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 6 out of 10 to GNRC. GNRC was compared to 95 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 is not valued too expensively and it also shows a decent growth rate. This makes GNRC very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year GNRC was profitable.
GNRC had a positive operating cash flow in the past year.
In the past 5 years GNRC has always been profitable.
In the past 5 years GNRC always reported a positive cash flow from operatings.
1.2 Ratios
GNRC has a Return On Assets of 6.83%. This is amongst the best in the industry. GNRC outperforms 86.32% of its industry peers.
GNRC has a better Return On Equity (13.99%) than 85.26% of its industry peers.
With an excellent Return On Invested Capital value of 10.25%, GNRC belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GNRC is in line with the industry average of 10.08%.
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
With an excellent Profit Margin value of 7.95%, GNRC belongs to the best of the industry, outperforming 85.26% of the companies in the same industry.
GNRC's Profit Margin has declined in the last couple of years.
GNRC has a better Operating Margin (12.73%) than 85.26% 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 88.42% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GNRC is still creating some value.
The number of shares outstanding for GNRC has been reduced compared to 1 year ago.
GNRC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GNRC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.00 indicates that GNRC is not in any danger for bankruptcy at the moment.
GNRC's Altman-Z score of 4.00 is fine compared to the rest of the industry. GNRC outperforms 76.84% 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 Debt to FCF ratio of 2.42. This is in the better half of the industry: GNRC outperforms 77.89% of its industry peers.
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 48.42% 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 |
ROIC/WACC1.22
WACC8.39%
2.3 Liquidity
A Current Ratio of 1.97 indicates that GNRC should not have too much problems paying its short term obligations.
GNRC's Current ratio of 1.97 is in line compared to the rest of the industry. GNRC outperforms 56.84% 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 has a Quick ratio (0.89) which is comparable to the rest of the industry.
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
The Earnings Per Share has grown by an impressive 35.10% over the past year.
GNRC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.50% yearly.
The Revenue has grown by 8.07% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 11.43% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.55% on average over the next years.
EPS Next Y3.48%
EPS Next 2Y8.92%
EPS Next 3Y10.26%
EPS Next 5Y11.43%
Revenue Next Year3.12%
Revenue Next 2Y4.95%
Revenue Next 3Y5.71%
Revenue Next 5Y6.55%
3.3 Evolution
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.
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
The Price/Earnings ratio is 16.39, which indicates a correct valuation of GNRC.
GNRC's Price/Earnings ratio is rather cheap when compared to the industry. GNRC is cheaper than 84.21% of the companies in the same industry.
When comparing the Price/Earnings ratio of GNRC to the average of the S&P500 Index (26.60), we can say GNRC is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.53, which indicates a correct valuation of GNRC.
Based on the Price/Forward Earnings ratio, GNRC is valued cheaper than 81.05% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.43. GNRC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.39 | ||
| Fwd PE | 14.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GNRC is valued cheaper than 84.21% 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 89.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.61 | ||
| EV/EBITDA | 11.82 |
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)4.71
PEG (5Y)2.18
EPS Next 2Y8.92%
EPS Next 3Y10.26%
5. Dividend
5.1 Amount
GNRC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:GNRC (5/21/2025, 11:07:04 AM)
125.53
-1.73 (-1.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners95.23%
Inst Owner Change-5.05%
Ins Owners1.69%
Ins Owner Change0.97%
Market Cap7.44B
Analysts77.5
Price Target158.27 (26.08%)
Short Float %6.38%
Short Ratio4.02
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)-10.66%
PT rev (3m)-12.4%
EPS NQ rev (1m)-18.93%
EPS NQ rev (3m)-21.12%
EPS NY rev (1m)-5.85%
EPS NY rev (3m)-6.41%
Revenue NQ rev (1m)-4.38%
Revenue NQ rev (3m)-4.9%
Revenue NY rev (1m)-1.67%
Revenue NY rev (3m)-4.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.39 | ||
| Fwd PE | 14.53 | ||
| P/S | 1.71 | ||
| P/FCF | 13.61 | ||
| P/OCF | 10.82 | ||
| P/B | 3.01 | ||
| P/tB | 26.15 | ||
| EV/EBITDA | 11.82 |
EPS(TTM)7.66
EY6.1%
EPS(NY)8.64
Fwd EY6.88%
FCF(TTM)9.22
FCFY7.35%
OCF(TTM)11.6
OCFY9.24%
SpS73.35
BVpS41.65
TBVpS4.8
PEG (NY)4.71
PEG (5Y)2.18
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 |
F-Score8
WACC8.39%
ROIC/WACC1.22
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 Y3.48%
EPS Next 2Y8.92%
EPS Next 3Y10.26%
EPS Next 5Y11.43%
Revenue 1Y (TTM)8.07%
Revenue growth 3Y4.75%
Revenue growth 5Y14.28%
Sales Q2Q%5.94%
Revenue Next Year3.12%
Revenue Next 2Y4.95%
Revenue Next 3Y5.71%
Revenue Next 5Y6.55%
EBIT growth 1Y35.32%
EBIT growth 3Y-10.26%
EBIT growth 5Y7.6%
EBIT Next Year50.48%
EBIT Next 3Y22.88%
EBIT Next 5Y18.92%
FCF growth 1Y1813.38%
FCF growth 3Y26.14%
FCF growth 5Y19.5%
OCF growth 1Y1273.54%
OCF growth 3Y21.71%
OCF growth 5Y19.13%