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 $152.99, Generac Holdings Inc has experienced a daily loss of 1.36%, contrasting with a three-month gain of 1.41%. A detailed analysis, underscored by the GF Score, positions Generac Holdings Inc 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: financial strength, profitability, growth, GF Value, and momentum. These aspects have been backtested from 2006 to 2021, showing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. Generac Holdings Inc boasts a GF Score of 94 out of 100, indicating a high potential for outperformance.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 9/10
Understanding Generac Holdings Inc Business
Generac Holdings Inc, with a market cap of $9.20 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 maintains a solid operating margin of 10.6%.
Financial Strength Breakdown
Generac Holdings Inc's Financial Strength is evident in its robust balance sheet and prudent capital management. The company's strategic debt management is reflected in its favorable Debt-to-Revenue ratio of 0.42, enhancing its financial health and stability.
Profitability and Growth Metrics
The company's Profitability Rank is impressive, supported by a strong Piotroski F-Score, which assesses its financial health across nine criteria. Furthermore, Generac's Predictability Rank of 3.0 stars out of five highlights its consistent operational performance.
Generac's commitment to growth is underscored by its high Growth Rank. The company's 3-Year Revenue Growth Rate of 18.5% outperforms 75.39% of its peers in the Industrial Products industry. This is complemented by a significant increase in EBITDA over recent years.
Conclusion
Considering Generac Holdings Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's strong 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.
