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 $151.67, Generac Holdings Inc has enjoyed a daily gain of 2.75%, and an impressive three-month growth of 12.04%. 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: financial strength, profitability, growth, GF Value, and momentum. These aspects have been backtested from 2006 to 2021, revealing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. Generac Holdings Inc boasts a GF Score of 95 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: 10/10
Understanding Generac Holdings Inc's Business
Generac Holdings Inc, with a market cap of $9.12 billion and annual sales of $4.02 billion, operates at a 10.6% operating margin. The company designs and manufactures power generation equipment and other engine-powered products for residential, commercial, and industrial markets. Its product lineup includes standby generators, portable generators, lighting, and clean energy solutions, with the majority of its sales generated in the United States.
Financial Strength and Profitability
Generac Holdings Inc's Financial Strength rating is robust, reflecting a well-managed capital structure and resilience against financial volatility. The company's strategic handling of its debt, with a Debt-to-Revenue ratio of 0.42, further solidifies its financial health. Additionally, its Profitability Rank is impressive, and the Piotroski F-Score confirms a solid financial situation. The company's Predictability Rank of 3.0 stars out of five underscores consistent operational performance, boosting investor confidence.
Growth Metrics
Generac Holdings Inc is highly ranked in Growth, demonstrating a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate of 18.5% outperforms 75.1% of 2,851 companies in the Industrial Products industry. Moreover, its EBITDA has seen significant increases, with a three-year growth rate of 1.3 and a five-year rate of 10.7, highlighting the company's ongoing growth capabilities.
Conclusion
Considering Generac Holdings Inc's robust financial strength, impressive profitability, and strong growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. For investors looking for similar opportunities, GuruFocus Premium members can explore more companies with strong GF Scores using our 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.
