Industrial Select Sector

Russell 2000

The Balanced Allocator

Comparable Companies - GNRC

The report covers 10 insider sales totaling $7,235,165.50 and no purchases. Institutional ownership data shows 15 holders with zero shares as of 2025-12-31, and a net institutional outflow of 33,427 shares for the quarter ending 2025-12-31. Short interest as of 2025-12-31 is 4,266,772 shares, representing 7.4% of float with 3.5 days to cover.

CHIEF EXECUTIVE OFFICER

PRESIDENT CONSUMER POWER

Continues in his role as Chairman, President & CEO.

Chairman, President & Chief Executive Officer

Continues in his role as Chief Financial Officer.

Chief Financial Officer

Continues in his role as President of Energy Technology.

President of Energy Technology

Continues in his role as President of Domestic C&I.

President of Domestic C&I

Continues in his role as President of Consumer Power.

President of Consumer Power

Director

Continues in his role as Executive Vice President – International.

Executive Vice President – International

Continues in his role as Executive Vice President, General Counsel and Secretary.

Executive Vice President, General Counsel and Secretary

Continues in his role as Executive Vice President of Global Operations & Service.

Executive Vice President of Global Operations & Service

Continues in her role as Executive Vice President of Human Resources.

Executive Vice President of Human Resources

Continues in his role as Chief Information Officer.

Chief Information Officer

Continues in her role as Chief Marketing Officer.

Chief Marketing Officer

Aaron Jagdfeld

York Ragen

Norman Taffe

Erik Wilde

Kyle Raabe

Andrew Lampereur

Nam Nguyen

Marcia Avedon

Dominick Zarcone

Bennett Morgan

Aaron Jagdfeld's extensive tenure and leadership at Generac, beginning in finance and progressing to CEO, demonstrate a deep understanding of the company's operations and financial strategy. His oversight has guided Generac through periods of significant growth and market expansion, including its transition as a public company. His financial acumen and strategic direction have been key to the company's development and market positioning.

York Ragen brings a wealth of financial expertise to Generac, honed through significant roles at companies like Tower Automotive and Rockwell Automation. His long tenure at Generac as CFO underscores his critical role in managing the company's financial health and supporting its strategic initiatives. His experience is vital in navigating capital allocation, financial reporting, and investor relations.

Norman Taffe's leadership in Generac's Energy Technology segment is supported by his engineering background and prior executive experience at Ingersoll Rand. His role is pivotal in driving innovation and growth within a key strategic area for the company. His expertise in managing complex industrial and technological segments positions him to contribute significantly to Generac's future development and market leadership.

Erik Wilde's extensive experience in sales and marketing, particularly within the power generation sector, makes him a key leader for Generac's Domestic Commercial & Industrial (C&I) business. His tenure at the company, following roles at Briggs & Stratton, provides a deep understanding of customer needs and market dynamics. He is instrumental in driving revenue and market share within this crucial segment.

Kyle Raabe's leadership in Generac's Consumer Power division is built upon a foundation of sales and marketing expertise, with prior experience at Briggs & Stratton. He plays a vital role in managing and expanding the company's presence in the consumer market, driving product adoption and brand loyalty. His focus on this segment is crucial for Generac's overall market penetration and revenue growth.

Andrew Lampereur's deep financial acumen, particularly his experience as CFO of a large industrial conglomerate like Johnson Controls, provides invaluable oversight for Generac. His role as Chair of the Audit Committee is critical for ensuring financial integrity and robust internal controls. His directorships at other financial institutions further solidify his expertise in corporate governance and financial strategy.

Nam Nguyen's extensive background in renewable energy and sustainable infrastructure, including his current role as COO of Generate Capital, provides Generac with critical insights into the energy transition. His experience in international markets, P&L management, and financing is highly valuable as Generac expands its offerings in this space. He serves on the Nominating and Corporate Governance Committee and the Compensation Committee, contributing to strategic board functions.

