GENERAC HOLDINGS INC (GNRC) Stock Fundamental Analysis
NYSE:GNRC - New York Stock Exchange, Inc. - US3687361044 - Common Stock - Currency: USD
Overall GNRC gets a fundamental rating of 7 out of 10. We evaluated GNRC against 503 industry peers in the Electrical Equipment industry. GNRC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
GNRC had positive earnings in each of the past 5 years.
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.
Looking at the Return On Equity, with a value of 13.99%, GNRC belongs to the top of the industry, outperforming 85.11% of the companies in the same industry.
GNRC has a Return On Invested Capital of 10.25%. This is amongst the best in the industry. GNRC outperforms 84.04% of its industry peers.
GNRC had an Average Return On Invested Capital over the past 3 years of 8.99%. This is below the industry average of 13.68%.
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
The Profit Margin of GNRC (7.95%) is better than 85.11% of its industry peers.
In the last couple of years the Profit Margin of GNRC has declined.
GNRC's Operating Margin of 12.73% is amongst the best of the industry. GNRC outperforms 84.04% of its industry peers.
GNRC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 39.58%, GNRC belongs to the top of the industry, outperforming 90.43% of the companies in the same industry.
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
GNRC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, GNRC has less shares outstanding
GNRC has less shares outstanding than it did 5 years ago.
GNRC has a better debt/assets ratio than last year.
2.2 Solvency
GNRC has an Altman-Z score of 4.21. This indicates that GNRC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GNRC (4.21) is better than 78.72% of its industry peers.
The Debt to FCF ratio of GNRC is 2.42, which is a good value as it means it would take GNRC, 2.42 years of fcf income to pay off all of its debts.
GNRC has a better Debt to FCF ratio (2.42) than 80.85% of its industry peers.
GNRC has a Debt/Equity ratio of 0.51. This is a neutral value indicating 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 | 4.21 |
ROIC/WACC1.03
WACC9.96%
2.3 Liquidity
A Current Ratio of 1.97 indicates that GNRC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.97, GNRC perfoms like the industry average, outperforming 51.06% of the companies in the same industry.
A Quick Ratio of 0.89 indicates that GNRC may have some problems paying its short term obligations.
GNRC has a Quick ratio (0.89) which is in line with 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.
GNRC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.50% yearly.
GNRC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.07%.
GNRC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.28% yearly.
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.
Based on estimates for the next years, GNRC will show a small growth in Revenue. The Revenue will grow by 6.00% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.70, which indicates a rather expensive current valuation of GNRC.
82.98% of the companies in the same industry are more expensive than GNRC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.15. GNRC is valued slightly cheaper when compared to this.
GNRC is valuated correctly with a Price/Forward Earnings ratio of 16.62.
79.79% of the companies in the same industry are more expensive than GNRC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, GNRC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.7 | ||
| Fwd PE | 16.62 |
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.
Based on the Price/Free Cash Flow ratio, GNRC is valued cheaper than 88.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.48 | ||
| EV/EBITDA | 13.08 |
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)4.91
PEG (5Y)2.49
EPS Next 2Y8.8%
EPS Next 3Y9.68%
5. Dividend
5.1 Amount
GNRC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
143.21
+0.8 (+0.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.32%
Inst Owner Change-5.26%
Ins Owners1.57%
Ins Owner Change1.19%
Market Cap8.46B
Analysts78.67
Price Target156 (8.93%)
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)-1.43%
PT rev (3m)-10.5%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)-18.56%
EPS NY rev (1m)0.31%
EPS NY rev (3m)-4.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.29%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.7 | ||
| Fwd PE | 16.62 | ||
| P/S | 1.95 | ||
| P/FCF | 15.48 | ||
| P/OCF | 12.31 | ||
| P/B | 3.43 | ||
| P/tB | 29.73 | ||
| EV/EBITDA | 13.08 |
EPS(TTM)7.66
EY5.35%
EPS(NY)8.62
Fwd EY6.02%
FCF(TTM)9.25
FCFY6.46%
OCF(TTM)11.64
OCFY8.13%
SpS73.61
BVpS41.79
TBVpS4.82
PEG (NY)4.91
PEG (5Y)2.49
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 | 4.21 |
F-Score8
WACC9.96%
ROIC/WACC1.03
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%