Gentex Corp

GNTX: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$34.00	Xwrjsf	Dxmkjvfk

Gentex Earnings: Optimism on Supply Chain Problems a Good Sign as Volume Matters Most of All

David Whiston

Apr 28, 2023

Gentex’s first-quarter results indicate the firm’s targeted gross margin recovery to 35%-36% by the end of 2024 is on track, and we are leaving our fair value estimate in place. Diluted EPS of $0.42 increased 13.5% year over year and beat the $0.37 Refinitiv consensus. We like management deploying the firm’s cash hoard to repurchase 1 million shares of stock at an average of $27.19 per share, which is below our fair value estimate. Gentex has not increased its dividend since March 2020 but does not plan to consider an increase until net income returns to prepandemic levels ($424.7 million in 2019).

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