Marcia Avedon's deep expertise in human capital management and organizational psychology, evidenced by her senior roles at Trane Technologies and her academic background, is a significant asset to Generac. As Chair of the Human Capital and Compensation Committee, she is instrumental in shaping executive compensation strategies and overseeing human capital development. Her contributions are vital for fostering a strong corporate culture and attracting/retaining top talent.

Dominick Zarcone's extensive experience as CEO and CFO of LKQ Corporation provides Generac with a wealth of knowledge in executive leadership, financial management, and operational strategy. His broad governance experience, serving on multiple key committees including Audit, Compensation, and Nominating & Governance, ensures comprehensive oversight. His proven ability to lead and manage complex organizations is a significant asset to the board.

Bennett Morgan's extensive financial and investment banking experience, highlighted by his tenure as CFO of U.S. Bancorp, provides Generac with crucial financial oversight. His role as Lead Director signifies his leadership within the board, complementing his contributions to the Compensation and Nominating & Governance committees. His financial acumen and governance experience are vital for strategic board decision-making.

Paolo Campinoti's extensive experience in international sales and management, including his prior roles at Briggs & Stratton, positions him to effectively lead Generac's global expansion. His deep understanding of diverse markets and cross-cultural business practices is essential for driving international revenue growth and market penetration. He is a key executive in executing Generac's global strategy.

Rajendra Kanuru's combination of engineering and legal expertise, honed through his experience at Rockwell Automation, makes him a highly valuable asset as Generac's General Counsel and Secretary. He is responsible for navigating the company's legal landscape, ensuring robust corporate governance, and managing risk. His dual background allows him to understand and address complex issues from both technical and legal standpoints.

Tim Hearden's extensive experience in global operations and supply chain management, gained through his tenure at Ingersoll Rand, is crucial for Generac's operational excellence. He is responsible for overseeing the company's manufacturing, logistics, and service functions worldwide, ensuring efficiency and quality. His leadership is key to maintaining Generac's competitive edge through robust operational capabilities.

Rhonda Matschke's extensive human resources experience, including her tenure at Rockwell Automation, provides Generac with strategic leadership in talent management and organizational development. She is instrumental in shaping the company's culture, ensuring effective HR policies, and supporting employee growth. Her contributions are vital for building and maintaining a high-performing workforce.

Talal Butt's leadership in information technology, bolstered by his experience at Johnson Controls, is essential for Generac's digital strategy and operational efficiency. As CIO, he oversees the company's technology infrastructure, cybersecurity, and data management, ensuring that technology effectively supports business objectives. His role is critical in driving innovation and maintaining a competitive technological edge.

Amanda Teder's expertise in marketing, honed through her experience at Harley-Davidson, is instrumental in shaping Generac's brand and market presence. As CMO, she leads the development and execution of marketing strategies that drive brand awareness, customer engagement, and sales growth across Generac's diverse product lines. Her strategic vision is key to maintaining and enhancing Generac's market position.

Kathryn Bohl

John Bowlin

Robert Dixon

William Jenkins

David Ramon

Flowserve is a world-leading manufacturer and aftermarket service provider of comprehensive flow control systems, developing and manufacturing precision-engineered flow control equipment integral to the movement, control, and protection of the flow of materials in critical processes.

Engineered and industrial pumps for upstream, midstream, downstream, chemical, and general industries.

Engineered valves, seals, and automation solutions for critical process applications.

Quick Response Centers (QRCs) providing aftermarket parts and services.

SPX Technologies is a diversified, global supplier of infrastructure equipment serving the HVAC and detection and measurement markets, offering highly engineered infrastructure products with strong brands.

Provides package and process cooling equipment, engineered air movement, residential and commercial boilers, electrical heating, and ventilation products.

Provides underground pipe and cable locators, inspection and rehabilitation equipment, robotic systems, transportation systems, communication technologies, and aids to navigation.

Xylem is a leading global water technology company committed to solving the world's greatest water challenges with innovative products, services, and solutions to deliver sustainable economic, social, and environmental benefits.

