Generac Holdings Inc. (GNRC)

FairStock Score: 23/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with what is known. Generac sells standby generators and energy technology; in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.2B and net income $143.2M, or diluted EPS $2.40. That is a real improvement, but it follows uneven annual results: FY2025 revenue $4.2B, net income $159.6M, diluted EPS $2.69, versus FY2024 revenue $4.3B, net income $316.3M, EPS $5.39, and FY2023 revenue $4.0B, net income $214.6M, EPS $3.27. The FairStock Lynch category is SLOW GROWER - Shrinking, with profit -14.6% a year over five years and revenue 11.1%, so I would not confuse a strong quarter with a proven compounder. Financial health is decent: D/E 0.49, Altman Z 3.65, Piotroski 7/9, TTM FCF $379.2M. But returns are modest - ROE 9.49% and ROCE 4.72% - and beta 1.91 suggests cyclicality. Valuation is the rub: at $189.23 on 2026-10-26, P/E 43.40, P/B 3.88, EV/EBITDA 19.82, FCF yield 3.4%, and Graham Number $69.17, a -170.23% margin of safety. The FairStock Score is 23/100. PEG 0.46 and 93.53% profit growth flatter near-term recovery, but the five-year record and high price argue for caution. I see a fair business with improving recent profit, but not a bargain on Graham/Buffett terms; I would wait for evidence of durable cash returns rather than pay for optimism.

In plain English: Generac makes backup generators and other energy products for homes and businesses. The latest quarter showed more profit than a year earlier, but yearly profit has been uneven and the business earns only modest returns. Based on the given numbers, the stock looks expensive rather than cheap.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer