MeritValue

GENTEX CORP

GNTXdata completeness 100%18 fiscal years on file
The thesis, from the filings

GENTEX CORP earns about 19% on invested capital, far above its ~9% cost of capital, and has bought back 8% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $18.31 and $35.46 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$1.73B1$1.92B2$2.3B3$2.31B3$2.53B3
Net income$360.8M4$318.8M4$428.4M5$404.5M5$384.8M5
Operating cash flow$362.2M6$338.2M7$537.2M8$498.2M8$587.1M8
Capital expenditure$68.8M9$146.4M10$183.7M11$144.7M11$129.1M11
Free cash flow (derived)$293.3M6$191.8M7$353.6M8$353.5M8$458M8
Total debt———$012$3.8M12
Cash & equivalents$262.3M13$214.8M14$226.4M15$233.3M16$145.6M16
Diluted shares236.6M231.2M229.7M226.0M217.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$114.2
your share of equity
Profit it earned you last year
$17.67
Free cash flow it threw off
$21.03
Debt you’d be carrying
$0.17

10 shares is a claim on $114.2 of net worth that earned you $17.67 and generated $21.03 of cash last year, against $0.17 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
19% avg · 5y
FY21 22%FY22 17%FY23 21%FY24 18%FY25 16%

It earned about 19% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−8% shares · 5y

Share count is down 8% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $18.31 and $35.46 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$35.46
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth6.4%
  • fcfBase$353.6M
DCF · Growth Exit 5Y
$31.25
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth6.4%
  • fcfBase$353.6M
Earnings Power Value
$18.31
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$384.8M
  • growthAssumed0.0%
Graham Number
$21.14
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years6.4%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $31.25
The three cases
Bear0.0%$23.84
Base6.4%$31.25
Bull11.4%$38.31

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 6.4%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000355811-24-000011 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000355811-25-000009 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0000355811-26-000010 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0000355811-24-000011 (NetIncomeLoss)
  5. 10-K · period ending 2023-12-31 · accession 0000355811-26-000010 (NetIncomeLoss)
  6. 10-K · period ending 2021-12-31 · accession 0000355811-24-000011 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2022-12-31 · accession 0000355811-25-000009 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-12-31 · accession 0000355811-26-000010 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2021-12-31 · accession 0000355811-24-000011 (PaymentsToAcquireProductiveAssets)
  10. 10-K · period ending 2022-12-31 · accession 0000355811-25-000009 (PaymentsToAcquireProductiveAssets)
  11. 10-K · period ending 2023-12-31 · accession 0000355811-26-000010 (PaymentsToAcquireProductiveAssets)
  12. 10-K · period ending 2024-12-31 · accession 0000355811-26-000010 (ShortTermBorrowings)
  13. 10-K · period ending 2021-12-31 · accession 0000355811-23-000011 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0000355811-24-000011 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-12-31 · accession 0000355811-25-000009 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-12-31 · accession 0000355811-26-000010 (CashAndCashEquivalentsAtCarryingValue)