GNRC AI Stock Analysis – Buy, Hold, or Avoid?
Generac Holdings Inc. (GNRC)
Fundamentals
Generac Holdings (GNRC) shows evidence of robust recovery and improving profitability following a period of margin pressure. Its most recent quarters have demonstrated renewed earnings momentum and cost discipline, with meaningful beats in the latest quarter suggesting re-acceleration. The stock trades at a premium multiple, reflecting both growth optimism and the perceived stickiness of its products in an evolving energy landscape.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
12.44% YoY
Q1 2026
Net Income
67.09% YoY
Q1 2026
Net Margin
Q1 2026
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q1 2026
Net Income Growth YoY
Latest Quarter: Q1 2026
Revenue Per Share Growth YoY
Latest Quarter: Q1 2026
EPS Growth YoY
Latest Quarter: Q1 2026
Book Value Per Share Growth YoY
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.1B | 1.1B | 1.1B | 1.1B | 942.1M | 1.2B | 1.2B | 998.2M |
| Revenue Growth YoY | +12.44% | -11.60% | -5.05% | +6.31% | +5.94% | +16.09% | +9.61% | -0.22% |
| Net Income | 73.3M | -24.5M | 66.2M | 74.0M | 43.8M | 128.9M | 113.7M | 59.1M |
| Net Income Growth YoY | +67.09% | -118.99% | -41.83% | +25.21% | +86.19% | +34.27% | +88.53% | +36.28% |
| EPS | $1.25 | -$0.42 | $1.14 | $1.27 | $0.74 | $2.18 | $1.91 | $0.99 |
| EPS Growth YoY | +68.92% | -119.27% | -40.31% | +28.28% | +89.74% | +37.11% | +94.90% | +41.43% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 38.72% | 36.29% | 38.31% | 39.27% | 39.48% | 40.61% | 40.24% | 37.62% |
| Operating Margin | 11.07% | -0.85% | 9.25% | 10.53% | 8.88% | 16.04% | 14.37% | 10.34% |
| Net Margin | 6.91% | -2.24% | 5.94% | 6.97% | 4.65% | 10.44% | 9.69% | 5.92% |
| Return on Equity (ROE) | 2.74% | -0.93% | 2.50% | 2.88% | 1.78% | 5.17% | 4.72% | 2.49% |
| Return on Assets (ROA) | 2.14% | -0.60% | 1.61% | 2.32% | 1.52% | 4.42% | 3.86% | 2.05% |
Technical Analysis
GNRC is in a strong uptrend characterized by a golden cross and price trading well above major moving averages. Despite RSI being in overbought territory, momentum remains robust, supported by a high ADX signaling a strong trend. The stock is near its 52-week high, reflecting strong bullish sentiment but signaling caution due to overbought conditions.
Watch for pullback
Price in uptrend
Strong trend active
50 above 200 - bullish
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Generac Holdings (GNRC) shows evidence of robust recovery and improving profitability following a period of margin pressure. Its most recent quarters have demonstrated renewed earnings momentum and cost discipline, with meaningful beats in the latest quarter suggesting re-acceleration. The stock trades at a premium multiple, reflecting both growth optimism and the perceived stickiness of its products in an evolving energy landscape.
Latest Earnings
Q1 2026 Earnings (Mar 31, 2026)
Earnings Per Share (EPS)
Actual
$1.80
Estimated
$1.33
Surprise
+$0.47
Surprise %
+35.34%
Revenue
Actual
$1.06B
Estimated
$1.05B
Surprise
+$7.3M
Surprise %
+0.69%
Historical Earnings
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $1.80 | $1.61 | $1.83 | $1.65 | $1.26 | $2.80 | $2.25 | $1.35 |
| EPS (Estimated) | $1.33 | $1.81 | $2.25 | $1.33 | $0.99 | $2.49 | $1.95 | $1.24 |
| EPS Surprise | +$0.47 | -$0.20 | -$0.42 | +$0.32 | +$0.27 | +$0.31 | +$0.30 | +$0.11 |
| % Diff | +35.3% | -11.0% | -18.7% | +24.1% | +27.3% | +12.4% | +15.4% | +8.9% |
| Revenue | ||||||||
| Revenue (Actual) | $1.06B | $1.09B | $1.11B | $1.06B | $942.12M | $1.23B | $1.17B | $998.2M |
| Revenue (Estimated) | $1.05B | $1.16B | $1.16B | $1.21B | $1.06B | $1.25B | $1.23B | $999.97M |
| Revenue Surprise | +$7.3M | -$69.1M | -$46.25M | -$152.46M | -$121.97M | -$10.87M | -$59.66M | -$1.77M |
| % Diff | +0.7% | -6.0% | -4.0% | -12.6% | -11.5% | -0.9% | -4.8% | -0.2% |
Valuation
Generac Holdings (GNRC) is trading at a premium valuation compared to its peers and sector averages, reflecting strong recent financial performance, especially in its Commercial & Industrial segment driven by data center demand. Despite a high P/E and EV/EBITDA multiples, recent guidance upgrades and analyst price targets suggest confidence in continued growth. The overall market sentiment is positive with a consensus rating leaning towards "Buy," although valuation multiples remain stretched.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 38.94 | -81.24 | 36.85 | 28.43 | 42.66 | 17.92 | 20.78 | 33.72 |
| Price to Sales | 10.77 | 7.28 | 8.75 | 7.93 | 7.94 | 7.48 | 8.05 | 7.99 |
| Price to Book | 4.27 | 3.02 | 3.69 | 3.27 | 3.03 | 3.70 | 3.92 | 3.36 |
| Enterprise Value to EBITDA | 106.30 | 213.67 | 74.47 | 62.53 | 72.01 | 49.97 | 51.15 | 65.28 |
| Enterprise Value to Revenue | 11.77 | 8.19 | 9.76 | 9.22 | 9.31 | 8.45 | 9.30 | 9.48 |
Sentiment & Analyst Ratings
Generac Holdings (GNRC) commands a generally positive sentiment fueled by strong Q1 2026 financial performance, robust revenue growth, and an expanding backlog in the data center sector. Analyst consensus leans moderately bullish, highlighting the company's strategic position in energy solutions and data center demand while acknowledging valuation concerns. Retail investor sentiment is bullish but shows some caution due to market risks and elevated P/E multiples.