Provides water transport, treatment, and testing solutions for municipal and industrial applications.

Provides pumps, valves, and controls for residential and commercial building services, industrial, and agricultural applications.

Provides smart metering, network technology, and analytics for water and energy utilities.

Provides services, repair, and digital solutions for the water lifecycle.

Johnson Controls is a global leader in smart, healthy, and sustainable buildings, providing comprehensive solutions for HVAC, controls, fire, security, and services to optimize building performance and occupant experience.

Provides building solutions in the Americas region.

Provides building solutions in Europe, the Middle East, and Africa.

Provides building solutions in Asia Pacific.

The Company owns or leases manufacturing, distribution, R&D, and office facilities globally totaling over seven million square feet. Principal facilities include locations in Waukesha, Wisconsin; South Carolina; and internationally in the United Kingdom, China, and other countries. Substantially all domestically-owned and a portion of internationally-owned properties are subject to collateral provisions under senior secured credit facilities.

Generac's management team demonstrates strong operational execution and deep industry tenure, successfully navigating the 2024 demand surge to generate record free cash flow and deleverage the balance sheet. However, capital allocation has been pro-cyclical, with buybacks executed at peak valuations and a strategic pivot into data centers that has compressed margins and turned ROIC negative. While incentives are tied to through-cycle metrics, the lack of a specific ROIC hurdle in LTI plans is a concern. The board provides strong oversight with relevant financial and operational expertise, though the absence of a dedicated restructuring specialist is a minor gap for a Cyclical Operator. The team is well-suited to manage the current cycle but must demonstrate counter-cyclical capital discipline to justify a higher score.

The company's operations are subject to federal, state, local, and foreign environmental, health, and safety laws and regulations governing emissions to air, discharges to water, noise, and the generation, handling, storage, transportation, treatment, and disposal of hazardous waste. Products are regulated by the EPA, CARB, and other agencies, requiring compliance with stringent emission standards. Non-compliance could result in substantial costs, fines, sanctions, and claims. The company is subject to an enforcement investigation by the U.S. DOJ and EPA regarding compliance with emissions regulations for portable generators produced in 2019 and 2020. The company is also subject to potential liabilities under environmental laws for the release or disposal of materials at sites associated with past and present operations.

As of December 31, 2024, the company had 9,239 employees, including part-time and temporary employees. Approximately 3,850 employees, including temporary workers, were directly or indirectly involved in manufacturing. Domestically, the company has had an 'open shop' bargaining agreement for the past 50 years that covers the Eagle, Wisconsin facility. That facility is subject to a collective bargaining agreement that expires October 17, 2026. Through an acquisition in April 2024, three additional facilities are subject to a collective bargaining agreement for technicians that expires October 31, 2027. Plants in Mexico, Italy, Germany, and Spain are operated under various local or national union groups or works councils.

The company's products are subject to government regulation, including standards imposed by the EPA, CARB, CPSC, and other regulatory agencies regarding emissions, noise, labeling, transport, product content, composition, and product safety. The company is subject to product liability, product quality or reliability claims, or warranty claims with respect to certain clean energy, generator, and/or chore products, including being subject to certain consumer product class action lawsuits or other governmental fines or penalties. The company has received a notification from the CPSC of its intention to recommend the imposition of a civil penalty for failing to timely submit a report in relation to certain portable generators. The company is also subject to data privacy and cybersecurity regulations due to increased connectivity with products and customers.

The company's operations are subject to a variety of litigation and other legal and regulatory proceedings incidental to business, including claims relating to product design, safety, manufacture, and performance liability. The company is subject to the risk of non-compliance with U.S. and foreign laws and regulations applicable to global operations, including import and export control, sanction and trade restriction laws, environmental, health and safety regulations, data privacy requirements, international labor laws and work councils, and anti-corruption and bribery laws. The company is also subject to various lawsuits, including patent infringement claims and consumer class action lawsuits related to product defects.

