We assign a fundamental rating of 6 out of 10 to GNRC. GNRC was compared to 91 industry peers in the Electrical Equipment industry. GNRC gets an excellent profitability rating and is at the same time showing great financial health properties. GNRC has a decent growth rate and is not valued too expensively. This makes GNRC very considerable 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.
In the past 5 years GNRC has always been profitable.
GNRC had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 5.59%, GNRC belongs to the top of the industry, outperforming 80.22% of the companies in the same industry.
With an excellent Return On Equity value of 11.83%, GNRC belongs to the best of the industry, outperforming 83.52% of the companies in the same industry.
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

GNRC has a Profit Margin of 7.19%. This is amongst the best in the industry. GNRC outperforms 80.22% of its industry peers.
In the last couple of years the Profit Margin of GNRC has declined.
The Operating Margin of GNRC (11.41%) is better than 81.32% of its industry peers.
In the last couple of years the Operating Margin of GNRC has declined.
With an excellent Gross Margin value of 39.45%, GNRC belongs to the best of the industry, outperforming 89.01% of the companies in the same industry.
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	11.41%
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.
Compared to 1 year ago, GNRC has less shares outstanding
Compared to 5 years ago, GNRC has less shares outstanding
GNRC has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 4.18 indicates that GNRC is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.18, GNRC is doing good in the industry, outperforming 67.03% of the companies in the same industry.
GNRC has a debt to FCF ratio of 3.35. This is a good value and a sign of high solvency as GNRC would need 3.35 years to pay back of all of its debts.
GNRC has a Debt to FCF ratio of 3.35. This is amongst the best in the industry. GNRC outperforms 80.22% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that GNRC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, GNRC perfoms like the industry average, outperforming 49.45% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.53
Debt/FCF	3.35
Altman-Z	4.18

ROIC/WACC1.01

WACC8.35%

2.3 Liquidity

A Current Ratio of 2.18 indicates that GNRC has no problem at all paying its short term obligations.
GNRC's Current ratio of 2.18 is fine compared to the rest of the industry. GNRC outperforms 65.93% of its industry peers.
GNRC has a Quick Ratio of 1.02. This is a normal value and indicates that GNRC is financially healthy and should not expect problems in meeting its short term obligations.
GNRC has a Quick ratio (1.02) which is in line with its industry peers.

		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

The Earnings Per Share has grown by an nice 15.11% 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 7.50% on average per year.
Looking at the last year, GNRC shows a small growth in Revenue. The Revenue has grown by 5.52% in the last year.
The Revenue has been growing by 14.28% on average over the past years. This is quite good.

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

The Earnings Per Share is expected to grow by 12.18% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.87% on average over the next years.

EPS Next Y-8.31%

EPS Next 2Y6.69%

EPS Next 3Y11.51%

EPS Next 5Y12.18%

Revenue Next Year-0.59%

Revenue Next 2Y4.8%

Revenue Next 3Y6.52%

Revenue Next 5Y6.87%

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.

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4. Valuation

4.1 Price/Earnings Ratio

GNRC is valuated rather expensively with a Price/Earnings ratio of 22.95.
Based on the Price/Earnings ratio, GNRC is valued cheaply inside the industry as 83.52% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GNRC to the average of the S&P500 Index (27.21), we can say GNRC is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 20.88, the valuation of GNRC can be described as rather expensive.
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.
When comparing the Price/Forward Earnings ratio of GNRC to the average of the S&P500 Index (25.98), we can say GNRC is valued inline with the index average.

		Industry Rank	Sector Rank
PE	22.95
Fwd PE	20.88

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GNRC is valued cheaper than 83.52% 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 86.81% of the companies listed in the same industry.