One-glance verdict
Overvalued
$78.28 our estimate vs market $206.17
Wall Street consensus: $293.94 (275.5% higher than our fair-value estimate)
163% above our estimate, beyond the bull case
Fundamentals snapshot
Generac Holdings Inc.
GNRC · NYQ · Industrials · Specialty Industrial Machinery
Current price
$206.17
52-week range
$134.80 - $296.44
Market cap
$12.18B
Balance sheet
Watch
4.09x Stretched
Net debt $1.14B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 5.5% last year.
- Reward Returns 9.5% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Stock trades 37.8% above its 5-year average P/E.
What this company does
Generac Holdings Inc.
Generac is best known for making and selling backup power generators that automatically keep the lights on for homes and businesses during a power outage. The company also sells products like battery storage systems and outdoor power equipment, profiting from the growing demand for reliable energy sources that are independent of the main electrical grid.
How the company got here
Generac started in 1959 in a Wisconsin barn, founded by Robert Kern who began by making portable generators for Sears. A major turning point came in 1989 when Generac invented the first automatic home standby generator, creating a new market for backup power that it continues to lead. After becoming a publicly traded company in 2010, it used acquisitions (buying other companies) to expand into new areas like industrial power, energy storage, and smart home devices. This series of moves has transformed it from a simple generator maker into a broader energy technology company.
What it actually does
Generac primarily makes and sells equipment that provides power when the main electrical grid goes down. You might recognize their home standby generators, which look like a central air conditioning unit and automatically turn on during a power outage. They also sell smaller, portable generators for camping or job sites, as well as much larger, more powerful systems for businesses and industrial facilities like factories and data centers. Beyond just generators, Generac now offers energy storage systems (like large batteries for your home), smart thermostats, and other devices to help manage energy use.
Residential Products
This is Generac's largest and most well-known business, making up the majority of its sales. It sells automatic standby generators to homeowners who want to keep their lights and appliances on during a power outage. This segment also includes portable generators for recreational use or smaller power needs, as well as newer products like home energy storage systems and smart thermostats that help people manage their power consumption. Homeowners are the main customers, buying these products through a network of dealers, contractors, and major retailers.
Commercial & Industrial (C&I) Products
This part of the company provides much larger and more powerful backup power solutions for businesses. Customers include hospitals, grocery stores, cell phone towers, and increasingly, massive data centers that support the internet and artificial intelligence. The products range from large generators that run on natural gas or diesel to complex systems that can power an entire factory or office building. This is a significant and fast-growing part of Generac's business, as more industries realize they cannot afford to lose power.
What management is betting on now
Generac's leadership is heavily focused on expanding its role as a complete energy technology provider, moving beyond just backup generators. A major priority is growing its Commercial & Industrial business, especially by supplying powerful backup generators for the rapidly expanding data center market. They are also investing in creating a connected home energy ecosystem, where their generators, battery storage systems, and smart devices all work together to give homeowners more control over their power. The company sees a big opportunity in the world's increasing reliance on electricity and the need for reliable power for everything from remote work to critical infrastructure.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$183.66M
FY2024 Q4
$286.12M
FY2025 Q1
$27.21M
FY2025 Q2
$14.47M
FY2025 Q3
$96.50M
FY2025 Q4
$129.94M
FY2026 Q1
$89.89M
FY2026 Q2
$62.92M
Revenue
$1.17B
Net income
$143.24M
Diluted EPS
2.40
Operating cash flow
$121.21M
Free cash flow
$62.92M
Fetching…
Sources
Revenue
$1.06B
Net income
$73.25M
Diluted EPS
1.24
Operating cash flow
$119.28M
Free cash flow
$89.89M
Fetching…
Sources
Revenue
$1.09B
Net income
$-24.46M
Diluted EPS
-0.41
Operating cash flow
$189.26M
Free cash flow
$129.94M
Fetching…
Sources
Revenue
$1.11B
Net income
$66.16M
Diluted EPS
1.12
Operating cash flow
$118.38M
Free cash flow
$96.50M
Fetching…
Sources
Revenue
$1.06B
Net income
$74.02M
Diluted EPS
1.25
Operating cash flow
$72.19M
Free cash flow
$14.47M
Fetching…
Sources
Revenue
$942.12M
Net income
$43.84M
Diluted EPS
0.73
Operating cash flow
$58.15M
Free cash flow
$27.21M
Fetching…
Sources
Revenue
$1.23B
Net income
$117.23M
Diluted EPS
2.14
Operating cash flow
$339.45M
Free cash flow
$286.12M
Fetching…
Sources
Revenue
$1.17B
Net income
$113.74M
Diluted EPS
1.89
Operating cash flow
$212.28M
Free cash flow
$183.66M
Fetching…
Sources
Is it cheap or expensive?
Fair value $78.28 vs current price $206.17
Wall Street consensus is the average analyst price target: $293.94 (275.5% higher than our fair-value estimate).
Our most-likely fair value is $78.28 a share — about 62.0% below today's price of $206.17, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $1.1B. Interest coverage 4.1x.
Net debt
$1.14B
Interest coverage
4.09x
Generac Holdings Inc.'s profit covers its interest bill about 4.1 times over.
Watch
Worse cushion
Baseline
Better cushion
GNRC
BASELINE
Generac Holdings Inc.
Total debt $1.41B Interest coverage 4.09x This is the baseline the peer rows are being compared against.
Total debt $8.29B Interest coverage 11.75x +187% vs GNRC Carries about 2.9x more debt cushion than GNRC.
Total debt $5.21B Interest coverage 2.43x -41% vs GNRC Carries about 1.7x less debt cushion than GNRC.
Total debt $3.60B Interest coverage 5.98x +46% vs GNRC Carries about 1.5x more debt cushion than GNRC.
Total debt $1.63B Interest coverage 8.22x +101% vs GNRC Carries about 2.0x more debt cushion than GNRC.
Total debt $5.56B Interest coverage 18.86x +361% vs GNRC Carries about 4.6x more debt cushion than GNRC.
What you should know
The case for and against GNRC
3 Rewards
1 Risk
Rewards
-
Revenue grew 5.5% last year.
-
Returns 9.5% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Stock trades 37.8% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
47.40x
Forward P/E
16.57x
P/B
4.23x
P/S
2.74x
EV/EBITDA
20.91x
PEG ratio
0.58x
Profitability
How much profit each dollar creates
Gross margin
39.5%
Operating margin
17.9%
Net margin
5.8%
ROE
9.5%
ROA
4.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.49x
Current ratio
2.04x
Quick ratio
0.88x
Total debt
$1.41B
Total cash
$271.26M
Growth
How the business has been compounding
Revenue TTM
$4.44B
Revenue 5Y CAGR
3.0%
EPS TTM
4.35
EPS 5Y CAGR
-20.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$548.13M
Free CF TTM
$268.13M
FCF margin
6.0%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2013-06-10