Generac Holdings Inc (GNRC, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With its shares currently priced at $172.78, Generac Holdings Inc has enjoyed a daily gain of 7.87%, and an impressive three-month change of 23.04%. 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 of valuation, which 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 94, signaling strong future performance potential.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 10/10
Understanding Generac Holdings Inc's Business
Generac Holdings Inc, with a market cap of $10.39 billion and annual sales of $4.02 billion, operates with a 10.6% 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 notable, with a resilient balance sheet that showcases effective capital management. The company's strategic debt management is reflected in its favorable Debt-to-Revenue ratio of 0.42, enhancing its financial stability.
Profitability Rank Breakdown
The company's Profitability Rank is impressive, indicating strong profit generation capabilities relative to its peers. This is further supported by a solid Piotroski F-Score, which assesses its financial health across nine criteria, and a Predictability Rank of 3.0 stars, highlighting consistent operational performance.
Growth Rank Breakdown
Generac Holdings Inc is highly rated for its growth, with a Growth Rank of 10/10. The company has demonstrated a robust 18.5% 3-Year Revenue Growth Rate, outperforming 75.04% of its industry peers. Its EBITDA growth over the past three and five years further underscores its expanding operational efficiency and profitability.
Conclusion
Considering Generac Holdings Inc's strong financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. For investors looking for similar opportunities, explore more companies with strong GF Scores using the 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.
