Gentex Return On Asset vs. Revenue

GTX Stock  EUR 28.00  0.20  0.71%   
Based on the key profitability measurements obtained from Gentex's financial statements, Gentex may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Gentex's ability to earn profits and add value for shareholders.
For Gentex profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Gentex to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Gentex utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Gentex's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Gentex over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
For more detail on how to invest in Gentex Stock please use our How to Invest in Gentex guide.
Please note, there is a significant difference between Gentex's value and its price as these two are different measures arrived at by different means. Investors typically determine if Gentex is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gentex's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Gentex Revenue vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Gentex's current stock value. Our valuation model uses many indicators to compare Gentex value to that of its competitors to determine the firm's financial worth.
Gentex is one of the top stocks in return on asset category among its peers. It also is rated as one of the top companies in revenue category among its peers totaling about  18,504,899,161  of Revenue per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Gentex's earnings, one of the primary drivers of an investment's value.

Gentex Revenue vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Gentex

Return On Asset

 = 

Net Income

Total Assets

 = 
0.1
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Gentex

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
1.92 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Gentex Revenue vs Competition

Gentex is rated as one of the top companies in revenue category among its peers. Market size based on revenue of Auto Parts industry is currently estimated at about 5.89 Billion. Gentex totals roughly 1.92 Billion in revenue claiming about 33% of stocks in Auto Parts industry.

Gentex Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Gentex, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Gentex will eventually generate negative long term returns. The profitability progress is the general direction of Gentex's change in net profit over the period of time. It can combine multiple indicators of Gentex, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products in the United States, Germany, Japan, Mexico, and internationally. The company was founded in 1974 and is headquartered in Zeeland, Michigan. GENTEX CORP operates under Auto Parts classification in Germany and is traded on Frankfurt Stock Exchange. It employs 5303 people.

Gentex Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Gentex. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Gentex position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Gentex's important profitability drivers and their relationship over time.

Use Gentex in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Gentex position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Gentex will appreciate offsetting losses from the drop in the long position's value.

Gentex Pair Trading

Gentex Pair Trading Analysis

The ability to find closely correlated positions to Gentex could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Gentex when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Gentex - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Gentex to buy it.
The correlation of Gentex is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Gentex moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Gentex moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Gentex can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Gentex position

In addition to having Gentex in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Small & Mid Caps ETFs Thematic Idea Now

Small & Mid Caps ETFs
Small & Mid Caps ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Small & Mid Caps ETFs theme has 19 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Small & Mid Caps ETFs Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Gentex Stock

When determining whether Gentex offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Gentex's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Gentex Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Gentex Stock:
Check out Risk vs Return Analysis.
For more detail on how to invest in Gentex Stock please use our How to Invest in Gentex guide.
You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
To fully project Gentex's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Gentex at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Gentex's income statement, its balance sheet, and the statement of cash flows.
Potential Gentex investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Gentex investors may work on each financial statement separately, they are all related. The changes in Gentex's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Gentex's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.