GNTX - Embedded Expectations Analysis - 2019 11 22
Gentex Corporation (GNTX:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings with a 15.9x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management is concerned about their OpEx, EPS, and supplier costsSpecifically, management is confident accounts payable and current liabilities grew substantially in the quarter. Furthermore, they may lack confidence in their ability to sustain domestic exterior mirror sales growth, and they may be concerned about their elevated OpEx cost. Additionally, they may lack confidence in their ability to sustain recent EPS growth and share buybacks and in their ability to reduce their supplier costs. Moreover, they may lack confidence in their ability to sustain recent growth rates, and they may be downplaying concerns related to their weekly losses driven by the GM strike
Gentex designs and manufactures automatic-dimming rearview mirrors and electronics for the automotive industry, dimmable aircraft windows for the aviation industry, and commercial smoke alarms and signaling devices for the fire protection industry. The company's key business involves designing, developing, manufacturing and marketing interior and exterior automatic-dimming automotive rearview mirrors that use electrochromic technology to dim in proportion to the amount of headlight glare from trailing vehicle headlamps. The company also designs, develops and manufactures various electronics features to the interior and exterior automotive rearview mirrors as well as interior visors and overhead consoles.
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