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NYSE:GNRC is probably undervalued for the fundamentals it is displaying.

By Mill Chart

Last update: Feb 27, 2024

GENERAC HOLDINGS INC (NYSE:GNRC) was identified as a decent value stock by our stock screener. NYSE:GNRC scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Evaluating Valuation: NYSE:GNRC

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:GNRC scores a 8 out of 10:

  • Based on the Price/Earnings ratio, GNRC is valued cheaper than 81.18% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.81, GNRC is valued a bit cheaper.
  • 83.53% of the companies in the same industry are more expensive than GNRC, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 21.49. GNRC is valued slightly cheaper when compared to this.
  • Based on the Enterprise Value to EBITDA ratio, GNRC is valued cheaper than 81.18% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of GNRC indicates a rather cheap valuation: GNRC is cheaper than 87.06% of the companies listed in the same industry.
  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of GNRC may justify a higher PE ratio.
  • A more expensive valuation may be justified as GNRC's earnings are expected to grow with 22.68% in the coming years.

Exploring NYSE:GNRC's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:GNRC has achieved a 6:

  • GNRC has a better Return On Assets (3.99%) than 75.29% of its industry peers.
  • Looking at the Return On Equity, with a value of 8.68%, GNRC is in the better half of the industry, outperforming 72.94% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 6.99%, GNRC is in the better half of the industry, outperforming 75.29% of the companies in the same industry.
  • GNRC has a better Profit Margin (5.05%) than 75.29% of its industry peers.
  • GNRC has a better Operating Margin (9.61%) than 72.94% of its industry peers.
  • GNRC has a better Gross Margin (33.94%) than 77.65% of its industry peers.

Deciphering NYSE:GNRC's Health Rating

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:GNRC has earned a 5 out of 10:

  • An Altman-Z score of 3.47 indicates that GNRC is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.47, GNRC is doing good in the industry, outperforming 74.12% of the companies in the same industry.
  • Looking at the Debt to FCF ratio, with a value of 4.01, GNRC is in the better half of the industry, outperforming 77.65% of the companies in the same industry.
  • A Current Ratio of 2.27 indicates that GNRC has no problem at all paying its short term obligations.

ChartMill's Evaluation of Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:GNRC scores a 5 out of 10:

  • The Revenue has been growing by 14.73% on average over the past years. This is quite good.
  • The Earnings Per Share is expected to grow by 18.29% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 8.57% on average over the next years. This is quite good.
  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of GNRC for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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GENERAC HOLDINGS INC

NYSE:GNRC (5/24/2024, 7:04:00 PM)

After market: 148.66 0 (0%)

148.66

+4.52 (+3.14%)

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