GENERAC HOLDINGS Reports Q2 Revenue Down 22.5% to USD 1000.4 Million
August 25, 2023
🌥️Earnings Overview
GENERAC HOLDINGS ($NYSE:GNRC) reported total revenue of USD 1000.4 million for the quarter ended June 30, 2023, which was a decrease of 22.5% compared to the same quarter in the prior year. Net income for the period amounted to USD 45.2 million, representing a decrease of 71.1% year-on-year.
Analysis
An analysis of GENERAC HOLDINGS‘s fundamentals was conducted by GoodWhale, and the results show that GENERAC HOLDINGS is strong in profitability, medium in asset, growth and weak in dividend according to the Star Chart. This categorizes GENERAC HOLDINGS as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. As such, investors who are looking for companies that have achieved a moderate level of success yet still have potential for further growth may be interested in GENERAC HOLDINGS. Additionally, GENERAC HOLDINGS has a high health score of 8/10 considering its cashflows and debt, which indicates that the company is capable of sustaining future operations even in times of crisis. More…
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% |
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‘ financial results for the second quarter of 2023 show a decrease in total revenue of 22.5%, and a decrease in net income of 71.1%, compared to the same quarter last year. This significantly worse than expected performance was reflected in the stock price, which moved down on the same day the results were announced. Investors should take this into account when considering whether to invest in GENERAC HOLDINGS, given the current market conditions. Further research and analysis is needed to determine whether the company’s financials indicate a longer-term trend of underperformance or if this was an anomalous quarter.
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