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>>> GE stock has skyrocketed 80% in 5 months — JPMorgan says that's a problem
Yahoo Finance
Brian Sozzi
March 7, 2023
https://finance.yahoo.com/news/ge-stock-jpmorgan-says-thats-a-problem-120604299.html
JPM thinks GE's stock (GE) could power down in the months ahead after a sizzling five-month run.
"While we see an excellent business in aerospace and potential in Vernova, GE is up ~80% over the past five months vs. 13% for the S&P 500," JPMorgan analyst Seth Siefman wrote in a client note on Tuesday ahead of a hotly anticipated March 9 GE investor day. "Our sum of the parts-based December 2023 price target therefore leaves limited upside."
Siefman has a Neutral rating on the stock of the industrial icon, which is in the process of splitting up into several parts. Long-time market-moving GE analyst Steven Tusa is no longer running point on the name.
The company is being divided into three separate companies — aviation, healthcare, and energy — in a plan unveiled late in 2021. GE Healthcare (GEHC) was spun off into a public company in January of this year. The energy business — dubbed Vernova — is slated to debut on the public market by early 2024.
"This is my one-year anniversary with the company, and people have been super energized about our opportunity to be separate," GE Healthcare CEO Peter Arduini told Yahoo Finance Live on January 4. "It's brought more employees of capabilities into the company."
Siefman thinks investors may be overlooking a few important risks on GE's stock as they plow into a re-vamped company which on paper should be more focused and leaner, potentially leading to better profits.
"On the aerospace side, GE and others are clearly benefiting from a Goldilocks environment for maintenance where global travel demand is surging and Boeing and Airbus cannot build enough new planes," Siefman explained. "Air travel demand has been quite resilient but if it comes under pressure, the aftermarket growth outlook would suffer and there is also a threat from the gradual ramp in new aircraft deliveries eating into maintenance activity."
In terms of the energy business, Siefman added, "the scale of the EBITDA and FCF growth required at Renewables is a natural focus for investors, particularly with near-term challenges likely to persist and Vernova’s success will depend to some degree on yet-to-be-determined mechanisms of the IRA. Lingering Insurance exposure is another risk — and an opaque one — in part because GE may be unable to unload Insurance, leaving the potential for incremental contributions."
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>>> Booz Allen Invests in Hidden Level, Inc.
BusinessWire
February 21, 2023
https://finance.yahoo.com/news/booz-allen-invests-hidden-level-130000939.html
MCLEAN, Va., February 21, 2023--(BUSINESS WIRE)--Booz Allen Hamilton (NYSE: BAH) today announced that its corporate venture capital arm, Booz Allen Ventures, LLC, has made a strategic investment in Hidden Level, Inc., a developer of passive sensing technology of unmanned aerial systems (UAS), such as drones, for high-interference environments. Hidden Level utilizes next generation radio frequency (RF) sensing technology to provide multi-domain situational awareness and support to counter-UAS missions. This is the first investment by Booz Allen Ventures in calendar year 2023, and is aligned to the firm’s Digital Battlespace Platform, focused on the accelerated adoption of emerging technologies and operational concepts for the firm’s global defense clients.
"The ongoing conflict in Ukraine empirically demonstrates the value of UAS technologies and disproportionate intelligence in modern warfare," said Steve Escaravage, executive vice president at Booz Allen and leader of the firm’s Digital Battlespace Platform. "Investments in companies like Hidden Level accelerate our ability to bring novel insights to the counter-UAS mission, expanding the potential for decision advantage by our nation’s warfighters."
The current and future warfighting domains call for innovative c-UAS capabilities like those developed by Hidden Level, whose sensors can detect and track low-altitude airborne threats using adaptive RF signal detection techniques, thus increasing airspace situational awareness and informing counter measure opportunities.
"We’re very excited about the path forward with Booz Allen to support DOD missions and provide critical insights for our soldiers on the ground," said Jeff Cole, chief executive officer and co-founder of Hidden Level. "The investment from Booz Allen Ventures is a natural extension of our deep technology work, paired with Booz Allen’s mission expertise. Booz Allen understands the technology needed to support warfighters, and Hidden Level will play an important role in both tactically and strategically supporting DOD through dual-use technology to achieve decision superiority."
The $100 million corporate venture capital arm furthers Booz Allen’s commitment to invest in strategic dual-use, commercial technologies that will provide federal clients disruptive technology for critical missions. Aligned with client demand and the firm’s VoLT (Velocity, Leadership, Technology) growth strategy, Booz Allen Ventures will invest in early-stage companies and technologies within four core areas of demand: defense, artificial intelligence/machine learning, cybersecurity, and emerging/deep technology. Previous Booz Allen Ventures investments include Latent AI, Synthetaic, and Reveal Technology.
"In an ever-changing geopolitical climate, it is imperative we continue to advance technology for our clients, and to empower warfighters with the tools and information they need to perform their jobs safely," said Travis Bales, a leader within Booz Allen Ventures and former Army officer. "We are excited about the work Booz Allen and Hidden Level are doing to accelerate innovation and enhance mission critical technology to meet the needs of our defense clients."
About Booz Allen Hamilton
For more than 100 years, military, government, and business leaders have turned to Booz Allen Hamilton to solve their most complex problems. As a consulting firm with experts in analytics, digital solutions, engineering, and cyber, we help organizations transform. We are a key partner on some of the most innovative programs for governments worldwide and trusted by their most sensitive agencies. We work shoulder-to-shoulder with clients, using a mission-first approach to choose the right strategy and technology to help them realize their vision.
With global headquarters in McLean, Virginia, our firm employs approximately 31,100 people globally as of December 31, 2022, and had revenue of $8.4 billion for the 12 months ended March 31, 2022. To learn more, visit www.boozallen.com. (NYSE: BAH)
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>>> Toro Co. (TTC) - was founded in 1914 as an engine manufacturer, providing power to early tractors. The company quickly shifted focus to mowers and in the century since, it has grown to $4.5 billion in annual revenue. Toro operates in North America as well as internationally, with three quarters of total revenue coming from the U.S.
https://www.suredividend.com/agriculture-stocks/
In January 2022, Toro acquired the Intimidator Group. The acquisitions added the complementary Spartan line of professional zero-turn mowers to Toro’s roster. The addition of the Intimidator Group to Toro’s business positions them well to gain customers and geographic exposure. The purchase was completed with cash on hand and existing credit facilities.
On December 13th, 2022, Toro increased its dividend for the 14th consecutive year, by 13% to $0.34 per share quarterly. Toro reported fourth quarter and FY 2022 results on December 21st, 2022. Q4 net sales improved 22% year-over-year to $1.17 billion. Adjusted earnings per diluted share increased 98% to $1.11 in Q4 2022. Adjusted operating margin for the quarter was 12.8%, unchanged from the same prior-year period.
Leadership initiated their fiscal 2023 outlook which guides for net sales growth of 7% to 10% and adjusted EPS in the range of $4.70 to $4.90 per diluted share, a solid 14.3% year-over-year increase at the midpoint.
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United Rentals (URI) - >>> United Rentals (NYSE:URI) may at first seem like just a value stock, with a low valuation that signals the market’s low confidence in its future results. Given the current economic slowdown, you may assume that this equipment rental company is facing more challenging times ahead.
However, take a closer look at URI stock, and it’s clear that isn’t the case. Rather than being a value stock, at risk of becoming a “value trap,” URI is instead one of the top growth stocks to buy. As demand for its services remains robust, earnings are expected to grow at a steady pace between now and 2025.
This continued earnings growth could keep URI stock (B-rated in Portfolio Grader) in growth mode for years to come. In addition, the company’s recent initiation of a dividend (1.51% forward yield), plus planned share repurchases, will help boost total returns.
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https://finance.yahoo.com/news/7-great-growth-stocks-buy-110030242.html
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Air Products & Chemicals - >>> 10 Most Promising Hydrogen and Fuel Cell Stocks According to Analysts
Insider Monkey
by Omer Farooq
February 12, 2023
https://finance.yahoo.com/news/10-most-promising-hydrogen-fuel-143754446.html
Air Products & Chemicals, Inc. (NYSE:APD) is a leading global provider of atmospheric gases, process and specialty gases, and related services. The company has a presence in the Americas, Asia, Europe, the Middle East, and India. The company is one of the world’s foremost suppliers of hydrogen, operating over one hundred hydrogen plants one of the world’s most extensive hydrogen distribution networks.
On February 2, BMO Capital analyst John McNulty revised his price target on Air Products & Chemicals, Inc. (NYSE:APD) to $386 from $394 and maintained an Outperform rating on the shares. Air Products & Chemicals, Inc. (NYSE:APD) is one of analysts’ most promising hydrogen and fuel cell stocks to buy now.
Over the past 3 months, Air Products & Chemicals, Inc. (NYSE:APD) has received 5 Buy ratings and 7 Hold ratings from Wall Street analysts. The stock has a consensus Buy rating and an average price target of $328.33. The stock’s average price target implies an upside of 14.07% from current levels. As of February 10, the stock is trading at $287.82 per share.
At the end of Q3 2022, 43 hedge funds were long Air Products & Chemicals, Inc. (NYSE:APD) and disclosed positions worth $394.2 million. As of December 31, Quaero Capital is the top investor in the company and has a position worth $3.88 million.
Here is what Matrix Asset Advisors had to say about Air Products and Chemicals, Inc. (NYSE:APD) in its third-quarter 2022 investor letter:
“During the quarter, we started a new position in Air Products and Chemicals, Inc. (NYSE:APD) for accounts with cash to invest. Air Products & Chemicals is a leading global industrial gas company with very stable returns. The company provides industrial gas in bulk liquid and compressed gas forms as well as via onsite dedicated facilities. Because many of its contracts are long-term, the business is less cyclical than many industrial companies while benefiting during economic upswings. Air Products is a leader in hydrogen fueling systems and infrastructure, and the company sees great potential to extend its leadership in the years ahead. APD consistently returns capital to its shareholders through share repurchases and by steadily increasing its dividend. Its current annual dividend of $6.48 per share provides a 2.8% yield on September 30.”
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Linde - >>> 10 Most Promising Hydrogen and Fuel Cell Stocks According to Analysts
Insider Monkey
by Omer Farooq
February 12, 2023
https://finance.yahoo.com/news/10-most-promising-hydrogen-fuel-143754446.html
Linde plc (NYSE:LIN) is a leader in industrial gases and has one of the world's largest liquid hydrogen distribution systems in the world. In the third quarter of 2022, Linde plc (NYSE:LIN) announced its plans to build an industrial-scale 35-megawatt PEM electrolyzer in Niagara Falls. The plant is expected to be operational by 2025. The company is at the forefront of the energy transition and has reportedly installed 80 hydrogen electrolysis plants and more than 200 hydrogen fueling stations across the globe.
Linde plc (NYSE:LIN) has a consensus Strong Buy rating among Wall Street analysts. Over the past 3 months, the stock has received 13 Buy ratings from analysts and has a maximum price target of $418, and a minimum price target of $300.54. The stock's average price target of $375.29 represents a 13.03% upside from $332.04, its share price on February 10.
On February 8, Deutsche Bank analyst David Begleiter raised his price target on Linde plc (NYSE:LIN) to $385 from $355 and maintained a Buy rating on the shares. Linde plc (NYSE:LIN) is one of the most promising hydrogen and fuel cell stocks to buy according to analysts.
