GNRC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 91 industry peers in the Electrical Equipment industry. GNRC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GNRC has a decent growth rate and is not valued too expensively. 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.
GNRC had a positive operating cash flow in the past year.
In the past 5 years GNRC has always been profitable.
Each year in the past 5 years GNRC had a positive operating cash flow.

1.2 Ratios

With an excellent Return On Assets value of 5.59%, GNRC belongs to the best 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 better Return On Invested Capital (8.40%) than 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

The Profit Margin of GNRC (7.19%) is better than 80.22% of its industry peers.
GNRC's Profit Margin has declined in the last couple of years.
GNRC has a Operating Margin of 11.41%. This is amongst the best in the industry. GNRC outperforms 81.32% of its industry peers.
GNRC's Operating Margin has declined in the last couple of years.
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

GNRC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
GNRC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GNRC has been reduced compared to 5 years ago.
GNRC has a better debt/assets ratio than last year.

2.2 Solvency

GNRC has an Altman-Z score of 4.11. This indicates that GNRC is financially healthy and has little risk of bankruptcy at the moment.
GNRC has a Altman-Z score of 4.11. This is in the better half of the industry: GNRC outperforms 67.03% 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	4.11

ROIC/WACC1.01

WACC8.33%

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 has a Current ratio of 2.18. This is in the better half of the industry: GNRC outperforms 65.93% 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 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

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

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

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 22.61 indicates a rather expensive valuation of GNRC.
84.62% of the companies in the same industry are more expensive than GNRC, based on the Price/Earnings ratio.
GNRC is valuated rather cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
GNRC is valuated rather expensively with a Price/Forward Earnings ratio of 20.57.
GNRC's Price/Forward Earnings ratio is rather cheap when compared to the industry. GNRC is cheaper than 82.42% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, GNRC is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	22.61
Fwd PE	20.57

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GNRC is valued cheaply inside the industry as 83.52% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GNRC is valued cheaply inside the industry as 87.91% of the companies are valued more expensively.