Generac Holdings Inc. [NYSE:GNRC]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Generac Holdings Inc. [GNRC], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give GNRC an Hold rating. This is compared to its latest closing price of $49.81.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Generac Holdings Inc. [GNRC] is sitting at 2.70. This is compared to 1 month ago, when its average rating was 2.50.
For the quarter ending in Sep-18 Generac Holdings Inc. [GNRC] generated $0.56 billion in sales. That’s 11.25% higher than the average estimate of $0.5 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Thu 14 Feb (In 3 Days).
Fundamental Analysis of Generac Holdings Inc. [GNRC]
Now let’s turn to look at profitability: with a current Operating Margin for Generac Holdings Inc. [GNRC] sitting at +15.11 and its Gross Margin at +33.18, this company’s Net Margin is now 12.60%. These measurements indicate that Generac Holdings Inc. [GNRC] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 16.74, and its Return on Invested Capital has reached 12.00%. Its Return on Equity is 33.37, and its Return on Assets is 8.26. These metrics all suggest that Generac Holdings Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Generac Holdings Inc. [GNRC] has generated a Total Debt to Total Equity ratio of 165.98. Similarly, its Total Debt to Total Capital is 62.40, while its Total Debt to Total Assets stands at 45.98. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 162.01, and its Long-Term Debt to Total Capital is 60.91. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 12.78 and its Total Debt to EBITDA Value is 3.05. The Enterprise Value to Sales for this firm is now 2.01, and its Total Debt to Enterprise Value stands at 0.24. Generac Holdings Inc. [GNRC] has a Price to Book Ratio of 5.52, a Price to Cash Flow Ratio of 11.88 and P/E Ratio of 13.70. These metrics all suggest that Generac Holdings Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Generac Holdings Inc. [GNRC] earns $367,086 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 6.41 and its Total Asset Turnover is 0.86. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.13 and its Current Ratio is 2.10. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Generac Holdings Inc. [GNRC] has 61.84M shares outstanding, amounting to a total market cap of $3.09B. Its stock price has been found in the range of 42.96 to 60.70. At its current price, it has moved by -17.64% from its 52-week high, and it has moved 16.36% from its 52-week low.
This stock’s Beta value is currently 1.15, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 35.69. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Generac Holdings Inc. [GNRC] a Reliable Buy?
Shares of Generac Holdings Inc. [GNRC], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.