Gentex: Shares Are Cheap Enough To Upgrade, But I Am Wary Of Automotive Woes

Daniel Jones Investing Group Leader Follow Summary Gentex Corporation remains rated 'hold' due to macroeconomic and automotive sector headwinds despite attractive valuation multiples. Q2 revenue dipped year-over-year, but net income and operating cash flow improved, aided by tariff refunds and strong premium audio segment growth. Automotive segment sales declined internationally, offset by North American mirror unit growth and robust performance in premium audio and aerospace products. I await Q3 results and management commentary; a further 10% stock drop or end-market improvement could prompt a bullish stance. Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » Images By Tang Ming Tung/DigitalVision via Getty Images Back in July, I mentioned in an article that Gentex Corporation ( GNTX ) was doing great. But this referred to its operational performance. Even though the company had done well, with operational improvements This article was written by Daniel Jones 37.94K Followers Follow Daniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.