GENERAC HOLDINGS INC (GNRC) Stock Fundamental Analysis
NYSE:GNRC - New York Stock Exchange, Inc. - US3687361044 - Common Stock - Currency: USD
Taking everything into account, GNRC scores 7 out of 10 in our fundamental rating. GNRC was compared to 94 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. This makes GNRC very considerable 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 Return On Assets of 6.83%. This is amongst the best in the industry. GNRC outperforms 85.11% of its industry peers.
With an excellent Return On Equity value of 13.99%, GNRC belongs to the best of the industry, outperforming 85.11% of the companies in the same industry.
GNRC has a better Return On Invested Capital (10.25%) than 84.04% 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 9.89%.
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
Looking at the Profit Margin, with a value of 7.95%, GNRC belongs to the top of the industry, outperforming 85.11% of the companies in the same industry.
In the last couple of years the Profit Margin of GNRC has declined.
Looking at the Operating Margin, with a value of 12.73%, GNRC belongs to the top of the industry, outperforming 84.04% of the companies in the same industry.
GNRC's Operating Margin has declined in the last couple of years.
GNRC has a Gross Margin of 39.58%. This is amongst the best in the industry. GNRC outperforms 90.43% 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 | 12.73% | ||
| 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 4.34 indicates that GNRC is not in any danger for bankruptcy at the moment.
The Altman-Z score of GNRC (4.34) is better than 75.53% 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 amongst the best in the industry. GNRC outperforms 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 has a Debt to Equity ratio of 0.51. This is comparable 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 | 4.34 |
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.
Looking at the Current ratio, with a value of 1.97, GNRC is in line with its industry, outperforming 51.06% of the companies in the same industry.
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.
GNRC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.07%.
The Revenue has been growing by 14.28% on average over the past years. This is quite good.
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
GNRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.11% yearly.
The Revenue is expected to grow by 6.00% on average over the next years.
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
Based on the Price/Earnings ratio of 19.89, the valuation of GNRC can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of GNRC indicates a rather cheap valuation: GNRC is cheaper than 84.04% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. GNRC is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 17.68 indicates a rather expensive valuation of GNRC.
Based on the Price/Forward Earnings ratio, GNRC is valued a bit cheaper than 79.79% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. GNRC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.89 | ||
| Fwd PE | 17.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GNRC is valued cheaper than 82.98% of the companies 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 | 16.47 | ||
| EV/EBITDA | 13.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of GNRC may justify a higher PE ratio.
PEG (NY)5.22
PEG (5Y)2.65
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 |
152.37
+1.75 (+1.16%)
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 Cap9.00B
Analysts78.67
Price Target156 (2.38%)
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 | 19.89 | ||
| Fwd PE | 17.68 | ||
| P/S | 2.07 | ||
| P/FCF | 16.47 | ||
| P/OCF | 13.09 | ||
| P/B | 3.65 | ||
| P/tB | 31.63 | ||
| EV/EBITDA | 13.82 |
EPS(TTM)7.66
EY5.03%
EPS(NY)8.62
Fwd EY5.66%
FCF(TTM)9.25
FCFY6.07%
OCF(TTM)11.64
OCFY7.64%
SpS73.61
BVpS41.79
TBVpS4.82
PEG (NY)5.22
PEG (5Y)2.65
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 | 4.34 |
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%