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 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. These ratings would make GNRC suitable for quality investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
Each year in the past 5 years GNRC had a positive operating cash flow.

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.
GNRC's Return On Equity of 11.83% is amongst the best of the industry. GNRC outperforms 83.52% of its industry peers.
GNRC's Return On Invested Capital of 8.40% is amongst the best of the industry. GNRC outperforms 80.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GNRC 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 has a better Profit Margin (7.19%) than 79.12% of its industry peers.
GNRC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 11.41%, GNRC belongs to the top of the industry, outperforming 81.32% of the companies in the same industry.
GNRC's Operating Margin has declined in the last couple of years.
The Gross Margin of GNRC (39.45%) is better than 89.01% 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	11.41%
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
The number of shares outstanding for GNRC has been reduced compared to 5 years ago.
The debt/assets ratio for GNRC has been reduced compared to a year ago.

2.2 Solvency

GNRC has an Altman-Z score of 4.12. 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 4.12, GNRC is in the better half of the industry, outperforming 67.03% of the companies in the same industry.
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.
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.
GNRC has a Debt to Equity ratio (0.53) which is in line with its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.53
Debt/FCF	3.35
Altman-Z	4.12

ROIC/WACC1

WACC8.36%

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.
GNRC's Current ratio of 2.18 is fine compared to the rest of the industry. GNRC outperforms 64.84% of its industry peers.
A Quick Ratio of 1.02 indicates that GNRC should not have too much problems paying its short term obligations.
GNRC has a Quick ratio (1.02) which is comparable to the rest of the industry.

		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.
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.
The Revenue has been growing slightly by 5.52% in the past year.
GNRC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.28% yearly.

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

Based on estimates for the next years, GNRC will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.18% on average per year.
GNRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.87% yearly.

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

The Price/Earnings ratio is 22.29, which indicates a rather expensive current valuation of GNRC.
Based on the Price/Earnings ratio, GNRC is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
GNRC is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.28, 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 83.52% 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 (25.57), we can say GNRC is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	22.29
Fwd PE	20.28

4.2 Price Multiples

GNRC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GNRC is 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 87.91% of the companies listed in the same industry.