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.

Anupama Pattanaik doesn't hold shares of any of the companies mentioned in the article. General Motors is a Motley Fool Inside Value recommendation. Ford Motor is a Motley Fool Stock Advisor selection. The Fool owns shares of Ford Motor. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.