Generac HoldingsGNRC -0.81%83 Return-on-Tangible-Equity is 59.24% as of Mar. 2026, which is 80% below its 10-year median of 292.65. GuruFocus rates GNRC with a GF Score™ of 83/100 and a GF Value™ of $161.80 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,973 Industrial Products companies, Generac Holdings ranks better than 94.52% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Generac Holdings's annualized net income for the quarter that ended in Mar. 2026 was $293 Mil. Generac Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $495 Mil. Therefore, Generac Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 59.24%.
The historical rank and industry rank for Generac Holdings's Return-on-Tangible-Equity or its related term are showing as below:
GNRC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 40.42 Med: 292.65 Max: 17839.2
Current: 44.41
During the past 13 years, Generac Holdings's highest Return-on-Tangible-Equity was 17,839.20%. The lowest was 40.42%. And the median was 292.65%.
GNRC's Return-on-Tangible-Equity is ranked better than 94.52% of 2973
companies
in the Industrial Products industry
Industry Median: 6.72
vs GNRC: 44.41
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Generac Holdings Return-on-Tangible-Equity Related Terms
Generac Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Generac Holdings's Return-on-Tangible-Equity 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.
GNRC vs NDSN, IEX, ITT: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Generac Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Generac Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Generac Holdings's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 59.24% mean?
Generac Holdings (GNRC) has a Return-on-Tangible-Equity of 59.24% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Generac Holdings and its competitors. This is 80% below median its historical median of 292.65. Over the past decade, Generac Holdings' Return-on-Tangible-Equity has ranged from 40.42 to 17,839.20. According to the industry distribution chart, Generac Holdings ranks #163 out of 2973 companies in the Industrial Products industry, placing it in the top 5.5%.
Is Generac Holdings' Return-on-Tangible-Equity too high?
Generac Holdings' current Return-on-Tangible-Equity of 59.24% is 80% below median its 10-year median of 292.65. Over the past 10 years, this metric has ranged from a low of 40.42 to a high of 17,839.20. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Generac Holdings' value of 59.24% is 781.5% above this industry median. Based on the distribution chart, Generac Holdings ranks #163 out of 2973 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' Return-on-Tangible-Equity compare to NDSN and IEX?
According to the Industrial Products industry distribution chart, Generac Holdings ranks #163 out of 2973 companies for Return-on-Tangible-Equity. This places Generac Holdings in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.72. Generac Holdings' value of 59.24% is 781.5% above this benchmark. Historically, Generac Holdings' own Return-on-Tangible-Equity has ranged from 40.42 to 17,839.20 over the past decade. While the company's 10-year median is 292.65 vs. the industry median of 6.72, 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 Return-on-Tangible-Equity for an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,973 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Generac Holdings's current Return-on-Tangible-Equity of 59.24% is 781.5% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Generac Holdings and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Generac Holdings's current Return-on-Tangible-Equity is 59.24%, which is 80% below median its own 10-year median of 292.65. 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 $161.80, compared to a current price of $233.94 — trading 44.6% above its estimated fair value. The current Return-on-Tangible-Equity is 59.24%, which is 80% below median its 10-year median of 292.65 and 781.5% above the Industrial Products industry median of 6.72. Generac Holdings' overall GF Score™ is 83/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Generac Holdings (GNRC), the current Return-on-Tangible-Equity is 59.24% 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 $233.94 is trading 44.6% above its estimated GF Value™ of $161.80.
GuruFocus considers Generac Holdings to be Significantly Overvalued.
Key valuation signals for GNRC:
Return-on-Tangible-Equity: 59.24% (80% below median its 10-year median of 292.65)
GF Value™: $161.80 vs. price of $233.94 (44.6% above fair value)
Industry Position: 781.5% above the Industrial Products median (#163 of 2973)
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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