📊 GNRC Key Takeaways
Is GNRC a Good Investment? Thesis Analysis
Generac is experiencing concerning fundamental deterioration with declining revenue (-2.0% YoY), declining net income (-1.1% YoY), and a severe EPS contraction (-50.1% YoY) indicating significant operational or capital structure challenges. While the company maintains adequate liquidity and positive free cash flow, weak return metrics (ROE 6.1%, ROA 2.9%) and thin operating margins (6.9%) suggest structural profitability pressures in a cyclical industry.
Generac’s fundamentals are stable with solid liquidity, moderate leverage, and consistent free cash flow generation despite a slight revenue decline. However, profitability is modest with thin operating and net margins and materially lower EPS, keeping returns on capital subdued. Execution on margin expansion and a return to top-line growth are needed to improve the quality of earnings.
Why Buy GNRC? Key Strengths
- Solid free cash flow generation of $268.1M with 6.4% FCF margin supports dividend and reinvestment
- Conservative leverage with 0.45x debt-to-equity ratio and adequate interest coverage at 4.1x
- Decent gross margin of 38.3% demonstrates underlying product pricing power and cost control
- Positive free cash flow with 6.4% FCF margin
- Healthy liquidity (2.03x current, 1.00x quick) and moderate leverage (0.45x D/E)
- Strong gross margin base (38.3%) supporting cash generation
GNRC Investment Risks to Consider
- Revenue and net income declining YoY with EPS collapsing 50%, signaling severe headwinds or non-recurring charges
- Weak returns on equity (6.1%) and assets (2.9%) indicate capital deployed inefficiently; underperforming alternative investments
- Cyclical industry exposure (generators) combined with negative growth trajectory and thin 3.8% net margins creates vulnerability to further demand deterioration
- Margin compression with low operating (6.9%) and net (3.8%) margins
- Top-line contraction (-2.0% YoY) indicating demand softness or mix headwinds
- EPS down sharply (-50.1% YoY) and only moderate interest coverage (4.1x)
Key Metrics to Watch
- Revenue trend reversal and sequential growth inflection
- Return on equity improvement path and capital allocation strategy
- EPS normalization and explanation for 50% YoY collapse (share dilution vs. operational factors)
- Operating margin
- Revenue growth (YoY)
GNRC Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.03x current ratio provides a solid financial cushion.
GNRC Profitability Ratios
GNRC vs Default Sector
How GENERAC HOLDINGS INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is GNRC Overvalued or Undervalued?
Based on fundamental analysis, GENERAC HOLDINGS INC. has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
GNRC Balance Sheet & Liquidity
GNRC 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: GENERAC HOLDINGS INC.'s revenue has grown significantly by 15% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.27 reflects profitable operations.
GNRC Growth Metrics (YoY)
GNRC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.1B | $66.2M | $1.12 |
| Q2 2025 | $998.2M | $59.1M | $0.97 |
| Q1 2025 | $889.3M | $26.2M | $0.39 |
| Q3 2024 | $1.1B | $60.4M | $0.97 |
| Q2 2024 | $998.2M | $45.2M | $0.70 |
| Q1 2024 | $887.9M | $12.4M | $0.05 |
| Q3 2023 | $1.1B | $58.3M | $0.83 |
| Q2 2023 | $1.0B | $45.2M | $0.70 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
GNRC Capital Allocation
GNRC SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for GENERAC HOLDINGS INC. (CIK: 0001474735)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GNRC
What is the AI rating for GNRC?
GENERAC HOLDINGS INC. (GNRC) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 66% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GNRC's key strengths?
Claude: Solid free cash flow generation of $268.1M with 6.4% FCF margin supports dividend and reinvestment. Conservative leverage with 0.45x debt-to-equity ratio and adequate interest coverage at 4.1x. ChatGPT: Positive free cash flow with 6.4% FCF margin. Healthy liquidity (2.03x current, 1.00x quick) and moderate leverage (0.45x D/E).
What are the risks of investing in GNRC?
Claude: Revenue and net income declining YoY with EPS collapsing 50%, signaling severe headwinds or non-recurring charges. Weak returns on equity (6.1%) and assets (2.9%) indicate capital deployed inefficiently; underperforming alternative investments. ChatGPT: Margin compression with low operating (6.9%) and net (3.8%) margins. Top-line contraction (-2.0% YoY) indicating demand softness or mix headwinds.
What is GNRC's revenue and growth?
GENERAC HOLDINGS INC. reported revenue of $4.2B.
Does GNRC pay dividends?
GENERAC HOLDINGS INC. pays dividends, with $0.3M distributed to shareholders in the trailing twelve months.
Where can I find GNRC SEC filings?
Official SEC filings for GENERAC HOLDINGS INC. (CIK: 0001474735) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GNRC's EPS?
GENERAC HOLDINGS INC. has a diluted EPS of $2.69.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GNRC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, GENERAC HOLDINGS INC. has a SELL rating with 66% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GNRC stock overvalued or undervalued?
Valuation metrics for GNRC: ROE of 6.1% (sector avg: 15%), net margin of 3.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy GNRC stock in 2026?
Our dual AI analysis gives GENERAC HOLDINGS INC. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GNRC's free cash flow?
GENERAC HOLDINGS INC.'s operating cash flow is $438.0M, with capital expenditures of $169.9M. FCF margin is 6.4%.
How does GNRC compare to other Default stocks?
Vs Default sector averages: Net margin 3.8% (avg: 12%), ROE 6.1% (avg: 15%), current ratio 2.03 (avg: 1.8).