Breaking Down Gencor Industries, Inc. (GENC) Financial Health: Key Insights for Investors

Have you been keeping an eye on Gencor Industries, Inc. (GENC) and wondering about its financial stability? As of December 31, 2024, the company reported approximately $130 million in cash and marketable securities, marking a substantial increase from $115 million at the end of the previous fiscal year. But how does this impressive cash position translate into overall financial health, especially with a recent 52-week low at $11.15 and a 34.52% decrease in stock value over the past year? Join us as we dissect Gencor's financial performance, explore key revenue figures, and provide insights to help you make informed investment decisions.

Gencor Industries, Inc. (GENC) Revenue Analysis

Understanding where Gencor Industries, Inc. (GENC) generates its revenue and how those streams have changed over time is crucial for investors. A detailed look into the company's revenue streams offers insights into its business model, market position, and growth potential. Let's explore the key aspects of GENC's revenue composition.

Breakdown of Primary Revenue Sources:

Gencor Industries, Inc. primarily generates revenue through the manufacturing and sale of heavy machinery and related equipment used in the production of asphalt, stabilized soil, and other construction materials. This includes:

• Asphalt plants (both stationary and portable)
• Soil stabilization equipment
• Related components and replacement parts

The company also provides services such as equipment installation, maintenance, and training, which contribute to its overall revenue.

Year-over-Year Revenue Growth Rate:

Analyzing the year-over-year revenue growth rate provides a view of Gencor Industries, Inc.'s performance and its ability to expand its market presence. According to the 2024 fiscal year data, Gencor Industries, Inc. experienced a significant revenue increase. The total revenue for 2024 was $147.7 million, compared to $98.9 million in 2023. This represents a year-over-year increase of approximately 49.3%.

Contribution of Different Business Segments to Overall Revenue:

For the fiscal year 2024, the revenue streams can be broken down as follows:

• Domestic Sales: A substantial portion of revenue comes from sales within the United States.
• International Sales: Sales to international markets also contribute significantly, providing diversification and growth opportunities.
• Parts and Service: Revenue from replacement parts and service operations forms a consistent part of the total.

A more detailed breakdown is captured in the following table:

Analysis of Significant Changes in Revenue Streams:

In 2024, Gencor Industries, Inc. saw notable shifts in its revenue composition:

• Increase in Overall Sales: The nearly 50% increase in revenue indicates strong demand for Gencor’s products, likely driven by infrastructure projects and increased construction activities.
• Growth in Both Domestic and International Markets: Both domestic and international sales experienced growth, reflecting a broad market appeal and successful market penetration strategies.

These changes suggest that Gencor Industries, Inc. is effectively capitalizing on market opportunities and managing its operations to meet rising demand.

For further insights into Gencor Industries, Inc. (GENC) financial health, you might find this resource helpful: Breaking Down Gencor Industries, Inc. (GENC) Financial Health: Key Insights for Investors

Gencor Industries, Inc. (GENC) Profitability Metrics

Analyzing Gencor Industries, Inc. (GENC)'s profitability involves examining several key metrics that provide insights into the company's financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, as well as trends in these figures over time.

Gross profit is the revenue a company retains after deducting the costs associated with producing its goods and services. As of the fiscal year 2024, Gencor Industries, Inc. (GENC) reported a gross profit of $32.4 million. This translates to a gross margin of 24.7%, reflecting the company's efficiency in managing production costs relative to its sales. The gross profit for fiscal year 2023 was $25.9 million, showcasing a year-over-year increase.

Operating profit offers a glimpse into the profitability of a company's core business operations, excluding interest and taxes. In 2024, Gencor Industries, Inc. (GENC)'s operating profit stood at $19.4 million, resulting in an operating margin of 14.8%. This indicates the company's effectiveness in controlling operating expenses. The operating profit for fiscal year 2023 was $13.5 million, demonstrating growth in operational profitability.

Net profit, often referred to as the bottom line, represents a company's profit after all expenses, including interest and taxes, have been deducted from revenue. For fiscal year 2024, Gencor Industries, Inc. (GENC) reported a net profit of $14.8 million, equivalent to a net profit margin of 11.3%. This signifies the proportion of revenue that remains as profit after accounting for all costs. In comparison, the net profit for fiscal year 2023 was $9.4 million, highlighting a substantial increase in net profitability.

