GENERAC HOLDINGS INC (GNRC) Stock Fundamental Analysis
USA - NYSE:GNRC - US3687361044 - Common Stock
182.28 USD
-1.76 (-0.96%)
182.28 USD
0 (0%)
GNRC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 92 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 correct valuation and a medium growth rate. These ratings would make GNRC suitable 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.
In the past 5 years GNRC always reported a positive cash flow from operatings.
1.2 Ratios
GNRC has a better Return On Assets (6.69%) than 82.61% of its industry peers.
With an excellent Return On Equity value of 14.02%, GNRC belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
GNRC has a Return On Invested Capital of 9.90%. This is amongst the best in the industry. GNRC outperforms 83.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GNRC is in line with the industry average of 9.86%.
The 3 year average ROIC (8.99%) for GNRC is below the current ROIC(9.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.69% | ||
| ROE | 14.02% | ||
| ROIC | 9.9% |
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
Looking at the Profit Margin, with a value of 8.17%, GNRC belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
In the last couple of years the Profit Margin of GNRC has declined.
GNRC has a better Operating Margin (12.74%) than 84.78% of its industry peers.
GNRC's Operating Margin has declined in the last couple of years.
GNRC's Gross Margin of 39.95% is amongst the best of the industry. GNRC outperforms 89.13% of its industry peers.
In the last couple of years the Gross Margin of GNRC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.74% | ||
| PM (TTM) | 8.17% | ||
| GM | 39.95% |
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.
The number of shares outstanding for GNRC has been reduced compared to 1 year ago.
Compared to 5 years ago, GNRC has less shares outstanding
Compared to 1 year ago, GNRC has an improved debt to assets ratio.
2.2 Solvency
GNRC has an Altman-Z score of 4.48. This indicates that GNRC is financially healthy and has little risk of bankruptcy at the moment.
GNRC has a better Altman-Z score (4.48) than 73.91% of its industry peers.
The Debt to FCF ratio of GNRC is 2.78, which is a good value as it means it would take GNRC, 2.78 years of fcf income to pay off all of its debts.
GNRC has a better Debt to FCF ratio (2.78) than 81.52% of its industry peers.
GNRC has a Debt/Equity ratio of 0.52. This is a neutral value indicating GNRC is somewhat dependend on debt financing.
GNRC has a Debt to Equity ratio (0.52) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 4.48 |
ROIC/WACC1.2
WACC8.26%
2.3 Liquidity
A Current Ratio of 2.00 indicates that GNRC has no problem at all paying its short term obligations.
GNRC has a Current ratio of 2.00. This is comparable to the rest of the industry: GNRC outperforms 55.43% of its industry peers.
A Quick Ratio of 0.88 indicates that GNRC may have some problems paying its short term obligations.
With a Quick ratio value of 0.88, GNRC perfoms like the industry average, outperforming 44.57% of the companies in the same industry.
The current and quick ratio evaluation for GNRC is rather negative, while it does have 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 | 2 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.01% over the past year.
The Earnings Per Share has been growing slightly by 7.50% on average over the past years.
The Revenue has grown by 9.69% in the past year. This is quite good.
The Revenue has been growing by 14.28% on average over the past years. This is quite good.
EPS 1Y (TTM)34.01%
EPS 3Y-8.9%
EPS 5Y7.5%
EPS Q2Q%22.22%
Revenue 1Y (TTM)9.69%
Revenue growth 3Y4.75%
Revenue growth 5Y14.28%
Sales Q2Q%6.31%
3.2 Future
The Earnings Per Share is expected to grow by 12.31% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.10% on average over the next years.
EPS Next Y7.99%
EPS Next 2Y12.11%
EPS Next 3Y13.55%
EPS Next 5Y12.31%
Revenue Next Year3.32%
Revenue Next 2Y5.76%
Revenue Next 3Y6.46%
Revenue Next 5Y7.1%
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
A Price/Earnings ratio of 22.90 indicates a rather expensive valuation of GNRC.
Compared to the rest of the industry, the Price/Earnings ratio of GNRC indicates a rather cheap valuation: GNRC is cheaper than 81.52% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GNRC to the average of the S&P500 Index (27.38), we can say GNRC is valued inline with the index average.
