posted by mark
on Fri, 03/09/2018 - 10:46
Yesterday, I commented on the favorable value condition of Gentex Corp (GNTX). They had a news release today that was very positive.
I don't have a crystal ball, but, like everyone else, I wish I did. The timing was just fortuitous.
By looking into the fundaments of the firm over a long time (10 years) I saw a financial trends that indicated a well-managed organization.
The items of importance in this news release are as follows:
- They are increasing the dividend by 10%. Their dividends have been increasing by a 7.1% compounded rate since 2008. Each year, it always remained the same or climbed.
- Their CAPEX is increasing 115 to 130M which is reasonable relative to their Depreciation and Amortization. It has been higher than their D&A for the last several years. Higher, yes, but judicious. Some would be inflation of capital assets with a kicker for some growth in their asset base.
- They are knocking 78M off their debt. Their history shows they have borrowed, but pay down their debt at a steady pace. This is a good sign for their financial management capability.
- They are buying back shares. Usually, I am not a big advocate of buybacks because corporate buybacks usually are done at premium levels. GNTX is relatively cheap in an overheated market.
Again, I say (like my prior post) "What's not to like?!"
