Latest Ratios: P/E Ratio 35.0x · EV/EBITDA 16.2x · ROE 6.2%. (2007–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $10.4B | $8.1B | $9.4B | $8.0B | $6.5B | $22.6B | $14.5B | $6.3B | $3.1B | $3.1B | $2.7B |
| Enterprise Value | $11.4B | $9.1B | $10.6B | $9.6B | $8.0B | $23.8B | $14.9B | $7.0B | $3.8B | $3.9B | $3.6B |
| P/E Ratio → | 34.95 | 50.70 | 28.77 | 39.52 | 18.57 | 42.40 | 41.50 | 24.96 | 12.98 | 19.34 | 27.16 |
| P/S Ratio | 2.25 | 1.92 | 2.18 | 1.99 | 1.43 | 6.05 | 5.83 | 2.87 | 1.53 | 1.85 | 1.84 |
| P/B Ratio | 3.97 | 3.06 | 3.75 | 3.41 | 2.75 | 9.95 | 9.95 | 5.78 | 3.76 | 5.14 | 6.13 |
| P/FCF | 25.11 | 30.15 | 15.48 | 20.43 | — | 75.08 | 34.15 | 25.49 | 15.49 | 13.61 | 11.95 |
| P/OCF | 23.76 | 18.46 | 12.62 | 15.37 | 111.27 | 55.00 | 29.79 | 20.47 | 12.51 | 11.88 | 10.51 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.16 | 2.46 | 2.37 | 1.75 | 6.36 | 6.00 | 3.19 | 1.87 | 2.33 | 2.53 |
| EV / EBITDA | 16.24 | 18.75 | 14.89 | 17.28 | 11.04 | 29.25 | 27.20 | 16.26 | 9.37 | 12.84 | 14.09 |
| EV / EBIT | 39.41 | 33.64 | 21.14 | 24.63 | 14.16 | 32.83 | 31.10 | 19.49 | 10.77 | 15.80 | 18.41 |
| EV / FCF | — | 33.85 | 17.45 | 24.33 | — | 78.98 | 35.12 | 28.38 | 19.00 | 17.08 | 16.37 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 38.3% | 38.3% | 38.8% | 33.9% | 33.3% | 36.4% | 38.5% | 36.2% | 35.8% | 34.8% | 35.6% |
| Operating Margin | 6.9% | 6.9% | 12.5% | 9.6% | 12.4% | 19.3% | 19.3% | 16.9% | 17.7% | 15.0% | 14.2% |
| Net Profit Margin | 3.8% | 3.8% | 7.6% | 5.0% | 7.7% | 14.3% | 14.1% | 11.5% | 11.8% | 9.5% | 6.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.2% | 6.2% | 13.4% | 8.6% | 15.1% | 28.6% | 27.4% | 26.4% | 33.4% | 30.7% | 21.9% |
| ROA | 3.0% | 3.0% | 6.4% | 4.0% | 7.0% | 13.1% | 11.8% | 9.9% | 10.7% | 8.2% | 5.4% |
| ROIC | 5.9% | 5.9% | 10.6% | 7.5% | 11.7% | 20.4% | 19.5% | 16.8% | 18.4% | 13.4% | 10.9% |
| ROCE | 6.9% | 6.9% | 13.0% | 9.2% | 14.3% | 22.8% | 20.1% | 18.5% | 20.4% | 15.9% | 13.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.51 | 0.51 | 0.59 | 0.74 | 0.68 | 0.58 | 0.73 | 0.95 | 1.12 | 1.54 | 2.42 |
| Debt / EBITDA | 2.75 | 2.75 | 2.08 | 3.14 | 2.21 | 1.63 | 1.94 | 2.40 | 2.28 | 3.06 | 4.06 |
| Net Debt / Equity | — | 0.38 | 0.48 | 0.65 | 0.62 | 0.52 | 0.28 | 0.65 | 0.85 | 1.31 | 2.27 |
| Net Debt / EBITDA | 2.05 | 2.05 | 1.69 | 2.77 | 2.03 | 1.44 | 0.75 | 1.65 | 1.73 | 2.61 | 3.81 |
| Debt / FCF | — | 3.70 | 1.98 | 3.90 | — | 3.90 | 0.97 | 2.89 | 3.50 | 3.47 | 4.42 |
| Interest Coverage | 3.82 | 3.82 | 5.56 | 3.97 | 10.27 | 21.99 | 14.52 | 8.69 | 8.60 | 5.77 | 4.45 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.03 | 2.03 | 1.97 | 2.27 | 2.20 | 1.60 | 2.60 | 2.41 | 2.00 | 2.10 | 2.00 |
