GENERAC HOLDINGS INC (GNRC) Stock Fundamental Analysis
NYSE:GNRC - New York Stock Exchange, Inc. - US3687361044 - Common Stock - Currency: USD
GNRC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 93 industry peers in the Electrical Equipment industry. GNRC scores excellent on profitability, but there are some minor concerns on its financial health. GNRC may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, GNRC could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
GNRC had positive earnings in the past year.
In the past year GNRC had a positive cash flow from operations.
Each year in the past 5 years GNRC has been profitable.
GNRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
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 has a Return On Equity of 12.13%. This is amongst the best in the industry. GNRC outperforms 85.87% of its industry peers.
GNRC's Return On Invested Capital of 8.99% is amongst the best of the industry. GNRC outperforms 84.78% of its industry peers.
GNRC had an Average Return On Invested Capital over the past 3 years of 10.87%. This is in line with the industry average of 10.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 12.13% | ||
| ROIC | 8.99% |
ROA(3y)7.23%
ROA(5y)8.4%
ROE(3y)16.1%
ROE(5y)19.59%
ROIC(3y)10.87%
ROIC(5y)11.94%
1.3 Margins
GNRC has a better Profit Margin (7.09%) than 81.52% of its industry peers.
In the last couple of years the Profit Margin of GNRC has declined.
With an excellent Operating Margin value of 11.88%, GNRC belongs to the best of the industry, outperforming 81.52% of the companies in the same industry.
In the last couple of years the Operating Margin of GNRC has declined.
GNRC has a Gross Margin of 37.65%. This is amongst the best in the industry. GNRC outperforms 86.96% 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 | 11.88% | ||
| PM (TTM) | 7.09% | ||
| GM | 37.65% |
OM growth 3Y-20.7%
OM growth 5Y-11.44%
PM growth 3Y-28.91%
PM growth 5Y-14.25%
GM growth 3Y-4.14%
GM growth 5Y-1.08%
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.
GNRC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GNRC is higher compared to a year ago.
2.2 Solvency
GNRC has an Altman-Z score of 3.91. This indicates that GNRC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.91, GNRC is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
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 a decent Debt to FCF ratio value of 2.61, GNRC is doing good in the industry, outperforming 78.26% of the companies in the same industry.
GNRC has a Debt/Equity ratio of 0.59. This is a neutral value indicating GNRC is somewhat dependend on debt financing.
The Debt to Equity ratio of GNRC (0.59) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.61 | ||
| Altman-Z | 3.91 |
ROIC/WACC1.07
WACC8.41%
2.3 Liquidity
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.
Looking at the Current ratio, with a value of 2.03, GNRC is in line with its industry, outperforming 55.43% of the companies in the same industry.
GNRC has a Quick Ratio of 2.03. 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's Quick ratio of 0.96 is on the low side compared to the rest of the industry. GNRC is outperformed by 61.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.68% over the past year.
Measured over the past 5 years, GNRC shows a small growth in Earnings Per Share. The EPS has been growing by 2.89% on average per year.
GNRC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.91%.
Measured over the past years, GNRC shows a quite strong growth in Revenue. The Revenue has been growing by 14.73% on average per year.
EPS 1Y (TTM)27.68%
EPS 3Y-5.73%
EPS 5Y2.89%
EPS Q2Q%37.2%
Revenue 1Y (TTM)2.91%
Revenue growth 3Y17.41%
Revenue growth 5Y14.73%
Sales Q2Q%9.61%
3.2 Future
The Earnings Per Share is expected to grow by 17.75% on average over the next years. This is quite good.
Based on estimates for the next years, GNRC will show a small growth in Revenue. The Revenue will grow by 7.75% on average per year.
EPS Next Y31.77%
EPS Next 2Y24.25%
EPS Next 3Y21.09%
EPS Next 5Y17.75%
Revenue Next Year6.29%
Revenue Next 2Y7.05%
Revenue Next 3Y7.53%
Revenue Next 5Y7.75%
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.
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 21.64, the valuation of GNRC can be described as rather expensive.
Based on the Price/Earnings ratio, GNRC is valued a bit cheaper than the industry average as 79.35% of the companies are valued more expensively.
GNRC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.39.
A Price/Forward Earnings ratio of 16.94 indicates a correct valuation of GNRC.
GNRC's Price/Forward Earnings ratio is rather cheap when compared to the industry. GNRC is cheaper than 80.43% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 94.38, GNRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.64 | ||
| Fwd PE | 16.94 |
4.2 Price Multiples
GNRC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GNRC is cheaper than 80.43% 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 89.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.44 | ||
| EV/EBITDA | 14.65 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of GNRC 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.
