Generac Holdings Inc (GNRC) Stock

Generac Holdings Inc trades at a P/E ratio of 42.01, 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 15.65 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.56 suggests the stock may be undervalued relative to its growth rate.

With a beta of 1.91, Generac Holdings Inc is significantly more volatile than the market. For every 10% market move, this stock tends to move 19% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 3.75 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 5.82%, meaning it retains $5.82 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 17.90% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 9.49% and ROA at 4.72%, the company achieves moderate returns on invested capital.

Generac Holdings Inc's revenue grew by 10.60% 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 92.00% 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 $11.1B, 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 59.01M 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 $48.77, while the current stock price is $190.21, resulting in a price-to-book (P/B) ratio of 3.90. 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 $283.88 implies 49.2% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:2 Strong Buy, 12 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.