Generac Holdings Inc

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GNRC : NYSE : Industrial Goods
$36.41 | %
Today's Range: 35.94 - 36.62
Avg. Daily Volume: 308200.0
08/18/17 - 4:02 PM ET

Financial Analysis


GENERAC HOLDINGS INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. GENERAC HOLDINGS INC has average liquidity. Currently, the Quick Ratio is 1.00 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.98% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)395.38367.38
EBITDA ($mil)65.2761.18
EBIT ($mil)52.2947.53
Net Income ($mil)25.6620.89


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)67.0775.64
Total Assets ($mil)1887.531916.54
Total Debt ($mil)1037.091081.38
Equity ($mil)427.92450.39


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin35.4936.21
EBITDA Margin16.516.65
Operating Margin13.2212.94
Sales Turnover0.80.72
Return on Assets5.623.87
Return on Equity24.8116.49
Debt Q2 FY17 Q2 FY16
Current Ratio2.252.16
Debt/Capital0.710.71
Interest Expense10.8911.38
Interest Coverage4.84.18


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)62.8465.87
Div / share0.00.0
EPS0.410.31
Book value / share6.816.84
Institutional Own % n/a n/a
Avg Daily Volume317114.0432859.0

Valuation


HOLD. GENERAC HOLDINGS INC's P/E ratio indicates a discount compared to an average of 23.06 for the Electrical Equipment industry and a value on par with the S&P 500 average of 24.31. Conducting a second comparison, its price-to-book ratio of 5.48 indicates a significant premium versus the S&P 500 average of 3.03 and a premium versus the industry average of 4.28. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. The valuation analysis reveals that, GENERAC HOLDINGS INC seems to be trading at a discount 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 22.50 Peers 23.06   GNRC 10.11 Peers 17.42

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 11.60 Peers 19.90   GNRC 0.24 Peers 1.76

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 5.48 Peers 4.28   GNRC 52.29 Peers 17.00

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 2.30   GNRC 10.69 Peers -0.33

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.

 

 

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