Generac Holdings

GNRC

Industrial - Machinery · Industrials

Price

$214.91

-0.47 (-0.22%)

Market Cap

$12.65B

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Share count falling — buybacks

−7.7% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 64.3M (2021) → 59.3M (2025)

Generac makes backup power generators and energy storage systems. Its products keep the lights on when the electricity grid goes down — for homeowners, businesses, and industrial facilities. Generac is the largest residential generator brand in the United States, selling through hardware stores, electrical contractors, and dealers.

The company earns most of its revenue by selling hardware — generators, batteries, and related equipment — with additional income from installation services and parts. Generac operates primarily in North America but has been expanding into Europe and other markets through acquisitions. Its main competitive advantage is brand recognition and a large dealer network built over decades. The biggest growth driver is rising demand for home energy storage and solar-plus-battery systems, but the business is also heavily tied to weather events and power outages, meaning sales can swing sharply from year to year depending on storm activity.

Winston Score History

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2 trades / 12mo

0 Congressional buys and 2 sells on GNRC in the last 12 months.

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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

+12.4% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+68.9% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$243M/ year

↑ Rising (+11% vs prior year)

5.8% of revenue

In line with sector average (4%)

R&D investment increasing — building for the future

Insider Activity

1.8%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$266M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

Growth + cash flow

Generac Holdings is a rare growth stock that's already generating positive cash flow while growing at 12%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

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.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

38.7%

Modest — 38.7% gross margin

Operating Margin

11.1%

Modest — 11.1% operating margin

ROCE

2.9%

Weak — 2.9% 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

-0.5%

Shrinking sales (-0.5% YoY)

EPS YoY

-44.3%

Earnings shrinking (-44.3% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

264%

Turns 264% of profit into real cash

FCF Margin

8.3%

Modest free cash flow (8.3%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.49

Conservative — low debt load (0.49)

Interest Cover

4.68x

Adequate interest coverage (4.7x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

66.3x

Expensive — P/E 66.3

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+48.5

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (66.3 → 17.9)

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Dividends

Not applicable for this business.

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