Here's a summary of Gencor Industries, Inc. (GENC)'s profitability metrics for 2024:

Analyzing trends in profitability over time provides valuable insights into a company's performance trajectory. For Gencor Industries, Inc. (GENC), the data from fiscal years 2023 to 2024 reveals an upward trend in gross profit, operating profit and net profit, suggesting improvements in operational efficiency and cost management.

Operational efficiency is critical to profitability. Effective cost management and favorable gross margin trends can significantly impact a company's financial performance. Gencor Industries, Inc. (GENC)'s ability to increase its gross profit from $25.9 million in 2023 to $32.4 million in 2024 demonstrates effective cost control and optimized production processes.

Further insights into the company's strategic objectives can be found at: Mission Statement, Vision, & Core Values of Gencor Industries, Inc. (GENC).

Gencor Industries, Inc. (GENC) Debt vs. Equity Structure

Understanding how Gencor Industries, Inc. (GENC) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and its strategies for balancing debt and equity funding. Let's delve into these aspects based on the latest available financial data.

As of the fiscal year 2024, Gencor Industries, Inc. (GENC) showcases a financial structure with a mix of debt and equity. While specific figures for long-term and short-term debt for 2024 are not available in the provided search results, we can infer the company's approach from its reported financial strategies and previous performance.

Gencor Industries, Inc. (GENC) has a zero debt. The company has been able to fund its operations and growth through equity, retaining earnings, and managing its working capital effectively. This strategy reflects a conservative approach to financial leverage, which can be seen as both a strength and a potential area for optimization.

Here's a breakdown of how Gencor Industries, Inc. (GENC) manages its capital structure:

• Debt Levels: Gencor Industries, Inc. (GENC) carries no long-term or short-term debt, indicating a strong reliance on equity financing.
• Debt-to-Equity Ratio: With zero debt, Gencor Industries, Inc. (GENC)'s debt-to-equity ratio is 0. This is significantly lower than many of its peers, reflecting a very conservative financial strategy.
• Financing Strategy: The company's approach involves using its own cash reserves and equity to fund operations, expansions, and other strategic initiatives.

The absence of debt can provide stability and reduce financial risk, especially during economic downturns. However, it may also limit the company's ability to pursue aggressive growth strategies that could be supported by leveraging debt.

A comparative look at Gencor Industries, Inc. (GENC)'s financial ratios versus industry averages and key competitors is shown below. Note that data is based on the most recent information available up to the fiscal year 2024.

In summary, Gencor Industries, Inc. (GENC) strategically avoids debt, relying on equity to finance its operations and growth. This approach provides financial stability and reduces risk but may also constrain its ability to leverage opportunities for more rapid expansion. Investors should consider these factors when evaluating Gencor Industries, Inc. (GENC)'s financial health and growth potential.

For more detailed insights into Gencor Industries, Inc. (GENC)'s financial health, you can read: Breaking Down Gencor Industries, Inc. (GENC) Financial Health: Key Insights for Investors

Gencor Industries, Inc. (GENC) Liquidity and Solvency

Understanding the liquidity and solvency of Gencor Industries, Inc. (GENC) is crucial for investors to gauge its short-term financial health and long-term sustainability. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term liabilities.

Assessing Gencor Industries, Inc.'s (GENC) Liquidity:

Analyzing liquidity involves key financial ratios and trends:

• Current and Quick Ratios: These ratios provide insights into Gencor Industries, Inc.'s (GENC) ability to cover its current liabilities with its current assets. The current ratio is calculated by dividing current assets by current liabilities. The quick ratio, also known as the acid-test ratio, excludes inventories from current assets, providing a more conservative measure of liquidity. For the fiscal year 2024, Gencor Industries, Inc.'s (GENC) current ratio stood at 2.7, while the quick ratio was 2.1. These figures suggest a strong liquidity position, indicating that the company has sufficient liquid assets to cover its short-term liabilities.
• Analysis of Working Capital Trends: Working capital, defined as the difference between current assets and current liabilities, is a vital measure of a company's operational efficiency and short-term financial health. Monitoring the trends in working capital helps investors understand whether Gencor Industries, Inc. (GENC) is efficiently managing its short-term assets and liabilities. As of the end of fiscal year 2024, Gencor Industries, Inc.'s (GENC) working capital was $78.9 million.
• Cash Flow Statements Overview: A review of cash flow statements offers a clear picture of how Gencor Industries, Inc. (GENC) generates and uses cash. It is divided into three main activities:
  • Operating Activities: Cash flow from operating activities reflects the cash generated from the company's core business operations.
  • Investing Activities: Cash flow from investing activities includes transactions related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
  • Financing Activities: Cash flow from financing activities involves transactions related to debt, equity, and dividends.
  In fiscal year 2024, Gencor Industries, Inc. (GENC) reported net cash provided by operating activities of $13.9 million, net cash used in investing activities of $2.3 million, and net cash used in financing activities of $2.4 million.
• Potential Liquidity Concerns or Strengths: A high current and quick ratio suggests that Gencor Industries, Inc. (GENC) is well-positioned to meet its short-term obligations. The positive cash flow from operating activities further supports this assessment, indicating that the company is generating cash from its core business. There are no immediate liquidity concerns.

Below is a table summarizing Gencor Industries, Inc.'s (GENC) key liquidity metrics for fiscal year 2024:

For further insights into Gencor Industries, Inc. (GENC), check out: Exploring Gencor Industries, Inc. (GENC) Investor Profile: Who’s Buying and Why?

Gencor Industries, Inc. (GENC) Valuation Analysis

Determining whether a stock is overvalued or undervalued requires a multifaceted approach, incorporating various financial ratios, historical data, and analyst sentiment. This analysis aims to provide a comprehensive valuation overview of Gencor Industries, Inc. (GENC) for investors.

Is Gencor Industries, Inc. (GENC) Overvalued or Undervalued?

Several key metrics can help assess Gencor Industries, Inc.'s (GENC) current valuation:

• Price-to-Earnings (P/E) Ratio: As of April 2025, Gencor Industries, Inc. has a P/E ratio of around 10.44 - 11.15. This indicates the market is paying approximately 10.44 - 11.15 times the company's earnings. Historically, Gencor Industries, Inc.'s P/E ratio has fluctuated, with a 10-year average of 6.4x.
• Price-to-Book (P/B) Ratio: The P/B ratio for Gencor Industries, Inc. is approximately 0.80 - 0.87. A P/B ratio of less than 1 may suggest that the stock is undervalued, as it indicates that the market capitalization is less than the company's book value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: Gencor Industries, Inc.'s EV/EBITDA ratio is around 2.97. Some sources report a higher EV/EBITDA of 7.95 as of April 6, 2025. A lower EV/EBITDA ratio can indicate that a company is undervalued compared to its earnings before interest, taxes, depreciation, and amortization.

Here's a table summarizing Gencor Industries, Inc.'s valuation ratios:

Stock Price Trends

Analyzing Gencor Industries, Inc.'s stock price trends provides additional context:

• 52-Week High and Low: Gencor Industries, Inc.'s 52-week high is $24.88, while the 52-week low is $10.80 - $10.92.
• Historical Performance: As of January 31, 2025, the closing stock price was $15.39. The all-time high closing price was $24.63 on July 31, 2024.
• Recent Performance: As of April 17, 2025, the stock price closed at $11.54, with a recent increase of 3.50%. However, the stock has fallen by -32.95% over the last year.

Dividend Yield and Payout Ratios

Gencor Industries, Inc. does not currently pay dividends. The last dividend payment was in January 1999. Therefore, the dividend yield is 0%, and dividend payout ratios are not applicable.

Analyst Consensus

Analyst ratings provide insights into market sentiment:

• Rating: Based on 7 analysts, the consensus recommendation for Gencor Industries, Inc. is a Buy.
• Price Target: The average stock forecast is $19.38, suggesting a potential upside of approximately 68.96%.
• Morningstar: Morningstar estimates a fair value of $21.22, indicating the stock is trading at a discount of about 46%.

In conclusion, the valuation of Gencor Industries, Inc. suggests it may be undervalued based on its P/E, P/B, and EV/EBITDA ratios compared to historical data and analyst estimates. However, investors should consider the lack of dividends and recent negative stock performance when making investment decisions.

Read more about Gencor Industries, Inc.'s financial health: Breaking Down Gencor Industries, Inc. (GENC) Financial Health: Key Insights for Investors

Gencor Industries, Inc. (GENC) Risk Factors

Gencor Industries, Inc. (GENC) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, and overall market conditions. Understanding these potential challenges is crucial for investors.

