Gentex GNTX announced a collaboration with Solace Power, a wireless power transfer technology company, to develop, manufacture and commercialize Solace’s wireless power system. The partnership also includes strategic investment by Gentex in Solace.
Solace has a knack for building wireless power and data transfer applications across a wide range of industries. The wireless power solution developer has proprietary technology underpinned by 27 patents and hundreds of trade secrets. It can deliver up to 3 kilowatts of power at distances up to 375mm through various mediums.
With its wide range of skills, Solace has made significant strides in its manufacturability, power transfer reliability and spatial freedom. It has a healthy customer base and plans to leverage Gentex’s manufacturing and product development capabilities to achieve market scale.
Solace not only has a crucial role to play in Gentex’s current product portfolio but can also support Gentex’s continued expansion into new markets.
Per Neil Boehm, chief technology officer of Gentex, the partnership has the potential to transform the future of design, where power is intelligently integrated into the very fabric of product design.
Solace offers customized solutions to customers by addressing design complexity, packaging, range, power dynamics, safety and environmental concerns.
By integrating Solace’s technology into its product lines, Gentex can improve product design flexibility by eliminating power distribution concerns, reducing cables and connectors and enabling unique power and data transfer solutions.
Gentex aims to generate meaningful growth driven by product launches, an improved product mix, unique technology platforms and the adoption of other value-added features. GNTX’s 2023 net sales are estimated in the range of $2.2-$2.3 billion, higher than $1.9 billion recorded in 2022. Meanwhile, its 2024 revenues are expected to range between $2.45 billion and $2.55 billion.
Zacks Rank & Key Picks
GNTX currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo VLVLY, NIO Inc. NIO and Toyota Motor Corporation TM. While VLVLY sports a Zacks Rank #1 (Strong Buy) at present, NIO and TM each carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings suggests year-over-year growth of 4.2% and 73.1%, respectively. The EPS estimates for 2023 and 2024 have improved by 4 cents and 3 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for NIO’s 2023 sales indicates year-over-year growth of 11.8%. The EPS estimates for 2023 and 2024 have improved by 2 cents each in the past 30 days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings implies year-over-year growth of 12.4% and 45.4%, respectively. The EPS estimates for 2024 and 2025 have moved up $1.98 and 5 cents, respectively, in the past 60 days.
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