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Generac Holdings Inc. (GNRC)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$123.03 - $326.37$188.13
Multi-Stage$81.85 - $89.55$85.63
Blended Fair Value$136.88
Current Price$167.40
Upside-18.23%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-0.86%-11.26%0.000.000.010.000.000.000.010.000.000.02
YoY Growth--0.00%-100.00%0.00%0.00%-100.00%-9.24%0.00%-100.00%-94.71%59.20%
Dividend Yield--0.00%0.00%0.00%0.00%0.00%0.01%0.01%0.00%0.00%0.06%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)312.87
(-) Cash Dividends Paid (M)0.57
(=) Cash Retained (M)312.30
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)62.5739.1123.47
Cash Retained (M)312.30312.30312.30
(-) Cash Required (M)-62.57-39.11-23.47
(=) Excess Retained (M)249.73273.20288.84
(/) Shares Outstanding (M)59.6559.6559.65
(=) Excess Retained per Share4.194.584.84
LTM Dividend per Share0.010.010.01
(+) Excess Retained per Share4.194.584.84
(=) Adjusted Dividend4.204.594.85
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$123.03$188.13$326.37
Upside / Downside-26.50%12.38%94.97%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)312.87333.21354.86377.93402.50428.66441.52
Payout Ratio0.18%18.14%36.11%54.07%72.04%90.00%92.50%
Projected Dividends (M)0.5760.46128.14204.36289.94385.79408.40

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)54.9055.4255.94
Year 2 PV (M)105.64107.66109.69
Year 3 PV (M)152.98157.38161.85
Year 4 PV (M)197.09204.67212.46
Year 5 PV (M)238.11249.61261.56
PV of Terminal Value (M)4,133.654,333.314,540.61
Equity Value (M)4,882.385,108.045,342.10
Shares Outstanding (M)59.6559.6559.65
Fair Value$81.85$85.63$89.55
Upside / Downside-51.11%-48.85%-46.50%

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