Generac Holdings Inc.

Consumer Discretionary
Metal Fabrications
www.generac.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $10.66B
PE 36
Debt $1.47B
Cash $214.18M
EV $11.92B
FCF $584.05M

Earnings

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Sales & Net Margins

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Earnings	$295.69M
EBIT	$489.70M
ROE	12%
ROA	9%
FCF	$584.05M
Equity	$2.41B
Growth Stability	50%
PE	36.06
PEG	-5.32
PB	4.42
P/FCF	18.26
P/S	2.59
Price/Cash	0.02
Debt/Equity	0.61
Debt/FCF	2.52
Net Margins	7%
Gross Margins	38%
Op. Margins	12%
Earnings CAGR	18%
Sales Growth YoY	10%
Sales Growth QoQ	18%
Sales CAGR	17%
FCF CAGR	3%
Equity CAGR	25%
Earnings Stability	0.51
Earnings Growth YoY	88%
Earnings Growth QoQ	92%

Earnings CAGR 5Y	-7%
Sales CAGR 5Y	17%
FCF CAGR 5Y	-3%
Equity CAGR 5Y	21%
Earnings CAGR 3Y	-1%
Sales CAGR 3Y	-1%
FCF CAGR 3Y	60%
Equity CAGR 3Y	2%
Market Cap	$10.66B
Revenue	$4.12B
Assets	$5.19B
Total Debt	$1.47B
Cash	$214.18M
Shares Outstanding	59.49M
EV	11.92B
Earnings Score	75%
Moat Score	89%
Safety Score	68%
Final Score	77%
Working Capital	1.05B
Current Ratio	2.03
Gross Profit	$1.55B
Shares Growth 3y	-2%
Equity Growth QoQ	2%
Equity Growth YoY	2%

Assets & ROA

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Stockholders Equity & ROE

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Generac Power Systems designs and manufactures power generation equipment serving residential, commercial, and industrial markets. It offers standby generators, portable generators, lighting, outdoor power equipment, and a suite of clean energy products. Sales generated in the United States account for the majority of total sales.

SEC Filings

Direct access to Generac Holdings Inc. (GNRC) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Generac Holdings Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Generac Holdings Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 18%

Stability 51%

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Generac Holdings Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Generac Holdings Inc..

Years

Calculation mode

= $7B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$584M	$600M	$616M	$633M	$651M	$668M	$687M	$705M	$725M	$745M	$765M	$7.6B
DCF		$545M	$509M	$476M	$444M	$415M	$388M	$362M	$338M	$316M	$295M	$2.9B
Value	$7B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	12%	6%	7%	9%	12%	11%	14%	15%	9%	5%	7%
ROA	-	10%	11%	12%	15%	14%	15%	15%	11%	8%	9%
ROE	-	17%	25%	28%	31%	24%	25%	25%	18%	9%	12%

Bad Net Margins (6.5%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	6.81	4.66	4.19	4.74	3.61	2.08	3.23	-51.31	3.9	2.52
Debt over Equity	2.27	2.31	2.59	1.71	1.24	0.87	0.63	0.44	0.63	0.65	0.61
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	50%	50%

Neutral Debt/FCF ratio (2.52)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.61)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (50%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-10%	10%	16%	20%	9%	13%	50%	22%	-12%	17%
Earnings YoY growth	-	-55%	27%	61%	49%	6%	38%	59%	-27%	-46%	-7%
Equity YoY growth	-	-5%	-14%	40%	36%	36%	35%	59%	2%	4%	21%
FCF YoY growth	-	-28%	41%	2%	-12%	24%	71%	-29%	-109%	-2K%	-3%