Is GENERAC HOLDINGS INC. (GNRC) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 12.5% / 30% | 2.9% / 30% | 5.0% / 30% | 0.46% / 5% | ✓ HALAL |
| DJIM | 12.5% / 33% | 2.9% / 33% | 5.0% / 33% | 0.46% / 5% | ✓ HALAL |
| MSCI | 26.9% / 33% | 6.1% / 33% | 10.8% / 33% | 0.46% / 5% | ✓ HALAL |
| S&P | 12.5% / 33% | 2.9% / 33% | 5.0% / 33% | 0.46% / 5% | ✓ HALAL |
| FTSE | 26.9% / 33% | 6.1% / 33% | 10.8% / 50% | 0.46% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 38.3% | |
| Operating Margin | -0.9% | |
| Net Margin | 3.8% | |
| Return on Equity (ROE) | 6.3% | |
| Return on Assets (ROA) | 3.4% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $438M |
| Free Cash Flow | $268M |
| Total Debt | $1.5B |
| Debt-to-Equity | 52.5 |
| Current Ratio | 2.0 |
| Total Assets | $5.6B |
Price & Trading
| Last Close | $198.00 |
| 50-Day MA | $199.59 |
| 200-Day MA | $172.97 |
| Avg Volume | 1.1M |
| Beta | 1.8 |
|
52-Week Range
$99.50
| |
About GENERAC HOLDINGS INC. (GNRC)
Generac Holdings Inc. designs, manufactures, and distributes energy technology products and solutions worldwide. The company offers residential automatic standby generators, automatic transfer switch, air-cooled engine home standby generators, and liquid-cooled engine generators; Mobile Link, a remote monitoring system for home standby generators; propane tank monitoring solution; and smart home solutions, such as smart thermostats and a suite of home monitoring products. It also provides smart home energy management devices and sensors for heating and cooling system; smart doorbell cameras; and portable and inverter generators; multiple portable battery solutions; manual transfer switches; outdoor power equipment, including trimmers, field and brush mowers, log splitters, stump grinders, chipper shredders, lawn and leaf vacuums, and pressure washers and water pumps; and home energy storage systems. In addition, the company offers commercial and industrial products comprising cleaner-burning natural gas fueled generators; mega-watt diesel generators; light-commercial standby generators and related transfer switches; stationary generators; single-engine industrial generators; industrial standby generators; industrial transfer switches; light towers, mobile generators, commercial mobile pumps, heaters, and dust-suppression equipment; mobile energy storage systems; battery energy storage system and related inverter products; and aftermarket service parts and product accessories. Further, it provides microgrid; and software-as-a-service contracts. The company distributes its products through independent residential dealers and contractors, industrial distributors and dealers, national and regional retailers, e-commerce partners, electrical/HVAC/solar wholesalers, solar installers, catalogs, equipment rental companies, and other equipment distributors; and directly to end users. Generac Holdings Inc. was founded in 1959 and is based in Waukesha, Wisconsin.
Purification Calculator
As a halal stock with 0.46% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is GENERAC HOLDINGS INC. (GNRC) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), GENERAC HOLDINGS INC. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is GENERAC HOLDINGS INC.'s debt ratio?
GENERAC HOLDINGS INC.'s debt ratio is 12.5% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 26.9%.
Does GENERAC HOLDINGS INC. require dividend purification?
Yes, GENERAC HOLDINGS INC. has an impermissible income ratio of 0.46%, which means 0.46% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are GENERAC HOLDINGS INC.'s key financial metrics?
GENERAC HOLDINGS INC. has a market capitalization of $11.4B, trailing P/E ratio of 72.5, and revenue of $4.2B. The company maintains a gross margin of 38.3% and a net margin of 3.8%. Return on equity stands at 6.3%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.