Analyst Recommendations
Risk Assessment
Generac Holdings Inc. demonstrates solid short-term liquidity and a moderate debt profile, supported by historically stable current ratios above 2. The company faces risk from demand volatility in its residential segment, margin pressure from its growing commercial-industrial business, and execution risks related to capacity expansion. While financial leverage is moderate and debt service coverage is adequate, macroeconomic and competitive pressures warrant cautious monitoring from an investor perspective.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q1 2026
Quick Ratio
Latest Quarter: Q1 2026
Debt-to-Equity
Latest Quarter: Q1 2026
Debt-to-Assets
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 2.03 | 2.03 | 2.18 | 2.00 | 1.97 | 1.97 | 2.03 | 2.25 |
| Quick Ratio | 0.99 | 1.00 | 1.02 | 0.88 | 0.89 | 0.97 | 0.96 | 0.99 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 0.49 | 0.51 | 0.54 | 0.62 | 0.60 | 0.59 | 0.69 | 0.72 |
| Debt-to-Assets | 0.24 | 0.24 | 0.25 | 0.29 | 0.29 | 0.29 | 0.32 | 0.33 |
Liquidity Assessment
Current Ratio: 2.03(Strong)
Quick Ratio: 0.99(Adequate)
The company has adequate liquidity but may face challenges in a downturn.
Solvency Assessment
Debt-to-Equity: 0.49(Low)
Debt-to-Assets: 0.24(Low)
The company maintains a balanced capital structure with manageable debt levels.
Frequently Asked Questions about GNRC
AI Answers: Common Questions About GNRC
Get AI-powered answers to the questions investors ask most about Generac Holdings Inc.
GNRC is a good buy for medium- and long-term investors seeking exposure to energy resiliency and data center growth, but the current P/E of 84.45 and price near the 52-week high ($272.40) mean short-term pullbacks are possible. The company's strong Q1 2026 results and raised guidance support the bullish case, but valuation risk is elevated.
Unless your thesis was purely short-term or you are risk-averse to valuation contraction, there is no strong reason to sell now. Fundamentals and sentiment remain positive, and technicals only suggest caution for new entries, not an outright reversal.
The biggest risks are the high valuation (P/E 84.45, EV/EBITDA well above peers), margin pressure from business mix shifts, and volatility in residential demand. Sentinel notes moderate leverage (debt/equity ~0.5, interest coverage >7), but warns of cyclical and execution risks.
Technical resistance is at $272.40; a breakout could target $280-$285 in the near term. Analyst targets range from $248 to $325, with the consensus skewing higher if operational momentum continues. Key support levels are $260 and $216.
The stock is overvalued relative to sector peers, with a P/E of 84.45 and elevated P/S and EV/EBITDA multiples. This premium is justified only if GNRC sustains double-digit growth and margin expansion; otherwise, multiples could compress.
GNRC is fundamentally strong, with gross margin rebounding to 39%, net margin back above 7%, and Q1 2026 EPS up 43% YoY. The balance sheet is solid (current ratio >2, moderate leverage), and recurring service revenues support margin durability.
Technicals are bullish with a golden cross and price well above major SMAs, but the RSI at 77.94 signals overbought conditions. Immediate resistance is $272.40; a breakout could see $280+, but a pullback to $260 or $216 is possible if momentum cools.
Key catalysts include upcoming earnings reports (look for continued beats), further backlog growth in data centers, new product launches in energy storage, and macro events like grid instability or extreme weather that drive demand.
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