At the end of the third quarter of 2022, Linde plc (NYSE:LIN) was a part of 56 investors' portfolios that disclosed collective positions worth $3.47 billion. As of December 31, Impax Asset Management is the most prominent investor in Linde plc (NYSE:LIN) and has a stake worth $944.7 million.
Here is what Madison Funds had to say about Linde plc (NYSE:LIN) in its fourth-quarter 2022 investor letter:
“Linde plc (NYSE:LIN) stock was strong during the fourth quarter following a solid third quarter. Linde remains well positioned with the passage of the Inflation Reduction Act and energy transition with carbon dioxide sequestration opportunities, gasification services, and various hydrogen projects. Linde and Schlumberger announced that they entered into a collaboration of carbon capture, utilization, and sequestration (CCUS) projects to accelerate decarbonization solutions across industrial and energy sectors. The collaboration will combine decades of experience in carbon dioxide capture and sequestration. The collaboration will focus on hydrogen and ammonia production where carbon dioxide is a by-product. The International Energy Agency estimates that 6 Gigatons of carbon dioxide will need to be abated with CCUS in order to reach net zero by 2050. During the quarter, Linde also announced that it became a signatory to the United Nations Global Compact (UNGC), the world’s largest corporate sustainability initiative. As a signatory, Linde has committed to aligning its strategy and activities with the UNGC’s Ten Principles across human rights, labor, environment, and anti-corruption.”
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>>> Top Dividend Champion #2: Sonoco Products Company (SON)
https://www.suredividend.com/dividend-champions-list/
5-year expected returns: 18.2%
Sonoco Products provides packaging, industrial products and supply chain services to its customers. The markets that use the company’s products include those in the appliances, electronics, beverage, construction and food industries. The company generates about $7.2 billion in annual sales.
Sonoco Products is now composed of 2 core segments, Consumer Packaging and Industrial Packaging, with all other businesses listed as “all other”.
On October 31st, 2022, Sonoco Products reported third quarter earnings results for the period ending October 2nd, 2022. Revenue was higher by 34% to $1.89 billion, but missed estimate by $10 million. Adjusted earnings-per-share of $1.60 compared very favorably to $0.91 in the prior year and was $0.21 better than expected.
Consumer Packaging revenues surged 72% to $990.1 million, due once again primarily to the purchase of Ball Metalpack that closed in the fourth quarter of 2021. Pricing, favorable volume and mix, and currency exchange headwinds also impacted results. Global rigid paper containers and flexible packaging performed well. Industrial Paper Packing sales grew 4% to $661 million as higher selling prices more than offset a small volume decline and currency exchange headwinds.
Sonoco Products raised its outlook for 2022 as well, with the company expecting adjusted earnings-per-share of $6.40 to $6.50 for the year, up from $6.20 to $6.30.
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>>> Top Dividend Champion #7: Carlisle Companies (CSL)
https://www.suredividend.com/dividend-champions-list/
5-year expected returns: 13.4%
Carlisle Companies is a diversified company that is active in a wide array of niche markets. The segments in which the company produces and sells products include construction materials (roofing, waterproofing, etc.), interconnecting technologies (wires, cables, etc.), fluid technologies, and brake & friction.
Carlisle Companies reported its third quarter earnings results on October 27. Revenues of $1.79 billion grew 37% year-over-year, and were in line with analyst estimates. Earnings-per-share of $5.66 beat the consensus analyst estimate by $0.23. Carlisle Companies’ earnings-per-share were up 89% from the previous year, thanks to higher margins and the higher revenues the company generated during the quarter.
Cost-saving measures that were started during 2020 were responsible for some of the margin improvement, and share repurchases also had a positive impact on the company’s earnings-per-share growth rate during the period.
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>>> Why Generac Stock Was Climbing Today
Motley Fool
By Jeremy Bowman
Feb 15, 2023
https://www.fool.com/investing/2023/02/15/why-generac-stock-was-climbing-today/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
KEY POINTS
Elevated inventory levels are weighing on demand, but the company is still seeing strong end-user demand.
