Generac: Strong Fundamentals, Stock Undervalued

Gamlet Muradian
161 Followers
(18min)

Summary

  • Generac Holdings has transformed from a generator manufacturer to an integrator of complex energy solutions, achieving 6.8% revenue growth and a 3% EBITDA margin increase in 2024.
  • GNRC dominates the home backup generator market and is expanding into energy storage and smart home solutions, with significant investments in new technologies and acquisitions.
  • Despite a slight decline in the commercial segment, strong demand for home backup systems is expected to drive 2025 revenue to $4.558 billion, with a projected 18-19% EBITDA margin.
  • Generac's shares are undervalued, presenting a 12.45% upside potential with a target price of $128.82, supported by strong financials, market leadership, and growth in energy storage.
Close-up View Of Electric Generator In The Backyard

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Introduction

Generac Holdings (NYSE:GNRC) is one of those companies that has gone from a manufacturer of gasoline generators to a global leader in energy supply in 65 years. Founded in 1959, Generac invented the market for automatic home generators, and

This article was written by

161 Followers
My professional background spans multiple continents and includes experience in private banking, corporate finance, and strategic advisory. For several years, I developed and led a private banking department in Dubai, where I crafted tailored investment solutions to meet the unique needs of affluent clients across the Middle East and beyond. Additionally, I have been involved in managing cross-border M&A transactions in Indonesia, building a track record of successful deal origination and execution in emerging markets. On Seeking Alpha, I plan to share timely insights into a range of industries and asset classes. Whether examining high-growth technology equities, undervalued blue-chip stocks, or niche market opportunities, my goal is to provide well-researched commentary grounded in real-world experience. By contributing in-depth research and thoughtful perspectives, I hope to help readers navigate today’s complex global markets while staying true to a risk-aware, fundamentally driven investment approach.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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