Generac Holdlings Inc. (GNRC) exhibits 38.3% gross margins and 6.6% return on invested capital within Consumer Discretionary (Metal Fabrications), balanced against a 29.6x enterprise multiple and 7.0% implied options volatility.
Sustained 38.3% gross profitability converts into 6.9% operating margin and 6.6% ROIC, outpacing sector cost of capital.
ROIC: 6.6% // GM: 38.3%YoY revenue trajectory of -2.0% paired with 2.23% free cash flow yield supports self-funded R&D and capital return.
REV YOY: -2.0% // FCF YLD: 2.23%Altman Z-Score of 4.40 and Piotroski F-Score of 7/9 indicate low near-term refinancing stress.
ALTMAN Z: 4.40 // F-SCORE: 7/9Trading at 74.3x trailing P/E (69.1x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 74.3x // EV/EBITDA: 29.6xOptions market prices a ±7.0% implied move with a 0.75 put/call ratio around $199.00 max pain.
IMPL MOVE: ±7.0% // P/C: 0.75Elevated industry capital intensity and customer concentration in Metal Fabrications require continuous execution to defend 3.8% net margins.
NET MARGIN: 3.8% // D/E: 0.45x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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