- Price
- $21.11
- Fair value
- $42.00
- Discount
- 49.7%
- Uncertainty
- Medium
- LSEG rating
- 2.56
- Moat
- Narrow
- Next earnings
- 2026-10-23
- Next earnings is estimate
- No
- Company name
- Gentex
- Sector
- Auto parts & electronics
- About
- Gentex makes auto-dimming rearview mirrors and electronics for cars, and it is the largest supplier of these mirrors. Its newer car products include the Full Display Mirror, which shows a camera view in the mirror, driver and cabin monitoring systems, dimmable glass for visors and sunroofs, and HomeLink, which lets a driver open a garage door from the car. It sells these products to car makers around the world. Gentex also makes dimmable aircraft windows, fire protection devices, medical products and biometric products. On April 1, 2025, it bought VOXX International, which owns premium audio brands such as Klipsch, Onkyo and Integra. In Q2 2026, automotive sales were $560 million of $651 million of net sales, and non-automotive products gave about 14% of revenue. Gentex has no debt and returns cash with dividends and share buybacks.
- Thesis
- The market prices Gentex as an auto supplier whose main product no longer grows. Its base auto-dimming mirror shipments fall, global light vehicle production is weak, and tariffs and counter-tariffs cut its China revenue by about 20% from a year earlier in Q2 2026. Q2 2026 net sales fell 1% to $651 million and missed the company's own forecast from the start of the quarter. Gentex expects production in its main markets of North America, Europe and Japan and Korea to stay weak in 2027. Investors doubt that newer products can replace the lost mirror volume soon enough. For the gap to close, three things must be true. Revenue must reach the 2026 guidance of $2.65 billion to $2.75 billion and then the 2027 guidance of $2.80 billion to $2.90 billion, which the company expects with flat global vehicle production. Newer products, such as the Full Display Mirror, driver and cabin monitoring and dimmable visors and sunroofs, must add enough content per vehicle to grow revenue faster than production. Gross margin must stay in the 34.5% to 35.5% guidance range without the one-time IEEPA tariff refunds of Q2 2026. The Q3 2026 report on October 23, 2026 is the first test, and the full-year report and the first 2028 outlook in about January 2027 are the second. Because the new products ramp with car model launches, the gap can close only slowly, over the next two to three years, and a further fall in vehicle production can delay it.
- Risks
- Automotive sales are most of Gentex's revenue, and they depend on light vehicle production. Gentex expects production to fall about 3% in 2026 and to stay weak in North America, Europe and Japan and Korea in 2027. Shipments of base auto-dimming mirrors also fall, so growth must come from newer and higher-priced products.
Tariffs and counter-tariffs hurt the business in China, where revenue fell about 20% in Q2 2026 from a year earlier. Non-IEEPA tariffs still raise costs, and new tariffs can raise them again.
Gross margin in Q2 2026 included about $18 million of one-time IEEPA tariff refunds. Precious metals costs are much higher than a year earlier, and car makers push for lower prices. Margins can fall when the refunds stop.
The VOXX purchase moved Gentex into consumer audio, where sales depend on consumer spending and competition is strong. Gentex also recorded credit loss reserves and impairment charges on some loans and technology investments in Q2 2026.
- Balance sheet
- Cash: $243M
Debt: $0.0M
Net cash: $243M
Undrawn credit line: $350M, to October 2028
Gentex has no debt. At June 30, 2026, it had $233.4 million of cash and $9.4 million of short-term investments, shown as cash, and also $238.5 million of long-term investments. Its unsecured $350 million revolving credit facility with PNC runs to October 1, 2028, and nothing was drawn on it at June 30, 2026. Gentex was in compliance with all covenants. Shareholders' investment was $2.54 billion. Cash flow pays for capital spending of $115 million to $125 million in 2026, a quarterly dividend of $0.12 per share, and buybacks. In the first half of 2026, Gentex bought back 5.9 million shares for $137.6 million, and 29.9 million shares were still authorized for buybacks at June 30, 2026. The main risk to the balance sheet is a loss on its investment portfolio when interest rates or securities prices change.
As of 2026-06-30.
- Checkpoints
- Oct 23, 2026: Q3 2026 results: revenue against vehicle production. Pending. Watch: Revenue that grows faster than vehicle production and a full-year outlook kept at $2.65 billion to $2.75 billion pass; a cut to the 2026 or 2027 revenue guidance fails.
Jan 2027 (estimate): Full-year 2026 results and 2027 outlook. Pending. Watch: 2027 revenue guidance kept at $2.80 billion to $2.90 billion with gross margin near 35% without tariff refunds passes; lower revenue guidance or a gross margin below 34% fails.
Q4 2027 (estimate): New product ramp in 2027. Pending. Watch: Growth from the Full Display Mirror, driver and cabin monitoring and dimmable devices that lifts 2027 revenue above 2026 passes; flat revenue with falling mirror shipments fails.
- Recent events
- 2026-10-01: Gentex said that it will report Q3 2026 results on Friday, October 23, 2026, before the market opens, with a conference call at 9:30 a.m. ET.
2026-08-31: Gentex declared a quarterly dividend of $0.12 per share, payable on October 21, 2026, to shareholders of record on October 7, 2026.
2026-07-24: Gentex reported Q2 2026 results. Net sales were $651.3 million, down 1% from a year earlier, and about 5% below the company's forecast at the start of the quarter. Automotive revenue fell about 3%, with lower revenue in Europe, Japan and Korea, and China, where revenue fell about 20%. Premium audio revenue grew 16% to $51.7 million. Gross margin was 37.0%, helped by about $18 million of IEEPA tariff refunds. GAAP EPS was $0.54, up from $0.43.
2026-07-24: Gentex kept its 2026 revenue guidance of $2.65 billion to $2.75 billion and its 2027 revenue guidance of $2.80 billion to $2.90 billion. It raised its 2026 gross margin guidance to 34.5% to 35.5% and cut its capital spending guidance to $115 million to $125 million. It bought back 2.7 million shares for $66.0 million in the quarter.
2026-06-24: Gentex and Hörmann agreed to connect Hörmann garage door openers to HomeLink in Europe. Drivers can open compatible Hörmann garage doors from the HomeLink app or from a connected car through the HomeLink cloud.
2026-04-24: Gentex reported Q1 2026 results. Net sales were $675.4 million, up 17%, mostly because of VOXX. Core Gentex revenue grew 2% while global light vehicle production fell more than 3%. China revenue fell 29% to about $28 million. Gentex raised its 2026 revenue guidance to $2.65 billion to $2.75 billion.