We assign a fundamental rating of 6 out of 10 to GNRC. GNRC was compared to 91 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making GNRC a very profitable company, without any liquidiy or solvency issues. 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.
Each year in the past 5 years GNRC has been profitable.
In the past 5 years GNRC always reported a positive cash flow from operatings.

1.2 Ratios

GNRC's Return On Assets of 5.59% is amongst the best of the industry. GNRC outperforms 80.22% of its industry peers.
The Return On Equity of GNRC (11.83%) is better than 83.52% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital 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

With an excellent Profit Margin value of 7.19%, GNRC belongs to the best of the industry, outperforming 80.22% of the companies in the same industry.
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.
GNRC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 39.45%, GNRC belongs to the top 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

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.
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

An Altman-Z score of 4.21 indicates that GNRC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.21, 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 better Debt to FCF ratio (3.35) than 80.22% of its industry peers.
GNRC has a Debt/Equity ratio of 0.53. This is a neutral value indicating GNRC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.53, GNRC is in line with its industry, outperforming 49.45% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.53
Debt/FCF	3.35
Altman-Z	4.21

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.
With a decent Current ratio value of 2.18, GNRC is doing good in the industry, outperforming 65.93% of the companies in the same industry.
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.
The Quick ratio of GNRC (1.02) 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.
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

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.
Based on estimates for the next years, GNRC will show a small growth in Revenue. The Revenue will grow by 6.87% on average per year.

EPS Next Y-7.8%

EPS Next 2Y7.35%

EPS Next 3Y11.86%

EPS Next 5Y12.18%

Revenue Next Year-0.59%

Revenue Next 2Y4.91%

Revenue Next 3Y6.6%

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

A Price/Earnings ratio of 22.95 indicates a rather expensive valuation of GNRC.
83.52% of the companies in the same industry are more expensive than GNRC, based on the Price/Earnings ratio.
GNRC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.62 indicates a rather expensive valuation of GNRC.
82.42% of the companies in the same industry are more expensive than GNRC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, GNRC is valued at the same level.

		Industry Rank	Sector Rank
PE	22.95
Fwd PE	20.62

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.
87.91% of the companies in the same industry are more expensive than GNRC, based on the Price/Free Cash Flow ratio.