| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 141.17 | -5 |
| Intrinsic value (DCF) | 0.00 | -100 |
| Graham-Dodd Method | 45.00 | -70 |
| Graham Formula | 79.92 | -46 |
Generac Holdings Inc. (NYSE: GNRC) is a leading global designer and manufacturer of power generation equipment, energy storage systems, and power products serving residential, light commercial, and industrial markets. Founded in 1959 and headquartered in Waukesha, Wisconsin, Generac specializes in standby generators, portable generators, clean energy solutions (PWRcell and PWRview brands), and outdoor power equipment. The company operates in the industrial machinery sector, catering to diverse applications, including emergency backup power for healthcare, telecom, data centers, and manufacturing. Generac distributes its products through an extensive network of independent dealers, retailers, e-commerce partners, and direct sales. With increasing demand for reliable power solutions due to climate-related outages and grid instability, Generac is well-positioned in the growing distributed energy market. The company’s innovation in battery storage and smart energy management further strengthens its relevance in the renewable energy transition.
Generac presents a compelling investment case due to its leadership in the standby generator market, expanding clean energy portfolio, and exposure to rising demand for resilient power solutions. The company benefits from recurring revenue through aftermarket parts and services, as well as strong brand recognition. However, risks include cyclical demand tied to weather events, supply chain disruptions, and high leverage (total debt of ~$1.48B). The stock’s beta of 1.73 indicates higher volatility relative to the market. While Generac has no dividend, its growth potential in energy storage and grid-independent solutions may appeal to growth-oriented investors. Investors should monitor execution in commercial/industrial segments and margin trends amid inflationary pressures.
Generac holds a dominant position in the residential standby generator market, competing primarily on brand reputation, product reliability, and dealer network strength. Its competitive advantage stems from vertical integration (in-house engine and control systems manufacturing) and a broad product portfolio spanning small residential to large industrial generators. The company’s PWRcell energy storage system differentiates it in the solar+storage market, though it faces stiff competition from pure-play solar storage providers. Generac’s focus on smart monitoring (Mobile Link) enhances customer stickiness. However, its industrial segment competes with larger players like Caterpillar and Cummins, which have stronger global distribution and service networks. Pricing pressure from Asian manufacturers in portable generators and reliance on U.S. market concentration (~80% of revenue) are key challenges. Generac’s acquisition strategy (e.g., Ecobee, Chilicon) aims to bolster its energy tech ecosystem, but integration risks remain.