Gentex (NYSE: GNTX), a global manufacturer of rearview mirrors and fire protection products, recently reported strong quarterly sales and net income. Doesn't that make you want to grab a piece of the pie? Let's dig into the financials to see how attractive the stock is for your portfolio.

Financials speak
Gentex, which has been supplying auto-dimming rearview mirrors to automobile companies including General Motors (NYSE: GM), Ford (NYSE: F), BMW, and Chrysler, posted a 35% jump in first-quarter sales.

Revenue for Gentex touched an all-time high of $250.9 million in the first quarter, up from $185.8 million in the year-ago quarter. Increased net sales were the result of growing demand from North America and Europe. Both regions have reported an increase in light vehicle production this quarter.

A bit of bad news
However, because of customer price reductions, increases in sales could not help the company record a similar gain in gross margin, which fell from the year-ago quarter. This suggests that price reductions and higher costs could prevent Gentex from converting sales into income.

Nonetheless, such a larger absolute increase in net sales helped Gentex record higher net income. Gentex reported a 30% rise in net income, to $42.3 million in the first quarter, compared with $32.5 million in the year-ago period.

The Foolish bottom line
The advent of 2011 brought cheers for Gentex's shareholders as the company's stock touched its 52-week high and it is now trading close to that level. However, Gentex looks overvalued with the highest forward P/E among its peers, including Johnston Controls. Also, earnings estimate for the next quarter don't look as great as the first-quarter results.

Moreover, Gentex expects second-quarter earnings to be affected by the aftermath of the crisis in Japan. It seems like the stock will lose some more value in the coming quarter. I would rather wait for the second-quarter earnings to get a clearer picture about the company.