Strong Cash Yield: Is Gentex Stock A Buy?
Gentex (GNTX) could be an interesting pick for your portfolio, with its high cash yield, good fundamentals, and discounted valuation.
Here is what’s going well for the company. Gentex recently completed its VOXX acquisition, which contributed to an 8% consolidated sales increase in Q3 2025 and bolstered gross margins through operational synergies. Strong demand for Full Display Mirror technology continues, with projected 2025 shipments increasing by 200,000 to 300,000 units over last year. The company also unveiled innovative dimmable glass, driver monitoring systems, and connected car products at CES 2025. Management updated 2025 consolidated revenue guidance to $2.5-$2.6 billion, reflecting these developments.
So what does this translate to? Let’s talk numbers:
- Good Cash Yield: Not many stocks offer free cash flow yield of 9.4%, but Gentex stock does
- Strong Margin: Last 12 month operating margin of 19.0%
- Growth: Last 12 revenue growth of 3.0% – low growth, but this selection is all about high yield and margin
- Valuation: GNTX stock currently trading at 35% below 2Y high, 14% below 1M high, and at a PS lower than 3Y average.
Why focus on Free Cash Flow Yield? It refers to free cash flow per share / stock price, and it matters. If a company produces high amount of cash per share, it can be used to fuel additional revenue growth, or simply paid through dividends or buybacks to shareholders. Below is quick comparison of GNTX cash flow yield and other fundamentals with S&P median.
| GNTX | S&P Median | |
|---|---|---|
| Sector | Consumer Discretionary | – |
| Industry | Automotive Parts & Equipment | – |
| Free Cash Flow Yield | 9.4% | 4.1% |
| Revenue Growth LTM | 3.0% | 6.1% |
| Revenue Growth 3YAVG | 9.9% | 5.4% |
| Operating Margin LTM | 19.0% | 18.8% |
| Operating Margin 3YAVG | 20.4% | 18.2% |
| LTM Operating Margin Change | -1.9% | 0.2% |
| PE Ratio | 13.3 | 23.6 |
For more details and our view, see Buy or Sell GNTX Stock. Nevertheless, stock-picking thrills fade fast when volatility hits. Smart financial advisors stay ahead by combining insights with action, channeling client capital into diversified portfolios that perform across cycles.
The Market Can Notice Such Stocks, And Reward
The below statistics are from high FCF yield selection strategy between 12/31/2016 and 6/30/2025. The stats are calculated based on selections made monthly, and assuming that a stock once picked, can not be re-picked for next 180 days.
- Average 6-month and 12-month forward returns of 10.4% and 20.4% respectively
- Win rate (percentage of picks returning positive) of about 74% for 12-month period
- Not over dependent on market crashes. During non-crash periods as well, this strategy has 12-month average return of nearly 18% with 70% win rate.
There is no guarantee that the market will always reward such value stocks, so useful to ask – what is the risk?
Risk Quantified
GNTX isn’t immune to big sell-offs. It plunged about 57% in the Dot-Com crash and took an even steeper hit, nearly 70%, during the Global Financial Crisis. The inflation shock and Covid pandemic both knocked it down around 35%. Even the 2018 correction wasn’t kind, dragging shares down over 25%. The stock has strong points, but history shows it still takes a beating when markets sour.
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read GNTX Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.