Generac Holdings Inc (GNRC) Stock Analysis
Verdict: WATCH (do not buy)
Extreme valuation and recent earnings inconsistency make GNRC a 'show-me' story despite its dominant market share in a fragile power grid.
Investment score: 42/100
Analysis as of
Is Generac Holdings Inc stock worth reviewing? AI model thesis
The AI model classifies GNRC as an 'Avoid' due to an unsustainable TTM P/E of 71x paired with declining earnings growth (-42%) and aggressive insider selling. While the long-term thematic of grid instability is intact, the current price is disconnected from fundamental cash flow.
7-factor investment score
- Valuation: 15/100 (weight 20%)
- Financial Health: 45/100 (weight 15%)
- Technical Momentum: 30/100 (weight 15%)
- Earnings Quality: 40/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 35/100 (weight 15%)
Generac Holdings Inc opportunities and risks
What speaks for GNRC
- Aging Power Grid Infrastructure
What speaks against GNRC
- Extreme Valuation Premium vs Peers
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| GNRC | 71.4x | 3.1x | 28.7x | 38.1% | 4.4% | 2.4% |
| ROK | 47.8x | 5.8x | 33.2x | 52.5% | 12.4% | 2.6% |
| HUBB | 27.9x | 4.2x | 19.0x | 35.5% | 15.1% | 3.6% |
| NXT | 27.5x | 4.6x | 20.3x | 32.4% | 16.5% | 3.2% |
| VICR | 84.0x | 24.3x | 77.6x | 58.8% | 29.0% | 0.8% |
| RRX | 48.5x | 2.3x | 15.4x | 37.5% | 4.8% | 5.8% |
| Peer median | 47.8x | 4.6x | 20.3x | 37.5% | 15.1% | 3.2% |
Frequently asked questions about Generac Holdings Inc (GNRC)
Is GNRC stock a good investment?
The cached TradeMates AI model rates Generac Holdings Inc as WATCH (do not buy) with an investment score of 42/100. The AI model classifies GNRC as an 'Avoid' due to an unsustainable TTM P/E of 71x paired with declining earnings growth (-42%) and aggressive insider selling. While the long-term thematic of grid instability is intact, the current price is disconnected from fundamental cash flow. This is algorithmic model output, not personal investment advice.
Is GNRC stock a buy?
The TradeMates model verdict for GNRC is WATCH (do not buy) with an investment score of 42/100. Treat this as a model signal to review, not a personal buy recommendation.