Generac expects sales to fall sharply in the first quarter of 2023 but return to growth by the second half of the year.
What happened
Shares of Generac (GNRC) were moving higher today after the leading manufacturer of generators delivered mixed results in its fourth-quarter earnings report.
The industrial company beat bottom-line estimates in the quarter but said that sales would decline in 2023, as expected.
As of 11:28 a.m. ET, the stock was up 6.8%.
So what
Generac's revenue fell 2% in the quarter to $1.05 billion, while core sales, which includes the impact of acquisitions and currency exchange, were down 7%. That compared with the analyst consensus at $1.07 billion.
Sales in the residential market, its biggest segment, were weak, falling 19% to $575 million. The company said end demand remains strong, but higher field inventory levels weighed on results. Generac finished the quarter with inventories up 29%, a problem that's plagued other retailers and manufacturers.
In the commercial and industrial segment, sales rose 27% to $361 million.
Gross margin fell 130 basis points to 32.7% due to an unfavorable sales mix, and operating expenses rose 26% due primarily to the impact of recurring expenses from previous acquisitions. On the bottom line, the company reported adjusted earnings per share of $1.78, down from $2.51, which edged out expectations at $1.76.
CEO Aaron Jagdfeld said: "Fourth-quarter and full-year 2022 results came in at the low end of our prior expectations due to continued softness in residential products. Robust momentum continued in the C&I product category as sales exceeded our prior expectations, and we exited 2022 with record backlog for these products."
Now what
Looking ahead, Generac expects a sharp decline in revenue in the first quarter due to elevated field inventory levels, and then sees sales growth recovering by the second half of the year.
For the first quarter, it expects sales to fall 25% to 26%, worse than the analyst forecast at a 16% decline, while management sees a 6% to 10% slide in revenue for the full year, which was even with estimates.
While those numbers may seem weak, management was optimistic that performance would strengthen in the second half of the year, and investors were also encouraged by strong adjusted EBITDA margin guidance for the year, at 17% to 18%.
Given the low expectations coming into the report after the stock had fallen more than 50% over the last year, that seemed to be enough for investors to bid the stock higher.
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Trane >>> TT or AQUA: Which Is the Better Value Stock Right Now?
Zacks Equity Research
February 7, 2023
https://finance.yahoo.com/news/tt-aqua-better-value-stock-164004464.html
Investors looking for stocks in the Technology Services sector might want to consider either Trane Technologies (TT) or Evoqua Water (AQUA). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Trane Technologies has a Zacks Rank of #2 (Buy), while Evoqua Water has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TT is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TT currently has a forward P/E ratio of 22.68, while AQUA has a forward P/E of 52.05. We also note that TT has a PEG ratio of 2.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AQUA currently has a PEG ratio of 3.47.
Another notable valuation metric for TT is its P/B ratio of 6.98. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AQUA has a P/B of 8.15.
These metrics, and several others, help TT earn a Value grade of B, while AQUA has been given a Value grade of C.
TT sticks out from AQUA in both our Zacks Rank and Style Scores models, so value investors will likely feel that TT is the better option right now.
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>>> Alamo Group Inc. (NYSE:ALG)
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171117892
Market Capitalization as of January 26, 2023: $1.82 billion
Alamo Group Inc. (NYSE:ALG) is a farming equipment company. It makes and sells a wide variety of machinery, such as tractor mowers and cutters. On the agrochemical side of things, the company provides products that allow farmers to apply fertilizers to their crops.
By the end of last year's third quarter, 11 out of the 920 hedge funds polled by Insider Monkey had bought Alamo Group Inc. (NYSE:ALG)'s shares.
Alamo Group Inc. (NYSE:ALG)'s largest shareholder is James A. Star's Longview Asset Management which owns 1.3 million shares that are worth $166 million.
