Generac Holdings Inc

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GNRC : NYSE : Industrial Goods
$37.53 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 402,800
07/27/16 - 4:02 PM ET

Financial Analysis


GENERAC HOLDINGS INC's gross profit margin for the first quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. GENERAC HOLDINGS INC has weak liquidity. Currently, the Quick Ratio is 0.99 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 5.62% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)286.54311.82
EBITDA ($mil)46.8653.95
EBIT ($mil)34.0744.91
Net Income ($mil)10.2119.69


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)69.37150.09
Total Assets ($mil)1933.51842.37
Total Debt ($mil)1092.181037.22
Equity ($mil)474.43502.69


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin36.9134.14
EBITDA Margin16.3517.3
Operating Margin11.8914.4
Sales Turnover0.670.78
Return on Assets3.538.66
Return on Equity14.3931.74
Debt Q1 FY16 Q1 FY15
Current Ratio2.273.0
Debt/Capital0.70.67
Interest Expense11.0411.27
Interest Coverage3.093.99


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)66.5469.15
Div / share0.00.0
EPS0.150.28
Book value / share7.137.27
Institutional Own % n/a n/a
Avg Daily Volume403979.0674009.0

Valuation


HOLD. GENERAC HOLDINGS INC's P/E ratio indicates a significant premium compared to an average of 22.86 for the Electrical Equipment industry and a significant premium compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 5.29 indicates a significant premium versus the S&P 500 average of 2.81 and a premium versus the industry average of 3.92. The current price-to-sales ratio is similar to the S&P 500 average, but it is below the industry average, indicating a discount. After reviewing these and other key valuation criteria, GENERAC HOLDINGS INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
GNRC 38.11 Peers 22.86   GNRC 13.36 Peers 13.32

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

GNRC is trading at a significant premium to its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

GNRC is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
GNRC 11.43 Peers 19.70   GNRC 0.22 Peers 7.93

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

GNRC is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

GNRC trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
GNRC 5.29 Peers 3.92   GNRC -56.39 Peers 1.74

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

GNRC is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, GNRC is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
GNRC 1.94 Peers 1.94   GNRC -9.70 Peers -3.20

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

GNRC is trading at a valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

GNRC significantly trails its peers on the basis of sales growth

 

 

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