Gentex Corporation Common Stock (GNTX)

FairStock Score: 77/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $251 million in annual free cash flow (5.0% yield on market cap)
• Solid return on equity of 15.5% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Altman Z-Score of 8.2 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 19.0% demonstrates strong top-line momentum

AI Analysis

Gentex Corporation Common Stock is a small-cap consumer cyclical company valued at $5.0 billion. The business generates $2.5 billion in annual revenue with a 3.7% net margin and $251 million in free cash flow. From a quality standpoint, Gentex shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 8.2 confirms fortress-level solvency. On valuation, the stock is attractively valued at 13.2x earnings, with trades above its Graham Number with a negative 9% margin. Growth dynamics show revenue growing at 19.0% and profit growth of 6.0%. The 2.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 77/100 reflects strong fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

Gentex's 19% revenue growth trajectory could accelerate as it captures additional market share in the consumer cyclical sector. With $251 million in annual free cash flow (5.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer