Gencor Industries (GENC) Stock Analysis & Winston Score

Gencor Industries makes heavy equipment used to build roads. Its main product is the asphalt plant, which is a large machine that mixes gravel, sand, and liquid asphalt together to create the paving material used on highways and parking lots. The company sells to road construction contractors across the United States and is one of the leading domestic manufacturers of asphalt production equipment.

Gencor earns money by selling its equipment outright, along with replacement parts and service support, which provide a steadier stream of repeat revenue. The company operates primarily in the U.S. market and is relatively small, with a market cap around $200 million. Its competitive position benefits from long customer relationships and the fact that road builders tend to stick with equipment brands they know and trust. The key growth driver is federal and state infrastructure spending, meaning demand for Gencor's machines rises and falls closely with government road-building budgets.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-11.5% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-2.4% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$3M/ year

↓ Declining (-17% vs prior year)

2.4% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

31.3%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$155M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Gencor Industries's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

−0.5% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 14.7M (2021) → 14.7M (2025)

Score breakdown

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Quality

Gross Margin

31.7%

Modest — 31.7% gross margin

Operating Margin

21.2%

Excellent — 21.2% operating margin

ROCE

3.2%

Weak — 3.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+6.4%

Slow sales growth (6.4% YoY)

EPS YoY

+32.7%

Earnings growing fast (32.7% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

-22%

Weak — only -22% of profit becomes cash

FCF Margin

-4.9%

Burning cash (-4.9%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

13.2x

Attractive valuation — P/E 13.2

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

+0.5

GROWING

Earnings roughly flat

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Dividends

Not applicable for this business.

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