GENERAC HOLDINGS, INC. ● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Strengths
● The prospective high growth for the next fiscal years is among the main assets of the company
● The earnings growth currently anticipated by analysts for the coming years is particularly strong.
● The group's high margin levels account for strong profits.
● The company is in a robust financial situation considering its net cash and margin position.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
Weaknesses
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 41.12 times its estimated earnings per share for the ongoing year.
● The company's enterprise value to sales, at 6.12 times its current sales, is high.
● The company appears highly valued given the size of its balance sheet.
● The valuation of the company is particularly high given the cash flows generated by its activity.
● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
● The average consensus view of analysts covering the stock has deteriorated over the past four months.
