Generac (GNRC)
Industrials · $12.2B market cap · SEC CIK 0001474735
fundamentals score out of 100
Next reports on Oct 27, 2026, before the open, with analysts expecting $2.48 in earnings per share.
The case for GNRC
- Has compounded revenue at 11.1% a year over five years.
- Current assets cover the near-term bills 2.0 times over.
The case against
- Earnings per share down 25.6%.
- Pricey at 47.2× earnings, against a long-run market average nearer 20×.
- Swings harder than the market (beta 1.90).
- Revenue was flat on the year (+0.6%).
- Return on equity of 10% is lower than 89% of Industrials companies.
- The price trend is weak (40/100): +12.4% over a year, -26.6% over three months, 44% of the way up its 52-week range.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 31 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 38 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 34 |
| Momentumhow the price has behaved lately | 40 |
| Stabilityhow violently it moves, what it owes and what it pays you | 25 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
Key numbers
| Price / earnings | 47.2× |
|---|---|
| Price / book | 5.99× |
| Price / sales | 2.7× |
| Revenue growth (YoY) | +0.6% |
| EPS growth (YoY) | -25.6% |
| Gross margin | 40% |
| Operating margin | 9% |
| Net margin | 6% |
| Return on equity | 10% |
| Debt / equity | 0.46× |
| Current ratio | 2.04 |
| Dividend yield | none |
| Beta | 1.90 |
| 52-week range | $134.80 – $296.44 |
| Position in that range | 44% of the way up |
| 3-month return | -26.6% |
| 1-year return | +12.4% |
Five years of financials, as filed
Pulled from Generac's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $4.2B | $4.3B | $4.0B | $4.6B | $3.7B |
| Gross profit | $1.6B | $1.7B | $1.4B | $1.5B | $1.4B |
| Operating income | $289M | $537M | $386M | $566M | $721M |
| Net income | $161M | $317M | $217M | $409M | $557M |
| Operating cash flow | $438M | $741M | $522M | $58.5M | $411M |
| Capital expenditure | $170M | $137M | $129M | $86.2M | $110M |
| Total assets | $5.6B | $5.1B | $5.1B | $5.2B | $4.9B |
| Total liabilities | $2.9B | $2.6B | $2.7B | $2.8B | $2.6B |
| Shareholder equity | $2.6B | $2.5B | $2.3B | $2.3B | $2.2B |
| Cash | $341M | $281M | $201M | $133M | $147M |
| Long-term debt | $1.2B | $1.2B | $1.4B | $1.4B | $882M |
| Free cash flow | $268M | $605M | $393M | -$27.7M | $301M |
| Gross margin | 38.3% | 38.8% | 33.9% | 33.3% | 36.4% |
| Operating margin | 6.9% | 12.5% | 9.6% | 12.4% | 19.3% |
| Net margin | 3.8% | 7.4% | 5.4% | 9.0% | 14.9% |
| Diluted shares | 59.3M | 60.4M | 62.1M | 64.7M | 64.3M |
Share count is down 7.7% over 4 years. Buybacks have been shrinking the pie.
What Generac says it does
" of this Annual Report on Form 10-K. Business Drivers and Operational Factors "Part I, Item 1. Business" of this Annual Report on Form 10-K contains information regarding business drivers, including key mega-trends and strategic growth themes under the subheading "Key Mega-Trends and Strategic Growth Themes." We are subject to various other business drivers and factors that can affect our results of operations, which we attempt to mitigate through factors we can control, including continued product development, expanded distribution, pricing, cost control, and hedging. Certain operational and other factors that affect our business include the following: Impact of residential investment cycle. The market for our residential products is affected by the residential investment cycle and overall consumer confidence and sentiment. When homeowners are confident of their household income, the value of their home and overall net worth, they…
Risk factors GNRC lists in its 10-K
- Suppliers of Raw Materials, Components and Equipment
- Government Incentives and Regulation, including Environmental Matters
- Talent development & employee engagement
- Demand for the majority of our products is significantly affected by unpredictable power outage activity that can lead to substantial variations in, and uncertainties regarding, our financial results from period to period
- Decreases in the availability and quality, or increases in the cost, of raw materials, key components and labor we use to make our products could materially reduce our earnings
- Our business could be negatively impacted if we fail to adequately protect our intellectual property rights or if third parties claim that we are in violation of their intellectual property rights
- We may incur costs and liabilities as a result of product liability, warranty claims, recalls, or other claims
- The risk of non-compliance with U.S. and foreign laws and regulations applicable to our global operations could have a significant impact on our results of operations, financial condition or strategic objectives
- If we fail to develop new products or enhance existing products, or our customers do not accept the new or enhanced products we develop, our revenue and profitability could be adversely impacted
- rowth of the data center market is difficult to project and may not be sustaining, and we may not be successful in achieving our growth, revenue, or profitability objectives in the future related to it
- Demand for our products is significantly affected by durable goods spending by consumers and businesses, and other macroeconomic conditions
- The industries in which we compete are highly competitive, and our failure to compete successfully could adversely affect our results of operations and financial condition
- Increased scrutiny regarding our sustainability practices and reporting could impact our reputation
- The loss of any key members of our senior management team or key employees could disrupt our operations and harm our business