Generac Holdings Inc (GNRC, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $117.24, Generac Holdings Inc has witnessed a daily gain of 0.12%, marked against a three-month change of -3.44%. A thorough analysis, underlined by the GF Score, suggests that Generac Holdings Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 4/10
- Momentum rank: 8/10
With a high Growth rank and strong Profitability rank, Generac Holdings Inc demonstrates its capacity for expansion and efficient operations. Although the GF Value rank is slightly lower, indicating the stock might be overvalued at current prices, the overall GF Score of 92 out of 100 signals the highest outperformance potential.
Understanding Generac Holdings Inc's Business
Generac Holdings Inc, with a market cap of $7.07 billion and sales of $4.02 billion, operates within the power generation equipment industry, serving residential, commercial, and industrial markets. The company's product lineup includes standby generators, portable generators, lighting, outdoor power equipment, and a suite of clean energy products. The majority of its sales are generated in the United States, indicating a strong domestic market presence.
Financial Strength Breakdown
Generac Holdings Inc's Financial Strength rating of 6/10 reflects a solid balance sheet and the company's ability to withstand financial headwinds. The Debt-to-Revenue ratio of 0.43 showcases Generac Holdings Inc's strategic debt management, which contributes to its financial stability.
Profitability Rank Breakdown
The Profitability Rank of 9/10 for Generac Holdings Inc indicates a superior ability to generate profits compared to its competitors. This is further reinforced by a Predictability Rank of 3.0 stars out of five, highlighting the company's consistent operational performance and reliability for investors.
Growth Rank Breakdown
Generac Holdings Inc's top-tier Growth rank of 10/10 is a testament to its commitment to business expansion. The company's 3-Year Revenue Growth Rate of 18.5% outperforms 77.96% of its peers in the Industrial Products industry. The impressive EBITDA growth rates over the past three and five years further underscore Generac Holdings Inc's growth capabilities.
Conclusion: Generac Holdings Inc's Position for Outperformance
Considering Generac Holdings Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking to capitalize on such robust financial health and market leadership may find Generac Holdings Inc an attractive option. Will this power generation giant continue to electrify the market with its performance?
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: 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.
