Generac Holdings Inc (GNRC) Stock

Generac Holdings Inc trades at a P/E ratio of 26.98, 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 16.34 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.11 indicates reasonable value when growth is considered.

With a beta of 1.82, Generac Holdings Inc is significantly more volatile than the market. For every 10% market move, this stock tends to move 18% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 3.03 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 6.92%, meaning it retains $6.92 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 9.25% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 12.00% and ROA at 5.76%, the company achieves moderate returns on invested capital.

Generac Holdings Inc's revenue declined by 5.00% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 40.70% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against SPECIALTY INDUSTRIAL MACHINERY industry averages for proper context.

Generac Holdings Inc has a market capitalization of $8.3B, 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 $45.05, while the current stock price is $161.51, resulting in a price-to-book (P/B) ratio of 3.59. 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.

21 analysts cover GNRC with 52% 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 $206.53 implies 27.9% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:1 Strong Buy, 10 Buy, 10 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.