Generac Holdings Inc

Find Ratings Reports
GNRC : NYSE : Industrial Goods
$35.99 | %
Today's Range: 35.55 - 36.15
Avg. Daily Volume: 424500.0
04/21/17 - 4:02 PM ET

Financial Analysis


GENERAC HOLDINGS INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. GENERAC HOLDINGS INC has weak liquidity. Currently, the Quick Ratio is 0.90 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 13.89% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)417.42357.83
EBITDA ($mil)90.4678.58
EBIT ($mil)77.3868.0
Net Income ($mil)41.519.18


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)67.27115.86
Total Assets ($mil)1861.681792.82
Total Debt ($mil)1052.921059.35
Equity ($mil)401.12465.87


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin38.2837.89
EBITDA Margin21.6721.95
Operating Margin18.5419.0
Sales Turnover0.780.73
Return on Assets5.34.33
Return on Equity24.6216.68
Debt Q4 FY16 Q4 FY15
Current Ratio2.03.1
Debt/Capital0.720.69
Interest Expense10.8510.6
Interest Coverage7.136.41


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)62.766.02
Div / share0.00.0
EPS0.640.14
Book value / share6.47.06
Institutional Own % n/a n/a
Avg Daily Volume430508.0481749.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 22.46 for the Electrical Equipment industry and a value on par with the S&P 500 average of 24.80. Conducting a second comparison, its price-to-book ratio of 5.56 indicates a significant premium versus the S&P 500 average of 2.97 and a premium versus the industry average of 4.23. The price-to-sales ratio is below the S&P 500 average and is well 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 23.73 Peers 22.46   GNRC 8.81 Peers 17.72

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

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

 

Discount. 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 significant discount 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 11.13 Peers 19.90   GNRC 0.25 Peers 2.07

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 5.56 Peers 4.23   GNRC 33.92 Peers -6.77

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.

 

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

GNRC is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
GNRC 1.55 Peers 2.39   GNRC 9.65 Peers -7.00

Discount. 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 significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

GNRC has a sales growth rate that significantly exceeds its peers.

 

 

Latest Stock Upgrades/Downgrades