When you look at NYSE:GNRC, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Uncover the hidden value in GENERAC HOLDINGS INC (NYSE:GNRC) as our stock screening tool recommends it as an undervalued choice. NYSE:GNRC maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

How We Gauge Valuation for 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:

• 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.
• The average S&P500 Price/Earnings ratio is at 28.37. GNRC is valued slightly cheaper when compared to this.
• Based on the Price/Forward Earnings ratio, GNRC is valued cheaply inside the industry as 81.52% of the companies are valued more expensively.
• The average S&P500 Price/Forward Earnings ratio is at 96.21. GNRC is valued rather cheaply when compared to this.
• Based on the Enterprise Value to EBITDA ratio, GNRC is valued cheaply inside the industry as 80.43% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of GNRC indicates a rather cheap valuation: GNRC is cheaper than 88.04% of the companies listed in the same industry.
• GNRC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• GNRC has a very decent profitability rating, which may justify a higher PE ratio.
• GNRC's earnings are expected to grow with 21.09% in the coming years. This may justify a more expensive valuation.

Profitability Analysis for NYSE:GNRC

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:GNRC, the assigned 7 is a significant indicator of profitability:

• With an excellent Return On Assets value of 5.64%, GNRC belongs to the best of the industry, outperforming 83.70% of the companies in the same industry.
• GNRC's Return On Equity of 12.13% is amongst the best of the industry. GNRC outperforms 84.78% of its industry peers.
• The Return On Invested Capital of GNRC (8.99%) is better than 84.78% of its industry peers.
• Looking at the Profit Margin, with a value of 7.09%, GNRC belongs to the top of the industry, outperforming 81.52% of the companies in the same industry.
• GNRC's Operating Margin of 11.88% is amongst the best of the industry. GNRC outperforms 81.52% of its industry peers.
• Looking at the Gross Margin, with a value of 37.65%, GNRC belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.

Analyzing Health Metrics

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:GNRC has achieved a 6 out of 10:

• GNRC has an Altman-Z score of 3.92. This indicates that GNRC is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of GNRC (3.92) is better than 78.26% of its industry peers.
• The Debt to FCF ratio of GNRC is 2.61, which is a good value as it means it would take GNRC, 2.61 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 2.61, GNRC belongs to the best of the industry, outperforming 80.43% of the companies in the same industry.
• GNRC has a Current Ratio of 2.03. This indicates that GNRC is financially healthy and has no problem in meeting its short term obligations.

A Closer Look at Growth for NYSE:GNRC

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:GNRC has earned a 5 for growth:

• The Earnings Per Share has grown by an impressive 27.68% over the past year.
• The Revenue has been growing by 14.73% on average over the past years. This is quite good.
• Based on estimates for the next years, GNRC will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.75% on average per year.
• 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.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of GNRC

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.