GNRC Stock Analysis — Generac Holdings
Sector: Industrial Equipment
AI Verdict
Generac trades at 26.3x next year's earnings for a huge expected rebound, so you're getting cheap growth if the moat holds—but if the earnings snapback stalls, the premium could evaporate fast.
Competitive Moat
Generac dominates the U.S. standby generator market through a deep dealer network and brand recognition, making it the default choice for home backup power. Its scale and distribution create barriers for new entrants, especially in residential and small business segments.
Summary
Generac is on watch as its forward P/E of 26.3x bakes in a massive 181.5% earnings rebound after a tough year.
Where It Stands
Shares are up 58.04% over the past year, with an RSI of 41.2 signaling cooling momentum, and the stock trades at 26.3x next year's earnings—right in line with the industrials sector median but with much higher expected growth.
Key Metrics
- RSI: 41.2 — Neutral
- Trailing P/E: 73.9x
- Forward P/E: 26.3x
- PEG Ratio: 0.44
- Earnings Growth: +1.8%
- Revenue Growth: -0.0%
- Market Cap: $13.9B
- 1-Year Return: 58.04%
- 52-Week High: $296.44
- 52-Week Low: $134.80
Analyst Consensus
19 Buy · 8 Hold · 0 Sell (27 analysts)
Bull Case
With analysts forecasting 181.5% EPS growth and a forward P/E of 26.3x, you're paying a typical industrials multiple for a potential earnings explosion if demand rebounds.
Bear Case
If that 181.5% EPS jump doesn't materialize, the trailing P/E of 73.9x leaves plenty of room for a painful de-rating back toward the sector's 20x norm—a 24%+ downside risk on valuation alone.
Catalyst to Watch
Watch the next earnings report for signs that revenue growth (currently -0.5% YoY) is turning positive, as any disappointment could unwind the optimism in forward estimates.