Generac Holdings Inc. (GNRC) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Generac Holdings Inc. (GNRC) Industrial Operations Profile

Generac Holdings Inc. is a global leader in power generation equipment and energy storage solutions, serving residential, commercial, and industrial markets. With a diverse product portfolio including generators, energy storage systems, and power equipment, Generac leverages a broad distribution network and aftermarket services to maintain a strong market position.

What Is the Investment Thesis for GNRC?

Generac Holdings Inc. presents a notable research candidate driven by increasing demand for reliable power solutions and energy storage systems. The company's established market position, diverse product portfolio, and extensive distribution network provide a strong foundation for future growth. Key value drivers include the increasing frequency of power outages due to extreme weather events, the growing adoption of renewable energy sources, and the rising demand for backup power solutions in both residential and commercial markets. With a current P/E ratio of 90.51 and a gross margin of 38.1%, Generac exhibits strong financial performance. The company's focus on innovation and strategic acquisitions further enhances its growth prospects. However, investors may want to evaluate potential risks such as increased competition and fluctuations in raw material prices.

Based on FMP financials and quantitative analysis

GNRC Key Highlights

Market Cap of $10.7B reflects Generac's significant presence in the power generation and energy storage market.

• Profit Margin of 4.4% indicates the company's ability to generate earnings from its revenue.
• Gross Margin of 38.1% demonstrates efficient cost management in the production of its power generation equipment and energy storage systems.
• Beta of 1.79 suggests that the stock is more volatile than the overall market, potentially offering higher returns but also greater risk.
• The company does not offer a dividend, which may deter some income-focused investors but allows Generac to reinvest earnings for growth.

Who Are GNRC's Competitors?

GNRC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are GNRC's Key Strengths?

Strong brand recognition and market share in power generation.

• Diverse product portfolio catering to various customer segments.
• Extensive distribution network with independent dealers and retailers.
• Aftermarket service and support providing recurring revenue.

What Are GNRC's Weaknesses?

High P/E ratio compared to industry peers.

• Dependence on weather-related events for generator sales.
• Exposure to fluctuations in raw material prices.
• Limited dividend yield may deter some investors.

What Could Drive GNRC Stock Higher?

GNRC catalyst: Increasing frequency of power outages due to extreme weather events driving demand for backup power solutions.

• Growing adoption of renewable energy sources creating demand for energy storage systems.
• Potential government incentives and regulations supporting the adoption of clean energy technologies.
• Expansion of Generac's product portfolio with innovative power solutions.
• Strategic acquisitions to expand market reach and product offerings.

What Are the Key Risks for GNRC?

Rich valuation — a P/E of 90.51 runs well above the Industrials sector’s ~28.00x, leaving little room for a miss.

• Insider selling — insiders were net sellers of roughly $1.7M recently.
• Increased competition from existing and new players in the power generation and energy storage market.
• Technological advancements disrupting the power generation industry.
• Changes in government regulations and incentives for renewable energy.
• Economic downturns impacting consumer spending on generators.
• Fluctuations in raw material prices affecting production costs.

What Are the Growth Opportunities for GNRC?

• Expansion in the Residential Energy Storage Market: The increasing adoption of solar energy and the desire for energy independence are driving growth in the residential energy storage market. Generac's PWRcell and PWRview brands position the company to capitalize on this trend. As homeowners seek to reduce their reliance on the grid and increase their energy resilience, Generac's energy storage solutions offer a compelling value proposition. The residential energy storage market is expected to continue growing rapidly, providing a significant growth opportunity for Generac.
• Penetration of the Commercial and Industrial Market: Generac's industrial generators ranging from 10kW to 3,250kW cater to the emergency backup power needs of healthcare, telecom, datacom, commercial office, retail, municipal, and manufacturing markets. These sectors require reliable power solutions to ensure business continuity and minimize disruptions. Generac's established reputation and comprehensive product portfolio position the company to expand its presence in the commercial and industrial market. This segment offers significant growth potential as businesses increasingly prioritize power reliability.
• Growth in Aftermarket Service Parts and Product Accessories: Generac generates revenue through the sale of aftermarket service parts and product accessories to dealers. As the installed base of Generac generators and energy storage systems grows, the demand for replacement parts and accessories will also increase. This recurring revenue stream provides a stable source of income for the company. Generac can further enhance this growth opportunity by expanding its service network and offering value-added services to its customers.
• Leveraging E-commerce Channels for Direct Sales: Generac distributes its products through various channels, including e-commerce partners. Expanding its direct-to-consumer sales through e-commerce platforms can enhance Generac's reach and improve its profit margins. By offering a seamless online shopping experience and providing product information and support, Generac can attract a wider customer base and increase its sales volume. This strategy aligns with the growing trend of online shopping and provides a convenient option for customers.
• Strategic Acquisitions to Expand Product Portfolio and Market Reach: Generac has a history of strategic acquisitions to expand its product portfolio and market reach. Continuing to pursue acquisitions of companies with complementary technologies and market presence can accelerate Generac's growth and strengthen its competitive position. By acquiring companies in adjacent markets, Generac can diversify its revenue streams and reduce its reliance on any single product or market segment. This strategy allows Generac to stay ahead of the curve and adapt to changing market dynamics.

What Are GNRC's Competitive Advantages?

• Established brand reputation and market leadership in power generation.
• Extensive distribution network with independent dealers and retailers.
• Diverse product portfolio catering to various customer segments.
• Aftermarket service and support providing recurring revenue streams.

What Does GNRC Do?

Founded in 1959, Generac Holdings Inc. has evolved into a prominent player in the power generation and energy storage industry. Initially focused on manufacturing portable generators, the company expanded its product line to include residential, commercial, and industrial generators, as well as energy storage systems. Generac's comprehensive product portfolio encompasses engines, alternators, batteries, electronic controls, and steel enclosures. The company offers residential automatic standby generators ranging from 7.5kW to 150kW, portable generators from 800W to 17.5kW, and industrial generators from 10kW to 3,250kW. Generac also provides clean energy solutions under the PWRcell and PWRview brands. Generac distributes its products through a diverse network of independent residential dealers, industrial distributors, national and regional retailers, e-commerce partners, and electrical, HVAC, and solar wholesalers. The company's geographic reach extends worldwide, serving customers in residential, light commercial, and industrial markets. Generac's competitive positioning is strengthened by its broad product portfolio, extensive distribution network, and aftermarket service offerings. The company's focus on innovation and strategic acquisitions has enabled it to maintain a leading position in the evolving power generation and energy storage landscape.

What Products and Services Does GNRC Offer?

• Designs and manufactures power generation equipment.
• Offers energy storage systems for residential and commercial use.
• Produces automatic standby generators for homes and businesses.
• Provides portable generators for various applications.
• Manufactures outdoor power equipment like trimmers and pressure washers.
• Offers clean energy solutions under the PWRcell and PWRview brands.
• Sells aftermarket service parts and product accessories.

How Does GNRC Make Money?

• Manufacturing and selling power generation equipment and energy storage systems.
• Distributing products through independent dealers, retailers, and e-commerce partners.
• Providing aftermarket service parts and product accessories.
• Offering clean energy solutions under the PWRcell and PWRview brands.

What Industry Does GNRC Operate In?

Generac Holdings Inc. operates within the industrial machinery sector, which is experiencing growth driven by increasing demand for reliable power solutions and energy storage systems. The market is characterized by a competitive landscape with players such as Regal Rexnord Corporation (RRX), Flowserve Corporation (FLS), and SPX Technologies, Inc. (SPXC). Generac's focus on innovation and strategic acquisitions has enabled it to maintain a leading position in this evolving market. The increasing frequency of power outages due to extreme weather events and the growing adoption of renewable energy sources are key trends driving growth in the power generation and energy storage market.

Who Are GNRC's Key Customers?

• Residential homeowners seeking backup power solutions.
• Commercial businesses requiring emergency power for operations.
• Industrial facilities needing reliable power for critical infrastructure.
• Dealers and distributors selling Generac products to end-users.

Over the past six months, Generac Holdings Inc. insiders filed 15 SEC Form 4 transactions — 9 sales and 6 purchases. On net that is roughly 9K shares disposed (about $1.7M), a signal worth weighing alongside the fundamentals.

Generac Holdings Inc. has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 16.2% above estimates on average.

Generac Holdings Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 4.32 places it in the safe zone, indicating low near-term bankruptcy risk.

Return on equity for Generac Holdings Inc. stands at 7.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 3.4%, showing how much profit it generates from its asset base. GNRC trades at a trailing price-to-earnings ratio of 90.51, above the Industrials sector average of ~28.00x. Its free cash flow yield is 1.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.03 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 1.1%, the inverse of the P/E and a quick read on earnings relative to price.

Generac Holdings Inc. (GNRC) Valuation Context

Valued at $10.7B, GNRC is classified as a large-cap stock. Analyst price targets span from $214.00 to $340.00, with a consensus of $298.46. At the current price of $181.67, that implies approximately 64% upside potential. Relative to its peer group, GNRC's quantitative score of 57/100 is below the peer average of 75/100.

GNRC Revenue & Earnings Trend

In Q2 FY2026, GNRC generated $1.17B in top-line revenue, marking a sequential increase of 10.8%. The company recorded net income of $143.2M, with diluted EPS of $2.41. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Industrials. Across the four most recent quarters, GNRC averaged $1.09 in diluted EPS.

Company Profile

Generac Holdings Inc. operates in the Industrial - Machinery industry within the Industrials sector. It is headquartered in Waukesha, US. The company is led by CEO Aaron Jagdfeld. GNRC has traded publicly since 2010.

GNRC Financials

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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