Generac Holdings, Inc. (GNRC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Generac Holdings, Inc.

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Why is Generac Holdings, Inc. ?

High Management Efficiency with a high ROCE of 19.81%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.44 times

Poor long term growth as Operating profit has grown by an annual rate 8.36% of over the last 5 years

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 682.07 MM
NET PROFIT(HY) At USD 143.42 MM has Grown at 56.69%
ROCE(HY) Highest at 14.59%

With ROCE of 15.44%, it has a attractive valuation with a 2.77 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -2.40%, its profits have risen by 62.8% ; the PEG ratio of the company is 0.3

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -2.40% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Generac Holdings, Inc. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Generac Holdings, Inc.

51.12%

0.42

46.13%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.11%

EBIT Growth (5y)

-9.60%

EBIT to Interest (avg)

8.58

Debt to EBITDA (avg)

1.44

Net Debt to Equity (avg)

0.44

Sales to Capital Employed (avg)

1.08

Tax Ratio

22.04%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

19.81%

ROE (avg)

18.06%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.22

EV to EBIT

49.51

EV to EBITDA

29.88

EV to Capital Employed

4.13

EV to Sales

3.49

PEG Ratio

Dividend Yield

ROCE (Latest)

8.33%

ROE (Latest)

13.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 39.64 %

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 437.98 MM

NET PROFIT(HY)

At USD 208.36 MM has Grown at -25.15%

ROCE(HY)

Lowest at 6.22%

INTEREST COVERAGE RATIO(Q)

Lowest at 436.93

RAW MATERIAL COST(Y)

Grown by 12.48% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.93 times

OPERATING PROFIT(Q)

Lowest at USD 43.76 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.01 %

EPS(Q)

Lowest at USD -0.42

Here's what is working for Generac Holdings, Inc.

Debt-Equity Ratio

Lowest at 39.64 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at USD 51.16 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Generac Holdings, Inc.

Interest Coverage Ratio

Lowest at 436.93

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At USD 208.36 MM has Grown at -25.15%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 437.98 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit

Lowest at USD 43.76 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 4.01 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at USD -0.42

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Lowest at 6.93 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 12.48% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales