What Dividend Did Gentex Declare?
Key Events in the Consumer Sector in the Third Week of May
Price movement of Gentex
Gentex (GNTX) fell by 2.2% to close at $15.86 per share at the end of the third week of May 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -2.2%, -0.81%, and 0.16%, respectively. This means that GNTX is trading 1.5% below its 20-day moving average, 0.81% above its 50-day moving average, and 3.2% above its 200-day moving average.
Related ETF and peers
The Vanguard S&P Mid-Cap 400 Growth ETF (IVOG) invests 0.58% of its holdings in Gentex. The ETF tracks a market-cap-weighted index of growth companies culled from the S&P 400. The YTD price movement of IVOG was 2.3% as of May 20, 2016.
The market caps of Gentex’s competitors are as follows:
Autoliv (ALV): $10.8 billion
Cintas (CTAS): $9.9 billion
Lear (LEA): $8.5 billion
Gentex declared dividend
Gentex has declared a quarterly cash dividend of $0.09 per share on its common stock. The dividend will be paid on July 20, 2016, to shareholders of record at the close of business on July 7, 2016.
Performance of Gentex in fiscal 1Q16
Gentex reported fiscal 1Q16 net sales of $405.6 million, an increase of 9.9% compared to net sales of $368.9 million in fiscal 1Q15. The company’s operating income rose by 12.2% in fiscal 1Q16 compared to the prior year’s period.
Its net income and EPS (earnings per share) rose to $80.3 million and $0.28, respectively, in fiscal 1Q16, compared to $77.2 million and $0.26, respectively, in fiscal 1Q15.
Gentex’s cash and cash equivalents and inventories rose by 13.6% and 8.0%, respectively, in fiscal 1Q16 compared to fiscal 4Q15. Its current ratio fell to 5.4x in fiscal 1Q16 compared to 7.5x in fiscal 4Q15.
Projections
The company has projected light vehicle production based on IHS automotive:
It expects production growth in North America, Europe, and Japan-Korea regions of ~5%, 4%, and 2%, respectively, in 2Q16.
It expects production growth in North America, Europe, and Japan-Korea regions of ~4%, 2%, and 0.45%, respectively, in calendar 2016.
In the next part, we’ll take a look at Hasbro.
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