| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 36 | 43.6x | 17.3x | Bottom tier | |
Growth | 61 | 0.6% | 7.1% | Around median | |
Quality | 67 | 8.4% | 4.5% | Top tier | |
Safety | 73 | 1.6x | 2.6x | Top tier | |
Capital Return | 22 | 0.00% | 0.06% | Bottom tier | |
Momentum | 47 | 13.7% | -1.6% | Around median | |
Sentiment | 64 | 14 | 3 | Around median |
The floor: what the company is worth if growth stopped today
88% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Generac Holdings Inc. manufactures backup power and energy management solutions for two main segments: commercial and industrial, and residential. The commercial and industrial segment includes backup generators for data centers, telecommunications, and major projects, mobile products for equipment rental customers, and energy storage systems; while the residential segment includes home standby generators, portable generators, energy storage products, and the connected-home ecosystem through ecobee and the PWRmicro product. The company benefits from manufacturing, packaging, service, and a dealer network, with additional expansion in the vertical integration of large generator packages.
In fiscal year 2026 quarter 2, net sales increased 11% year over year to $1.17 billion. Commercial and industrial segment sales increased 29% to $556 million, driven particularly by data center revenue that exceeded $100 million, while residential segment sales declined 2% to $621 million due to lower shipments of energy storage products and portable generators, despite home standby generators returning to growth. The residential segment therefore remained slightly larger than the commercial and industrial segment in the sales mix, but the company's growth came primarily from commercial and industrial activities.
Gross profit reached $521.8 million in fiscal year 2026 quarter 2, and gross margin reached 44.5% versus 39.3% a year earlier, while net income increased to $143.2 million and diluted earnings per share to $2.40. Adjusted earnings before interest, taxes, depreciation, and amortization reached $291 million, with a margin of 24.8% versus 17.7% a year earlier, but tariff refunds of $71 million added approximately 6 percentage points to both gross margin and adjusted margin; excluding them, adjusted margin improved by only approximately 1 percentage point.
The average analyst price target is $298.46, very close to the upper end of the 52-week range of $296.44, while the target range extends from $214 to $340 and reflects notable differences in assessments of the data center opportunity, execution risks, and margins. The “Buy” consensus supports the positive outlook, but the wide range of targets and the low end of $214 highlight the valuation's sensitivity to customer concentration, the success of production expansion, and the sustainability of earnings after excluding the effect of tariff refunds.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
The most prominent driver is Generac's expansion in backup power generators for data centers, as revenue from this market exceeded $100 million in fiscal year 2026 quarter 2. The data center-related backlog reached $1.6 billion on July 29, 2026, after approximately $1 billion of new orders were received over 90 days. The company raised its fiscal year 2026 data center revenue forecast to approximately $450 million and raised its commercial and industrial segment growth guidance to the low-thirties percent range.
The first agreement included commitments of approximately $700 million for products to be delivered during 2027, and this amount was included in the $1.6 billion backlog. Generac signed a second agreement in late June 2026 and said its potential size equals or exceeds the first agreement and includes discussions regarding 2027 and 2028 deliveries. The final volumes, terms, and schedules of the second agreement had not been completed as of July 29, 2026, so its orders were not included in the reported backlog.
Automated analysis for informational purposes only — not investment advice.
Net income increased to $143.2 million and diluted earnings per share to $2.40, compared with $74 million and $1.25, respectively, a year earlier. Gross margin also reached 44.5%, and adjusted earnings before interest, taxes, depreciation, and amortization margin reached 24.8%. However, tariff refunds of $71 million added approximately 6 percentage points to margins and approximately $0.90 to earnings per share, and excluding them, adjusted margin improved by only approximately 1 percentage point.
Residential segment sales declined 2% to $621 million in fiscal year 2026 quarter 2 due to lower shipments of energy storage products and portable generators. In contrast, home standby generators returned to strong growth, the dealer network expanded to approximately 9,700 dealers, and connected ecobee homes exceeded 5.25 million. The company lowered its fiscal year 2026 segment growth guidance to the high-single-digits percent range from approximately 10%, citing weak outages and affordability concerns.
The company is targeting a path to triple large-generator assembly and packaging capacity within 12 months compared with a target of $1.25 billion by the end of 2026. Production at Sussex is scheduled to begin by the end of fiscal year 2026 quarter 3, and the company added a second line there, while the Belvidere facility is expected to become operational in fiscal year 2027 quarter 1. It also acquired Enercon on April 1, 2026, and raised capital expenditures to approximately 4.5% of sales to support facilities in the United States, Europe, Asia, India, Brazil, and Mexico.
The most important risks are the concentration of a large portion of the data center backlog among 2 hyperscale customers, as the first agreement alone represents approximately $700 million of a $1.6 billion backlog. The planned expansion requires coordination with suppliers of engines, generators, cooling systems, and components, while targeted internal packaging capacity covers only approximately 70% of assembly capacity. The company also expects gross margin near the low end of the 38.5% to 39.5% range excluding tariff refunds, alongside weakness in residential sales and some telecommunications orders.