Why Have Generac Holdings’ Shares Rallied 70% In A Year?

by Trefis Team
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Generac Holdings (NYSE: GNRC), an industrial company manufacturing generators, saw its stock rally by more than 70% over the last year thanks to stronger demand for its equipment on account of power outage implemented by utilities in the states where Generac operates. The company has a market share of more than 75% in the HSB (standby generators) category and is further diversifying its business by adding energy storage devices. Despite the significant market share, the company claims to have penetrated only 5% of U.S. households. With double-digit revenue growth expected over the next 2 years, the benefits of operating leverage are expected to improve margins considerably.

We step back from these recent swings to review GNRC performance over the last few years, as a context for what might come next. Our interactive dashboard – Why has Generac Holdings’ [GNRC] share price rallied 70% in last one year? – reviews the near-term reasons and the big picture.

The context for the last few years:

A closer look At Generac Holding’s Total Revenues over the last few years and the outlook

Total Revenues for Generac Holdings significantly increased from $1.7 Bil in 2017 to $2.0 Bil in 2018; an increase of 20.5%.
This compares with Total Revenues growth of:

  • -9% in 2015
  • 10% in 2016
  • 16.0% in 2017

We expect Total Revenues growth to be 14.2% in 2019.

 

A closer look At Generac Holdings’ Total Expenses over the last few years and the outlook

Total Expense for Generac Holdings significantly increased from $1.5 Bil in 2017 to $1.7 Bil in 2018; an increase of 16.0%.
This compares with Total Expense growth of:

  • 0% in 2015
  • 8% in 2016.
  • 14.0% in 2017

We expect Total Expense growth to be 16.0% in 2019.

 

How does Generac Holdings’ Revenue Growth compare with rivals?

For more information on how Generac Holdings’ revenue growth compares with Briggs and Stratton, Cummins and Caterpillar, view our interactive dashboard analysis.

 

How has Generac Holdings’ EBT trended?

  • EBT for Generac Holdings increased substantially by 52.7% from $204 Mil in 2017 to $311 Mil in 2018.
  • We expect EBT to increase by 4.24% to $324 Mil in 2019.

 

How has Generac Holdings’ Net Income and EPS trended?

For more details about Generac Holdings’ Net Income and EPS, view our interactive dashboard analysis

 

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