Gentex Corporation (GNTX) AI Stock Analysis

NASDAQ: GNTXAI research summary: business, growth, valuation, analysts, bull and bear case.

GNTX AI stock analysis summary

AI Research

Gentex Corporation is an automotive parts supplier specializing in electrochromic automatic-dimming rearview mirrors, connected car technologies, and dimmable glass. Over the trailing twelve months, the company generated $2.63B in revenue with an operating margin of 19.0% and diluted EPS of $1.89. The stock trades at a forward P/E of 10.1x and offers a 2.28% dividend yield backed by 24 consecutive years of dividend payments.

Market cap
$4.43B
Revenue (TTM)
$2.63B
P/E
11.1x
fwd 10.1x
1Y return
-18.1%
S&P 500 16.8%
Avg. target
$27.28
29.8% vs last close

Bull case

  • Gentex trades at an EV/EBITDA of 7.2x and forward P/E of 10.1x, well below the median of its US-listed Consumer Cyclical peers of 11.1x and 14.1x.
  • The company generated $458.0M in free cash flow in FY2025, enabling $315.5M in share buybacks and a 5-year share count reduction of 11.7%.
  • Consensus forecasts project FY2026 EPS to increase 15.1% to $2.08, supporting an average analyst target price of $27.28.

Bear case

  • Quarterly revenue fell 1.0% year-over-year in the period ending June 30, 2026, trailing the peer median growth rate of 4.5%.
  • Total debt stands at $3.71B against $242.8M in cash, creating net debt of $3.46B and a debt-to-equity ratio of 1.46.
  • The stock has substantially lagged the broader market, dropping 18.1% over the past year while the S&P 500 advanced 16.8%.

What Gentex does

Founded in 1974 and headquartered in Zeeland, Michigan, Gentex Corporation designs, develops, manufactures, and distributes advanced technology products globally. Its core Automotive Products segment provides electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming mirrors for passenger cars, light trucks, SUVs, and vans, serving original equipment manufacturers, suppliers, and aftermarket clients. Beyond automotive solutions, Gentex manufactures variable dimmable windows for aircraft manufacturers and commercial airlines. It also produces commercial and residential fire protection devices, including photoelectric smoke detectors, carbon monoxide alarms, and signaling alarms, alongside nanofiber chemical sensing technologies.

Growth and profitability

Between FY2021 and FY2025, Gentex increased annual revenue from $1.73B to $2.53B, supported by a 5-year revenue CAGR of 8.5% from FY2020 to FY2025. In FY2025, revenue grew 9.6% year-over-year, while gross margin reached 34.2% and operating margin settled at 19.2%. Net income for FY2025 stood at $384.8M with diluted EPS of $1.80, down slightly from $404.5M in FY2024. During the latest quarter ended June 30, 2026, quarterly revenue fell 1.0% year-over-year to contribute to trailing twelve month revenue of $2.63B. However, quarterly earnings growth surged 25.8% year-over-year, helping deliver a TTM profit margin of 15.5% and EPS of $1.89.

GNTX income statement →

Balance sheet and cash flow

As of June 30, 2026, Gentex reported $242.8M in cash and short-term investments alongside total debt of $3.71B, resulting in net debt of $3.46B and a debt-to-equity ratio of 1.46. Liquidity remains supported by a current ratio of 2.95 against total assets of $3.02B and shareholders' equity of $2.54B. In FY2025, operating cash flow reached $587.1M and free cash flow was $458.0M. The company directed capital toward $129.1M in capital expenditures, $315.5M in share buybacks, and $106.9M in dividends paid, contributing to an 11.7% share count reduction over 5 years.

GNTX balance sheet →

Valuation and performance

Gentex trades at a trailing P/E of 11.1x and a forward P/E of 10.1x, both below the median of its US-listed Consumer Cyclical peers at 18.0x and 14.1x, respectively. Its enterprise value of $4.46B reflects an EV/EBITDA multiple of 7.2x, compared to the peer median of 11.1x, while its price-to-sales ratio of 1.7x sits above the peer median of 0.7x. The company's market cap is $4.43B. Over the past year, the stock fell 18.1%, underperforming the S&P 500 (SPY) return of 16.8%, and over five years the stock declined 38.5% compared to an 83.0% gain for the index.

GNTX key metrics →

GNTX dividend

Gentex pays a forward annual dividend of $0.48 per share, representing a 2.28% dividend yield and a payout ratio of 24.5%. Distributions are paid on a quarterly schedule, with October 7, 2026 marking the last ex-dividend date. The company has maintained 24 consecutive years of dividend payments, though annualized 5-year dividend growth was modest at 0.2%.

GNTX dividend history →

What analysts expect

Wall Street coverage consists of 3 Strong Buy, 5 Hold, and 1 Strong Sell ratings across 9 analysts. The mean price target is $27.28, representing a 29.8% premium over the last close of $21.01 on October 16, 2026. For the fiscal year ending December 31, 2026, analysts estimate EPS of $2.08 on revenue of $2.67B, implying 15.1% EPS growth. Gentex has beaten EPS estimates in 3 of the last 4 quarters, with the next earnings date set for October 23, 2026.

GNTX forecast and price target →

Key risks and what to watch

  • Gentex carries $3.46B in net debt with total debt of $3.71B relative to $242.8M in cash and short-term investments.
  • Short interest represents 9.3% of the float, reflecting meaningful market skepticism despite low valuation multiples.
  • Revenue in the latest quarter ending June 30, 2026 contracted 1.0% year-over-year, pointing to potential headwinds in vehicle build rates.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this GNTX AI stock analysis

This page is an AI-written research summary of Gentex Corporation (GNTX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: GNTX income statement, GNTX balance sheet, GNTX key metrics, GNTX analyst forecast, GNTX chart. See the GNTX stock overview for the latest quote and news.

GNTX AI stock analysis FAQ

What is Gentex Corporation's dividend yield and payment history?

Gentex pays an annual dividend of $0.48 per share, yielding 2.28% with a payout ratio of 24.5%. It has paid dividends for 24 consecutive years.

When does Gentex report its next earnings?

Gentex is scheduled to release its next earnings report on October 23, 2026. The company exceeded EPS expectations in 3 of the last 4 quarters.

How much debt does Gentex have?

As of June 30, 2026, Gentex held $3.71B in total debt and $242.8M in cash and short-term investments, resulting in net debt of $3.46B.

What are analysts forecasting for Gentex stock?

Analysts maintain a mean price target of $27.28, implying a 29.8% upside from the October 16, 2026 close of $21.01. For FY2026, analysts estimate EPS of $2.08 on $2.67B in revenue.

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