Generac Holdings Inc

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GNRC : NYSE : Industrial Goods
$42.95 | %
Today's Range: 42.7 - 43.29
Avg. Daily Volume: 565300.0
12/09/16 - 4:02 PM ET

Financial Analysis


GENERAC HOLDINGS INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. 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 15.40% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)373.12359.29
EBITDA ($mil)71.378.46
EBIT ($mil)56.467.87
Net Income ($mil)26.1834.04


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)54.1646.45
Total Assets ($mil)1868.511837.58
Total Debt ($mil)1087.91054.91
Equity ($mil)413.92489.27


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin38.3737.47
EBITDA Margin19.121.83
Operating Margin15.1218.89
Sales Turnover0.740.74
Return on Assets3.556.41
Return on Equity16.0524.1
Debt Q3 FY16 Q3 FY15
Current Ratio2.012.91
Debt/Capital0.720.68
Interest Expense11.310.21
Interest Coverage4.996.65


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)63.8467.16
Div / share0.00.0
EPS0.40.49
Book value / share6.487.28
Institutional Own % n/a n/a
Avg Daily Volume634488.0440080.0

Valuation


HOLD. GENERAC HOLDINGS INC's P/E ratio indicates a significant premium compared to an average of 23.48 for the Electrical Equipment industry and a significant premium compared to the S&P 500 average of 25.16. For additional comparison, its price-to-book ratio of 6.39 indicates a significant premium versus the S&P 500 average of 2.79 and a significant premium versus the industry average of 4.07. 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 41.41 Peers 23.48   GNRC 11.07 Peers 13.58

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.

 

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 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 13.32 Peers 19.91   GNRC 0.25 Peers 5.23

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 6.39 Peers 4.07   GNRC -40.48 Peers -4.85

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 1.91 Peers 2.19   GNRC 1.56 Peers -3.75

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 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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