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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GNRC has a correct valuation and a medium growth rate. This makes GNRC very considerable for quality investing!

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
GNRC had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

GNRC has a Return On Assets of 5.59%. This is amongst the best in the industry. GNRC outperforms 80.22% of its industry peers.
GNRC's Return On Equity of 11.83% is amongst the best of the industry. GNRC outperforms 83.52% of its industry peers.
GNRC has a better Return On Invested Capital (8.40%) than 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 9.92%.

		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

GNRC has a better Profit Margin (7.19%) than 80.22% of its industry peers.
In the last couple of years the Profit Margin of GNRC has declined.
GNRC's Operating Margin of 11.41% is amongst the best of the industry. GNRC outperforms 81.32% of its industry peers.
GNRC's Operating Margin has declined in the last couple of years.
GNRC has a Gross Margin of 39.45%. This is amongst the best in the industry. GNRC outperforms 89.01% of its industry peers.
GNRC's Gross Margin has been stable in the last couple of years.

		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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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.
Compared to 1 year ago, GNRC has less shares outstanding
Compared to 5 years ago, GNRC has less shares outstanding
The debt/assets ratio for GNRC has been reduced compared to a year ago.

2.2 Solvency

GNRC has an Altman-Z score of 4.21. This indicates that GNRC is financially healthy and has little risk of bankruptcy at the moment.
GNRC has a Altman-Z score of 4.21. This is in the better half of the industry: GNRC outperforms 67.03% of its industry peers.
GNRC has a debt to FCF ratio of 3.35. This is a good value and a sign of high solvency as GNRC would need 3.35 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.35, GNRC belongs to the top of the industry, outperforming 80.22% of the companies in the same industry.
GNRC has a Debt/Equity ratio of 0.53. This is a neutral value indicating GNRC is somewhat dependend on debt financing.
GNRC has a Debt to Equity ratio of 0.53. This is comparable to the rest of the industry: GNRC outperforms 49.45% of its industry peers.

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

ROIC/WACC1

WACC8.37%

2.3 Liquidity

A Current Ratio of 2.18 indicates that GNRC has no problem at all paying its short term obligations.
GNRC's Current ratio of 2.18 is fine compared to the rest of the industry. GNRC outperforms 65.93% of its industry peers.
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.
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

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 15.11% over the past year.
GNRC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.50% yearly.
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.
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

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.
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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

GNRC is valuated rather expensively with a Price/Earnings ratio of 22.95.
GNRC's Price/Earnings ratio is rather cheap when compared to the industry. GNRC is cheaper than 83.52% of the companies in the same industry.
When comparing the Price/Earnings ratio of GNRC to the average of the S&P500 Index (27.21), we can say GNRC is valued inline with the index average.
GNRC is valuated rather expensively with a Price/Forward Earnings ratio of 20.62.
82.42% of the companies in the same industry are more expensive than GNRC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GNRC to the average of the S&P500 Index (24.26), we can say GNRC is valued inline with the index average.

		Industry Rank	Sector Rank
PE	22.95
Fwd PE	20.62

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.
Based on the Price/Free Cash Flow ratio, GNRC is valued cheaper than 87.91% of the companies in the same industry.