Generac Holdings Inc. (GNRC) Stock

Generac Holdings Inc. trades at a P/E ratio of 28.01, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 19.34 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.27 indicates reasonable value when growth is considered.

With a beta of 1.63, Generac Holdings Inc. is significantly more volatile than the market. For every 10% market move, this stock tends to move 16% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 3.84 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Generac Holdings Inc. achieves a profit margin of 7.91%, meaning it retains $7.91 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 10.50% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 14.10% and ROA at 6.69%, the company achieves moderate returns on invested capital.

Generac Holdings Inc.'s revenue grew by 6.30% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 28.90% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SPECIALTY INDUSTRIAL MACHINERY industry averages for proper context.

Generac Holdings Inc. has a market capitalization of $9.9B, classifying it as a mid-cap stock ($2B-$10B). Mid-caps often represent companies in their growth phase, offering higher growth potential than large-caps but with more stability than small-caps. They can be attractive takeover targets and may become tomorrow's large-caps. With 58.68M shares outstanding, the company's ownership is relatively concentrated. As a participant in the SPECIALTY INDUSTRIAL MACHINERY industry, it competes with other firms in this sector.

Generac Holdings Inc.'s book value per share is $43.81, while the current stock price is $165.77, resulting in a price-to-book (P/B) ratio of 3.78. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

20 analysts cover GNRC with 50% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $206.19 implies 24.4% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:010 Buy, 9 Hold, 01 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.