| Quick Ratio | 1.00 | 1.00 | 0.97 | 0.94 | 0.78 | 0.66 | 1.66 | 1.36 | 1.03 | 1.13 | 0.98 |
| Cash Ratio | 0.28 | 0.28 | 0.27 | 0.23 | 0.13 | 0.13 | 1.02 | 0.65 | 0.40 | 0.36 | 0.20 |
| Asset Turnover | — | 0.76 | 0.84 | 0.79 | 0.88 | 0.77 | 0.77 | 0.83 | 0.83 | 0.83 | 0.78 |
| Inventory Turnover | 2.08 | 2.08 | 2.55 | 2.28 | 2.17 | 2.18 | 2.53 | 2.69 | 2.38 | 2.87 | 2.66 |
| Days Sales Outstanding | — | 52.27 | 52.01 | 48.75 | 41.78 | 53.37 | 55.06 | 52.91 | 58.83 | 60.95 | 61.12 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.0% | 0.0% | 0.0% | — | 0.0% | — | — | 0.0% | 0.0% | — | 0.0% |
| Payout Ratio | 0.2% | 0.2% | 0.1% | — | 0.1% | — | — | 0.1% | 0.1% | — | 0.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.9% | 2.0% | 3.5% | 2.5% | 5.4% | 2.4% | 2.4% | 4.0% | 7.7% | 5.2% | 3.7% |
| FCF Yield | 4.0% | 3.3% | 6.5% | 4.9% | — | 1.3% | 2.9% | 3.9% | 6.5% | 7.3% | 8.4% |
| Buyback Yield | 1.4% | 1.8% | 1.6% | 3.1% | 5.3% | 0.6% | 0.0% | 0.0% | 0.8% | 1.0% | 5.6% |
| Total Shareholder Yield | 1.4% | 1.8% | 1.6% | 3.1% | 5.3% | 0.6% | 0.0% | 0.0% | 0.8% | 1.0% | 5.6% |
| Shares Outstanding | — | $59M | $60M | $62M | $65M | $64M | $64M | $63M | $62M | $63M | $65M |
Includes 30+ ratios · 19 years · Updated daily
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Quick answers to the most common questions about buying GNRC stock.
Generac Holdings Inc.'s current P/E ratio is 35.0x. The historical average is 26.7x. This places it at the 73th percentile of its historical range.
Generac Holdings Inc.'s current EV/EBITDA is 16.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.9x.
Generac Holdings Inc.'s return on equity (ROE) is 6.2%. The historical average is 24.9%.
Based on historical data, Generac Holdings Inc. is trading at a P/E of 35.0x. This is at the 73th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Generac Holdings Inc.'s current dividend yield is 0.00% with a payout ratio of 0.2%.
Generac Holdings Inc. has 38.3% gross margin and 6.9% operating margin.
Generac Holdings Inc.'s Debt/EBITDA ratio is 2.8x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Thin margins and volatile earnings
Metrics are mathematically derived from official filings.
Trailing Multiples Overstate Earnings Power
According to the reported multiples, GNRC trades at 64.06 times trailing earnings but only 17.56 times forward earnings, a gap that suggests the market is looking through a depressed trailing base toward a recovery in profitability.
