Taking everything into account, GNRC scores 6 out of 10 in our fundamental rating. GNRC was compared to 91 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.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year GNRC was profitable.
GNRC had a positive operating cash flow in the past year.
Each year in the past 5 years GNRC has been profitable.
Each year in the past 5 years GNRC had a positive operating cash flow.

1.2 Ratios

The Return On Assets of GNRC (5.59%) is better than 80.22% of its industry peers.
GNRC has a Return On Equity of 11.83%. This is amongst the best in the industry. GNRC outperforms 83.52% of its industry peers.
GNRC has a Return On Invested Capital of 8.40%. This is amongst the best in the industry. GNRC outperforms 80.22% 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 9.92%.

		Industry Rank	Sector Rank
ROA	5.59%
ROE	11.83%
ROIC	8.4%

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 7.19%, GNRC belongs to the top of the industry, outperforming 80.22% of the companies in the same industry.
GNRC's Profit Margin has declined in the last couple of years.
GNRC's Operating Margin of 11.41% is amongst the best of the industry. GNRC outperforms 81.32% of its industry peers.
GNRC's Operating Margin has declined in the last couple of years.
GNRC has a better Gross Margin (39.45%) than 89.01% of its industry peers.
GNRC's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	11.41%
PM (TTM)	7.19%
GM	39.45%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 1 year ago, GNRC has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 4.21 indicates that GNRC is not in any danger for bankruptcy at the moment.
GNRC has a Altman-Z score of 4.21. This is in the better half of the industry: GNRC outperforms 67.03% of its industry peers.
The Debt to FCF ratio of GNRC is 3.35, which is a good value as it means it would take GNRC, 3.35 years of fcf income to pay off all of its debts.
GNRC's Debt to FCF ratio of 3.35 is amongst the best of the industry. GNRC outperforms 80.22% of its industry peers.
GNRC has a Debt/Equity ratio of 0.53. This is a neutral value indicating GNRC is somewhat dependend on debt financing.
GNRC has a Debt to Equity ratio (0.53) which is in line with its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.53
Debt/FCF	3.35
Altman-Z	4.21

ROIC/WACC1

WACC8.38%

2.3 Liquidity

GNRC has a Current Ratio of 2.18. This indicates that GNRC is financially healthy and has no problem in meeting its short term obligations.
GNRC has a better Current ratio (2.18) than 65.93% of its industry peers.
A Quick Ratio of 1.02 indicates that GNRC should not have too much problems paying its short term obligations.
GNRC has a Quick ratio (1.02) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	2.18
Quick Ratio	1.02

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

GNRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.11%, which is quite good.
GNRC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.50% yearly.
Looking at the last year, GNRC shows a small growth in Revenue. The Revenue has grown by 5.52% in the last year.
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)15.11%

EPS 3Y-8.9%

EPS 5Y7.5%

EPS Q2Q%-18.67%

Revenue 1Y (TTM)5.52%

Revenue growth 3Y4.75%

Revenue growth 5Y14.28%

Sales Q2Q%-5.05%

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 12.18% on average per year.
The Revenue is expected to grow by 6.87% on average over the next years.

EPS Next Y-7.8%

EPS Next 2Y7.35%

EPS Next 3Y11.86%

EPS Next 5Y12.18%

Revenue Next Year-0.59%

Revenue Next 2Y4.91%

Revenue Next 3Y6.6%

Revenue Next 5Y6.87%

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 23.25, the valuation of GNRC can be described as rather expensive.
Based on the Price/Earnings ratio, GNRC is valued cheaper than 83.52% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.32. GNRC is around the same levels.
The Price/Forward Earnings ratio is 20.90, which indicates a rather expensive current 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 82.42% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.32. GNRC is around the same levels.

		Industry Rank	Sector Rank
PE	23.25
Fwd PE	20.9

4.2 Price Multiples

GNRC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GNRC is cheaper than 83.52% of the companies in the same industry.
GNRC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GNRC is cheaper than 87.91% of the companies in the same industry.