Generac Holdings (GNRC) AI Stock Analysis

• Market Cap: $11.67B
• Dividend Yield: N/A
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 33.7
• Beta (1Y): 1.41
• Revenue Growth: 9.69%
• EPS Growth: 54.29%
• Country: US
• Employees: 5,389
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Machinery
• EPS (TTM): 1.65
• Shares Outstanding: 58,675,950
• 10 Day Avg. Volume: 1,670,690
• 30 Day Avg. Volume: 1,121,518
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 2.19
• Enterprise Value/Gross Profit: 5.48
• Enterprise Value/Ebitda: 18.09
• 1Y Price Target: $193.80
• Price Target Upside: -4.46% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 71 Outperform
• Price Target: $215.00 ▲(5.99% Upside)

Generac Holdings has a robust financial performance supported by strong revenue growth and cash flow, although increasing debt and declining EBITDA margins require attention. Technical analysis indicates strong upward momentum but also highlights overbought conditions. Valuation is less favorable, with a high P/E ratio and no dividend yield. Positive sentiments from the latest earnings call further support the stock's potential but caution is advised due to market challenges.

Positive Factors

Data Center Market Opportunity

Generac's entry into the data center market marks a multi-year growth inflection, with management calling it the most needle-moving opportunity in decades.

Strategic Shift

There is a positive sentiment on the strategic shift away from underperforming clean tech investments, which should raise margin performance.

Negative Factors

Residential Solar Business Challenges

The residential solar business underperformed due to a sluggish solar market, reputational challenges related to product recall, and limited market share.

Tariff Overhangs

Tariff overhangs persist as guidance assumes current rates, leaving the potential for margin pressure if revised.

Generac Holdings Business Overview & Revenue Model

Company Description

Generac Holdings Inc. designs, manufactures, and sells power generation equipment, energy storage systems, and other power products for the residential, and light commercial and industrial markets worldwide. The company offers engines, alternators, batteries, electronic controls, steel enclosures, and other components. It also provides residential automatic standby generators ranging in output from 7.5kW to 150kW; air-cooled engine residential standby generators ranging from 7.5kW to 26kW; liquid-cooled engine generators with outputs ranging from 22kW to 150kW; and Mobile Link, a remote monitoring system for home standby generators. In addition, the company offers various portable generators ranging in size from 800W to 17.5kW; outdoor power equipment, such as trimmers, field and brush mowers, log splitters, stump grinders, chipper shredders, lawn and leaf vacuums, pressure washers, and water pumps; and clean energy solution under the PWRcell and PWRview brands. Further, it provides light towers, mobile generators, and mobile energy storage systems; commercial mobile pumps and dust-suppression equipment; various gaseous-engine control systems and accessories; 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 to 3,250kW used as emergency backup for healthcare, telecom, datacom, commercial office, retail, 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 partners, electrical, HVAC and solar wholesalers, catalogs, equipment rental companies and distributors, and solar installers; and directly to end users. The company was founded in 1959 and is headquartered in Waukesha, Wisconsin.

How the Company Makes Money

Generac generates revenue primarily through the sale of its power generation products, including residential and commercial standby generators, portable generators, and related accessories. The company also earns income through the sale of energy storage systems and smart energy management solutions. Key revenue streams include direct sales to consumers and businesses, as well as partnerships with distributors, retailers, and contractors who resell Generac's products. Additionally, Generac benefits from recurring revenue through service contracts and maintenance agreements for installed products. The growth in demand for backup power solutions, driven by increasing frequency of power outages and rising interest in renewable energy sources, significantly contributes to its earnings.

Generac Holdings Financial Statement Overview

Summary

Generac Holdings maintains a solid financial position with stable profitability and effective cash flow management. The company demonstrates consistent revenue growth and efficient operational performance, bolstered by a balanced leverage structure. However, attention to debt levels is necessary for long-term stability.

