GENERAC HOLDINGS INC (GNRC)
US3687361044 - Common Stock
We assign a fundamental rating of 6 out of 10 to GNRC. GNRC was compared to 90 industry peers in the Electrical Equipment industry. GNRC scores excellent on profitability, but there are some minor concerns on its financial health. GNRC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
GNRC had positive earnings in the past year.
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
With an excellent Return On Assets value of 5.64%, GNRC belongs to the best of the industry, outperforming 83.15% of the companies in the same industry.
GNRC has a better Return On Equity (12.13%) than 85.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.99%, GNRC belongs to the top of the industry, outperforming 85.39% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GNRC is in line with the industry average of 9.55%.
| 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 has a better Profit Margin (7.09%) than 82.02% of its industry peers.
In the last couple of years the Profit Margin of GNRC has declined.
With an excellent Operating Margin value of 11.88%, GNRC belongs to the best of the industry, outperforming 83.15% of the companies in the same industry.
In the last couple of years the Operating Margin of GNRC has declined.
The Gross Margin of GNRC (37.65%) is better than 88.76% 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.
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 is higher compared to a year ago.
2.2 Solvency
GNRC has an Altman-Z score of 4.44. This indicates that GNRC is financially healthy and has little risk of bankruptcy at the moment.
GNRC has a better Altman-Z score (4.44) than 79.78% 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.
GNRC has a better Debt to FCF ratio (2.61) than 80.90% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that GNRC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.59, GNRC is in line with its industry, outperforming 41.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.61 | ||
| Altman-Z | 4.44 |
ROIC/WACC0.93
WACC9.69%
2.3 Liquidity
A Current Ratio of 2.03 indicates that GNRC has no problem at all paying its short term obligations.
GNRC has a Current ratio of 2.03. This is comparable to the rest of the industry: GNRC outperforms 52.81% of its industry peers.
GNRC has a Quick Ratio of 2.03. This is a bad value and indicates that GNRC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.96, GNRC is doing worse than 62.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.68% over the past year.
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.
Looking at the last year, GNRC shows a small growth in Revenue. The Revenue has grown by 2.91% in the last 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
GNRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.48% yearly.
Based on estimates for the next years, GNRC will show a quite strong growth in Revenue. The Revenue will grow by 8.23% on average per year.
EPS Next Y31.16%
EPS Next 2Y25.13%
EPS Next 3Y22.34%
EPS Next 5Y19.48%
Revenue Next Year6.17%
Revenue Next 2Y7.39%
Revenue Next 3Y7.95%
Revenue Next 5Y8.23%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.87 indicates a quite expensive valuation of GNRC.
74.16% of the companies in the same industry are more expensive than GNRC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.20. GNRC is around the same levels.
GNRC is valuated rather expensively with a Price/Forward Earnings ratio of 22.28.
Based on the Price/Forward Earnings ratio, GNRC is valued a bit cheaper than the industry average as 78.65% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, GNRC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.87 | ||
| Fwd PE | 22.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GNRC indicates a somewhat cheap valuation: GNRC is cheaper than 78.65% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GNRC is valued cheaply inside the industry as 84.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.26 | ||
| EV/EBITDA | 18.42 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of GNRC may justify a higher PE ratio.
A more expensive valuation may be justified as GNRC's earnings are expected to grow with 22.34% in the coming years.
PEG (NY)0.93
PEG (5Y)9.98
EPS Next 2Y25.13%
EPS Next 3Y22.34%
5. Dividend
5.1 Amount
No dividends for GNRC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GENERAC HOLDINGS INC
NYSE:GNRC (11/22/2024, 7:00:00 PM)
After market: 189.08 0 (0%)189.08
+5.56 (+3.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.25B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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EPS NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.87 | ||
| Fwd PE | 22.28 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.93
PEG (5Y)9.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 12.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.88% | ||
| PM (TTM) | 7.09% | ||
| GM | 37.65% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.03 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)27.68%
EPS 3Y-5.73%
EPS 5Y
EPS Q2Q%
EPS Next Y31.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.91%
Revenue growth 3Y17.41%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y