A Price/Forward Earnings ratio of 19.92 indicates a rather expensive valuation of GNRC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GNRC indicates a rather cheap valuation: GNRC is cheaper than 83.70% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. GNRC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 19.92 |
4.2 Price Multiples
GNRC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GNRC is cheaper than 81.52% 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 84.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.91 | ||
| EV/EBITDA | 16.06 |
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.
GNRC's earnings are expected to grow with 13.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.87
PEG (5Y)3.05
EPS Next 2Y12.11%
EPS Next 3Y13.55%
5. Dividend
5.1 Amount
GNRC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
182.28
-1.76 (-0.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.68%
Inst Owner Change5.4%
Ins Owners1.57%
Ins Owner Change-0.68%
Market Cap10.70B
Analysts80
Price Target210.77 (15.63%)
Short Float %4.68%
Short Ratio2.65
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)24.98%
Min EPS beat(2)22.14%
Max EPS beat(2)27.81%
EPS beat(4)4
Avg EPS beat(4)18.27%
Min EPS beat(4)9.91%
Max EPS beat(4)27.81%
EPS beat(8)7
Avg EPS beat(8)13.6%
EPS beat(12)8
Avg EPS beat(12)10.13%
EPS beat(16)11
Avg EPS beat(16)8.7%
Revenue beat(2)2
Avg Revenue beat(2)0.93%
Min Revenue beat(2)0.5%
Max Revenue beat(2)1.35%
Revenue beat(4)2
Avg Revenue beat(4)-0.39%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)1.35%
Revenue beat(8)3
Avg Revenue beat(8)-1.17%
Revenue beat(12)5
Avg Revenue beat(12)-1.31%
Revenue beat(16)8
Avg Revenue beat(16)-0.92%
PT rev (1m)4.85%
PT rev (3m)35%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)4.03%
EPS NY rev (3m)4.36%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 19.92 | ||
| P/S | 2.42 | ||
| P/FCF | 20.91 | ||
| P/OCF | 15.68 | ||
| P/B | 4.16 | ||
| P/tB | 28.51 | ||
| EV/EBITDA | 16.06 |
EPS(TTM)7.96
EY4.37%
EPS(NY)9.15
Fwd EY5.02%
FCF(TTM)8.72
FCFY4.78%
OCF(TTM)11.62
OCFY6.38%
SpS75.18
BVpS43.81
TBVpS6.39
PEG (NY)2.87
PEG (5Y)3.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.69% | ||
| ROE | 14.02% | ||
| ROCE | 13.17% | ||
| ROIC | 9.9% | ||
| ROICexc | 10.44% | ||
| ROICexgc | 22.48% | ||
| OM | 12.74% | ||
| PM (TTM) | 8.17% | ||
| GM | 39.95% | ||
| FCFM | 11.59% |
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 Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.81 | ||
| Cap/Depr | 94.03% | ||
| Cap/Sales | 3.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.74% | ||
| Profit Quality | 141.9% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 4.48 |
F-Score8
WACC8.26%
ROIC/WACC1.2
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)34.01%
EPS 3Y-8.9%
EPS 5Y7.5%
EPS Q2Q%22.22%
EPS Next Y7.99%
EPS Next 2Y12.11%
EPS Next 3Y13.55%
EPS Next 5Y12.31%
Revenue 1Y (TTM)9.69%
Revenue growth 3Y4.75%
Revenue growth 5Y14.28%
Sales Q2Q%6.31%
Revenue Next Year3.32%
Revenue Next 2Y5.76%
Revenue Next 3Y6.46%
Revenue Next 5Y7.1%
EBIT growth 1Y31.84%
EBIT growth 3Y-10.26%
EBIT growth 5Y7.6%
EBIT Next Year48.15%
EBIT Next 3Y22.33%
EBIT Next 5Y18.72%
FCF growth 1Y3131.81%
FCF growth 3Y26.14%
FCF growth 5Y19.5%
OCF growth 1Y523.41%
OCF growth 3Y21.71%
OCF growth 5Y19.13%