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ZYBERNO

Stock Report

Updated Aug 31, 2026

GENCOR INDUSTRIES, INC. (GENC)

Technology • NYSE

$18.91

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

47.0/100

WEAK BUSINESS

GENCOR INDUSTRIES, INC. (GENC) scores 47/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full GENC quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

Margin of Safety unavailable — insufficient data for the owner-earnings DCF.

BRINA GAP ↗

Is the market underestimating or overestimating what this business is capable of going forward?

-1.3%

Fairly Priced

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full GENC valuation analysis · → View full GENC Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):POOR (6.8%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.00x)

Operating Margin (Operational Efficiency):GOOD (21.8%)

Return on Capital (Capital Efficiency):POOR (9.5%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

GENCOR INDUSTRIES, INC. (GENC) stock report — Zyberno Score 47/100 (WEAK BUSINESS). Full financial analysis on Zyberno.

According to Zyberno's DCF model, GENCOR INDUSTRIES, INC. (GENC) shows a Brina Gap of -1.3%, which weakens the case: based on the company's ROIC (9.5%) and reinvestment rate (-2.1%), the business can fundamentally grow at -0.2% — but the current enterprise value implies the market expects 1.1%.

Over the trailing twelve months, GENC generated -$2.37M in Owner Earnings. Capital was deployed as follows: $2.62M invested in capital expenditures. Reinvestment rate: -2.1%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:18.91

Market Cap:$277.18M

Valuation Multiples (4)

P/E Ratio:

18.72x

📊 Click to view full GENC P/E analysis →

P/B Ratio:1.23x

P/S Ratio:2.52x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$251.05M

Ev Ebitda Ratio:9.55x

Price Action & Momentum (3)

12-1 Momentum:

+3.3% (48th pctile)

📈 Click to view full GENC Momentum analysis →

Momentum Percentile:48 / 100

% of 52-Week High:93.7%

B. Profitability Assessment

Return Metrics (7)

ROE:

6.8%

📊 Click to view full GENC ROE analysis →

ROA:6.4%

Roic:

9.5%

📊 Click to view full GENC ROIC analysis →

Reinvestment Rate:-2.1%

Fundamental Growth Rate (g):-0.2%

Market-Implied Growth Rate:1.1%

Brina Gap:

-1.3%

☷ Click to view full GENC Brina Gap analysis →

Margin Analysis (3)

Operating Margin Ttm:21.8%

Net Margin Ttm:13.5%

Ebitda Margin:23.9%

TTM Performance (3)

Gross Margin Ttm:28.6%

Operating Margin Ttm:21.8%

Net Margin Ttm:13.5%

Yield Metrics (2)

Earnings Yield:$5.59

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.63

📊 Click to view full GENC Earnings Surprise analysis →

EPS Surprise vs Expected:34.5%

Latest Earnings Filed:2026-08-10

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):3.4%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):17.0%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):60.0%

Operating Cash Flow Growth Rate (Linear):48.0%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):26.9%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:19.16x

Quick Ratio:15.12x

Cash Ratio:2.26x

Leverage Analysis (3)

Debt To Equity Ttm:0.00x

Debt-to-Equity Ratio:0.00x

Debt To Ebitda:0.00x

Coverage Ratios (1)

Times Interest Earned:-999.00

Capital Structure (4)

Working Capital:211,275,000.00

Cash And Cash Equivalents:26,258,000.00

Long Term Debt:$63.00K

Net Debt:-$26.13M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $110.01M

Linear Growth: 3.4%

📊 Click to view full GENC Revenue analysis & methodology →

Cost Of Revenue Ttm:$78.57M

Profitability Breakdown (2)

Gross profit TTM: $31.45M

Linear Growth: 6.8%

📊 Click to view full GENC Gross Profit analysis & methodology →

Operating income TTM: $24.02M

Linear Growth: 26.9%

📊 Click to view full GENC Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: $14.89M

Linear Growth: 17.0%

📊 Click to view full GENC Net Income analysis & methodology →

Income Before Tax:$18.68M

Ebitda Ttm:26,296,000.00

Operating Expenses (5)

Operating Expenses:18,530,000.00

R And D Expense:2,726,000.00

Sga Expense:15,804,000.00

Income Tax Expense:$7.27M

Interest Expense:0.00

Expense Ratios (3)

R And D To Revenue Percentage:8.1%

Sga To Revenue Percentage:46.8%

Ebitda Margin:23.9%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$238.98M

Current Assets:$222.91M

Ppe Net:11,220,000.00

Goodwill:0.00

Intangible Assets:$0.00

Liability Structure (4)

Total Liabilities:14,215,000.00

Current Liabilities:11,633,000.00

Long Term Debt:$63.00K

Short Term Debt:$63.00K

Equity & Capital (3)

Equity:$224.77M

Retained Earnings:$210.71M

Common Stock:15,000,000.00

Working Capital Items (3)

Accounts Receivable:2,795,000.00

Inventory:46,985,000.00

Accounts Payable:3,607,000.00

Special Items (2)

Contract Liabilities:2,825,000.00

Stock Based Compensation:0.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: -$624.00K

Linear Growth: 48.0%

Free cash flow TTM: -$3.24M

Linear Growth: 60.0%

📊 Click to view full GENC Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:-$973.00K

Capital Expenditures Ttm:2,617,000.00

Financing Activities (3)

Financing Cash Flow:$0.00

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:2,276,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):1.01

Eps diluted TTM: $1.01

Linear Growth: 17.7%

📊 Click to view full GENC EPS analysis & methodology →

Earnings Per Share Ttm:$1.02

Revenue & Cash Per Share (2)

Sales Per Share Ttm:7.51

Operating Cash Flow Per Share:$0.21

Book Value & Capital (2)

Book Value Per Share:$15.33

Cash Per Share:1.79

Dividend Policy (1)

Dividend Payout Ratio:0.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.47x

Working Capital Turnover Ttm:0.52x

Receivables Management (2)

Receivables Turnover Ttm:39.36x

Days Sales Outstanding Ttm:9.27

Inventory Management (2)

Inventory Turnover Ttm:1.67x

Days Inventory Outstanding Ttm:218.28

Payables & Cash Cycle (2)

Days Payable Outstanding:16.76

Cash Conversion Cycle:210.80

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:100.00

Quality Score:80.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (1)

-$2.37M

Damodaran Growth Analysis (4)

Reinvestment Rate:-2.1%

Fundamental Growth Rate (g):-0.2%

Market-Implied Growth Rate:1.1%

Brina Gap:

-1.3%

☷ Click to view full GENC Brina Gap analysis →

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):3.4%

Net Income Growth Rate (Linear):17.0%

Operating Income Growth Rate (Linear):26.9%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):60.0%

Operating Cash Flow Growth Rate (Linear):48.0%

Other Growth Rates (2)

Gross Profit Growth Rate (Linear):6.8%

Book Value Growth Rate (Linear):7.6%

C. Company Profile & Context

Corporate Information (6)

Symbol:GENC

Company Name:GENCOR INDUSTRIES, INC.

Sector:Technology

Industry:Construction Machinery & Equip

Exchange:NYSE

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:medium

Volume Category:N/A

Share Structure (3)

Shares Outstanding:14.66M

Shares Outstanding Basic:14.66M

Shares Outstanding Diluted:14.66M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-31 07:07:52 UTC

Data Timestamp:2026-08-18T19:10:19.414630