Generac Holdings Inc (GNRC) Stock

Generac Holdings Inc trades at a P/E ratio of 33.02, 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 21.01 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.48 indicates reasonable value when growth is considered.

With a beta of 1.83, 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 3.89 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 $10.2B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. 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 $173.73, resulting in a price-to-book (P/B) ratio of 3.86. 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 67% 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 $202.94 implies 16.8% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:3 Strong Buy, 11 Buy, 7 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.