GNTX offers risk-averse investors a safe option with decent growth potential
Gentex Corporation (NASDAQ:GNTX) is an American company that develops advanced electronic products and features for the automotive, aerospace, and fire protection industries. GNTX develops, designs, and manufactures automatic-dimming rear-view mirrors, camera-based driver assistance systems, HomeLink Wireless Control System, and advanced technological equipment for the global automotive industry. Gentex also produce commercial smoke detectors and signaling devices for the North American fire protection market, as well as dimmable aircraft windows for the commercial, business, and general aviation markets.
Gentex is scheduled to release its second quarter of 2022 financial results tomorrow, July 22, before the market opens. The company will also host a conference call that day to discuss the results. Most recently, when reporting on the first quarter of 2022, GNTX reported an EPS (earnings per share) of 37cents and slightly outperformed expectations by a margin of 5 cents. The Street expects Gentex will report earnings of 38 cents for tomorrow’s quarterly earnings report.
Gentex stock price has decreased 9% over the past 12 months, and GNTX is currently trading down 22% since peaking at a 52-week high of $37.90 last November. Shares of GNTX have also dropped in price 17% year-to-date. However, Gentex stock has increased 6% over the past month and is up 13% since dropping to a 52-week low of $26.16 in mid-June. Moreover, GNTX trades at an intriguing forward price-earnings ratio of 16.92 and a price-sales ratio of 3.82, and also offers a dividend yield of 1.66% with a forward dividend of 48 cents.
The company provides some very well-rounded fundamentals. Although Gentex stock’s valuation metrics don’t necessarily reflect a cheap value, the business’ growth expectations for the coming years make it an attractive investment opportunity. GNTX is estimated to generate 12.5% revenue growth and 9.3% earnings growth for 2022. It is also expected to increase revenues and earnings 15.7% and 30.5%, respectively, for 2023. Furthermore, Gentex holds an ideal balance sheet with nearly no debt. The company has $286.6 million in cash and just $2.08 million in total debt, offering risk-averse investors a safe option with decent growth potential.