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 $144.31, Generac Holdings Inc has enjoyed a daily gain of 0.92%, and an impressive three-month growth of 23.32%. A detailed analysis, supported by the GF Score, positions Generac Holdings Inc as a promising candidate for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, evaluating stocks based on five key aspects of valuation. These aspects have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Generac Holdings Inc boasts a GF Score of 95, signaling strong future performance potential.
- 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 $8.75 billion and annual sales of $4.02 billion, operates with a 10.17% operating margin. The company designs and manufactures power generation equipment and other products like standby generators, portable generators, and clean energy solutions, primarily for the U.S. market.
Financial Strength Breakdown
Generac Holdings Inc's Financial Strength is evident in its robust balance sheet and a strategic Debt-to-Revenue ratio of 0.43. This demonstrates the company's effective management of its capital structure, enhancing its financial stability.
Profitability and Growth Metrics
The company's Profitability Rank is impressive, reflecting its superior ability to generate profits compared to its peers. Additionally, Generac Holdings Inc's Predictability Rank of 3.0 stars out of five highlights its consistent operational performance, which builds investor confidence.
Generac Holdings Inc is also recognized for its significant growth, with a Growth Rank of 10/10. The company's 3-Year Revenue Growth Rate of 18.5% surpasses 78.38% of its industry peers. The consistent increase in EBITDA further underscores its growth capabilities.
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. For investors looking for similar opportunities, the GF Score Screen offers a valuable tool for discovering companies with strong GF Scores.
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.
