NasdaqGM:GENC

Stock Analysis Report

Executive Summary

Gencor Industries, Inc., together with its subsidiaries, designs, manufactures, and sells heavy machinery used in the production of highway construction materials and environmental control equipment.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Gencor Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GENC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

GENC

-3.1%

US Machinery

-1.3%

US Market


1 Year Return

-19.3%

GENC

17.1%

US Machinery

22.0%

US Market

Return vs Industry: GENC underperformed the US Machinery industry which returned 22.4% over the past year.

Return vs Market: GENC underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

GENCIndustryMarket
7 Day-1.1%-3.1%-1.3%
30 Day-6.9%-2.2%1.8%
90 Day-9.5%3.7%9.3%
1 Year-19.3%-19.3%19.3%17.1%24.6%22.0%
3 Year-30.3%-30.3%37.0%28.2%49.2%39.6%
5 Year80.5%80.5%77.2%55.8%77.9%58.3%

Price Volatility Vs. Market

How volatile is Gencor Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gencor Industries undervalued compared to its fair value and its price relative to the market?

15.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GENC ($11.02) is trading above our estimate of fair value ($1.6)

Significantly Below Fair Value: GENC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GENC is good value based on its PE Ratio (15.7x) compared to the Machinery industry average (23.4x).

PE vs Market: GENC is good value based on its PE Ratio (15.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GENC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GENC is good value based on its PB Ratio (1x) compared to the US Machinery industry average (2.5x).


Next Steps

Future Growth

How is Gencor Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.8%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Gencor Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Gencor Industries performed over the past 5 years?

41.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GENC has a high level of non-cash earnings.

Growing Profit Margin: GENC's current net profit margins (12.5%) are lower than last year (12.9%).


Past Earnings Growth Analysis

Earnings Trend: GENC's earnings have grown significantly by 41.1% per year over the past 5 years.

Accelerating Growth: GENC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GENC had negative earnings growth (-19.7%) over the past year, making it difficult to compare to the Machinery industry average (9.6%).


Return on Equity

High ROE: GENC's Return on Equity (6.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gencor Industries's financial position?


Financial Position Analysis

Short Term Liabilities: GENC's short term assets ($156.9M) exceed its short term liabilities ($6.5M).

Long Term Liabilities: GENC's short term assets ($156.9M) exceed its long term liabilities ($3.4M).


Debt to Equity History and Analysis

Debt Level: GENC is debt free.

Reducing Debt: GENC has not had any debt for past 5 years.

Debt Coverage: GENC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GENC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: GENC has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if GENC's debt is covered by short term assets.


Next Steps

Dividend

What is Gencor Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate GENC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GENC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GENC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GENC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GENC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Gencor Industries's salary, the management and board of directors tenure and is there insider trading?

9.5yrs

Average management tenure


CEO

John Elliott (58yo)

3.3yrs

Tenure

US$451,138

Compensation

Mr. John E. Elliott has been the Chief Executive Officer of Gencor Industries Inc. since October 1, 2016. Mr. Elliott served as Executive Vice President of Gencor Industries Inc. from 1989 to January 16, 2 ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD451.14K) is below average for companies of similar size in the US market ($USD1.08M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Management Age and Tenure

9.5yrs

Average Tenure

59yo

Average Age

Experienced Management: GENC's management team is seasoned and experienced (9.5 years average tenure).


Board Age and Tenure

13.0yrs

Average Tenure

77yo

Average Age

Experienced Board: GENC's board of directors are seasoned and experienced ( 13 years average tenure).


Insider Trading

Insider Buying: GENC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$302,42517 Dec 19
Marc Elliott
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares24,591
Max PriceUS$12.53
SellUS$10,45029 Aug 19
Jeanne Lyons
EntityIndividual
Role
Secretary
Secretary
Shares950
Max PriceUS$11.00
SellUS$4,63417 Jun 19
Marc Elliott
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares366
Max PriceUS$12.66

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • E. Elliott (89yo)

    Founder & Chairman

    • Tenure: 47yrs
    • Compensation: US$606.26k
  • John Elliott (58yo)

    Chief Executive Officer

    • Tenure: 3.3yrs
    • Compensation: US$451.14k
  • Marc Elliott (53yo)

    President & Director

    • Tenure: 13yrs
    • Compensation: US$389.94k
  • Jeanne Lyons (60yo)

    Secretary

    • Tenure: 24yrs
  • Dennis Hunt (62yo)

    Senior Vice President of Sales

    • Tenure: 11.4yrs
    • Compensation: US$271.57k
  • Eric Mellen (50yo)

    CFO & Treasurer

    • Tenure: 7.7yrs
    • Compensation: US$255.15k
  • Larry Maingot

    VP & Controller

    • Tenure: 7.7yrs

Board Members

  • E. Elliott (89yo)

    Founder & Chairman

    • Tenure: 47yrs
    • Compensation: US$606.26k
  • Marc Elliott (53yo)

    President & Director

    • Tenure: 13yrs
    • Compensation: US$389.94k
  • Jim Sharp (67yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$22.00k
  • John Coburn (77yo)

    Independent Director

    • Tenure: 0.8yrs
  • David Air (86yo)

    Independent Director

    • Tenure: 16yrs
    • Compensation: US$24.50k

Company Information

Gencor Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gencor Industries, Inc.
  • Ticker: GENC
  • Exchange: NasdaqGM
  • Founded:
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$160.886m
  • Shares outstanding: 14.59m
  • Website: https://www.gencor.com

Number of Employees


Location

  • Gencor Industries, Inc.
  • 5201 North Orange Blossom Trail
  • Orlando
  • Florida
  • 32810
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GENCNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJan 1980

Biography

Gencor Industries, Inc., together with its subsidiaries, designs, manufactures, and sells heavy machinery used in the production of highway construction materials and environmental control equipment. The company offers hot-mix asphalt plants to produce asphalt paving materials; related asphalt plant equipment, including hot-mix storage silos, fabric filtration systems, cold feed bins, and other plant components; and a range of mobile batch plants. It also provides combustion systems that transform solid, liquid, or gaseous fuels into usable energy, or burn multiple fuels in asphalt and aggregate drying industries; soil remediation machines; and combustion systems for rotary dryers, kilns, fume and liquid incinerators, and fuel heaters, as well as industrial incinerators. In addition, the company offers thermal fluid heat transfer systems that transfer heat for storage, heating, and pumping viscous materials, such as asphalt, chemicals, heavy oils, etc. in various industrial and petrochemical applications; and specialty storage tanks for various industrial uses. It sells its products primarily to the highway construction industry through its sales representatives, and independent dealers and agents worldwide. The company was formerly known as Mechtron International Corporation and changed its name to Gencor Industries, Inc. in 1987. Gencor Industries, Inc. is based in Orlando, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/24 23:43
End of Day Share Price2020/01/24 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.