Generac Holdings Inc., FCFE calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income attributable to Generac Holdings Inc.	550,494)	350,576)	252,007)	238,257)	159,386)
Net (income) loss attributable to noncontrolling interests	6,075)	(3,358)	301)	2,963)	1,749)
Net noncash charges	113,132)	120,593)	113,980)	94,126)	87,558)
Net changes in operating assets and liabilities, net of acquisitions	(258,545)	18,722)	(57,401)	(88,119)	12,423)
Net cash provided by operating activities	411,156)	486,533)	308,887)	247,227)	261,116)
Proceeds from sale of property and equipment	259)	179)	95)	214)	82)
Expenditures for property and equipment	(109,992)	(62,128)	(60,802)	(47,601)	(33,261)
Proceeds from short-term borrowings	272,818)	257,593)	73,340)	53,965)	101,991)
Proceeds from long-term borrowings	150,088)	277)	1,660)	51,425)	3,069)
Repayments of short-term borrowings	(239,113)	(277,719)	(59,518)	(27,880)	(114,874)
Repayments of long-term borrowings and finance lease obligations	(108,556)	(4,758)	(53,049)	(101,827)	(117,475)
Payment of debt issuance costs	(1,185)	—)	(1,473)	(1,702)	(3,901)
Free cash flow to equity (FCFE)	375,475)	399,977)	209,140)	173,821)	96,747)

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).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Generac Holdings Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Generac Holdings Inc. FCFE increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

Generac Holdings Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	63,830,918
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)	375,475)
FCFE per share	5.88
Current share price (P)	252.06
Valuation Ratio
P/FCFE	42.85
Benchmarks
P/FCFE, Competitors¹
Boeing Co.	—
Caterpillar Inc.	14.75
Eaton Corp. plc	37.35
General Electric Co.	272.18
Honeywell International Inc.	25.88
Lockheed Martin Corp.	13.70
RTX Corp.	7.76

Based on: 10-K (reporting date: 2021-12-31).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Generac Holdings Inc., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
No. shares of common stock outstanding¹	63,783,651	62,861,442	62,567,525	62,129,621	62,325,716
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)²	375,475)	399,977)	209,140)	173,821)	96,747)
FCFE per share³	5.89	6.36	3.34	2.80	1.55
Share price^1, 4	282.47	333.04	107.31	51.97	46.20
Valuation Ratio
P/FCFE⁵	47.98	52.34	32.10	18.58	29.76
Benchmarks
P/FCFE, Competitors⁶
Boeing Co.	—	6.78	19.60	—	—
Caterpillar Inc.	16.36	25.22	11.07	—	—
Eaton Corp. plc	24.43	25.59	11.12	—	—
General Electric Co.	—	—	—	—	—
Honeywell International Inc.	46.23	12.59	21.75	—	—
Lockheed Martin Corp.	14.65	15.57	28.62	—	—
RTX Corp.	35.07	—	28.09	—	—
P/FCFE, Sector
Capital Goods	—	74.91	27.54	—	—
P/FCFE, Industry
Industrials	—	40.69	26.97	—	—

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).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 375,475,000 ÷ 63,783,651 = 5.89

⁴ Closing price as at the filing date of Generac Holdings Inc. Annual Report.

⁵ 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 282.47 ÷ 5.89 = 47.98

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Generac Holdings Inc. P/FCFE ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

Generac Holdings Inc. (NYSE:GNRC)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical