Generac Holdings Operating Margin vs. Net Income
| GNRC Stock | USD 229.19 1.72 0.76% |
Generac Holdings Operating Profit Margin |
|
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.41 | 0.3829 |
|
| |||||
| Operating Profit Margin | 0.0653 | 0.0687 |
|
| |||||
| Return On Equity | 0.0576 | 0.0606 |
|
|
For Generac Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Generac Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Generac Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Generac Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Generac Holdings over time as well as its relative position and ranking within its peers.
Generac Holdings' Revenue Breakdown by Earning Segment
Check out Risk vs Return Analysis.
Generac Holdings Revenue Breakdown by Earning Segment
By analyzing Generac Holdings' earnings estimates, investors can diagnose different trends across Generac Holdings' analyst sentiment over time as well as compare current estimates against different timeframes.
Will Electrical Components & Equipment sector continue expanding? Could Generac diversify its offerings? Factors like these will boost the valuation of Generac Holdings. Market participants price Generac higher when confident in its future expansion prospects. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Generac Holdings data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth (0.41) | Earnings Share 5.25 | Revenue Per Share | Quarterly Revenue Growth (0.12) | Return On Assets |
Understanding Generac Holdings requires distinguishing between market price and book value, where the latter reflects Generac's accounting equity. The concept of intrinsic value - what Generac Holdings' is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Market sentiment, economic cycles, and investor behavior can push Generac Holdings' price substantially above or below its fundamental value.
Please note, there is a significant difference between Generac Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Generac Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. In contrast, Generac Holdings' trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.
Generac Holdings Net Income vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Generac Holdings's current stock value. Our valuation model uses many indicators to compare Generac Holdings value to that of its competitors to determine the firm's financial worth. Generac Holdings is rated below average in operating margin category among its peers. It is rated below average in net income category among its peers . At present, Generac Holdings' Operating Profit Margin is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Generac Holdings' earnings, one of the primary drivers of an investment's value.Generac Holdings' Earnings Breakdown by Geography
Generac Net Income vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Generac Holdings |
| = | (0.01) % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Generac Holdings |
| = | 161.35 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Generac Net Income Comparison
Generac Holdings is currently under evaluation in net income category among its peers.
Generac Holdings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Generac Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Generac Holdings will eventually generate negative long term returns. The profitability progress is the general direction of Generac Holdings' change in net profit over the period of time. It can combine multiple indicators of Generac Holdings, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -201.2 M | -191.2 M | |
| Operating Income | 289.2 M | 328.8 M | |
| Income Before Tax | 199.1 M | 230.1 M | |
| Total Other Income Expense Net | -90.1 M | -94.6 M | |
| Net Income | 161.4 M | 181.8 M | |
| Income Tax Expense | 37.7 M | 48.3 M | |
| Net Income Applicable To Common Shares | 459.4 M | 235.2 M | |
| Net Income From Continuing Ops | 364.5 M | 269.8 M | |
| Non Operating Income Net Other | -3.5 M | -3.7 M | |
| Interest Income | 34.9 M | 33.2 M | |
| Net Interest Income | -80.7 M | -84.8 M | |
| Change To Netincome | -72.3 M | -68.6 M | |
| Net Income Per Share | 2.73 | 2.86 | |
| Income Quality | 2.71 | 2.85 | |
| Net Income Per E B T | 0.80 | 1.02 |
Generac Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Generac Holdings. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Generac Holdings position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Generac Holdings' important profitability drivers and their relationship over time.
Generac Holdings Earnings per Share Projection vs Actual
Use Generac Holdings in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Generac Holdings position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Generac Holdings will appreciate offsetting losses from the drop in the long position's value.Generac Holdings Pair Trading
Generac Holdings Pair Trading Analysis
The ability to find closely correlated positions to Generac Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Generac Holdings when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Generac Holdings - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Generac Holdings to buy it.
The correlation of Generac Holdings is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Generac Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Generac Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Generac Holdings can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Generac Holdings position
In addition to having Generac Holdings in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Momentum Thematic Idea Now
Momentum
Large corporations operating in software, education, financial and car manufacturing industries. The Momentum theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Momentum Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Risk vs Return Analysis. For information on how to trade Generac Stock refer to our How to Trade Generac Stock guide.You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
To fully project Generac Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Generac Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Generac Holdings' income statement, its balance sheet, and the statement of cash flows.