Generac Holdings Inc (GNRC, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial position. With its shares currently priced at $137.1, Generac Holdings Inc has experienced a slight daily decrease of 0.67%, yet it shows a positive three-month change of 1.94%. A detailed analysis, supported by the GF Score, indicates that Generac Holdings Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Generac Holdings Inc boasts a GF Score of 92, signaling strong future performance potential.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 6/10
- Momentum rank: 8/10
Understanding Generac Holdings Inc's Business
Generac Holdings Inc, with a market cap of $8.31 billion and annual sales of $4.02 billion, operates primarily in the power generation equipment sector. It designs and manufactures products for residential, commercial, and industrial markets, including standby generators, portable generators, and a range of clean energy products. The majority of its sales are generated in the United States, and it boasts an operating margin of 10.17%.
Financial Strength and Profitability
Generac Holdings Inc's Financial Strength rating reflects a robust balance sheet, capable of withstanding economic fluctuations, with a Debt-to-Revenue ratio of 0.43. This strategic management of debt underscores its financial health. Additionally, its high Profitability Rank and Predictability Rank of 3.0 stars highlight its ability to generate consistent profits and operational performance.
Growth Trajectory
Generac Holdings Inc is distinguished by its high Growth Rank. The company's 3-Year Revenue Growth Rate of 18.5% outperforms 75.7% of its peers in the Industrial Products industry. Its EBITDA has also seen significant growth, with a three-year growth rate of 1.3 and a five-year rate of 10.7, demonstrating its ongoing ability to expand and increase earnings.
Conclusion
Considering Generac Holdings Inc's strong financial strength, profitability, and growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
