Generac Holdings Inc. Fundamental Analysis
Generac Holdings Inc. (GNRC) shows weak financial fundamentals with a PE ratio of 73.91, profit margin of 4.37%, and ROE of 7.18%. The company generates $4.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GNRC's fundamental strength across five key dimensions:
Efficiency Score
WeakGNRC struggles to generate sufficient returns from assets.
Valuation Score
ModerateGNRC shows balanced valuation metrics.
Growth Score
ModerateGNRC shows steady but slowing expansion.
Financial Health Score
ExcellentGNRC maintains a strong and stable balance sheet.
Profitability Score
WeakGNRC struggles to sustain strong margins.
Key Financial Metrics
Is GNRC Expensive or Cheap?
P/E Ratio
GNRC trades at 73.91 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GNRC's PEG of -1.67 indicates potential undervaluation.
Price to Book
The market values Generac Holdings Inc. at 5.22 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 28.20 times EBITDA. This signals the market has high growth expectations.
How Well Does GNRC Make Money?
Net Profit Margin
For every $100 in sales, Generac Holdings Inc. keeps $4.37 as profit after all expenses.
Operating Margin
Core operations generate 7.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.18 in profit for every $100 of shareholder equity.
ROA
Generac Holdings Inc. generates $3.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Generac Holdings Inc. produces operating cash flow of $503.01M, showing steady but balanced cash generation.
Free Cash Flow
Generac Holdings Inc. produces free cash flow of $422.73M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $7.18 in free cash annually.
FCF Yield
GNRC converts 2.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
73.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.25
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.49
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How GNRC Stacks Against Its Sector Peers
| Metric | GNRC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 73.91 | 33.17 | Worse (Expensive) |
| ROE | 7.18% | 1178.00% | Weak |
| Net Margin | 4.37% | -29242.00% (disorted) | Weak |
| Debt/Equity | 0.49 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 2.03 | 25.78 | Strong Liquidity |
| ROA | 3.38% | -1368598.00% (disorted) | Weak |
GNRC outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Generac Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure