GENERAC HOLDINGS INC (GNRC) Stock Fundamental Analysis
NYSE:GNRC - New York Stock Exchange, Inc. - US3687361044 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to GNRC. GNRC was compared to 93 industry peers in the Electrical Equipment industry. GNRC gets an excellent profitability rating and is at the same time showing great financial health properties. GNRC has a decent growth rate and is not valued too expensively. These ratings could make GNRC a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
GNRC had positive earnings in the past year.
GNRC had a positive operating cash flow in the past year.
Each year in the past 5 years GNRC has been profitable.
GNRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GNRC (6.83%) is better than 85.11% of its industry peers.
With an excellent Return On Equity value of 13.99%, GNRC belongs to the best of the industry, outperforming 85.11% of the companies in the same industry.
GNRC's Return On Invested Capital of 10.25% is amongst the best of the industry. GNRC outperforms 84.04% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GNRC is in line with the industry average of 9.89%.
The 3 year average ROIC (8.99%) for GNRC is below the current ROIC(10.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 13.99% | ||
| ROIC | 10.25% |
ROA(3y)5.71%
ROA(5y)7.77%
ROE(3y)12.41%
ROE(5y)17.29%
ROIC(3y)8.99%
ROIC(5y)11.14%
1.3 Margins
GNRC's Profit Margin of 7.95% is amongst the best of the industry. GNRC outperforms 85.11% of its industry peers.
GNRC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.73%, GNRC belongs to the top of the industry, outperforming 84.04% of the companies in the same industry.
GNRC's Operating Margin has declined in the last couple of years.
GNRC has a Gross Margin of 39.58%. This is amongst the best in the industry. GNRC outperforms 90.43% of its industry peers.
GNRC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.73% | ||
| PM (TTM) | 7.95% | ||
| GM | 39.58% |
OM growth 3Y-14.33%
OM growth 5Y-5.84%
PM growth 3Y-19.05%
PM growth 5Y-8.01%
GM growth 3Y2.13%
GM growth 5Y1.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GNRC is creating some value.
Compared to 1 year ago, GNRC has less shares outstanding
Compared to 5 years ago, GNRC has less shares outstanding
GNRC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.31 indicates that GNRC is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.31, GNRC is doing good in the industry, outperforming 74.47% of the companies in the same industry.
GNRC has a debt to FCF ratio of 2.42. This is a good value and a sign of high solvency as GNRC would need 2.42 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.42, GNRC belongs to the best of the industry, outperforming 80.85% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that GNRC is somewhat dependend on debt financing.
GNRC's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. GNRC outperforms 44.68% of its industry peers.
Even though the debt/equity ratio score it not favorable for GNRC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.42 | ||
| Altman-Z | 4.31 |
ROIC/WACC1.21
WACC8.45%
2.3 Liquidity
GNRC has a Current Ratio of 1.97. This is a normal value and indicates that GNRC is financially healthy and should not expect problems in meeting its short term obligations.
GNRC has a Current ratio of 1.97. This is comparable to the rest of the industry: GNRC outperforms 51.06% of its industry peers.
GNRC has a Quick Ratio of 1.97. This is a bad value and indicates that GNRC is not financially healthy enough and could expect problems in meeting its short term obligations.
GNRC's Quick ratio of 0.89 is in line compared to the rest of the industry. GNRC outperforms 43.62% of its industry peers.
GNRC does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
GNRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.10%, which is quite impressive.
The Earnings Per Share has been growing slightly by 7.50% on average over the past years.
GNRC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.07%.
Measured over the past years, GNRC shows a quite strong growth in Revenue. The Revenue has been growing by 14.28% on average per year.
EPS 1Y (TTM)35.1%
EPS 3Y-8.9%
EPS 5Y7.5%
EPS Q2Q%43.18%
Revenue 1Y (TTM)8.07%
Revenue growth 3Y4.75%
Revenue growth 5Y14.28%
Sales Q2Q%5.94%
3.2 Future
Based on estimates for the next years, GNRC will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.11% on average per year.
GNRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.00% yearly.
EPS Next Y3.81%
EPS Next 2Y8.8%
EPS Next 3Y9.68%
EPS Next 5Y10.11%
Revenue Next Year3.14%
Revenue Next 2Y4.93%
Revenue Next 3Y5.64%
Revenue Next 5Y6%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.64, the valuation of GNRC can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of GNRC indicates a rather cheap valuation: GNRC is cheaper than 84.04% of the companies listed in the same industry.
GNRC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.45, GNRC is valued on the expensive side.
GNRC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GNRC is cheaper than 79.79% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GNRC to the average of the S&P500 Index (35.19), we can say GNRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.64 | ||
| Fwd PE | 17.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GNRC indicates a rather cheap valuation: GNRC is cheaper than 82.98% of the companies listed in the same industry.