PEG (NY)0.68
PEG (5Y)7.48
EPS Next 2Y24.25%
EPS Next 3Y21.09%
5. Dividend
5.1 Amount
No dividends for GNRC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GENERAC HOLDINGS INC
NYSE:GNRC (2/11/2025, 8:04:00 PM)
After market: 144 +2.26 (+1.59%)141.74
-3.33 (-2.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners92.52%
Inst Owner Change-26.48%
Ins Owners1.68%
Ins Owner Change-0.88%
Market Cap8.43B
Analysts71.88
Price Target180.67 (27.47%)
Short Float %4.45%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)12.54%
Min EPS beat(2)11.87%
Max EPS beat(2)13.21%
EPS beat(4)3
Avg EPS beat(4)10.69%
Min EPS beat(4)-2.6%
Max EPS beat(4)20.27%
EPS beat(8)5
Avg EPS beat(8)8.5%
EPS beat(12)8
Avg EPS beat(12)6.66%
EPS beat(16)11
Avg EPS beat(16)6.97%
Revenue beat(2)0
Avg Revenue beat(2)-1.55%
Min Revenue beat(2)-2.14%
Max Revenue beat(2)-0.97%
Revenue beat(4)0
Avg Revenue beat(4)-2.33%
Min Revenue beat(4)-4.69%
Max Revenue beat(4)-0.97%
Revenue beat(8)3
Avg Revenue beat(8)-1.05%
Revenue beat(12)6
Avg Revenue beat(12)-0.85%
Revenue beat(16)9
Avg Revenue beat(16)0.07%
PT rev (1m)-0.57%
PT rev (3m)9.56%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)16.02%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)6.78%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)7.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.64 | ||
| Fwd PE | 16.94 | ||
| P/S | 2.04 | ||
| P/FCF | 14.44 | ||
| P/OCF | 11.73 | ||
| P/B | 3.5 | ||
| P/tB | 50.9 | ||
| EV/EBITDA | 14.65 |
EPS(TTM)6.55
EY4.62%
EPS(NY)8.37
Fwd EY5.9%
FCF(TTM)9.82
FCFY6.93%
OCF(TTM)12.08
OCFY8.52%
SpS69.32
BVpS40.49
TBVpS2.78
PEG (NY)0.68
PEG (5Y)7.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 12.13% | ||
| ROCE | 11.76% | ||
| ROIC | 8.99% | ||
| ROICexc | 9.46% | ||
| ROICexgc | 21.43% | ||
| OM | 11.88% | ||
| PM (TTM) | 7.09% | ||
| GM | 37.65% | ||
| FCFM | 14.16% |
ROA(3y)7.23%
ROA(5y)8.4%
ROE(3y)16.1%
ROE(5y)19.59%
ROIC(3y)10.87%
ROIC(5y)11.94%
ROICexc(3y)11.3%
ROICexc(5y)13.57%
ROICexgc(3y)29.91%
ROICexgc(5y)34.1%
ROCE(3y)14.24%
ROCE(5y)15.67%
ROICexcg growth 3Y-28.24%
ROICexcg growth 5Y-16.62%
ROICexc growth 3Y-26.94%
ROICexc growth 5Y-14.91%
OM growth 3Y-20.7%
OM growth 5Y-11.44%
PM growth 3Y-28.91%
PM growth 5Y-14.25%
GM growth 3Y-4.14%
GM growth 5Y-1.08%
F-Score8
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.61 | ||
| Debt/EBITDA | 2.16 | ||
| Cap/Depr | 79.08% | ||
| Cap/Sales | 3.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.82% | ||
| Profit Quality | 199.77% | ||
| Current Ratio | 2.03 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 3.91 |
F-Score8
WACC8.41%
ROIC/WACC1.07
Cap/Depr(3y)84.03%
Cap/Depr(5y)88.44%
Cap/Sales(3y)2.68%
Cap/Sales(5y)2.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.68%
EPS 3Y-5.73%
EPS 5Y2.89%
EPS Q2Q%37.2%
EPS Next Y31.77%
EPS Next 2Y24.25%
EPS Next 3Y21.09%
EPS Next 5Y17.75%
Revenue 1Y (TTM)2.91%
Revenue growth 3Y17.41%
Revenue growth 5Y14.73%
Sales Q2Q%9.61%
Revenue Next Year6.29%
Revenue Next 2Y7.05%
Revenue Next 3Y7.53%
Revenue Next 5Y7.75%
EBIT growth 1Y42.52%
EBIT growth 3Y-6.9%
EBIT growth 5Y1.6%
EBIT Next Year75.74%
EBIT Next 3Y30.8%
EBIT Next 5Y25.14%
FCF growth 1Y960.36%
FCF growth 3Y-2.56%
FCF growth 5Y14.49%
OCF growth 1Y3595.97%
OCF growth 3Y2.35%
OCF growth 5Y16.11%