2.1%
    0.1%5.9%
    Moderate
  • Payout Ratio
    25.3%
    8.9%99.8%
    Low
  • Altman Z-Score
    8.76
    -2.656.14
    Exceptional
Financial Analysis
|

Stock Analysis

AI-generated
Based on 2026-07-24 data

Company Overview

Gentex Corporation manufactures electronic technologies and components for several markets, with automotive remaining the largest source of revenue. Its portfolio includes interior and exterior auto-dimming mirrors, Full Display Mirror, HomeLink, driver and cabin monitoring systems, as well as premium audio products through Klipsch and Onkyo, aviation and fire protection products, medical technologies, biometric solutions, and aftermarket accessories. In fiscal Q2 2026, non-automotive activities accounted for approximately 14% of revenue, meaning the automotive business continued to represent about 86% of sales.

In fiscal Q2 2026, revenue was $651.3 million, down 1% from $657.9 million in the comparable period and approximately $30 million below management’s expectations at the beginning of the quarter. Automotive sales were $560.1 million, down 3%, while premium audio sales increased 16% to $51.7 million, and other products increased 12% to $39.4 million. Growth in Powered Systems, Onkyo, aviation products, and biometrics therefore partially offset weaker core mirror shipments in Europe and China.

Gross profit was $241.0 million in fiscal Q2 2026, and gross margin was 37% versus 34.2% in the comparable period, supported by $18 million in IEEPA tariff reimbursements and product mix. Net income increased 19% to $114.7 million, and diluted earnings per share increased 26% to $0.54, while free cash flow reached $161.7 million, an increase of approximately 20%. On a trailing twelve-month basis in 2026, the company recorded revenue of $2.6 billion, gross profit of $919.3 million, and net income of $407.1 million.

What's Driving the Stock

  • The new-product momentum is based on Full Display Mirror and driver and cabin monitoring systems; in fiscal Q2 2026, Gentex began shipping for the Jeep Recon, Infiniti QX65, McLaren W1, Toyota Century SUV, Subaru Trailseeker, and Uncharted platforms, and also began supplying monitoring systems for the BMW iX3 and Kia EV2.
  • Management expects Full Display Mirror shipments during fiscal 2026 to increase by between 200 thousand and 400 thousand units over the previous year, while the contribution from driver and cabin monitoring systems is expected to accelerate during the second half of fiscal 2026. Management estimated fiscal 2026 revenue from these systems at approximately $50–60 million, with acceleration beginning in the second half.
  • The company maintained its fiscal 2026 revenue range at $2.65–2.75 billion, raised gross margin guidance to 34.5%–35.5%, and lowered the operating expense budget to $405–415 million. It also maintained its fiscal 2027 revenue forecast at $2.8–2.9 billion, driven by a mix of Full Display Mirror, monitoring systems, audio products, and dimmable technologies.
  • Diversification outside automotive is becoming increasingly important; premium audio revenue increased 16% to $51.7 million in fiscal Q2 2026, supported by Powered Systems and Onkyo, while other products increased 12% to $39.4 million, led by aviation, biometric solutions, and accessories.
  • Gentex is working on its first electronics contract manufacturing opportunity, and management estimated the value of the opportunity under negotiation at between $100 and $200 million, with production targeted to begin between late 2028 and early 2029. The initiative builds on the company’s existing capacity to manufacture between 40 and 50 million electronic units annually for the automotive, fire protection, aviation, and medical device markets.
  • The repurchase of 2.7 million shares for $66 million in fiscal Q2 2026, and 5.9 million shares for $137.6 million during the first half, supported earnings per share growth and capital allocation discipline. As of June 30, 2026, approximately 29.9 million shares remained available under the announced repurchase plan.

Buying & Selling Case

▲ Buying Case4 pts

  • +Gentex achieved earnings growth despite lower revenue; operating income increased 19% to $141.3 million, net income increased 19% to $114.7 million, and diluted earnings per share increased 26% to $0.54 in fiscal Q2 2026.
  • +Gross margin improved to 37% in fiscal Q2 2026, and even after excluding the $18 million impact of IEEPA reimbursements, the margin improved by approximately 50 basis points from fiscal Q1 2026, reflecting improved product mix, operational execution, and profitability of other businesses.
  • +Growth in Full Display Mirror, driver and cabin monitoring systems, and dimmable technologies provides a path to increase content per vehicle even in a weak automotive production environment. More than 75% of automotive product launches in fiscal Q2 2026 included advanced mirror and electronic module features.
  • +Cash flow from operations was $180.9 million and free cash flow was $161.7 million in fiscal Q2 2026, while capital expenditures declined to $19.2 million. Cash and cash equivalents also increased to $233.4 million as of June 30, 2026, from $145.6 million at the end of fiscal 2025.

▼ Selling Case6 pts

Valuation

The average analyst price target is $26 with a “Buy” consensus, and the highest and lowest targets also match at $26, so the available data do not provide a wide range reflecting differing analyst scenarios. This target falls within the 52-week range of $20.48–$29.38; it is approximately 11.5% below the top of the range and approximately 27% above its bottom, while the risks of the decline in China, weak automotive production, and fiscal Q2 2026 margin’s partial reliance on IEEPA reimbursements remain important factors when assessing the positive consensus.

