Gencor (GENC) AI Stock Analysis

• Market Cap: $221.92M
• Dividend Yield: N/A
• Average Volume (3M): 24.93K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.04
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 314
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.13
• Shares Outstanding: 12,338,845
• 10 Day Avg. Volume: 35,107
• 30 Day Avg. Volume: 24,928
• PEG Ratio: 1.69
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 1.86
• P/FCF Ratio: 194.07
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 1.73
• Enterprise Value/Gross Profit: 6.24
• Enterprise Value/Ebitda: 12.58
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $17.00 ▲(25.93% Upside)
• Action: Upgraded Date: 02/07/26
• Date: Action: Upgraded 02/07/26

GENC scores in the low-70s primarily due to strong solvency and solid profitability, tempered by weak recent cash-flow conversion and negative free cash flow. Technicals are supportive with price above key moving averages and positive momentum, while valuation appears reasonable based on a mid-teens P/E.

Positive Factors

Conservative Balance Sheet

An exceptionally conservative balance sheet with negligible debt provides durable financial flexibility. Low leverage reduces solvency risk, supports capital allocation through downturns, and preserves the ability to fund growth or absorb cyclical revenue swings without refinancing stress.

Healthy Profitability & Margins

Sustained mid-single-digit to double-digit margins indicate structurally profitable operations in core equipment and aftermarket sales. Consistent margins support internal cash generation (when realized) and imply competitive pricing power and cost control in manufacturing and service businesses.

Backlog and Aftermarket Strength

A sizable backlog plus robust aftermarket activity underpin forward revenue visibility and recurring, higher-margin service parts income. The installed base and ongoing retrofit demand create durable revenue streams less tied to new-capex cycles, improving long-term revenue stability.

Negative Factors

Weak Cash Conversion

Reported earnings are not converting to cash in the latest TTM, implying working-capital swings or timing mismatches. Persistent weak OCF and negative free cash flow constrain reinvestment, dividends, and M&A ability and raise earnings quality concerns over multiple quarters.

Revenue Decline / Volatility

Recent multi-year uneven top-line performance and a TTM revenue decline point to demand variability in core markets. For a capital-equipment maker, inconsistent order patterns increase forecasting difficulty, margin pressure risk, and can depress utilization of manufacturing capacity over time.

End-market Cyclicality / Gov't Sensitivity

Exposure to public infrastructure spending and customer capex cycles makes revenue timing vulnerable to policy and funding shifts. Sensitivity to government actions and customer confidence can produce lumpy orders and elongate sales cycles, undermining steady long-term growth.

Gencor Business Overview & Revenue Model

Company Description

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; 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; specialty storage tanks for various industrial uses; and asphalt pavers under the Blaw-Knox brand. Gencor Industries, Inc. 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. was founded in 1894 and is based in Orlando, Florida.

How the Company Makes Money

Gencor Financial Statement Overview

Summary

Strong profitability and an exceptionally conservative balance sheet (minimal debt) support a solid score. The primary drag is weak cash conversion in the latest TTM period (very low operating cash flow and negative free cash flow despite healthy net income), alongside a recent revenue decline that adds volatility risk.

Income Statement

Profitability is solid and has improved meaningfully versus the weak 2022 year: net profit was positive in each of 2023–2025 and margins remain healthy (TTM (Trailing-Twelve-Months) net margin ~11% and EBIT margin ~10%). However, growth is uneven—TTM (Trailing-Twelve-Months) revenue declined (~-6.8%) after modest growth in 2025 and stronger growth in 2024, suggesting demand volatility. Margins also softened in TTM (Trailing-Twelve-Months) versus the most recent annual period, indicating some pressure on pricing or costs.

Balance Sheet

The balance sheet is exceptionally conservative: total debt is minimal relative to equity (debt-to-equity ~0.1%–0.2% across periods), providing strong financial flexibility and low solvency risk. Equity has grown over time, and returns on equity are consistently mid-to-high single digits in recent years (~7%+), indicating respectable profitability without leverage. The main limitation is that returns are good but not outstanding, partly reflecting the low use of debt.

