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If You Invested $1000 in Generac Holdings a Decade Ago, This is How Much It'd Be Worth Now

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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Generac Holdings (GNRC - Free Report) ten years ago? It may not have been easy to hold on to GNRC for all that time, but if you did, how much would your investment be worth today?

Generac Holdings' Business In-Depth

With that in mind, let's take a look at Generac Holdings' main business drivers.

Headquartered in Waukesha, WI, and founded in 1959, Generac Holdings Inc is a leading manufacturer of backup and prime power generation systems for residential and C&I applications, solar + battery storage solutions, advanced power grid software platforms and services, energy management devices and controls along with engine and battery-powered tools and equipment.

The company has a wide distribution network spanning independent residential dealers, industrial distributors and dealers, national and regional retailers, e-commerce partners, wholesalers, equipment rental companies, equipment distributors, and solar installers. It also boasts a direct sales channel to various individual customers.

Generac broadly classifies its products into three categories depending on the end user types, namely Residential, C&I, and Other products and services.

The Residential business includes automatic standby generators (that run mainly on natural gas and liquid propane), air-cooled engine generators for emergency backup in small to medium-sized homes, and liquid-cooled engine generators for larger homes and small businesses. It also provides remote monitoring system for home standby generators called Mobile Link, offering Wi-Fi-enabled feature to conveniently check the status of generator online, while receiving maintenance and service alerts.

The C&I business includes cleaner-burning natural gas fueled generators and C&I generators that are fueled by diesel and Bi-Fuel.

The Other products and services category primarily comprise aftermarket service parts and product accessories.

Generac has two operating segments — Domestic and International. The Domestic segment (87% of third-quarter 2024 revenues) includes the legacy Generac business and operations that are based in the United States and Canada. The International segment (14%) comprises Latin American export operations and other business units that generate revenues outside the United States and Canada.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Generac Holdings a decade ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in November 2014 would be worth $4,334.17, or a 333.42% gain, as of November 28, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 189.40% and gold's return of 117.19% over the same time frame.

Analysts are anticipating more upside for GNRC.

Generac’s third-quarter performance gained from higher Residential product sales amid a continued slowdown in C&I revenues. Residential product sales rose 28% year over year on heightened demand for home standby and portable generators. Weakness across domestic shipments for telecom, national equipment rental and beyond standby applications customers resulted in a 15% fall in C&I product sales in the quarter. Generac revised its sales expectations for 2024 owing to recent power outage activity and expects an “outsized increase” in the Residential products sales to partly offset weakness in the C&I business and Other product sales. For 2024, total revenues are forecast to increase 5-9% compared with the earlier guidance of 4-8%. Weakening market conditions in Europe, high expenses and massive debt pose headwinds.

The stock has jumped 15.29% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 9 higher, for fiscal 2024; the consensus estimate has moved up as well.

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