GNRC – Markets are pricing in expectations for Uniform ROA to contract, but management is confident about their sales drivers and international business

• Generac Holdings Inc. (GNRC:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings with a 19.6x Uniform P/E, implying bearish expectations for the firm. However, management is confident about their sales drivers and international business
• Specifically, management is confident power outages have steadily increased over the past 25 years and that California power shutoffs will be a long-term sales driver. Furthermore, they are confident they are realizing benefits from their international expansion strategy, and they are confident they have worked hard to promote the benefits of natural gas-powered generators.