Price to Earnings (P/E)
since 2010
Calculation
Generac Holdings Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss) attributable to Generac Holdings Inc.1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 22, 2022 | 32.73 | = | 282.47 | ÷ | 8.63 | 8.63 | = | 550,494 | ÷ | 63,783,651 | |
| Feb 23, 2021 | 59.72 | = | 333.04 | ÷ | 5.58 | 5.58 | = | 350,576 | ÷ | 62,861,442 | |
| Feb 25, 2020 | 26.64 | = | 107.31 | ÷ | 4.03 | 4.03 | = | 252,007 | ÷ | 62,567,525 | |
| Feb 26, 2019 | 13.55 | = | 51.97 | ÷ | 3.83 | 3.83 | = | 238,257 | ÷ | 62,129,621 | |
| Feb 26, 2018 | 18.07 | = | 46.20 | ÷ | 2.56 | 2.56 | = | 159,386 | ÷ | 62,325,716 | |
| Feb 24, 2017 | 24.96 | = | 39.30 | ÷ | 1.57 | 1.57 | = | 98,788 | ÷ | 62,735,597 | |
| Feb 26, 2016 | 29.73 | = | 34.83 | ÷ | 1.17 | 1.17 | = | 77,747 | ÷ | 66,366,949 | |
| Feb 27, 2015 | 19.50 | = | 49.29 | ÷ | 2.53 | 2.53 | = | 174,613 | ÷ | 69,093,775 | |
| Mar 3, 2014 | 22.65 | = | 57.49 | ÷ | 2.54 | 2.54 | = | 174,539 | ÷ | 68,779,944 | |
| Mar 13, 2013 | 25.22 | = | 34.44 | ÷ | 1.37 | 1.37 | = | 93,223 | ÷ | 68,278,598 | |
| Mar 9, 2012 | 5.43 | = | 25.96 | ÷ | 4.78 | 4.78 | = | 324,643 | ÷ | 67,906,706 | |
| Mar 7, 2011 | — | = | 18.04 | ÷ | -1.45 | -1.45 | = | -97,952 | ÷ | 67,524,596 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Generac Holdings Inc. Annual Report.
The financial performance from 2011 to 2022 is characterized by substantial growth in share price and a general upward trajectory in earnings, though valuation multiples experienced significant volatility.
- Share Price and Earnings Growth
- A strong appreciation in market value is observed, with the share price rising from 18.04 USD in 2011 to a peak of 333.04 USD in 2021, before slightly moderating to 282.47 USD in 2022. This growth was supported by an improvement in Earnings per Share (EPS), which moved from a deficit of -1.45 USD in 2011 to a peak of 8.63 USD in 2022.
- Price-to-Earnings (P/E) Ratio Trends
- The P/E ratio demonstrates three distinct phases. Between 2012 and 2019, the ratio remained relatively contained, fluctuating between a low of 5.43 and a high of 29.73. A period of rapid valuation expansion occurred between 2020 and 2021, where the P/E ratio surged from 26.64 to 59.72. This peak indicates a period where share price growth significantly outpaced earnings growth. By 2022, the ratio underwent a correction, descending to 32.73.
- Valuation Analysis
- The divergence between EPS and share price is most prominent in 2021. While EPS grew by approximately 38.7% between 2020 and 2021, the share price increased by 210.3%, leading to the observed spike in the P/E multiple. The subsequent decrease in the P/E ratio in 2022, despite a further increase in EPS to 8.63 USD, suggests a normalization of market valuation relative to fundamental earnings.
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Comparison to Competitors
Generac Holdings Inc., P/E, long-term trends, comparison to competitors
| Generac Holdings Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Feb 22, 2022 | 32.73 | — | 16.82 | 27.77 | — | 23.14 | 16.70 | 36.79 |
| Feb 23, 2021 | 59.72 | — | 36.80 | 37.46 | 19.67 | 29.63 | 13.44 | — |
| Feb 25, 2020 | 26.64 | — | 12.36 | 18.06 | — | 20.97 | 19.87 | 24.41 |
| Feb 26, 2019 | 13.55 | 21.87 | 12.42 | 15.92 | — | 16.02 | 16.88 | 19.74 |
| Feb 26, 2018 | 18.07 | 24.68 | 126.80 | 11.90 | — | 67.20 | 48.70 | 21.97 |
| Feb 24, 2017 | 24.96 | 20.50 | — | 16.96 | 32.22 | 19.29 | 14.14 | 17.55 |
| Feb 26, 2016 | 29.73 | 14.89 | 18.07 | 13.17 | — | 16.70 | 18.36 | 9.31 |
| Feb 27, 2015 | 19.50 | 19.15 | 14.01 | 18.73 | 17.17 | 19.27 | 16.86 | 17.52 |
| Mar 3, 2014 | 22.65 | 21.10 | 16.25 | 19.35 | 19.59 | 18.91 | 17.56 | 17.51 |
| Mar 13, 2013 | 25.22 | 14.71 | 11.02 | 23.99 | 17.57 | 18.78 | 10.34 | 16.07 |
| Mar 9, 2012 | 5.43 | 14.09 | 15.11 | 12.83 | 15.52 | 22.54 | 10.81 | 15.29 |
| Mar 7, 2011 | — | 16.17 | 24.14 | 19.59 | 19.49 | 22.48 | 9.58 | 17.84 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
Comparison to Sector (Capital Goods)
Generac Holdings Inc., P/E, long-term trends, comparison to sector (capital goods)
| Generac Holdings Inc. | Capital Goods | |
|---|---|---|
| Feb 22, 2022 | 32.73 | 57.31 |
| Feb 23, 2021 | 59.72 | 123.55 |
| Feb 25, 2020 | 26.64 | 39.03 |
| Feb 26, 2019 | 13.55 | 56.00 |
| Feb 26, 2018 | 18.07 | 55.16 |
| Feb 24, 2017 | 24.96 | 23.62 |
| Feb 26, 2016 | 29.73 | 33.10 |
| Feb 27, 2015 | 19.50 | 17.47 |
| Mar 3, 2014 | 22.65 | 18.85 |
| Mar 13, 2013 | 25.22 | 15.74 |
| Mar 9, 2012 | 5.43 | 15.20 |
| Mar 7, 2011 | — | 18.46 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
Comparison to Industry (Industrials)
Generac Holdings Inc., P/E, long-term trends, comparison to industry (industrials)
| Generac Holdings Inc. | Industrials | |
|---|---|---|
| Feb 22, 2022 | 32.73 | 35.59 |
| Feb 23, 2021 | 59.72 | — |
| Feb 25, 2020 | 26.64 | 43.95 |
| Feb 26, 2019 | 13.55 | 33.70 |
| Feb 26, 2018 | 18.07 | 29.83 |
| Feb 24, 2017 | 24.96 | 22.92 |
| Feb 26, 2016 | 29.73 | 22.89 |
| Feb 27, 2015 | 19.50 | 18.79 |
| Mar 3, 2014 | 22.65 | 19.13 |
| Mar 13, 2013 | 25.22 | 17.77 |
| Mar 9, 2012 | 5.43 | 15.75 |
| Mar 7, 2011 | — | 18.72 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).