Generac Holdings Inc. ranks below the peer group median, with a split structural profile: strong growth, but weak valuation and stability. That creates a tension: current price behavior looks stronger than the structural profile would suggest.
Peer-relative scores, weakest to strongest
Generac Holdings Inc. designs and manufactures power generation equipment for both residential and commercial markets, with a growing focus on data center applications.
GNRC trades on data center momentum, not on fundamentals. Revenue growth stands at 12% year-over-year (Q1 2026, above peer median), but with an operating margin of just 8.2% (well below sector median), the market is rewarding top-line expansion while sidelining margin weakness. Because GNRC’s revenue is driven by data center projects, every strong quarter is interpreted as confirmation of growth, so margin challenges are overlooked and the stock trades at a premium. GNRC differentiates itself by focusing on C&I generators for hyperscale data centers, which intensifies the growth narrative but does not improve the margin issue. The market prices in every data center result twice—one weak quarter is enough to trigger a sharp rerating.
Break down GNRC's position across all dimensions with the full interactive tool.
This analysis is rule-based and descriptive. Peer-relative scores are derived from functional peer group comparisons using publicly available financial data. Scores reflect structural positioning only and do not constitute investment advice, a buy or sell recommendation, or a forecast of future performance. AssetNext peer scores are recalculated periodically as new data becomes available.
AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.
Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.
Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.
Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.