Generac Holdings (GNRC)
Key Statistics
EV/EBIT = 23.1x
ROE = 14.59%
Debt/Equity = 55%
FCF Yield = 4%
Dividend Yield = 0%
Market Cap = $10.64 billion
The Company
Generac Holdings (ticker: GNRC) is a U.S.-based company that designs, builds, and sells backup power systems, portable generators, and energy storage solutions. Put simply, if the power goes out, Generac is the brand many people turn to for reliable electricity.
The company earns most of its revenue from three major categories: residential standby generators, commercial and industrial equipment, and clean energy products and services. It also makes money through replacement parts, ongoing maintenance, extended warranties, and dealer support.
While it sells globally, the United States remains its core market, making up about 84% of sales.
The company’s products have become more popular in recent years for a simple reason: power outages are happening more often. Climate change has increased the severity of storms, heatwaves, and wildfires, all of which stress the electric grid. On top of that, America’s electrical infrastructure is old and underfunded, which means failures are becoming more common. When people lose power for hours or even days, they quickly realize the value of a backup system.
What was once considered a luxury purchase is now seen by many as a necessity. Generac has leaned into this shift by offering products that range from small portable generators for camping or job sites, to full-house systems that keep every appliance running during an outage.