Is the business good?
How good a business is GNRC?
Generac earns 7.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
7.0%
Return on invested capital · cost of capital 9.0% · 2.0 points below what the capital costs: growth destroys value
- Operating margin
- 7.5%
Operating margin · Specialty Industrial Machinery median 15% · 12 months to Q1 2026
- Cash conversion
- 1.75×
Cash conversion · 1.64× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −0.86%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 19% |
| FY2021 | 19% |
| FY2022 | 12% |
| FY2023 | 9.6% |
| FY2024 | 12% |
| FY2025 | 6.9% |
Details›
- Gross margin12 months to Q1 2026
- 38%
- Operating margin12 months to Q1 2026
- 7.5%
- Net margin12 months to Q1 2026
- 4.4%
- Free cash flow margin
- 7.6%
- R&D as % of revenue
- 5.6%
- Revenue, trailing twelve months
- $4.33B
- Free cash flow, trailing twelve months
- $331M
- Net income, trailing twelve months
- $189M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Specialty Industrial Machinery
Ranks #31 of 44 by Smart Score