Generac Holdings Faces Margin Squeeze, Slowing Growth, and Investor Reassessments

Generac Holdings' revenue growth has slowed to 4.2%, operating margins have compressed, and returns on capital have weakened. This has prompted investors to reassess the company's valuation, with a forward P/E multiple of 22.9 times. Weakening operating margins may impact the investment narrative and could affect investors' willingness to pay for the company's earnings power.