10Y annualized return is
very good
at 10.5% per year
GNRC has met or exceeded earnings expectations in
the majority of
recent quarters (8/10)
Reasonable Price-to-Earnings Ratio
Low Price-to-Sales Ratio
Strong Gross Profit Margin
Healthy Return on Equity
Good Liquidity Ratios
Manageable Debt Levels
🏆 Strong Market Leadership
💰 Record Financial Performance
🔄 Diversified Product Offering
🚀 Innovation and Product Development
🌍 Expandable Market Opportunities
High EV/EBITDA Ratio
Elevated Price-to-Cash Flow Ratio
Low Net Profit Margin
Moderate Operating Profit Margin
Low Quick Ratio
Low Cash Ratio
⚠️ Reliance on Power Outage Events
📉 Variability in C&I Markets
🔮 Uncertain Policy Environment
📉 Anticipated Decline in C&I Products
Generac Holdings Inc. demonstrates strong business quality through its market leadership and financial performance, but faces challenges related to reliance on power outages and variability in the C&I market. Future prospects are bolstered by innovation and market expansion opportunities, yet uncertainties in policy and C&I demand could pose risks.
Analysis Date: February 12, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Generac Holdings Inc. is a company that makes equipment to provide power when there is none. They create generators that can keep your home or business running during a power outage. Their products include small portable generators for camping, larger standby generators that automatically kick in when the power goes out, and energy storage systems that help you save power. Founded in 1959 and based in Wisconsin, Generac also sells outdoor power tools like lawn mowers and pressure washers.
Streams of revenue
Estimations for reference only
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$132.97
Current Market Price: $112.79
IV/P Ratio: 1.18x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
15.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for GNRC
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (21.09)
P/B ratio ≤ 1.5 (2.65)
Current ratio ≥ 2.0 (1.97x)
Long-term debt < Net current assets (1.35x)
Margin of safety (15.0%)
GNRC does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
13.01%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
38.20%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
7.30%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
With a gross profit margin of 38.20%, GNRC demonstrates efficient production and strong pricing power.
A return on equity of 13.01% indicates that the company is effectively generating profit from shareholders' equity.
The net profit margin of 7.30% suggests that the company retains a smaller portion of revenue as profit, which could be a concern if it continues to decrease.
An operating profit margin of 12.52% indicates that while the company is profitable, there may be room for improvement in operational efficiency.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.59x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.97x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
A current ratio of 1.97 indicates that GNRC has enough current assets to cover its current liabilities, suggesting good liquidity.
With a debt-to-equity ratio of 0.59, the company maintains a healthy balance of debt relative to its equity, indicating lower financial risk.
The quick ratio of 0.97 indicates that the company may face challenges in covering short-term liabilities without selling inventory.
The cash ratio of 0.27 suggests limited cash resources to handle immediate obligations, which could pose liquidity risks.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Generac Holdings Inc. holds a market share above 70% in the home standby generator category, positioning it as a clear leader in a growing market. The company's ability to capitalize on the increasing demand for home standby generators amidst power outages reflects its strong competitive advantage.
The company achieved a record free cash flow generation of $605 million, indicating strong operational efficiency and financial health. This performance supports future investments and growth initiatives.
Generac's strategy includes expanding into residential energy technology products such as energy storage systems and smart thermostats, which aligns with the megatrends of energy management and resiliency.
The growth in demand for generators is significantly tied to power outage events. If such events do not occur at historical rates, it could impact sales negatively, as seen in the guidance for 2025 which does not assume major power outage events.
Commercial and Industrial (C&I) product sales showed mixed performance, with some segments experiencing declines. The company anticipates flat growth in the C&I segment for 2025, indicating potential challenges in this area.
Generac is set to launch a next-generation home standby generator line that incorporates advanced technologies, which is expected to improve market competitiveness and capture a larger share of new customers.
The company sees a significant penetration opportunity in the home standby market, with only 6.5% of the addressable market currently equipped with standby generators. This presents a large growth potential moving forward.
The potential for changes in government policy and funding, particularly regarding clean energy initiatives, poses a risk to growth in the energy technology segment, which is critical for future expansion.
The company expects a decline in the C&I products segment due to ongoing economic uncertainties and high interest rates, which may impact capital spending by customers.