Cash Flow

Cash generation has become volatile and is the key weak spot. In the latest TTM (Trailing-Twelve-Months), operating cash flow is very low (~$0.3M) versus net income (~$15.3M), and free cash flow is negative (~-$2.3M), implying that reported earnings are not currently converting into cash. This contrasts with stronger cash performance in 2023–2024 (positive operating cash flow and free cash flow), indicating potential working-capital swings or lumpier cash timing that increases near-term quality-of-earnings risk.

Breakdown	TTM	Sep 2025	Mar 2025	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	107.60M	115.44M	113.17M	105.08M	103.48M	85.28M
Gross Profit	29.80M	31.71M	31.33M	29.04M	20.54M	18.18M
EBITDA	14.77M	16.37M	16.29M	16.26M	6.99M	3.29M
Net Income	15.29M	15.66M	14.56M	14.67M	-372.00K	5.80M
Balance Sheet
Total Assets	228.91M	222.60M	208.12M	195.75M	179.31M	179.46M
Cash, Cash Equivalents and Short-Term Investments	147.73M	136.30M	115.41M	101.28M	98.88M	118.21M
Total Debt	248.00K	339.00K	330.00K	328.00K	396.00K	785.00K
Total Liabilities	13.67M	10.79M	11.98M	14.34M	12.40M	12.17M
Stockholders Equity	215.24M	211.80M	196.14M	181.58M	166.92M	167.29M
Cash Flow
Free Cash Flow	-2.31M	1.10M	8.45M	7.45M	-13.65M	1.16M
Operating Cash Flow	306.00K	3.07M	9.29M	10.20M	-9.13M	3.82M
Investing Cash Flow	-2.62M	-1.96M	-840.00K	-2.75M	-4.52M	-16.44M
Financing Cash Flow	0.00	0.00	0.00	0.00	-6.00	264.00K

Gencor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GENC	73 Outperform	$221.92M	14.46	7.68%	―	―	―
ASTE	66 Neutral	$1.32B	27.63	7.37%	1.14%	6.66%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MTW	60 Neutral	$506.53M	73.39	8.82%	―	-0.83%	―
CMCO	58 Neutral	$552.37M	93.12	0.44%	1.59%	-2.36%	-73.77%
WNC	58 Neutral	$469.99M	2.29	84.07%	3.59%	-22.95%	―
ARTW	51 Neutral	$12.35M	11.70	15.99%	―	-4.37%	―

Gencor Corporate Events

Gencor Sets 2026 Annual Meeting and Governance Deadlines

Gencor Industries has scheduled its Annual Meeting of Stockholders for the fiscal year ended September 30, 2025 to be held on April 3, 2026, with the exact time and location to be detailed in its forthcoming definitive proxy statement filed with the SEC. Because the 2026 meeting date falls more than 30 days later than the prior year’s meeting, the company has reset key governance timelines, establishing February 26, 2026 as the record date for voting eligibility and February 2, 2026 as the new deadline for shareholders to submit proposals or director nominations, which must comply with SEC rules and the company’s Amended and Restated By-Laws or risk exclusion from proxy materials.

The most recent analyst rating on (GENC) stock is a Buy with a $15.50 price target. To see the full list of analyst forecasts on Gencor stock, see the GENC Stock Forecast page.

Gencor Announces Executive Chairman EJ Elliott’s Retirement Transition

On December 23, 2025, Gencor Industries, Inc. announced that its founder and long-time leader EJ Elliott will retire as Executive Chairman of the Board effective December 31, 2025, marking the end of a tenure that began with the company’s founding in 1968 and included service as Chief Executive Officer from 1968 to 2016. In a planned leadership transition that maintains family and management continuity, the Board has appointed current President and director Marc Elliott, who has served on the Board since 2007, to become Chairman effective January 1, 2026, a move that signals stability for stakeholders as the company navigates its position in the heavy machinery and highway construction equipment market.