NYSEIndustrialsIndustrial - MachinerySnapshot 2026-08-31
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Create your account →Broken: Primary pillar broken — Net sales growth at mid-to-high teens percent: Q2 FY26 YoY +11.0% vs 15% target.
Generac grows sales about 15% a year, supported by new data center deals. Profit margins are improving toward 19%. The company is completing strategic acquisitions to strengthen its market. Free cash flow and earnings are stable despite recent stock selloff.
Sales growth may slow below mid-teens as sector headwinds persist. Profit margins could fall below 18.5%. Recent sharp stock selloff signals investor concerns. Acquisitions may not deliver expected benefits.
The price sits about 4% above our fair value near $229, reflecting roughly 19% revenue growth expected by analysts. Our fair value is 22% below the Street median, indicating some valuation caution.
Breaks if: Adjusted EBITDA margin falls below 17% in FY26
Breaks if: YoY revenue growth falls below 12% in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This is a durable compounder with a focus on growth and margin expansion. The current thesis reflects a stable management team and robust earnings quality, but it is under watch due to potential risks in the sector.
The market appears to have priced in a neutral valuation for GNRC, with expectations slightly below peers. There is a low fragility tier, suggesting that the stock is not overly sensitive to negative news at this time.
Management has been successful in increasing net sales and improving adjusted EBITDA margins. Recent financial performance has been strong, but there is a low probability of missing future earnings expectations, which could impact sentiment.
The long-term thesis hinges on maintaining sales growth guidance and the performance of sector bellwethers. If these companies continue to perform well, it could provide a favorable backdrop for GNRC.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. The latest earnings beat is a positive factor. However, analysts question data center market execution, which threatens growth. Additionally, a sharp drop in price suggests the market is repricing the thesis.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Generac aims to increase its full-year 2026 net sales growth guidance to mid-to-high teens percent range.
Breaks if: Failure to complete announced acquisitions by end of FY26
Overall, GNRC is in a strong position, but investors should watch for sector developments and management's guidance. Not investment advice.