GNRC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GNRC is cheaper than 89.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.26 | ||
| EV/EBITDA | 13.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GNRC does not grow enough to justify the current Price/Earnings ratio.
GNRC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.15
PEG (5Y)2.62
EPS Next 2Y8.8%
EPS Next 3Y9.68%
5. Dividend
5.1 Amount
No dividends for GNRC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
150.42
-1.57 (-1.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.32%
Inst Owner Change0%
Ins Owners1.57%
Ins Owner Change0.81%
Market Cap8.89B
Analysts78.62
Price Target156 (3.71%)
Short Float %6.89%
Short Ratio4.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.86%
Min EPS beat(2)9.91%
Max EPS beat(2)27.81%
EPS beat(4)4
Avg EPS beat(4)15.7%
Min EPS beat(4)9.91%
Max EPS beat(4)27.81%
EPS beat(8)6
Avg EPS beat(8)9.96%
EPS beat(12)8
Avg EPS beat(12)9.21%
EPS beat(16)11
Avg EPS beat(16)7.39%
Revenue beat(2)1
Avg Revenue beat(2)-0.98%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)0.5%
Revenue beat(4)1
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)0.5%
Revenue beat(8)3
Avg Revenue beat(8)-1.3%
Revenue beat(12)5
Avg Revenue beat(12)-1.42%
Revenue beat(16)8
Avg Revenue beat(16)-0.71%
PT rev (1m)-0.08%
PT rev (3m)-11.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.29%
EPS NY rev (1m)0.32%
EPS NY rev (3m)-5.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.64 | ||
| Fwd PE | 17.45 | ||
| P/S | 2.04 | ||
| P/FCF | 16.26 | ||
| P/OCF | 12.93 | ||
| P/B | 3.6 | ||
| P/tB | 31.23 | ||
| EV/EBITDA | 13.66 |
EPS(TTM)7.66
EY5.09%
EPS(NY)8.62
Fwd EY5.73%
FCF(TTM)9.25
FCFY6.15%
OCF(TTM)11.64
OCFY7.74%
SpS73.61
BVpS41.79
TBVpS4.82
PEG (NY)5.15
PEG (5Y)2.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 13.99% | ||
| ROCE | 13.66% | ||
| ROIC | 10.25% | ||
| ROICexc | 10.74% | ||
| ROICexgc | 24.25% | ||
| OM | 12.73% | ||
| PM (TTM) | 7.95% | ||
| GM | 39.58% | ||
| FCFM | 12.57% |
ROA(3y)5.71%
ROA(5y)7.77%
ROE(3y)12.41%
ROE(5y)17.29%
ROIC(3y)8.99%
ROIC(5y)11.14%
ROICexc(3y)9.45%
ROICexc(5y)12.46%
ROICexgc(3y)21.8%
ROICexgc(5y)31.31%
ROCE(3y)11.98%
ROCE(5y)14.87%
ROICexcg growth 3Y-19.49%
ROICexcg growth 5Y-6.94%
ROICexc growth 3Y-11.87%
ROICexc growth 5Y-6.53%
OM growth 3Y-14.33%
OM growth 5Y-5.84%
PM growth 3Y-19.05%
PM growth 5Y-8.01%
GM growth 3Y2.13%
GM growth 5Y1.39%
F-Score8
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.42 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 80.03% | ||
| Cap/Sales | 3.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.25% | ||
| Profit Quality | 158.21% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 4.31 |
F-Score8
WACC8.45%
ROIC/WACC1.21
Cap/Depr(3y)70.76%
Cap/Depr(5y)84.39%
Cap/Sales(3y)2.76%
Cap/Sales(5y)2.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35.1%
EPS 3Y-8.9%
EPS 5Y7.5%
EPS Q2Q%43.18%
EPS Next Y3.81%
EPS Next 2Y8.8%
EPS Next 3Y9.68%
EPS Next 5Y10.11%
Revenue 1Y (TTM)8.07%
Revenue growth 3Y4.75%
Revenue growth 5Y14.28%
Sales Q2Q%5.94%
Revenue Next Year3.14%
Revenue Next 2Y4.93%
Revenue Next 3Y5.64%
Revenue Next 5Y6%
EBIT growth 1Y35.32%
EBIT growth 3Y-10.26%
EBIT growth 5Y7.6%
EBIT Next Year42.87%
EBIT Next 3Y20.05%
EBIT Next 5Y17.69%
FCF growth 1Y1813.38%
FCF growth 3Y26.14%
FCF growth 5Y19.5%
OCF growth 1Y1273.54%
OCF growth 3Y21.71%
OCF growth 5Y19.13%