Generac Holdlings Inc.

Valuation Analysis

About the Company

Generac Holdings Inc. designs, manufactures, and distributes energy technology products and solutions worldwide. The company offers residential automatic standby generators, automatic transfer switch, air-cooled engine home standby generators, and liquid-cooled engine generators; Mobile Link, a remote monitoring system for home standby generators; propane tank monitoring solution; and smart home solutions, such as smart thermostats and a suite of home monitoring products. It also provides smart home energy management devices and sensors for heating and cooling system; smart doorbell cameras; and portable and inverter generators; multiple portable battery solutions; manual transfer switches; outdoor power equipment, including trimmers, field and brush mowers, log splitters, stump grinders,

Generac Holdlings Inc. Stock at a Glance

Generac Holdlings Inc. (GNRC) is currently trading at $262.36 with a market capitalization of $15.4B. The trailing P/E ratio stands at 81.99x, with a forward P/E of 23.61x. The 52-week range spans from $123.94 to $294.18; the current price is 10.8% below the yearly high. Year-over-year revenue growth stands at +12.4%. The net profit margin stands at 4.37%.

💰 Dividend

Generac Holdlings Inc. currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

15 analysts rate Generac Holdlings Inc. (GNRC) on consensus: Buy. The average price target is $281.60, implying +7.33% from the current price. Analyst price targets range from $212.00 to $335.00.

Generac Holdlings Inc.: The Investment Case in Detail

Generac Holdlings Inc. (GNRC) operates in the Industrials — specifically Specialty Industrial Machinery — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 12.4% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Earnings growth of 69.9% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base.

The Bear Case

With a net margin of just 4.37%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. A trailing P/E above 50 combined with revenue growth below 20% is a dangerous combination — the market is paying a steep growth multiple for what is, by the data, only moderately fast expansion. With a beta near 1.91, the share price moves sharply more than the broader market — drawdowns in market corrections can be unusually severe and require strong nerves.

Valuation in Context

The PEG ratio at 1.09 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric. The EV/EBITDA multiple of 31.42x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The forward P/E of 23.61x is meaningfully below the trailing 81.99x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to above-average price swings.

Trading Data

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