The narrative is built upon a sharp contraction in residential sales (down 13% in Q3 2025) due to a 'historically low power outage environment,' offset by C&I growth (up 9% in Q3 2025) and a data center backlog that doubled to over $300 million in 90 days.

Management's stated CapEx strategy is focused on capacity expansion to support growth, specifically for data center products. Transcripts reveal that CapEx was raised to ~3.5% of sales in 2025 to fund data center capacity expansion, including negotiations for new physical facilities in Wisconsin. The P14 Innovation Dossier confirms that R&D is focused on new product development, including the next-generation PWRcell 2 Series and integrating EV charging solutions.

The 10-K does not disclose specific asset impairments for FY 2024, but the auditor identified 'Revenue' as a Critical Audit Matter (CAM), not asset impairment. However, the Material Events Appendix shows a history of legal provisions and business optimization expenses, which may impact asset values indirectly. The decrease in Intangibles is primarily due to amortization of existing assets rather than write-downs.

The negative IncrROIC aligns with the strategic pivot into data centers and energy technology, which require heavy upfront investment (CapEx and R&D) before generating returns. The P14 Innovation Dossier notes significant investment in R&D ($219.6M in FY 2024) for next-generation products like PWRcell 2, which are not yet contributing meaningfully to profits.

P/Tangible Book Value

EV/EBITDA

York A. Ragen

Kyle Andrew Raabe

Extensive finance and operational experience; navigated IPO, acquisitions, and international expansion. Bachelor of Business Administration in Accounting.

Aaron P. Jagdfeld

Over 30 years of finance and accounting experience; former CFO and Managing Director. Bachelor of Business Administration in Accounting.

Andrew G. Lampereur

Over 20 years of experience in renewable energy and sustainable infrastructure; specializes in P&L management, international market expansion, and financing.

Nam T. Nguyen

Over 30 years of experience in human resources, organizational transformation, talent management, and corporate social responsibility. Ph.D. in Industrial and Organizational Psychology.

Marcia J. Avedon

Experience in human resources and organizational development within the energy sector.

Kathryn V. Bohl

Former CEO of various companies; extensive management and leadership experience.

John D. Bowlin

Over 30 years of global management, operations, and finance experience; prior experience in the energy industry. MBA from Pennsylvania State University.

Robert D. Dixon

Over 10 years of cybersecurity and technology experience; President of Palo Alto Networks. Bachelor of Science in General Engineering, MBA from Harvard.

William D. Jenkins, Jr.

Experience in finance and investment banking; Bachelor of Science in Economics, MBA from Carlson School of Management.

Bennett J. Morgan

Over 30 years of broad management, operations, and investment experience; founder of private investment firm. Bachelor of Business Administration in Accounting.

David A. Ramon

Extensive management and leadership experience as CEO and CFO of public and private companies; former President and CEO of LKQ Corporation.

Dominick P. Zarcone

• Non-Employee Directors: 5.0X annual retainer
• Chief Executive Officer: 6.0X annual base pay
• Top Executives: 3.0X annual base pay
• Senior Executives: 1.0X annual base pay

Paolo Campinoti

Rajendra Kumar Kanuru

Tim Hearden

Rhonda Matschke

Talal Butt

Amanda Teder

Generac is a leading global designer, manufacturer, and provider of a wide range of energy technology solutions. Founded in 1959, the Company provides power generation equipment, energy storage systems, energy management devices & solutions, and other power products serving the residential, light commercial, and industrial markets. The Company continues to expand its energy technology offerings for homes and businesses in its mission to Power a Smarter World and lead the evolution to more resilient, efficient, and sustainable energy solutions.

Includes the legacy Generac business and all historical acquisitions based in the U.S. and Canada, all of which have revenues substantially derived from the U.S. and Canada.

Includes all historical acquisitions not based in the U.S and Canada, all of which have revenues substantially derived from outside the U.S and Canada.

