NYSE:GNRC

Stock Analysis Report

Executive Summary

Generac Holdings Inc. designs, manufactures, and sells power generation equipment and other power products for the residential, light commercial, and industrial markets worldwide.

Rewards

Earnings are forecast to grow 10.91% per year

Earnings grew by 15% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Excellent balance sheet with solid track record.


Similar Companies

Share Price & News

How has Generac Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

3.6%

GNRC

1.8%

US Electrical

1.8%

US Market


1 Year Return

115.2%

GNRC

14.1%

US Electrical

20.1%

US Market

Return vs Industry: GNRC exceeded the US Electrical industry which returned 14.1% over the past year.

Return vs Market: GNRC exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

GNRCIndustryMarket
7 Day3.6%1.8%1.8%
30 Day9.4%0.5%1.4%
90 Day19.5%5.6%8.8%
1 Year115.2%115.2%16.5%14.1%22.7%20.1%
3 Year180.0%180.0%34.4%26.7%50.1%40.4%
5 Year124.7%124.7%49.2%34.2%72.9%53.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Generac Holdings undervalued compared to its fair value and its price relative to the market?

27.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GNRC ($113.26) is trading above our estimate of fair value ($93.65)

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


Price To Earnings Ratio

PE vs Industry: GNRC is poor value based on its PE Ratio (27.7x) compared to the Electrical industry average (21.1x).

PE vs Market: GNRC is poor value based on its PE Ratio (27.7x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: GNRC is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: GNRC is overvalued based on its PB Ratio (6.9x) compared to the US Electrical industry average (1.8x).


Next Steps

Future Growth

How is Generac Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GNRC's forecast earnings growth (10.9% per year) is above the savings rate (1.7%).

Earnings vs Market: GNRC's earnings (10.9% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: GNRC's earnings are forecast to grow, but not significantly.

Revenue vs Market: GNRC's revenue (7.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: GNRC's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GNRC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Generac Holdings performed over the past 5 years?

20.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GNRC has high quality earnings.

Growing Profit Margin: GNRC's current net profit margins (11.5%) are higher than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: GNRC's earnings have grown significantly by 20.7% per year over the past 5 years.

Accelerating Growth: GNRC's earnings growth over the past year (15%) is below its 5-year average (20.7% per year).

Earnings vs Industry: GNRC earnings growth over the past year (15%) exceeded the Electrical industry -1.9%.


Return on Equity

High ROE: GNRC's Return on Equity (23.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Generac Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: GNRC's short term assets ($1.2B) exceed its short term liabilities ($497.1M).

Long Term Liabilities: GNRC's short term assets ($1.2B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: GNRC's debt to equity ratio (81.3%) is considered high.

Reducing Debt: GNRC's debt to equity ratio has reduced from 221.8% to 81.3% over the past 5 years.

Debt Coverage: GNRC's debt is well covered by operating cash flow (34.7%).

Interest Coverage: GNRC's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: GNRC's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

What is Generac Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate GNRC'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 GNRC's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: GNRC is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Aaron Jagdfeld (47yo)

11.4yrs

Tenure

US$5,883,719

Compensation

Mr. Aaron P. Jagdfeld has been the Chief Executive Officer and President at Generac Holdings Inc. since September 30, 2008. Mr. Jagdfeld has been Executive Chairman of Generac Holdings Inc. since February  ...


CEO Compensation Analysis

Compensation vs Market: Aaron's total compensation ($USD5.88M) is about average for companies of similar size in the US market ($USD6.26M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Aaron Jagdfeld
President11.4yrsUS$5.88m1.07% $76.1m
York Ragen
CFO & Chief Accounting Officer11.4yrsUS$1.76m0.17% $11.8m
Russell Minick
Chief Marketing Officer3.5yrsUS$1.78m0.023% $1.6m
Patrick Forsythe
Executive Vice President of Global Engineering4.6yrsUS$1.46m0.040% $2.9m
Erik Wilde
Executive Vice President of Industrial Americas3.6yrsUS$1.42m0.0058% $408.9k
Tim Hearden
Executive Vice President of Global Operations1.1yrsno datano data
Raj Kanuru
EVP, General Counsel & Secretary0yrsno datano data
Steve Goran
Executive Vice President of Global Corporate Development1.1yrsno datano data
Rhonda Matschke
Executive Vice President of Human Resources1.1yrsno datano data
Dawn Tabat
Executive Vice President of Community & External Relations6.4yrsUS$739.36kno data

3.6yrs

Average Tenure

49.5yo

Average Age

Experienced Management: GNRC's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Aaron Jagdfeld
President11.4yrsUS$5.88m1.07% $76.1m
Dominick Zarcone
Independent Director3.1yrsUS$170.01k0.015% $1.1m
David Ramon
Independent Director9.8yrsUS$170.01k0.050% $3.6m
John Bowlin
Independent Director13.2yrsUS$200.74k0.14% $10.0m
Andrew Lampereur
Independent Director5.9yrsUS$190.01k0.028% $2.0m
Marcia Avedon
Director0.2yrsno data0.00032% $22.7k
Robert Dixon
Independent Director7.9yrsUS$180.04k0.020% $1.4m
Bennett Morgan
Lead Director2yrsUS$195.10k0.034% $2.4m
Kathryn Roedel
Independent Director3.2yrsUS$170.01k0.0031% $220.4k
William Jenkins
Independent Director2.9yrsUS$158.63k0.0096% $682.4k

3.6yrs

Average Tenure

57.5yo

Average Age

Experienced Board: GNRC's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Generac Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Generac Holdings Inc.
  • Ticker: GNRC
  • Exchange: NYSE
  • Founded: 1959
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: US$7.086b
  • Shares outstanding: 62.56m
  • Website: https://www.generac.com

Number of Employees


Location

  • Generac Holdings Inc.
  • S45 W29290 Highway 59
  • Waukesha
  • Wisconsin
  • 53189
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GNRCNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2010
G84DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2010

Biography

Generac Holdings Inc. designs, manufactures, and sells power generation equipment and other power products for the residential, light commercial, and industrial markets worldwide. The company offers engines, alternators, transfer switches, and other components fueled by natural gas, liquid propane, gasoline, diesel, and bi-fuel. It also provides residential automatic standby generators ranging in output from 6kW to 60kW; air-cooled engine residential standby generators ranging from 6kW to 22kW; liquid-cooled engine generators with outputs ranging from 22kW to 60kW; remote monitoring system for home standby generators; and industrial diesel generators ranging in sizes up to 3,250kW. In addition, the company offers various portable generators ranging in size from 800W to 17.5kW; engine driven power washers; water pumps; and outdoor power equipment, such as trimmers and brush mowers, log splitters, lawn and leaf vacuums, and chipper shredders. Further, it provides light towers, mobile generators, and flameless heaters; light-commercial standby generators ranging from 22kW to 150kW and related transfer switches providing three-phase power for small and mid-sized businesses; and industrial generators ranging in output from 10kW up to 3,250kW as emergency backup for large healthcare, telecom, datacom, commercial office, municipal, and manufacturing markets. Additionally, the company sells aftermarket service parts and product accessories to dealers. It distributes its products through independent residential dealers, industrial distributors and dealers, national and regional retailers, e-commerce merchants, electrical and HVAC wholesalers, catalogs, and equipment rental companies and distributors; and directly to end users under the Powermate, DeWalt, DR, and Pramac brand names. Generac Holdings Inc. was founded in 1959 and is headquartered in Waukesha, Wisconsin. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:52
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.