Generac Holdings Intrinsic Value Calculation – Generac Holdings Shares Plummet 73%, but Long-Term Growth Prospects Remain Intact.
February 7, 2023
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Generac Holdings Intrinsic Value Calculation – Generac Holdings ($NYSE:GNRC) has experienced a significant drop in its stock price over the past year. After trading at a high of $329 per share, the stock has plummeted by 73% to $86. Despite this, analysts remain optimistic about the company’s long-term prospects, citing the changing landscape of the energy, utility, and automotive industries as well as the increased awareness of reliable power supply needs. Generac Holdings is a leading global manufacturer of residential and commercial power generation systems. The company designs, manufactures, distributes, and services portable generators, residential standby generators, and transfer switches. Generac Holdings also provides power washers and other power-related products. The energy industry is undergoing a radical transformation. Renewable energy sources such as solar and wind are becoming more competitive and cost effective, making them a viable option for many households and businesses. This shift towards renewable energy has had a positive impact on Generac Holdings, as they are well-positioned to benefit from this trend.
In addition, the demand for reliable power supply has been increasing due to the increasing number of natural disasters and outages caused by aging grid infrastructure. Consumers are now more aware of the need for reliable power supply and Generac Holdings is well positioned to take advantage of this. Overall, despite the recent drop in share price, Generac Holdings still remains a strong company with potential for long-term growth. The changing landscape of the energy industry, combined with the increasing awareness of reliable power supply needs, have created an opportunity for Generac Holdings to capitalize on. Investors should consider Generac Holdings as a potential long-term investment opportunity.
Price History
Generac Holdings shares have been on a wild ride over the past few weeks, with shares plunging 73% since the start of May. While the news sentiment has been mostly positive, with some analysts expecting long-term growth prospects to remain intact, the immediate impact of the stock’s plunge has been evident. On Monday, GENERAC HOLDINGS opened at $121.4 and closed at $121.4, down by 0.9% from its last closing price of 122.4. The sharp decline in share prices could be attributed to several factors, including increasing competition in the power generation market and declines in residential sales due to the economic slowdown. The company’s dismal results in its recent quarter have also been a major factor in the stock’s decline. Despite the recent selloff, many analysts believe that GENERAC HOLDINGS has long-term prospects for growth. The company has a strong presence in the residential power generation market and is well-positioned to capitalize on opportunities in the commercial and industrial sectors.
Additionally, its strong balance sheet and focus on innovation should help the company become more competitive in the power generation market. The current downturn in the stock’s price presents an opportunity for investors to invest in a company with strong long-term potential. 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 |
| 4.58k | 459.97 | 10.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Generac Holdings. More…
| Operations | Investing | Financing |
| 19.4 | -355.6 | 145.35 |
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 |
| 5.25k | 2.84k | 36.6 |
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 |
| 28.2% | 20.3% | 13.8% |
| FCF Margin | ROE | ROA |
| -1.5% | 16.7% | 7.5% |
Analysis – Generac Holdings Intrinsic Value Calculation
GoodWhale recently conducted an analysis of GENERAC HOLDINGS‘s wellbeing. Our findings revealed that the fair value of GENERAC HOLDINGS share is around $339.1, as calculated by our proprietary Valuation Line. This indicates that GENERAC HOLDINGS is currently undervalued by 64.2% since its stock is currently being traded at a price of $121.4. This discrepancy between the fair value and current stock price suggests that investors should take a closer look at the company. Furthermore, the fact that the stock is trading so far below its fair value may indicate that GENERAC HOLDINGS is currently in a period of undervaluation and could be a prime candidate for investment. GoodWhale’s analysis also revealed that GENERAC HOLDINGS has been performing well and is likely to continue performing well in the near future. It has a strong financial position and its operations have been growing steadily. Additionally, the company has been making important investments in research and development, which could lead to new products and services in the future. Overall, GoodWhale’s findings suggest that GENERAC HOLDINGS is currently undervalued and could be a prime candidate for investment. Investors should consider taking advantage of this opportunity to purchase GENERAC HOLDINGS stock at a discounted price. More…
Peers
In the market for standby generators, Generac Holdings Inc is up against some stiff competition from the likes of Musashi Co Ltd, Taihai Manoir Nuclear Equipment Co Ltd, and Weg SA.
However, the company has managed to stay ahead of the pack thanks to its innovative products and efficient manufacturing processes.
– Musashi Co Ltd ($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, a manufacturer of power generation equipment, has seen its stock price take a drastic hit in the last few weeks. Despite the decline, long-term investors are still optimistic that the company’s growth prospects remain strong. Generac Holdings boasts a strong portfolio of products, including residential and commercial generators, transfer switches, and related accessories. The company is well-positioned to benefit from the continued growth in the global power generation market. Generac Holdings has a solid customer base, with its services being used by customers in the industrial, government, and commercial sectors.
In addition, the company has a strong financial position and is expected to continue to deliver revenue and earnings growth over the long term. Furthermore, Generac Holdings has a strong presence in the residential market, with its products being used in homes across the United States. Investors who are looking for a long-term growth opportunity should consider investing in Generac Holdings.
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