NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, notable return on equity, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- GNRC's very impressive revenue growth greatly exceeded the industry average of 4.4%. Since the same quarter one year prior, revenues leaped by 66.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 1296.42% and other important driving factors, this stock has surged by 50.86% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GNRC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, GENERAC HOLDINGS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electrical Equipment industry. The net income increased by 1335.2% when compared to the same quarter one year prior, rising from $18.61 million to $267.13 million.
- Net operating cash flow has significantly increased by 157.32% to $80.70 million when compared to the same quarter last year. In addition, GENERAC HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -14.93%.
Generac Holdings Inc. designs, manufactures, and markets backup power generation products for residential, light-commercial, and industrial markets in the United States and Canada. The company has a P/E ratio of 12.5, below the average consumer durables industry P/E ratio of 23.5 and below the S&P 500 P/E ratio of 17.7. Generac has a market cap of $1.98 billion and is part of the
industry. Shares are down 3.2% year to date as of the close of trading on Thursday.
You can view the full
or get investment ideas from our
-- Written by a member of TheStreet RatingsStaff