Generac Holdings Inc (GNRC, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising market position. With a current share price of $182.40, Generac Holdings Inc has experienced a slight daily decrease of 0.6%, yet it boasts a significant three-month gain of 31.41%. A detailed analysis, supported by the GF Score, indicates that Generac Holdings Inc is poised for substantial future growth.
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 an impressive 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: 10/10
Understanding Generac Holdings Inc's Business
Generac Holdings Inc designs and manufactures power generation equipment and other engine-powered products for residential, commercial, and industrial markets. With a market cap of $10.85 billion and annual sales of $4.12 billion, the company has carved out a significant niche in its industry. Generac's diverse product range includes standby generators, portable generators, lighting, and clean energy solutions, primarily serving the U.S. market.
Financial Strength and Profitability
Generac Holdings Inc's financial resilience is evident in its robust balance sheet and strategic debt management, with an Interest Coverage ratio of 5.18. This strong position is further highlighted by a Debt-to-Revenue ratio of 0.41. The company's profitability is also noteworthy, underscored by a high Profitability Rank and a Piotroski F-Score, indicating efficient operations and robust financial health.
Growth Trajectory
Generac Holdings Inc is distinguished by its exceptional growth metrics. The company's Growth Rank is a perfect 10/10, with a 3-Year Revenue Growth Rate of 18.5%, outperforming 74.86% of its industry peers. This growth is supported by a significant increase in EBITDA over the past few years, demonstrating Generac's ongoing ability to expand and generate increased earnings.
Conclusion
Considering Generac Holdings Inc's robust financial strength, impressive profitability, and strong growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore other high-performing companies using the GF Score Screen available to GuruFocus Premium members.
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.
