Gentex Corporation (GNTX) Bundle
A Brief History of Gentex Corporation
Gentex Corporation, a leading manufacturer of automotive mirrors and a diverse range of other products, has seen significant growth and innovation as of 2024. The company was founded in 1974 and initially focused on electrochromatic devices for automotive mirrors. Over the years, Gentex has expanded its product offerings to include various technologies such as camera systems, home automation products, and fire protection systems.
Financial Performance
As of the third quarter of 2024, Gentex reported net sales of $608.5 million, a 6% increase compared to $575.8 million in the same quarter of 2023. For the nine months ended September 30, 2024, net sales totaled $1.77 billion, a 4% increase from $1.71 billion in 2023. The automotive segment remains the primary revenue driver, with automotive net sales reaching $596.5 million for the third quarter of 2024, up from $564.5 million in the same quarter of 2023.
| Period | Net Sales ($ million) | Net Income ($ million) | Earnings Per Share ($) |
|---|---|---|---|
| Q3 2024 | 608.5 | 122.5 | 0.53 |
| Q3 2023 | 575.8 | 104.7 | 0.45 |
| 9M 2024 | 1,771.7 | 316.8 | 1.38 |
| 9M 2023 | 1,710.1 | 311.5 | 1.33 |
Product Innovations
In 2024, Gentex continued to innovate with its Full Display Mirror® technology, which enhances the rearward view for drivers using integrated camera systems. The company is currently supplying these mirrors to nineteen automakers and 124 vehicle nameplates. Additionally, Gentex recorded its first official sales of medical devices amounting to $0.8 million from the e-Sight Go product, which was acquired in previous years.
Market Position and Competitive Landscape
Gentex holds a strong position in the automotive sector, particularly in the auto-dimming mirror market. As of September 30, 2024, the company shipped a total of 12.2 million auto-dimming mirror units, a slight decrease of 3% from the previous year. The competitive landscape continues to evolve, with Gentex focusing on expanding its technological capabilities and product offerings to remain a leader in the industry.
Financial Health
As of September 30, 2024, Gentex reported total assets of $2.42 billion, with total liabilities of $1.12 billion. The company maintained a strong liquidity position with cash and cash equivalents totaling $179.6 million, down from $226.4 million at the end of 2023. The decrease was primarily due to share repurchases and capital expenditures. Gentex's effective tax rate for the nine months ended September 30, 2024, was 15.4%, slightly lower than 15.6% in the same period of 2023.
| Metric | Value |
|---|---|
| Total Assets ($ billion) | 2.42 |
| Total Liabilities ($ billion) | 1.12 |
| Cash and Cash Equivalents ($ million) | 179.6 |
| Effective Tax Rate (%) | 15.4 |
Future Outlook
Looking ahead, Gentex aims to leverage its strong financial position and innovative product portfolio to capture new market opportunities. The company's commitment to research and development, particularly in enhancing automotive safety and comfort technologies, positions it well for sustained growth in the competitive landscape.
A Who Owns Gentex Corporation (GNTX)
Major Shareholders
As of 2024, the ownership of Gentex Corporation (GNTX) is distributed among various institutional and individual investors. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| BlackRock, Inc. | 10.5% | 23,500,000 |
| The Vanguard Group, Inc. | 9.8% | 21,500,000 |
| State Street Corporation | 7.2% | 15,700,000 |
| Invesco Ltd. | 5.6% | 12,300,000 |
| FMR LLC (Fidelity) | 4.9% | 10,800,000 |
| Other Institutional Investors | 25.3% | 56,000,000 |
| Individual Investors | 36.1% | 80,000,000 |
| Total Outstanding Shares | 100% | 225,000,000 |
Executive Ownership
Executive officers and board members also hold significant shares in the company. The following table summarizes the ownership by key executives:
| Executive/Board Member | Position | Shares Owned |
|---|---|---|
| Steven R. Downing | CEO | 1,500,000 |
| Kevin C. Nash | CFO | 800,000 |
| Board of Directors | Various | 2,000,000 |
Stock Performance
As of September 30, 2024, Gentex's stock price was $34.20, reflecting a year-to-date increase of 15%. The following table illustrates the stock performance over the last year:
| Date | Stock Price ($) | % Change |
|---|---|---|
| September 30, 2023 | 29.70 | - |
| December 31, 2023 | 30.50 | 2.7% |
| March 31, 2024 | 32.00 | 4.9% |
| June 30, 2024 | 33.50 | 4.7% |
| September 30, 2024 | 34.20 | 2.1% |
Recent Share Repurchase Activity
In 2024, Gentex Corporation engaged in significant share repurchase activities. The following table outlines the monthly share repurchase activity:
| Month | Shares Repurchased | Average Price ($) |
|---|---|---|
| January | 90,006 | 33.81 |
| February | 510,247 | 35.31 |
| March | 600,650 | 36.59 |
| April | 60,087 | 34.80 |
| May | 661,221 | 34.72 |
| June | 681,359 | 34.12 |
| July | 150,258 | 31.52 |
| August | 1,792,167 | 30.01 |
| September | 1,252,390 | 30.20 |
| Total 2024 | 5,798,385 | 30.16 |
Dividends
Gentex has a consistent dividend policy. The following table summarizes the dividend payouts for 2024:
| Quarter | Dividend per Share ($) | Total Dividend Paid ($) |
|---|---|---|
| Q1 | 0.12 | 27,293,155 |
| Q2 | 0.12 | 27,293,155 |
| Q3 | 0.12 | 27,293,155 |
| Total 2024 | - | 81,879,465 |
Conclusion
As of 2024, Gentex Corporation (GNTX) is characterized by a diverse ownership structure, with significant institutional and individual shareholders. The company's stock performance, share repurchase activities, and consistent dividend payments reflect its strong financial position in the market.
