GNRCGenerac
Is the business good?
A genuinely good business: earnings fully cash-backed (1.7×) and margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
A balanced mix of margins, efficiency, and leverage. ROE 8% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GNRC?
Generac earns 8.6% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.40 points below what the capital costs: growth destroys value
- Operating margin
- 9.5%
Operating margin · Specialty Industrial Machinery median 14% · 12 months to Q2 2026
- Cash conversion
- 1.69×
Cash conversion · 1.53× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +1.1%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 19% |
| FY2021 | 19% |
| FY2022 | 12% |
| FY2023 | 9.6% |
| FY2024 | 12% |
| FY2025 | 6.9% |
Details›
- Gross margin12 months to Q2 2026
- 40%
- Operating margin12 months to Q2 2026
- 9.5%
- Net margin12 months to Q2 2026
- 5.8%
- Free cash flow margin
- 8.5%
- R&D as % of revenue
- 5.6%
- Revenue, trailing twelve months
- $4.44B
- Free cash flow, trailing twelve months
- $379M
- Net income, trailing twelve months
- $258M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.6%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Specialty Industrial Machinery
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