Stock Analysis on Net
Stock Analysis on Net

Generac Holdings Inc. (NYSE:GNRC)

This company has been moved to the archive! The financial data has not been updated since August 8, 2022.

Common-Size Income Statement 

Generac Holdings Inc., common-size consolidated income statement

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net sales 100.00 100.00 100.00 100.00 100.00
Costs of goods sold -63.61 -61.47 -63.81 -64.17 -65.19
Gross profit 36.39% 38.53% 36.19% 35.83% 34.81%
Selling and service -8.54 -9.91 -9.88 -9.48 -10.27
Research and development -2.79 -3.23 -3.10 -2.47 -2.57
General and administrative -3.86 -4.76 -4.95 -5.13 -5.23
Acquisition related costs -0.57 -0.06 -0.08 0.00 0.00
Amortization of intangibles -1.33 -1.30 -1.30 -1.09 -1.73
Operating expenses -17.10% -19.26% -19.31% -18.18% -19.79%
Income from operations 19.30% 19.28% 16.88% 17.65% 15.01%
Interest expense -0.88 -1.33 -1.88 -2.02 -2.55
Investment income 0.04 0.09 0.13 0.09 0.02
Loss on extinguishment of debt -0.02 0.00 -0.04 -0.07 0.00
Loss on pension settlement 0.00 0.00 -0.50 0.00 0.00
Other, net 0.07 -0.08 -0.09 -0.28 -0.24
Other expense, net -0.79% -1.32% -2.38% -2.28% -2.77%
Income before provision for income taxes 18.50% 17.95% 14.50% 15.37% 12.24%
Provision for income taxes -3.61 -3.98 -3.05 -3.45 -2.60
Net income 14.89% 13.97% 11.45% 11.92% 9.63%
Net (income) loss attributable to noncontrolling interests -0.16 0.14 -0.01 -0.15 -0.10
Net income attributable to Generac Holdings Inc. 14.73% 14.11% 11.43% 11.77% 9.53%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

The financial data shows several notable trends over the five-year period. The gross profit margin improved from 34.81% in 2017 to a peak of 38.53% in 2020, before slightly declining to 36.39% in 2021. This indicates an overall enhancement in production efficiency or pricing power, though with some variability in the last year.

Cost of goods sold as a percentage of net sales decreased from -65.19% in 2017 to -61.47% in 2020, suggesting better cost management during this timeframe, but it rose again to -63.61% in 2021, indicating some cost pressures.

Operating expenses as a percentage of net sales showed a declining trend, from -19.79% in 2017 to -17.10% in 2021. Notably, selling and service expenses decreased consistently from -10.27% to -8.54%, general and administrative expenses improved from -5.23% to -3.86%, and research and development fluctuated but ultimately declined to -2.79% in 2021. Acquisition related costs appeared starting in 2019 with relatively low but increasing impact by 2021 (-0.57%). Amortization of intangibles remained fairly steady across the years, around -1.3%.

Income from operations as a percentage of net sales increased from 15.01% in 2017 to 19.3% in 2021, reflecting improved profitability from core business operations. Interest expense steadily declined from -2.55% to -0.88%, contributing positively to income before taxes. Investment income remained minimal and stable, while other net expenses decreased from -2.77% to -0.79%, improving overall income.

Income before provision for income taxes rose from 12.24% in 2017 to 18.5% in 2021, consistent with the improvements in operating income and reduced expenses. The provision for income taxes as a percentage of net sales saw some fluctuations but stayed in the range of roughly -2.6% to -3.98%, somewhat offsetting pretax income gains.

Net income attributable to the company increased from 9.53% in 2017 to 14.73% in 2021, indicating enhanced net profitability and efficient management of costs, expenses, and taxes. Meanwhile, net income attributable to noncontrolling interests remained very small, with minor fluctuations near zero, having limited impact on overall net income.

In summary, the company demonstrated improved gross margins and reduced operating costs, resulting in stronger operating income and net income margins over the period. The reduction in interest expenses and other net expenses also contributed positively. The year 2021 showed a slight decline in gross profit margin and an increase in acquisition-related costs, but overall profitability metrics continued to improve.

Gross Profit Margin
Improved overall from 34.81% to 38.53% with slight decline to 36.39% in 2021.
Cost of Goods Sold
Decreased then increased: improved to -61.47% in 2020, rose to -63.61% in 2021.
Operating Expenses
Declined steadily from -19.79% to -17.10%, driven by reductions in selling, administrative, and R&D expenses.
Operating Income
Increased from 15.01% to 19.3%, reflecting enhanced profitability.
Interest Expense
Reduced substantially from -2.55% to -0.88%, improving net profitability.
Income before Taxes
Consistent rise from 12.24% to 18.5%, indicating strong income growth.
Net Income
Increased from 9.53% to 14.73%, showing improved bottom-line results.
Acquisition Related Costs
Appeared in 2019 with growing impact, particularly in 2021 (-0.57%).