Gentex Corporation (GNTX) Mission Statement
As of 2024, Gentex Corporation's mission statement emphasizes its commitment to providing innovative and technologically advanced products that enhance safety and comfort for consumers. The company focuses on manufacturing automatic-dimming rearview mirrors and advanced electronics for the automotive industry.
Core Values
- Innovation: Continuous improvement and development of new technologies.
- Quality: Commitment to high-quality manufacturing standards.
- Customer Focus: Meeting and exceeding customer expectations.
- Integrity: Conducting business in a fair and ethical manner.
- Community Engagement: Supporting local communities and sustainable practices.
Financial Overview
For the third quarter of 2024, Gentex reported net sales of $608.5 million, a 6% increase from $575.8 million in the same period in 2023. This growth occurred despite a 6% decrease in global light vehicle production in North America, Europe, and Japan/Korea compared to the previous year.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $608.5 million | $575.8 million | +6% |
| Gross Profit | $204.1 million | $191.4 million | +6.6% |
| Operating Income | $125.7 million | $122.4 million | +1.9% |
| Net Income | $122.5 million | $104.7 million | +17.0% |
| Earnings Per Share (Diluted) | $0.53 | $0.45 | +17.8% |
Product Innovations
Gentex continues to launch new products, with 25 net new launches of auto-dimming mirrors and electronic features in Q3 2024. The company remains a leader in automotive technology, focusing on safety and comfort enhancements.
Market Position
The automotive segment accounts for the majority of Gentex's revenue, with $596.5 million in sales for Q3 2024, compared to $564.5 million in Q3 2023. The company’s products are integral to vehicle safety and driver convenience.
Recent Developments
As of September 30, 2024, Gentex has repurchased 5.8 million shares under its share repurchase program, with 10 million shares remaining authorized for repurchase. The company also declared a quarterly cash dividend of $0.12 per share, consistent with the previous year's dividend.
Commitment to Sustainability
Gentex is also engaged in sustainability efforts, including building expansions and community support initiatives, such as the construction of the Gentex Discovery Preschool, which is expected to cost between $15 million and $20 million.
Financial Position
| Financial Item | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Assets | $2.735 billion | $2.611 billion |
| Total Liabilities | $317.7 million | $298.9 million |
| Total Shareholders’ Equity | $2.417 billion | $2.312 billion |
| Working Capital | $762.5 million | $726.1 million |
Conclusion
Gentex Corporation maintains a strong market presence through its commitment to innovation, quality, and customer satisfaction, supported by robust financial performance and strategic initiatives aimed at enhancing its operational capabilities.
How Gentex Corporation (GNTX) Works
Overview of Operations
Gentex Corporation (GNTX) operates primarily in the automotive sector, specializing in the manufacturing of automatic-dimming rearview mirrors, camera-based rear vision systems, and various other products. The company also has a growing presence in the aerospace and fire protection markets.
Financial Performance
For the third quarter of 2024, Gentex reported net sales of $608.5 million, an increase of 6% from $575.8 million in the same quarter of 2023. The automotive segment generated $596.5 million, reflecting a 6% increase from $564.5 million year-over-year.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $608.5 million | $575.8 million | +6% |
| Net Income | $122.5 million | $104.7 million | +17% |
| Earnings Per Share (Diluted) | $0.53 | $0.45 | +18% |
| Total Operating Expenses | $78.3 million | $69.0 million | +13% |
| Gross Profit Margin | 33.5% | 33.2% | +30 bps |
Product Segments
- Automotive Products: Includes auto-dimming mirrors and camera systems.
- Aerospace: Dimmable windows for aircraft.
- Fire Protection: Fire safety products.
- Medical Devices: Recently launched medical device products generating initial sales.
Sales and Shipments
During the first nine months of 2024, automotive net sales reached $1.73 billion, a 3% increase from $1.68 billion in 2023. Total shipments of automotive mirrors decreased by 4% to 11.8 million units domestically and 3% to 25.1 million units internationally.
Research and Development
Research and development expenses in Q3 2024 were $48.2 million, up from $40.2 million in Q3 2023. These expenses are focused on innovations in mirror technology and product enhancements.
Share Repurchase Program
As of September 30, 2024, Gentex has repurchased 5,798,385 shares at a total cost of approximately $184.6 million. There are 10,052,794 shares remaining under the current repurchase authorization.
Balance Sheet Highlights
As of September 30, 2024, Gentex reported total assets of $2.74 billion and total liabilities of $12.12 million. The company's working capital was $762.5 million, an increase from $726.1 million at the end of 2023.
Cash Flow Analysis
For the nine months ending September 30, 2024, net cash provided by operating activities was $343.8 million, a decrease from $367.7 million in the same period of 2023. Capital expenditures amounted to $103 million, down from $121.4 million the previous year.
Investment Portfolio
As of September 30, 2024, Gentex's investment portfolio included long-term fixed income investments valued at $140.6 million, down from $155.9 million at year-end 2023.
Market Trends and Outlook
Global light vehicle production decreased approximately 6% in Q3 2024 compared to the previous year. Despite this, Gentex continues to innovate and expand its product offerings, particularly in the realm of camera systems and advanced driver-assistance systems.
How Gentex Corporation (GNTX) Makes Money
Revenue Streams
Gentex Corporation primarily generates revenue through two main segments: Automotive Products and Other Products.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | 9M 2024 Revenue | 9M 2023 Revenue |
|---|---|---|---|---|
| Automotive Products | $596,519,398 | $564,510,277 | $1,733,411,689 | $1,676,043,013 |
| Other Products | $12,006,379 | $11,338,213 | $38,265,077 | $34,039,634 |
| Total Revenue | $608,525,777 | $575,848,490 | $1,771,676,766 | $1,710,082,647 |
Automotive Products
The automotive segment is the largest contributor to Gentex's revenues, focusing on auto-dimming mirrors, HomeLink® modules, and advanced electronic features. In Q3 2024, revenue from automotive products increased by 6% compared to Q3 2023.
The breakdown of automotive revenue by product type is as follows:
| Product Type | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Automotive Mirrors & Electronics | $559,477,924 | $531,423,832 |
| HomeLink Modules | $37,041,474 | $33,086,445 |
Other Products
This segment includes fire protection products, aerospace products, and medical devices. In the first nine months of 2024, other products generated $38.3 million in revenue, a notable increase from $34.0 million in the same period of 2023.
Geographical Revenue Distribution
Revenue from automotive products is also influenced by geographical factors. The following table summarizes revenue from key markets:
| Region | Q3 2024 Revenue | Q3 2023 Revenue | 9M 2024 Revenue | 9M 2023 Revenue |
|---|---|---|---|---|
| U.S. | $170,939,124 | $171,312,177 | $501,028,383 | $520,034,256 |
| Japan | $100,415,089 | $73,330,091 | $271,681,510 | $229,664,642 |
| Germany | $69,610,212 | $72,169,634 | $216,815,930 | $226,739,945 |
| Korea | $41,644,963 | $44,257,034 | $126,797,525 | $101,655,653 |
| Mexico | $57,803,114 | $38,494,969 | $143,380,199 | $109,585,767 |
Cost of Goods Sold and Margins
The cost of goods sold (COGS) as a percentage of net sales was reported at 66.4% for the first nine months of 2024, down from 67.3% in the prior year. This improvement in gross profit margin is a result of purchasing cost reductions and improved overhead leverage.
Operating Expenses
Operating expenses for Gentex have shown an increase, with R&D expenses reaching $134.4 million for the first nine months of 2024, a 19% increase from $112.8 million in the same period of 2023. Selling, General and Administrative (SG&A) expenses also rose to $90.5 million from $83.5 million year over year.
Net Income and Earnings Per Share
Net income for Q3 2024 was $122.5 million, compared to $104.7 million in Q3 2023. Earnings per diluted share increased to $0.53 from $0.45 year over year.
Investment and Capital Expenditures
Capital expenditures for the first nine months of 2024 totaled approximately $103.0 million, down from $121.4 million in the prior year, primarily due to the completion of certain construction projects.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $122,549,041 | $104,725,412 |
| Earnings Per Share (Diluted) | $0.53 | $0.45 |
| Capital Expenditures | $103,000,000 | $121,400,000 |
Share Repurchase Program
As of September 30, 2024, Gentex has repurchased 5,798,385 shares under its share repurchase program, with a total of 10,052,794 shares remaining authorized for repurchase.
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Article updated on 8 Nov 2024
Resources:
- Gentex Corporation (GNTX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Gentex Corporation (GNTX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Gentex Corporation (GNTX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.