BuyAnalyst target: $26(+14.1%)

Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.

FAQ

What is driving GNTX growth beyond traditional mirrors?

Gentex is driving growth through Full Display Mirror, driver and cabin monitoring systems, and dimmable technologies, in addition to Klipsch, Onkyo, aviation, and biometric solutions. In fiscal Q2 2026, premium audio revenue increased 16% to $51.7 million, and other products increased 12% to $39.4 million. Non-automotive activities represented approximately 14% of quarterly revenue, providing the company with a growing source of diversification, although the automotive business remains dominant.

How important is Full Display Mirror to Gentex’s results?

Full Display Mirror was one of the most prominent drivers of advanced launches in fiscal Q2 2026, with shipments beginning on the Jeep Recon, Infiniti QX65, McLaren W1, Toyota Century SUV, Subaru Trailseeker, and Uncharted. The company expects its shipments during fiscal 2026 to increase by 200 thousand to 400 thousand units over the previous year. Management is counting on adding other automakers and models during the second half of fiscal 2026 to support revenue and increase content per vehicle.

Is Gentex’s margin improvement in fiscal Q2 2026 sustainable?

Gross margin increased to 37% from 34.2% in the comparable period, but $18 million in IEEPA reimbursements reduced cost of goods sold in fiscal Q2 2026. Excluding this impact, the margin improved by approximately 50 basis points compared with fiscal Q1 2026 due to product mix, operational discipline, and improved profitability of other products. Management raised fiscal 2026 margin guidance to 34.5%–35.5%, while warning about precious metals, electronic component shortages, and other tariffs.

Earnings callEDGAR filings30-day newsInsider activity

Automated analysis for informational purposes only — not investment advice.

  • −Gentex’s dependence on automotive remains high; segment sales were $560.1 million out of total revenue of $651.3 million in fiscal Q2 2026, or approximately 86% of revenue. Performance therefore remains sensitive to vehicle production, core mirror shipments, and automakers’ program decisions.
  • −The China business is experiencing a sharp contraction, with revenue there declining 20% year over year in fiscal Q2 2026 due to tariff-related market disruptions, and management estimated fiscal 2026 China revenue at approximately $100 million versus nearly $150 million in the previous year. Management expects the decline in China to continue during fiscal 2027.
  • −Europe is under pressure from weak customer production, the loss of some Volkswagen programs, and a year-over-year decline of more than one million units in core interior mirror shipments in fiscal Q2 2026. Despite customer commitments associated with the Morocco plan, production at the plant is not targeted to begin before 2028, leaving execution and local transition as risk factors.
  • −Fiscal Q2 2026 revenue declined 1% and came in approximately $30 million below management’s expectations, while automotive revenue declined 3%. Management also assumes global light-vehicle production will decline by approximately 2% in fiscal Q3 2026 and approximately 3% for full-year fiscal 2026, with core markets remaining weak in fiscal 2027.
  • −Fiscal Q2 2026 margin benefited from $18 million in IEEPA reimbursements, and management described these reimbursements as representing the largest expected portion, limiting the likelihood that the impact will recur at the same magnitude. Margins in the second half of fiscal 2026 also face higher precious metal costs, electronic component shortages, and other import tariffs, while some new technologies may carry margins slightly below the company average.
  • −Growth in new products requires complex industrial execution and production ramp-ups with strong operating yields; the company described the BMW and Kia monitoring programs as among its most complex, while large-area dimmable technologies and dimmable visors remain in testing and scaling phases. Management explained that the speed of volume ramp-up and achievement of strong production yields are the decisive factors in offsetting losses in China and Europe.
How significant is the China problem for GNTX?

Gentex’s revenue in China declined 20% year over year in fiscal Q2 2026 under pressure from tariff-related disruptions and lower core interior mirror sales. Management estimated China revenue at approximately $100 million in fiscal 2026, compared with nearly $150 million in the previous year and $200 million in the year before that. It also assumed that the decline would continue in fiscal 2027, so targeted growth depends more heavily on Full Display Mirror, monitoring systems, audio, and other products.

What does the Morocco plant plan mean for Gentex?

Gentex signed a letter of intent, selected a site in Morocco, and obtained government support to establish the entity, with production targeted to begin in 2028. The project came in response to European customers’ demand for local manufacturing, and initial orders include core electrochromic mirrors and advanced electronic modules. Management said it has several customer commitments and that the first phase will transfer final assembly of certain products from the United States to Morocco, while core technologies will continue to be supplied from its existing facilities.

How is Gentex using its cash flows in fiscal 2026?

Cash flow from operations was $180.9 million and free cash flow was $161.7 million in fiscal Q2 2026, with free cash flow increasing by approximately 20%. The company repurchased 2.7 million shares for $66 million during the quarter, and total first-half repurchases reached 5.9 million shares for $137.6 million. As of June 30, 2026, it had $233.4 million in cash and cash equivalents, in addition to remaining authorization to repurchase approximately 29.9 million shares. Management also lowered its fiscal 2026 capital expenditure estimate to $115–125 million.