GENERAC HOLDINGS INC (GNRC)
US3687361044 - Common Stock
GNRC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 88 industry peers in the Electrical Equipment industry. GNRC has an excellent profitability rating, but there are some minor concerns on its financial health. GNRC has a decent growth rate and is not valued too expensively.
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.
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
With an excellent Return On Assets value of 5.64%, GNRC belongs to the best of the industry, outperforming 84.09% of the companies in the same industry.
The Return On Equity of GNRC (12.13%) is better than 86.36% of its industry peers.
The Return On Invested Capital of GNRC (8.99%) is better than 85.23% 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 9.38%.
| 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's Profit Margin of 7.09% is amongst the best of the industry. GNRC outperforms 81.82% of its industry peers.
GNRC's Profit Margin has declined in the last couple of years.
The Operating Margin of GNRC (11.88%) is better than 81.82% of its industry peers.
GNRC's Operating Margin has declined in the last couple of years.
GNRC has a better Gross Margin (37.65%) than 87.50% of its industry peers.
GNRC's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GNRC is still creating some value.
GNRC has less shares outstanding than it did 1 year ago.
GNRC has less shares outstanding than it did 5 years ago.
GNRC has a worse debt/assets ratio than last year.
2.2 Solvency
GNRC has an Altman-Z score of 4.07. This indicates that GNRC is financially healthy and has little risk of bankruptcy at the moment.
GNRC has a better Altman-Z score (4.07) than 79.55% 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 80.68% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that GNRC is somewhat dependend on debt financing.
GNRC's Debt to Equity ratio of 0.59 is on the low side compared to the rest of the industry. GNRC is outperformed by 61.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.61 | ||
| Altman-Z | 4.07 |
ROIC/WACC0.89
WACC10.06%
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.
GNRC's Current ratio of 2.03 is in line compared to the rest of the industry. GNRC outperforms 53.41% of its industry peers.
A Quick Ratio of 0.96 indicates that GNRC may have some problems paying its short term obligations.
GNRC has a worse Quick ratio (0.96) than 64.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
GNRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.68%, which is quite impressive.
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.
The Revenue has been growing slightly by 2.91% in the past year.
The Revenue has been growing by 14.73% on average over the past years. This is quite good.
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.
GNRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.75% yearly.
EPS Next Y31.83%
EPS Next 2Y24.78%
EPS Next 3Y21.46%
EPS Next 5Y17.75%
Revenue Next Year6.29%
Revenue Next 2Y7.28%
Revenue Next 3Y7.64%
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
With a Price/Earnings ratio of 23.82, GNRC is valued on the expensive side.
Based on the Price/Earnings ratio, GNRC is valued a bit cheaper than the industry average as 76.14% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.55. GNRC is around the same levels.
Based on the Price/Forward Earnings ratio of 18.49, the valuation of GNRC can be described as rather expensive.
Based on the Price/Forward Earnings ratio, GNRC is valued cheaper than 80.68% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GNRC to the average of the S&P500 Index (24.00), we can say GNRC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.82 | ||
| Fwd PE | 18.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GNRC is valued a bit cheaper than the industry average as 78.41% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GNRC is valued cheaply inside the industry as 85.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.89 | ||
| EV/EBITDA | 15.82 |
4.3 Compensation for Growth
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 21.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)8.24
EPS Next 2Y24.78%
EPS Next 3Y21.46%
5. Dividend
5.1 Amount
No dividends for GNRC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GENERAC HOLDINGS INC
NYSE:GNRC (12/26/2024, 6:12:50 PM)
After market: 156 -0.02 (-0.01%)156.02
+1.32 (+0.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners92.52%
Inst Owner Change-0.73%
Ins Owners1.68%
Ins Owner Change-1.18%
Market Cap9.28B
Analysts72.9
Price Target180.33 (15.58%)
Short Float %4.48%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)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)9.36%
PT rev (3m)12.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)15.75%
EPS NY rev (1m)0.51%
EPS NY rev (3m)7.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.19%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.82 | ||
| Fwd PE | 18.49 | ||
| P/S | 2.25 | ||
| P/FCF | 15.89 | ||
| P/OCF | 12.91 | ||
| P/B | 3.85 | ||
| P/tB | 56.03 | ||
| EV/EBITDA | 15.82 |
EPS(TTM)6.55
EY4.2%
EPS(NY)8.44
Fwd EY5.41%
FCF(TTM)9.82
FCFY6.29%
OCF(TTM)12.08
OCFY7.74%
SpS69.32
BVpS40.49
TBVpS2.78
PEG (NY)0.75
PEG (5Y)8.24
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 | 4.07 |
F-Score8
WACC10.06%
ROIC/WACC0.89
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 Y31.83%
EPS Next 2Y24.78%
EPS Next 3Y21.46%
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 2Y7.28%
Revenue Next 3Y7.64%
Revenue Next 5Y7.75%
EBIT growth 1Y42.52%
EBIT growth 3Y-6.9%
EBIT growth 5Y1.6%
EBIT Next Year75.67%
EBIT Next 3Y31.58%
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%