Generac Holdings Intrinsic Value – GENERAC HOLDINGS Reports Second Quarter Earnings Results for 2023 Fiscal Year
August 15, 2023
🌥️Earnings Overview
GENERAC HOLDINGS ($NYSE:GNRC) reported their second quarter of the fiscal year 2023 earnings results on August 2 2023, with total revenue of USD 1000.4 million for the period ending June 30 2023. This figure was 22.5% lower than the same period in the previous year, and net income also decreased significantly to USD 45.2 million – a 71.1% drop from the year prior.
Stock Price
The stock opened at $124.6 and closed at $116.0, plunging by 24.4% from its prior closing price of 153.4. The company’s electric power businesses, such as residential, commercial, and industrial products, all experienced significant declines in sales year-over-year. Despite the disappointing results, GENERAC HOLDINGS remains committed to transitioning its business towards a more sustainable and greener energy future. It is investing heavily in renewable energy solutions such as solar, wind, and geothermal energies to meet the global demand for clean energy.
GENERAC HOLDINGS will continue to build upon its strong legacy of innovation while driving growth in its core markets. It will focus on exploring new opportunities to create value for its shareholders and position itself for long term success in the changing energy landscape. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Generac Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 4.03k | 163.27 | 4.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Generac Holdings. More…
| Operations | Investing | Financing |
| 109.41 | -146.56 | -232.83 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Generac Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.32k | 2.89k | 38.87 |
Key Ratios Snapshot
Some of the financial key ratios for Generac Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.0% | -3.4% | 8.1% |
| FCF Margin | ROE | ROA |
| 0.4% | 8.6% | 3.8% |
Analysis – Generac Holdings Intrinsic Value
At GoodWhale, we provide comprehensive and in-depth analysis of GENERAC HOLDINGS‘s financials. Our proprietary Valuation Line model calculated the fair value of GENERAC HOLDINGS’s stock at around $287.9, which is significantly higher than its current market price of $116.0. This implies that the stock is currently undervalued by 59.7%, presenting an attractive opportunity for investors. More…
Peers
In the market for standby generators, Generac Holdings Inc is up against some stiff competition from the likes of Musashi Co Ltd, Taihai Manoir Nuclear Equipment Co Ltd, and Weg SA.
However, the company has managed to stay ahead of the pack thanks to its innovative products and efficient manufacturing processes.
– Musashi Co Ltd ($TSE:7521)
As of 2022, Musashi Co Ltd has a market cap of 9.64B and a Return on Equity of 5.68%. The company manufactures and sells automotive parts, including engine valves, pistons, and crankshafts. It also provides engineering services.
– Taihai Manoir Nuclear Equipment Co Ltd ($SZSE:002366)
The company has a market capitalization of 4.67 billion as of 2022 and a return on equity of 697.02%. It is a manufacturer of nuclear equipment and supplies. The company’s products include reactors, nuclear fuel, nuclear power plant equipment, and nuclear waste disposal products.
– Weg SA ($OTCPK:WEGZY)
Weg SA is a Brazilian company that manufactures electric motors and generators. It has a market cap of 27.73B as of 2022 and a Return on Equity of 21.06%. The company is headquartered in Jaraguá do Sul, Santa Catarina, and has over 30,000 employees. Weg SA is one of the largest manufacturers of electric motors and generators in the world.
Summary
GENERAC HOLDINGS recently reported their second quarter earnings for the fiscal year 2023, which showed a significant decrease compared to the same period in the previous year. Total revenue declined 22.5% to USD 1000.4 million, while net income plummeted 71.1% to USD 45.2 million. Consequently, the stock price of GENERAC HOLDINGS fell on the same day.
Investors should consider the weak financials of the company when evaluating potential investments. Longer-term investors may want to keep a close eye on how future quarterly earnings results compare to the same period last year, in order to get a better understanding of the company’s financials.
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