The spread between trailing P/E and forward P/E indicates that current-year reported earnings are being discounted heavily, likely reflecting the 2025Q4 loss and uneven quarterly net margins. The forward EV/EBITDA of 10.63 times versus 23.01 times trailing points to the same conclusion, and investors should monitor whether consensus recovery estimates hold given the margin volatility observed. Relative to the peer group, where HUBB and CMI trade at roughly 22 to 25 times earnings, the forward multiple appears reasonable, but the trailing figure warrants caution until earnings stabilize.
Margin Recovery Remains Uneven Across Quarters
Based on GNRC's reported figures, operating margin climbed from 8.9% in 2025Q1 to 17.9% in 2026Q2 before easing to 12.4% in 2026Q3, a range that suggests earnings power is recovering but not yet proven durable.
Gross margin moving between 36.3% and 44.5% over the period points to meaningful sensitivity in pricing or input costs, which may limit how much of the recovery can be treated as structural. The net margin of 8.4% in the latest quarter sits above the peer median of roughly 8 to 15 percent for industrial machinery names, but the 2025Q4 operating loss shows how quickly profitability can reverse. Investors should treat the 2026Q2 peak as a high-water mark rather than a run-rate until several quarters confirm the trend.
Returns Recovering From a Near-Zero Base
According to reported ratios, ROIC improved from 1.7% in 2025Q1 to 4.0% in 2026Q2 before settling at 3.0% in 2026Q3, a level that remains well below the 15 to 16 percent returns posted by CMI and CAT.
The return profile suggests GNRC is rebuilding capital efficiency from a weak base, with the improvement driven largely by margin recovery rather than faster asset turnover, which has stayed near 0.20 times. ROE of 3.7% in the latest quarter reflects both low profitability and a modest equity base relative to the company's goodwill-heavy balance sheet. Until returns clear the cost of capital with a consistent margin, the business appears to be compounding slowly at best.
Deleveraging Improves Debt Service Comfort
Based on GNRC's reported figures, debt-to-equity fell from 0.72 in 2024Q2 to 0.44 in 2026Q3 while interest coverage recovered to 9.74 times, suggesting debt service has become more comfortable over the period.
The reduction in leverage alongside a debt-to-EBITDAR-style ratio of 6.12 in the latest quarter, down from 31.86 in 2025Q4 when earnings were negative, indicates that the earnings base rather than debt paydown alone drove the improvement in coverage. Coverage ratios can swing sharply when EBITDA dips, as the 2025Q4 reading of negative interest coverage demonstrated, so investors should monitor whether the trend holds through a weaker demand period. Refinancing risk appears contained on reported figures, but the sensitivity of coverage to earnings warrants continued observation.
Current Ratio Steady but Inventory-Dependent
As reported in financial statements, GNRC's current ratio held between 1.97 and 2.25 across ten quarters while the quick ratio sat near 1.0, a gap that indicates meaningful reliance on inventory to support short-term obligations.
A current ratio near 2.0 provides a reasonable buffer, but the drop to roughly 1.0 on a quick basis means that about half of current assets are tied up in inventory. With DIO elevated at 150 to 174 days, the inventory conversion cycle appears long relative to the cash cycle, which could pressure liquidity under a severe demand shock. Investors should watch inventory levels as a leading indicator of working capital strain rather than relying on the headline current ratio alone.
Misapplied Current Ratio Obscures Inventory Risk
Based on GNRC's reported figures, the current ratio near 2.0 is the metric most often misapplied here, as it treats a 150-plus day inventory cycle as if it were as liquid as receivables.
For a generator manufacturer with seasonal and storm-driven demand, the current ratio overstates short-term flexibility because finished goods and components convert to cash slowly and at discounted values during demand troughs. The quick ratio near 1.0 and the cash conversion cycle of 133 to 165 days offer a more accurate picture of working capital durability. Investors should instead weight free cash flow conversion and inventory turnover when judging how the balance sheet would absorb a weaker period.