Generac Holdings Inc (GNRC, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth trajectory. With its shares currently priced at $137.30, Generac Holdings Inc has experienced a daily gain of 0.65% and an impressive three-month change of 7.61%. A detailed analysis, underscored by the GF Score, positions Generac Holdings Inc as a prime candidate for significant 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, revealing 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: 6/10
- Momentum rank: 8/10
Understanding Generac Holdings Inc's Business
Generac Holdings Inc, with a market cap of $8.30 billion and annual sales of $4.02 billion, is a leading designer and manufacturer of power generation equipment and other engine-powered products. Its diverse product lineup includes standby generators, portable generators, lighting, and outdoor power equipment, primarily serving residential, commercial, and industrial markets. The majority of its sales are generated in the United States, and it has recently expanded into clean energy products, positioning the company at the forefront of energy technology.
Financial Strength and Profitability
Generac Holdings Inc's financial resilience is evident in its robust balance sheet and strategic debt management, with a Debt-to-Revenue ratio of 0.43. This prudent financial management underscores the company's ability to withstand economic fluctuations and maintain a solid capital structure. Furthermore, its high Profitability Rank reflects its superior capability to generate profits relative to its peers.
Growth Trajectory
Generac Holdings Inc is distinguished by its exceptional growth metrics. It has a Growth Rank of 10/10, supported by a three-year revenue growth rate of 18.5%, which outperforms 78.78% of its industry peers. The company's EBITDA has also seen significant increases, with a three-year growth rate of 1.3 and a five-year rate of 10.7, highlighting its ongoing expansion and operational efficiency.
Conclusion
Considering Generac Holdings Inc's robust financial strength, impressive profitability, and sustained growth metrics, the GF Score effectively highlights the company's strong position for potential market outperformance. Investors looking for high-performing stocks may find Generac Holdings Inc an attractive option. For more insights into companies with strong GF Scores, consider exploring our 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.
