Gentex (GNTX): Assessing Valuation After Major Defense Tech Expansion With Anduril Partnership

Gentex (GNTX) is taking a major step forward in defense technology, announcing an expanded collaboration with Anduril Industries to develop EagleEye, a new AI-enabled headborne system for military applications.

See our latest analysis for Gentex.

Gentex shares have ridden a wave of momentum lately, climbing over 13% in the past three months even after a sharp pullback of more than 10% for the month. The stock’s year-to-date share price return is down 7.5%, with a total shareholder return of -11.3% over the last twelve months. Gentex’s longer-term track record shows it has still delivered a positive total return over the past three years. Innovations like EagleEye are fueling speculation about new growth avenues and a potential shift in how the market values its defense segment.

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With shares trading at a notable discount to analyst targets and signs of renewed innovation through the EagleEye partnership, is Gentex an overlooked value play in defense, or is the market already taking its future growth into account?

Most Popular Narrative: 14.9% Undervalued

The narrative suggests Gentex’s fair value sits well above the last close of $26.01, fueling debate about whether the market is missing the company’s transformation and revenue drivers.

Gentex is investing heavily in next-generation technologies such as large area dimmable devices and advanced driver monitoring systems. Both are closely aligned with the growing demand for vehicle electrification, safety, and in-cabin monitoring, representing significant medium-term growth drivers for revenue and profitability.

Read the complete narrative.

Want to see why analysts believe Gentex is unlocking new revenue power? The secret mix of future growth, margin gains, and disciplined multiples could surprise even seasoned investors. Unpack the bold narrative and decide for yourself if there’s more upside hiding in the numbers.

Result: Fair Value of $30.56 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, risks remain as Gentex faces ongoing pricing pressure in China and integration challenges from the VOXX acquisition. These factors could temper future growth expectations.

Find out about the key risks to this Gentex narrative.

Build Your Own Gentex Narrative

Prefer to form your own conclusions or challenge the prevailing view? Dive into the data yourself and craft a unique Gentex story in just minutes with Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Gentex.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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