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Gentex Corporation Declares Dividend of $0.09 per Share

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Price movement

Gentex Corporation (GNTX) has a market cap of $5.3 billion. It rose 1.1% to close at $18.49 per share on November 30, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.43%, 9.3%, and 18.1%, respectively, on the same day.

GNTX is trading 5.9% above its 20-day moving average, 6.3% above its 50-day moving average, and 12.6% above its 200-day moving average.

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Related ETF and peers

The Vanguard S&P Mid-Cap 400 Growth ETF (IVOG) invests 0.40% of its holdings in Gentex. The YTD price movement of IVOG was 11.9% on November 30.

The market caps of Gentex’s competitors are as follows:

  • Cintas (CTAS) — $12.0 billion
  • Autoliv (ALV) — $9.1 billion
  • Lear Corporation (LEA) — $9.1 billion

Gentex declared dividend

Gentex Corporation (GNTX) declared a quarterly cash dividend of $0.09 per share on its common stock. The dividend will be paid on January 18, 2017, to shareholders of record at the close of business on January 6, 2017.

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Performance of Gentex in 3Q16

Gentex reported 3Q16 net sales of $429.6 million, a rise of 10.2% compared to $389.8 million in 3Q15 due to auto-dimming mirror unit shipments. The company’s gross profit margin and operating margin rose 150 bps (basis points) and 140 bps, respectively, in 3Q16 compared to 3Q15.

Gentex’s rise in gross margin was due to the reduction in purchasing costs and a favorable product mix. However, the rise was offset by annual customer price reductions.

Gentex’s net income and EPS (earnings per share) rose to $92.1 million and $0.32, respectively, in 3Q16 compared to $78.3 million and $0.27, respectively, in 3Q15.

The company’s cash and cash equivalents fell 3.1%, and its inventories rose 2.7% in 3Q16 compared to 4Q15. Its current ratio fell to 7.1x in 3Q16 compared to 7.5x in 4Q15.

Projections

Gentex (GNTX) declared a quarterly cash dividend of $0.09 per share on its common stock. The company made the following projections for fiscal 2016:

  • net sales of $1.68 billion–$1.71 billion
  • gross margin of 39.3%–39.7%
  • tax rate of 31.5%–32.5%
  • capital expenditure of $115 million–$130 million
  • light vehicle production growth in North America and Europe of 1.0% and 3.0%, respectively, in 4Q16
  • light vehicle production growth in North America, Europe, and Japan and Korea of 2.0%, 3.0%, and -2.0%, respectively

Next, we’ll take a look at BorgWarner (BWA).

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