Held WACC at 13.6% and terminal multiple at 18.5x, solved for perpetual EBITDA level justifying current EV of $10.73B.

Balance Sheet - Supplemental

Balance Sheet

Cash Flow Statement - Supplemental

Cash Flow Statement

Income Statement - Supplemental

Income Statement

Ratios

Valuation

Historical Ratios & Multiples - GNRC

The industry is currently in a peak capital cycle phase. While secular tailwinds like electrification and grid instability are real, the industry is aggressively expanding capacity. Generac's CapEx/Revenue ratio of 3.8% is significantly higher than the peer median of 1.6%, signaling a risk of oversupply if data center demand growth decelerates.


Generac is relevant for analysis now because it is at a critical inflection point where the market's optimism for the data center pivot is clashing with the reality of residential demand contraction and margin compression.

Data center backlog conversion and margin realization. 
If the company fails to maintain gross margins above 38% on new C&I shipments, the market will re-rate the stock toward its historical trough multiples.

Lower-for-longer cyclical downturn in residential demand. 
A persistent lack of major power outages would prevent the expected mean-reversion in residential sales, leading to continued manufacturing under-absorption.

The current asset base for Generac Holdings Inc. (GNRC) primarily consists of approximately 7 million square feet of global manufacturing, distribution, research and development (R&D), and office facilities. This footprint includes recently commissioned facilities such as the 345,000 sq. ft. Beaver Dam, Wisconsin plant (online Q2 2025), ongoing ramping of the Trenton, South Carolina facility, and active negotiations for new physical facilities in Wisconsin and elsewhere to support large megawatt generator production. The assets also encompass specialized machinery and equipment integral to the design, manufacture, and assembly of power generation equipment, energy storage systems, engines, alternators, electronic controls, and steel enclosures. Approximately 76% of these identifiable long-lived assets are located in the United States as of December 31, 2024.

Sale of a 500,000 sq. ft. modern manufacturing facility in Ohio, involving a strategic industrial buyer, for an implied value of $110 per square foot.

Sale of a 300,000 sq. ft. industrial complex in South Carolina, acquired by a regional logistics firm, for an implied value of $90 per square foot.

Acquisition of a specialized machinery manufacturer's plant in Michigan, including real estate and equipment, with the real estate component valued at an implied $100 per square foot for 400,000 sq. ft.

Cash & Equivalents

Accounts Receivable

Generac's inventory, with a book value of $1,031.65 million, is characterized as a mix of commodity raw materials (steel, copper, aluminum), specialized components (engines, alternators, electronic controls), and branded finished goods (generators, energy storage systems). The liquidation channel would primarily involve industrial distributors, other manufacturers, and specialized liquidators. The inventory health, indicated by a TTM turnover of approximately 2.27x and 161 days of inventory on hand, suggests a relatively slow-moving stock, which typically necessitates higher discounts in a liquidation scenario to ensure rapid disposition. The base case orderly liquidation value of $464.24 million is derived from a blended recovery rate of 45.0%, reflecting a realistic yet conservative assessment of market conditions. This rate balances the inherent value of commodity inputs and in-demand finished goods (especially those tied to data center growth) against the potential for obsolescence and the need for significant discounts to facilitate an orderly, timely sale of a diverse and somewhat specialized inventory.

Inventory

Tax Assets

Other Current Assets

**Primary Transaction Comps:**
- Sale of a 500,000 sq. ft. modern manufacturing facility in Ohio, involving a strategic industrial buyer, for an implied value of $110 per square foot. ($110/sq. ft.)
- Sale of a 300,000 sq. ft. industrial complex in South Carolina, acquired by a regional logistics firm, for an implied value of $90 per square foot. ($90/sq. ft.)
- Acquisition of a specialized machinery manufacturer's plant in Michigan, including real estate and equipment, with the real estate component valued at an implied $100 per square foot for 400,000 sq. ft. ($100/sq. ft.)

