GNTX - Embedded Expectations Analysis - 2020 06 10
Gentex Corporation (GNTX:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings with a 19.0x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may be concerned about their operating income, supply chain, and new product launchesSpecifically, management may have concerns about the North American production stoppage, sales-driven reductions in operating income, and the potential impact of coronavirus on their supply chain. Moreover, they may be exaggerating the favorability of their mix of auto-dimming inside mirrors and advanced features, the potential of their HomeLink and Full Display Mirror product launches, and their ability to improve their operating cost structure. Furthermore, they may be concerned about customer demand for their engineering resources, coronavirus uncertainty and its impact on Q2 gross profit, and increases in accrued liabilities and raw materials build-up
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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