Generac HoldingsGNRC -7.71%83 Gross Margin % is 38.72% as of Mar. 2026, which is 8% above its 10-year median of 36.01. GuruFocus rates GNRC with a GF Score™ of 83/100 and a GF Value™ of $161.05 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 2,996 Industrial Products companies, Generac Holdings ranks better than 75.67% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Generac Holdings had a gross margin of 38.72% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Generac Holdings Gross Margin % Related Terms
Generac Holdings Gross Margin % Historical Data
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The historical data trend for Generac Holdings's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Industrial Machinery subindustry, Generac Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Generac Holdings Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Generac Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Generac Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Generac Holdings (GNRC) has a Gross Margin % of 38.72% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Generac Holdings and its competitors. This is near median its historical median of 36.01. Over the past decade, Generac Holdings' Gross Margin % has ranged from 33.34 to 38.77. According to the industry distribution chart, Generac Holdings ranks #729 out of 2996 companies in the Industrial Products industry, placing it in the top 24.3%.
Is Generac Holdings' Gross Margin % too high?
Generac Holdings' current Gross Margin % of 38.72% is near median its 10-year median of 36.01. Over the past 10 years, this metric has ranged from a low of 33.34 to a high of 38.77. The Industrial Products industry median Gross Margin % is 26.80. Generac Holdings' value of 38.72% is 44.5% above this industry median. Based on the distribution chart, Generac Holdings ranks #729 out of 2996 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Generac Holdings has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Generac Holdings' Gross Margin % compare to NDSN and IEX?
According to the Industrial Products industry distribution chart, Generac Holdings ranks #729 out of 2996 companies for Gross Margin %. This places Generac Holdings in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.80. Generac Holdings' value of 38.72% is 44.5% above this benchmark. Historically, Generac Holdings' own Gross Margin % has ranged from 33.34 to 38.77 over the past decade. While the company's 10-year median is 36.01 vs. the industry median of 26.80, Generac Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.80, based on 2,996 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Generac Holdings's current Gross Margin % of 38.72% is 44.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Generac Holdings and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Generac Holdings's current Gross Margin % is 38.72%, which is near median its own 10-year median of 36.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Generac Holdings stock overvalued right now?
Based on GuruFocus' analysis, Generac Holdings (GNRC) is currently considered Significantly Overvalued. The stock's GF Value™ is $161.05, compared to a current price of $270.22 — trading 67.8% above its estimated fair value. The current Gross Margin % is 38.72%, which is near median its 10-year median of 36.01 and 44.5% above the Industrial Products industry median of 26.80. Generac Holdings' overall GF Score™ is 83/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Generac Holdings (GNRC), the current Gross Margin % is 38.72% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Generac Holdings (GNRC) Overvalued in 2026?
Based on GuruFocus' analysis, Generac Holdings stock appears to be overvalued.
The current stock price of $270.22 is trading 67.8% above its estimated GF Value™ of $161.05.
GuruFocus considers Generac Holdings to be Significantly Overvalued.
Key valuation signals for GNRC:
Gross Margin %: 38.72% (near median its 10-year median of 36.01)
GF Value™: $161.05 vs. price of $270.22 (67.8% above fair value)
Industry Position: 44.5% above the Industrial Products median (#729 of 2996)
No single metric tells the full story. See the GNRC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Generac designs and manufactures power generation equipment serving residential, commercial, and industrial markets. It offers standby generators, portable generators, lighting, outdoor power equipment, and a suite of clean energy products. Sales generated in the United States account for the majority of total sales.
83GF Score
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