$181.84
arrow_drop_up6.47%Is GNRC a Buy or Sell based on AI Analysis?
Fundamental Analysis
Generac Holdings Inc, a stock trading under the symbol GNRC, demonstrates strong financial health through its key fundamental indicators. With a market capitalization of $6.82 billion, the company's price-to-earnings (PE) ratio of 34.62 indicates moderate valuation. Furthermore, Generac has a healthy return on equity of 9.2%, reflecting its ability to generate profits from shareholders' investments. Additionally, the company's consistent free cash flow margin of 8.95% and low debt-to-equity ratio of 0.7 highlight its strong financial position and efficient management of resources. Generac's revenue growth of 5.13% and net income of $214.61 million further demonstrate its operational efficiency and solid performance within the industry. In terms of market performance, Generac Holdings Inc has shown resilience and growth potential, with a forward annual dividend yield and strong insider ownership value standing at 1.67%. Moreover, institutions have a significant ownership value of 85.79%, indicating institutional confidence in the company's future prospects. With a strong score in analyst forecast price change at 49 and a neutral analyst recommendation, Generac is poised for steady growth and stability in the market. Additionally, the company's historical dividend yield average, although not specified, suggests a consistent payout to shareholders, further enhancing its attractiveness as an investment opportunity.
Positive Development
Generac Holdings Inc. has recently appointed a new Chief Information Officer (CIO) Talal Butt, which could potentially enhance the company's IT capabilities and efficiency. Generac's valuation is attractive today as earnings growth unfolds, as indicated by the company's EPS and Margin Growth Seen Powering Up In 2024. The company's gross margin is 0.3655, indicating a solid profit margin, which could be an indication of the company's financial health.
Negative Development
Generac Holdings Inc. missed on earnings expectations, which could potentially lead to a decrease in investor confidence and a subsequent decrease in the stock price. The company's stock price has been steadily decreasing over the past weeks, indicating a potential downtrend. Generac Holdings Inc. has a high total debt to equity ratio of 0.6731, which could potentially pose a financial risk for the company.
Technical Analysis
Generac Holdings Inc (GNRC) currently has a neutral technical rating based on the indicators ATR, RSI, MACD, CCI, ADX, WILLR, ROC, and STOCHRSI. The stock's price closed at $113.22 with a delta price of -$0.96, representing a decrease of 0.84078% from the previous close. The company's market cap stands at $6.82B with a beta of 1.44, suggesting moderate volatility compared to the market. Additionally, Generac Holdings Inc has a strong track record of price growth, with a five-year price change percent of 117.15% and an all-time price change percent of 781.78%. In terms of technical indicators, Generac Holdings Inc's stock has shown a bullish trend with the seven days price change percent at 1.43%. Despite facing some recent declines, the stock is still trading above its 52-week low of $79.86. The company's technical analysis also indicates a strong average operating profit margin growth, operating margin of 14.24%, and solid free cash flow margin of 8.95%. Furthermore, with a return on equity of 9.2% and a current ratio of 2.27, Generac Holdings Inc demonstrates solid financial health and performance metrics. Investors may find the stock's technical indicators and financial data favorable for potential investment opportunities.
Conclusion and recommendation
Based on the data provided, it is evident that Generac Holdings Inc (GNRC) is a stock that investors should consider adding to their portfolio. The company has a strong financial position with a market cap of $6.82 billion and a healthy balance sheet, including assets totaling $5.09 billion and liabilities of $2.74 billion. Additionally, Generac has consistently demonstrated profitability, with a net income of $214.61 million and a return on equity of 9.2%. Furthermore, the company's technical rating is neutral, indicating stability in its stock performance, while the analyst forecast price change of 19.6% suggests potential upside for investors. In conclusion, Generac Holdings Inc appears to be a promising investment opportunity for those looking to diversify their portfolio. The company's solid financial metrics, including a strong balance sheet and profitability, combined with a positive analyst forecast price change, indicate potential for growth in the future. However, investors should conduct thorough research and consider their risk tolerance before making any investment decisions. Overall, Generac Holdings Inc presents a compelling investment opportunity within the industrials sector.