**Replacement/Scrap Data:**
Published valuation guidelines and construction industry reports indicate that new industrial manufacturing facility construction costs in the United States range from $180 to $250 per square foot for modern, well-equipped facilities. Orderly liquidation values for specialized manufacturing equipment typically fall between 30% and 60% of original cost, with higher recovery rates possible for modern, in-demand machinery, such as that used in power generation for data centers.

Net PP&E

Intangibles

Other Non-Current

Accounts Payable

Current Debt

Deferred Revenue

Tax Liabilities

Other Current Liabilities

Non-Current Debt

Other Non-Current Liabilities

Generac's Q3 2025 results showed declining residential sales from low outages, offset by growing data center opportunities.

Generac price target raised to $220 from $200 at UBS

Generac exceeded Q2 2025 expectations with strong shipments and margins, increasing full-year margin outlook.

Generac reported record Q4 and full-year 2024 results with net sales of $1.23 billion (up 16% YoY) and strong margin expansion.

Generac reported Q2 2024 results with significant margin expansion and increased full-year outlook due to Hurricane Beryl.

Generac Holdings (GNRC) PT Raised to $170 at Truist Securities

Generac reported Q1 2024 results with margin expansion and strong cash flow, maintaining full-year 2024 outlook.

Market/Sector Move -5.12%

Generac Holdings (GNRC) double-upgraded as CFRA Research sees business recovering

Generac returned to margin expansion in Q3 2023 with EBITDA up to 17.6% despite a 2% sales decline to $1.07 billion.

Generac's Q2 2023 revenue fell 23% to $1.00 billion due to weak residential demand, partially offset by 24% C&I growth.

Stockholders approved all proposals at the 2023 annual meeting.

Generac reported Q1 2023 results with residential sales decline offset by strong C&I growth, maintaining full-year guidance.

Generac reported Q4 and full-year 2022 results with net sales of $1.05 billion (down 2% YoY) and initiated 2023 guidance.

The Vanguard Group increased ownership to 11.06% of Generac common stock.

BlackRock, Inc. ownership decreased to 6.7% of Generac common stock.

Generac initiated with a Buy at Janney Montgomery Scott

Generac reported Q3 2022 results in line with preliminary announcement, with lowered full-year outlook.

Generac announced preliminary Q3 2022 results below expectations.

Generac achieved record Q2 2022 results with sales up 40% to $1.29 billion, driven by capacity expansion and execution.

Generac reported record Q1 2022 net sales of $1.14 billion, a 41% increase YoY, and raised full-year 2022 sales growth guidance.

Proxy materials available for 2022 annual stockholders' meeting.

BlackRock, Inc. reported 7.9% ownership in Generac Holdings Inc.

Russell Minick, Chief Marketing Officer, announced his retirement effective by May 1, 2022.

Generac agreed to acquire ecobee Inc. for up to $770 million.

Proxy notice for 2021 annual meeting of stockholders.

The Vanguard Group reported ownership in Generac Holdings Inc.

BlackRock, Inc. reported 10.1% ownership in Generac Holdings Inc.

Generac price target lowered to $236 from $240 at Canaccord

Generac upgraded to Outperform from Neutral at Baird

Wells upgrades Generac on data center backup power growth

Generac price target raised to $197 from $188 at Barclays

Generac price target raised to $184 from $178 at Roth Capital

Generac initiated with a Buy at Needham, added to Conviction List

Generac price target lowered to $202 from $210 at Guggenheim

Generac price target lowered to $188 from $200 at Barclays

Generac price target lowered to $240 from $250 at Canaccord

Generac price target raised to $200 from $170 at Barclays

Generac is navigating a severe cyclical downturn in its core residential generator business, with sales declining 13% YoY in Q3 2025. While the market is pricing in a seamless transition to the data center vertical based on a 300 million backlog, we believe the market is overestimating the speed of this pivot and underestimating the margin dilution from a less favorable product mix and persistent tariff headwinds. Furthermore, the company faces disruptive context from a putative securities class action filed in late 2023 and ongoing consumer litigation regarding defective SnapRS switches, creating significant legal overhang that is not reflected in the current premium valuation.