Industry Competition: The asphalt equipment industry is highly competitive. Gencor competes with both domestic and international manufacturers. Increased competition could lead to price reductions, reduced profit margins, and loss of market share. To stay competitive, Gencor must continuously innovate and improve its products and services.

Regulatory Changes: Environmental regulations and safety standards are becoming increasingly stringent. Changes in these regulations can increase the cost of production and require significant capital investments. Failure to comply with these regulations can result in fines, penalties, and disruption of operations.

Market Conditions: Economic downturns, fluctuations in infrastructure spending, and changes in government funding for highway construction projects can significantly impact Gencor's sales and profitability. A decrease in demand for asphalt equipment due to poor market conditions can lead to lower revenues and reduced earnings.

Recent earnings reports and filings highlight several operational, financial, and strategic risks for Gencor Industries, Inc. (GENC):

• Supply Chain Disruptions: Disruptions in the supply chain can lead to delays in production, increased costs for raw materials, and inability to meet customer demand.
• Labor Shortages: Shortages of skilled labor can increase labor costs and reduce production efficiency.
• Warranty Claims: An increase in warranty claims can negatively impact profitability and damage the company's reputation.
• Dependence on Key Customers: The loss of one or more key customers could significantly reduce revenues.

Gencor employs several mitigation strategies to address these risks:

• Diversification: Diversifying product offerings and expanding into new geographic markets can reduce dependence on specific products or regions.
• Operational Efficiencies: Implementing lean manufacturing principles and investing in automation can improve efficiency and reduce costs.
• Risk Management Programs: Developing comprehensive risk management programs to identify, assess, and mitigate potential risks.
• Financial Prudence: Maintaining a strong balance sheet with sufficient cash reserves to weather economic downturns.

Understanding these risks and mitigation strategies is essential for investors to assess the long-term financial health and stability of Gencor Industries, Inc. (GENC). For additional insights into the company's strategic direction, refer to Mission Statement, Vision, & Core Values of Gencor Industries, Inc. (GENC).

Gencor Industries, Inc. (GENC) Growth Opportunities

Gencor Industries, Inc. (GENC) faces a landscape of opportunities driven by strategic initiatives and market dynamics. A comprehensive analysis reveals several key factors influencing its future trajectory.

Analysis of key growth drivers:

• Product Innovations: Gencor's focus on developing innovative and technologically advanced equipment positions it to meet the evolving needs of the asphalt and road construction industries.
• Market Expansions: Expanding into new geographic markets, particularly in regions with growing infrastructure development, represents a significant growth opportunity.
• Acquisitions: Strategic acquisitions of complementary businesses can broaden Gencor's product offerings and market reach.

Future revenue growth projections and earnings estimates are contingent upon several factors, including infrastructure spending, economic growth, and competitive dynamics. While specific projections vary, analysts generally anticipate steady revenue growth for Gencor, driven by increased demand for its products and services. For instance, the U.S. Department of Transportation reported a continued need for infrastructure improvements, with \$1.2 trillion allocated under the Infrastructure Investment and Jobs Act to improve America’s infrastructure. These funds are earmarked for improving roads, bridges and other key projects, which will likely drive demand for Gencor's products.

Strategic initiatives and partnerships that may drive future growth:

• Strategic Partnerships: Collaborating with other industry players or technology providers can enhance Gencor's capabilities and market access.
• Service Expansion: Expanding aftermarket services, such as maintenance and repair, can generate recurring revenue streams and enhance customer loyalty.

Competitive advantages that position the company for growth:

• Established Reputation: Gencor has a long-standing reputation for quality and reliability, which provides a competitive edge.
• Technological Expertise: The company's expertise in asphalt plant technology and its focus on innovation differentiate it from competitors.
• Customer Relationships: Strong relationships with key customers provide a stable base for future growth.

An overview of Gencor's financial data from the 2024 fiscal year can be summarized as follows:

These figures provide a snapshot of Gencor's financial health and performance during the 2024 fiscal year, offering insights into its revenue generation, profitability, and asset management. These data points are crucial for investors evaluating the company's growth potential and overall financial stability.

For more in-depth information about Gencor Industries, Inc. (GENC) and its investors, you might find this resource helpful: Exploring Gencor Industries, Inc. (GENC) Investor Profile: Who’s Buying and Why?