GNRC

Generac Holdings Inc

Industrial/Transportation


Presented:05/06/2020
Price:$99.50
Cap:$6.24B
Current Price:$170.22
Cap:$10.24B

Presented

Date05/06/2020
Price$99.50
Market Cap$6.24B
Ent Value$6.54B
P/E Ratio25.14x
Book Value$16.33
Div Yield0%
Shares O/S62.68M
Ave Daily Vol1,150,065
Short Int5.87%

Current

Price$170.22
Market Cap$10.24B
Generac Holdings, Inc. engages in the design and manufacture of power generation equipment and other power products. It operates through the following segments: Domestic and International. The Domestic segment includes the legacy Generac, and the impact of acquisitions that are based in the United States. The International segment comprises of ottomotors, tower light, pramac, motortech, and selmec businesses. The company was founded in 1959 and is headquartered in Waukesha, WI.

Publicly traded companies mentioned herein: Generac Holdings Inc (GNRC), Herc Holdings Inc (HRI), LG Chem Ltd (051910 KS), SolarEdge Technologies Inc (SEDG), Tesla Inc (TSLA), United Rentals Inc (URI)

Highlights

The presenter is short shares of GNRC, a manufacturer of generators that also recently purchased a solar company, believing a lack of coverage has allowed flawed bull cases to drive a recent valuation spike. The company historically saw its multiple spike to around 10-12x EBITDA when catalysts such as natural disasters would drive generator sales, and would trade lower (closer to 8x EBITDA) in the absence of such a catalyst. The company has recently traded as high as 17x EBITDA following the blackouts in California and its acquisition of Pika Energy. Based on his due diligence and potential cuts to capex at the company’s B2B clients, he expects poor financial performance and a contraction of the multiple to drive the stock lower.

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Idea Discussion

Commentor 1 - 2 weeks ago

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