New Lifetime High Today: Gentex (GNTX)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Gentex ( GNTX) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Gentex as such a stock due to the following factors:

  • GNTX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $31.5 million.
  • GNTX has traded 36,365 shares today.
  • GNTX is trading at a new lifetime high.

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More details on GNTX:

Gentex Corporation designs, develops, manufactures, and markets electro-optical products for the automotive, commercial building, and aircraft industries primarily in the United States, Germany, and Japan. The stock currently has a dividend yield of 1.8%. GNTX has a PE ratio of 17.8. Currently there are 4 analysts that rate Gentex a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Gentex has been 1.0 million shares per day over the past 30 days. Gentex has a market cap of $5.2 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 0.42 and a short float of 3% with 4.90 days to cover. Shares are up 7.2% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Gentex as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 2.9%. Since the same quarter one year prior, revenues rose by 21.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • GNTX's debt-to-equity ratio is very low at 0.17 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • GENTEX CORP has improved earnings per share by 28.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GENTEX CORP increased its bottom line by earning $1.54 versus $1.17 in the prior year. This year, the market expects an improvement in earnings ($2.00 versus $1.54).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Auto Components industry average. The net income increased by 30.3% when compared to the same quarter one year prior, rising from $55.52 million to $72.34 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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