We are raising our fair value estimate for narrow-moat Generac to $126 from $117 following recent power outage activity and after revisiting our long-term modeling assumptions. The bulk of the valuation uplift is from a slightly higher long-term earnings growth assumption in our DCF model. We view shares as slightly overvalued.
Generac is the undisputed leader in home standby generators, with over 70% market share.
Generac’s home standby generator orders are highly reliant on power outage activity.
|
Metric
|
GNRC
|
SEDG
|
CARR
|
|---|---|---|---|
Price/Earnings (Normalized) | 24.57 | 11.33 | 22.09 |
Price/Book Value | 3.55 | 1.16 | 4.87 |
Price/Sales | 2.13 | 1.16 | 2.36 |
Price/Cash Flow | 20.22 | — | 25.21 |
|
Metric
|
GNRC
|
SEDG
|
CARR
|
|---|---|---|---|
Quick Ratio | 0.86 | 1.85 | 0.55 |
Current Ratio | 2.29 | 3.70 | 1.36 |
Interest Coverage | 4.12 | 12.42 | 4.76 |
|
Metric
|
GNRC
|
SEDG
|
CARR
|
|---|---|---|---|
Return on Assets (Normalized) | 6.73% | −0.77% | 8.02% |
Return on Equity (Normalized) | 14.74% | −1.44% | 27.54% |
Return on Invested Capital (Normalized) | 10.09% | −1.05% | 12.64% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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