Is GNTX a high-quality business?

AlphaMadera's AlphaQuality grade scores Gentex Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how GNTX compares to a Buffett-style quality bar.

What is Gentex Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to GNTX based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes GNTX a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

GNTX - Gentex Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $26.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

A- 81.0 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

B- 62.8

5yr Avg ROIC 14.8% 79/100
Operating Margin Trend -0.84 pp/yr 24/100

Capital Efficiency

Weight: 15%

A- 82.6

5yr Avg ROE 15.3% 81/100
5yr Share-Count CAGR -1.9% 86/100

Growth Quality

Weight: 15%

B 72.0

5yr Revenue CAGR 10.0% 80/100
5yr EPS CAGR 3.8% 46/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

A- 84.0

5yr FCF Margin 15.1% 82/100
5yr FCF/NI Conversion 0.86x 86/100

Balance Sheet

Weight: 20%

A+ 98.4

Net Debt / EBITDA -0.27x 96/100
Interest Coverage (EBIT/Int) 30.00x 100/100
Altman Z-Score 8.49 100/100

Stability

Weight: 15%

A- 85.8

EPS Volatility (σ/μ) 0.16 76/100
Piotroski F-Score 8 89/100
Negative-Revenue Years (5) 0/5 100/100

3 of 3 gurus held; 1 new buy; 1 added; 1 trimmed.

Holders: 3 +1
Avg Δ position: +23.7%
New buys: 1
Full exits: 0

Cooperman new
Greenblatt increased +147%
Dalio decreased -99%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.