Overall GNRC gets a fundamental rating of 6 out of 10. We evaluated GNRC against 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 correct valuation and a medium growth rate. 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.
In the past year GNRC had a positive cash flow from operations.
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 is in the better half of the industry, outperforming 79.12% 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.
GNRC had an Average Return On Invested Capital over the past 3 years of 8.99%. This is in line with the industry average of 9.88%.

		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's Profit Margin of 7.19% is fine compared to the rest of the industry. GNRC outperforms 79.12% of its industry peers.
GNRC's Profit Margin has declined in the last couple of years.
GNRC has a better Operating Margin (11.41%) 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.
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 better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 4.14 indicates that GNRC is not in any danger for bankruptcy at the moment.
GNRC has a Altman-Z score of 4.14. This is in the better half of the industry: GNRC outperforms 69.23% 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.
With an excellent Debt to FCF ratio value of 3.35, GNRC belongs to the best of the industry, outperforming 80.22% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that GNRC is somewhat dependend on debt financing.
GNRC has a Debt to Equity ratio (0.53) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.53
Debt/FCF	3.35
Altman-Z	4.14

ROIC/WACC1.01

WACC8.34%

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.
Looking at the Current ratio, with a value of 2.18, GNRC is in the better half of the industry, outperforming 64.84% of the companies in the same industry.
A Quick Ratio of 1.02 indicates that GNRC should not have too much problems paying its short term obligations.
GNRC's Quick ratio of 1.02 is in line compared to the rest of the industry. GNRC outperforms 46.15% of 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

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.
The Earnings Per Share has been growing slightly by 7.50% on average over the past years.
GNRC shows a small growth in Revenue. In the last year, the Revenue has grown by 5.52%.
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

GNRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.18% yearly.
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

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

GNRC is valuated rather expensively with a Price/Earnings ratio of 22.29.
84.62% of the companies in the same industry are more expensive than GNRC, based on the Price/Earnings ratio.
GNRC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.30.
A Price/Forward Earnings ratio of 20.28 indicates a rather expensive valuation of GNRC.
Based on the Price/Forward Earnings ratio, GNRC is valued cheaper than 82.42% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.57. GNRC is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	22.29
Fwd PE	20.28

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GNRC indicates a rather cheap valuation: GNRC is cheaper than 83.52% of the companies listed 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 87.91% of the companies listed in the same industry.