Generac Holdings Inc (GNRC, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With a current share price of $148.48, Generac Holdings Inc has enjoyed a daily increase of 2.56%, and an impressive three-month growth of 29.36%. A detailed analysis, supported by the GF Score, positions Generac Holdings Inc 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 are weighted differently and 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. For Generac Holdings Inc, the GF Score is an impressive 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 Business
Generac Holdings Inc, with a market cap of $9 billion and annual sales of $4.02 billion, is a leading manufacturer of power generation equipment and other engine-powered products for residential, commercial, and industrial markets. The company's diverse product lineup includes standby generators, portable generators, lighting, and outdoor power equipment, with a growing focus on clean energy solutions. The majority of its sales are generated in the United States, and it boasts an operating margin of 10.17%.
Financial Strength Breakdown
Generac Holdings Inc's financial strength is evident in its robust balance sheet and strategic debt management. With a Debt-to-Revenue ratio of 0.43, the company demonstrates a prudent approach to leveraging, which enhances its financial stability and resilience against market volatility.
Profitability and Growth Metrics
The company's Profitability Rank is outstanding, reflecting its superior ability to generate profits compared to its peers. Additionally, Generac Holdings Inc's Predictability Rank of 3.0 stars highlights its consistent operational performance, which builds investor confidence.
Generac's commitment to growth is underscored by its high Growth Rank. The company's 3-Year Revenue Growth Rate of 18.5% outperforms 78.21% of its industry peers. The significant increase in EBITDA over the past few years further emphasizes its growth capabilities.
Conclusion
Considering Generac Holdings Inc's robust financial strength, impressive profitability, and sustained growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore other high-scoring 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.