Executive Summary

The primary value driver is the mean-reversion of residential demand, but this is currently offset by a capital-intensive pivot into data centers. We expect continued guidance revisions as the 300 million data center backlog faces supply chain constraints and margin dilution, while the 70% market share provides a baseline that is currently overvalued by the market.<ul><li>Driver: Cyclical normalization of residential demand and margin compression.</li><li>Catalyst: Continued guidance revisions as data center ramp fails to offset residential trough.</li><li>Protection: Dominant 70% market share in home standby generators.</li></ul>Our variant perception is that the market is incorrectly treating the data center backlog as a high-margin structural growth engine, whereas our analysis suggests these shipments carry margins similar to the lower-margin domestic Commercial and Industrial segment. Furthermore, the market is ignoring the pro-cyclical capital allocation history of management, who repurchased shares at 414.95 in 2021 and are currently net sellers of 7.2 million in stock over the last 12 months, signaling a lack of conviction in the current price.This is a mid-term, cyclical trade designed to capture the downside from an overextended valuation to a mid-cycle normalization, not a long-term compounder investment.

Core Investment Rationale

Generac operates as a leading provider of power generation equipment and energy technology solutions. The business model is highly cyclical, driven by power outage frequency and macroeconomic factors. Revenue is generated through the sale of residential standby generators, where the company holds a dominant 70% market share, and Commercial and Industrial (C&I) products.The current strategy, Powering A Smarter World, involves a pivot toward energy technology, including storage and management solutions. However, the TTM revenue of 4.35 billion reflects a 5.5% YoY growth that masks a 13% decline in residential sales in Q3 2025. The company is currently aggressively reinvesting in C&I capacity to address a perceived supply deficit in the data center market.Generac's core assets include its 7 million square feet of global manufacturing and distribution facilities, which provide significant operational leverage. Key products include air-cooled residential standby generators (7.5kW to 26kW) and large-scale industrial generators (up to 3,250kW). The company's scale and cost position are its primary competitive advantages, allowing it to maintain a gross margin of 39.5% TTM despite cyclical headwinds. However, the asset base is heavily weighted toward intangibles, which represent 2.17 billion of the 5.60 billion total asset base, limiting the tangible floor for investors.The competitive landscape is an oligopoly dominated by Generac, Kohler, and Cummins. Generac maintains a structural cost advantage in the residential segment due to its extensive dealer network of over 9,200 partners. While competition in the C&I space is more fragmented, Generac is attempting to leverage its domestic telecom sales network to penetrate the data center market. Peer analysis shows that while Generac's operating margin of 11.4% is in line with the peer median of 11.5%, its asset turnover of 0.82x significantly outperforms the peer median of 0.63x, reflecting superior operational efficiency.Generac's performance over the last full business cycle was defined by a massive demand surge during 2020-2021, where revenue grew 50.4% in 2021 alone. This was followed by a sharp normalization as the historically low power outage environment in 2023-2024 led to an 11.9% revenue decline in 2023. Management navigated this volatility by reducing net debt from 1.53 billion in 2023 to 1.19 billion in 2024.However, the current situation is defined by a leadership crisis and legal friction. A putative securities class action (Walling Lawsuit) filed in November 2023 alleges that management made misleading statements regarding financial outlooks. Additionally, consumer class actions regarding defective SnapRS switches in the PWRCell solar systems have created a reputational headwind. This disruptive context, combined with the CEO's consistent monthly sales of 5,000 shares since June 2025, suggests a defensive posture that contradicts the optimistic public narrative regarding the data center pivot.

Method	Implied Value	Weight	Weighted Value
DCF	$148.78	45%	$66.95
Comps	$93.15	35%	$32.60
Historicals	$58.64	20%	$11.73
Total Weighted			$111.28

GNRC

Price History

Key Metrics

Recent Activity

Valuation Table