Generac Holdings Inc (GNRC, Financial) has recently garnered attention from the investment community, showcasing a solid financial profile that's piquing the interest of savvy investors. With a current share price of $127.75, Generac Holdings Inc has enjoyed a daily uptick of 0.66%, alongside a notable three-month appreciation of 23.41%. Delving into the GF Score, it becomes evident that Generac Holdings Inc is poised for significant growth, backed by strong financial indicators.
What Is the GF Score?
The GF Score is an innovative stock performance ranking system created by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have demonstrated a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns than those with lower scores, making the GF Score a valuable tool for investors seeking profitable investments. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 4/10
- Momentum rank: 10/10
Each component of the GF Score is individually ranked, with each rank positively correlating with long-term stock performance. These aspects are weighted differently to calculate the total score, reflecting their varying impacts on stock price performance. With high ranks in profitability, growth, and momentum, and a slightly lower GF Value rank, Generac Holdings Inc has been assigned a GF Score of 93 out of 100, signaling a strong potential for market outperformance.
Understanding Generac Holdings Inc's Business
Generac Holdings Inc, with a market capitalization of $7.85 billion and annual sales of $4.01 billion, is a leading name in the power generation equipment industry. The company specializes in designing and manufacturing a wide range of products, including standby generators, portable generators, lighting, outdoor power equipment, and innovative clean energy solutions. With the majority of its sales generated in the United States, Generac Holdings Inc has established a dominant presence in residential, commercial, and industrial markets.
Financial Strength Breakdown
Generac Holdings Inc's Financial Strength rating reflects a resilient balance sheet capable of withstanding economic fluctuations. This resilience is a testament to the company's prudent capital management strategies. A noteworthy Debt-to-Revenue ratio of 0.43 further reinforces Generac Holdings Inc's financial stability, underscoring its strategic approach to debt management.
Profitability Rank Breakdown
The Profitability Rank places Generac Holdings Inc among the top performers in profit generation within its sector. The company's Gross Margin has consistently improved over the past five years, with the latest figure standing at 37.46%. This upward trend highlights Generac Holdings Inc's increasing efficiency in converting revenue into profit, a key indicator of its competitive edge.
Growth Rank Breakdown
Generac Holdings Inc's high Growth Rank reflects its unwavering commitment to business expansion. The company's 3-Year Revenue Growth Rate of 26.3% surpasses 87.66% of its peers in the Industrial Products industry. Additionally, Generac Holdings Inc has demonstrated a significant increase in EBITDA over the past few years, with a three-year growth rate of 18.3% and a five-year rate of 20.5%, emphasizing its sustained growth capabilities.
Next Steps
Considering Generac Holdings Inc's robust financial strength, impressive profitability, and dynamic growth metrics, the GF Score underscores the company's exceptional position for potential market outperformance. Investors seeking similar opportunities can explore more companies with strong GF Scores using the GF Score Screen provided by GuruFocus Premium services.
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.