Income Statement

Generac Holdings shows a stable revenue base with a TTM gross profit margin of 39.01% and a net profit margin of 7.68%. The company demonstrates a moderate revenue growth rate of 1.23% from the previous year. While the EBIT margin is 12.76%, indicating efficient operations, the EBITDA margin of 14.76% reflects consistent profitability. Overall, the income statement portrays a solid financial performance, though growth is modest.

Balance Sheet

The balance sheet reveals a debt-to-equity ratio of 0.60, indicating a balanced leverage position. The company has an ROE of 13.52%, demonstrating decent returns on shareholders' equity. The equity ratio stands at 48.80%, suggesting a strong equity position relative to assets. While the company maintains a sound capital structure, the slightly high total debt level warrants attention.

Cash Flow

Generac Holdings exhibits robust cash flow generation with a free cash flow growth rate of 9.34%. The operating cash flow to net income ratio is 2.06, and the free cash flow to net income ratio is 1.98, indicating strong cash conversion efficiency. The company effectively manages its cash flows, supporting operational stability and future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.41B	4.30B	4.02B	4.56B	3.74B	2.49B
Gross Profit	1.76B	1.67B	1.37B	1.52B	1.36B	957.65M
EBITDA	533.90M	670.92M	554.53M	723.93M	834.64M	549.29M
Net Income	360.45M	325.26M	203.09M	350.27M	533.39M	349.33M
Balance Sheet
Total Assets	5.39B	5.11B	5.09B	5.17B	4.88B	3.24B
Cash, Cash Equivalents and Short-Term Investments	223.53M	281.28M	200.99M	132.72M	147.34M	655.13M
Total Debt	1.59B	1.48B	1.73B	1.60B	1.32B	1.07B
Total Liabilities	2.81B	2.61B	2.74B	2.80B	2.61B	1.78B
Stockholders Equity	2.57B	2.49B	2.34B	2.26B	2.21B	1.39B
Cash Flow
Free Cash Flow	683.52M	604.57M	392.61M	-27.67M	301.16M	424.40M
Operating Cash Flow	682.08M	741.30M	521.67M	58.52M	411.16M	486.53M
Investing Cash Flow	-228.00M	-208.71M	-178.06M	-134.23M	-817.29M	-124.09M
Financing Cash Flow	-453.64M	-448.83M	-277.14M	64.04M	-102.97M	-30.43M

Generac Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 202.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNRC, the sentiment is Positive. The current price of 202.85 is above the 20-day moving average (MA) of 175.92, above the 50-day MA of 153.04, and above the 200-day MA of 147.69, indicating a bullish trend. The MACD of 14.69 indicates Negative momentum. The RSI at 81.81 is Negative, neither overbought nor oversold. The STOCH value of 93.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GNRC.

Generac Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNR	76 Outperform	$17.40B	28.99	17.15%	0.90%	-0.25%	-7.32%
AOS	76 Outperform	$10.00B	19.89	27.60%	1.85%	-3.53%	-7.46%
DOV	75 Outperform	$24.41B	10.73	16.72%	1.13%	-8.23%	54.92%
WTS	74 Outperform	$9.10B	29.33	17.75%	0.66%	2.96%	12.62%
GNRC	71 Outperform	$11.67B	33.69	14.59%	―	9.69%	54.29%
RRX	67 Neutral	$9.49B	38.02	3.84%	0.91%	-7.88%	―
Sector *	58 Neutral	HK$13.61B	5.49	-2.78%	5.73%	2.29%	-57.50%

Generac Holdings Corporate Events

Generac Holdings Amends Credit Agreement with Lenders

On July 1, 2025, Generac Holdings, Inc. and its subsidiaries amended their Credit Agreement with a syndicate of lenders, led by JPMorgan Chase Bank. The amendment includes replacing the existing term loan and revolving credit facilities with new ones, totaling $700 million and $1 billion respectively, both maturing on July 1, 2030. Additionally, the amendment eliminates the credit spread adjustment linked to the transition from LIBOR to SOFR and updates the credit spread pricing grid based on the Total Leverage Ratio.

The most recent analyst rating on (GNRC) stock is a Buy with a $175.00 price target. To see the full list of analyst forecasts on Generac Holdings stock, see the GNRC Stock Forecast page.