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>>> Alamo Group Inc. (ALG) designs, manufactures, distributes, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural uses worldwide. Its Vegetation Management Division segment offers hydraulically-powered and tractor-mounted mowers, other cutters and replacement parts for heavy-duty and intensive uses and heavy duty applications, tractor- and truck-mounted mowing and vegetation maintenance equipment, and replacement parts. This segment also provides rotary and finishing mowers, flail and disc mowers, front-end loaders, backhoes, rotary tillers, posthole diggers, scraper blades and replacement parts, zero turn radius mowers, cutting parts, plain and hard-faced replacement tillage tools, disc blades, and fertilizer application components; aftermarket agricultural parts, heavy-duty mechanical rotary mowers, snow blowers, rock removal equipment, replacement parts, tractor attachments, agricultural implements, hydraulic and boom-mounted hedge and grass cutters, tractor attachments and implements, hedgerow cutters, industrial grass mowers, agricultural seedbed preparation cultivators, self-propelled sprayers and multi-drive load-carrying vehicles, cutting blades, and hydraulic and mechanical boom mowers. The company's Industrial Equipment Division segment offers truck-mounted air vacuum, mechanical broom, and regenerative air sweepers, pothole patchers, leaf collection equipment and replacement brooms, parking lot and street sweepers, excavators, catch basin cleaners, and roadway debris vacuum systems, as well as truck-mounted vacuum machines, combination sewer cleaners, and hydro excavators. This segment also offers ice control products, snowplows and heavy duty snow removal equipment, hitches, attachments, and graders; and public works and runway maintenance products, parts, and services, and high pressure cleaning systems and trenchers. The company was founded in 1955 and is headquartered in Seguin, Texas. <<<
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>>> Why Generac Holdings Stock Topped the Market on Thursday
Motley Fool
By Eric Volkman
Feb 2, 2023
https://www.fool.com/investing/2023/02/02/why-generac-holdings-stock-topped-the-market-on-th/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
KEY POINTS
The company's recovery continued, despite an analyst's price-target cut.
The stock has been an up-and-down title since the heaviest days of the coronavirus pandemic.
.
What happened
The stock market was quite frothy on Thursday, and Generac Holdings (GNRC 3.49%) was one of the stocks pushing it higher. The power-generating technology company's stock price rose by 3.5%, well outpacing the 1.5% rise of the bellwether S&P 500 index. The beaten-down stock is continuing its recent comeback.
So what
Momentum is clearly on Generac's side. Thursday morning before the market open, Credit Suisse analyst Maheep Mandloi cut his price target on the stock to $159 per share from the previous level of $165. That didn't keep investors away from the shares at all. In fact, during the day, they dipped only slightly and briefly below their Wednesday price.
Investor optimism is supporting Generac's stock, bolstered by some encouraging news in recent days from the company. It unveiled a new product that's well-timed to jump on the snowballing popularity of electric vehicles (EVs) -- a home charging system.
It sounds quite promising, too. According to its maker, the Generac EV charger can provide a full charge for certain cars in four to six hours, a quick little sprint in time, compared to other charging solutions. The appeal of such a product in a growing market is obvious.
Now what
Another dynamic at play here is the low base of Generac's shares as they tumbled into 2023. The stock was one of the worst-performing titles in its sector last year. That was basically a retrenchment, as Generac -- with its robust home generator business -- was a popular title during the stay-at-home period that was the thick of the coronavirus pandemic.
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Generac - >>> Could the Worst Stock in the S&P 500 in 2022 Be a Buy in 2023?
Motley Fool
By Michael Byrne
Jan 15, 2023
https://www.fool.com/investing/2023/01/15/could-the-worst-stock-in-the-sp-500-in-2022-be-a-b/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
KEY POINTS
Generac stock got crushed in 2022, and plummeted even further in the fall after management cut its guidance.
The company is still growing at an impressive clip.
Generac's valuation now looks a lot more palatable.
While the whole market was down in 2022, few stocks had a worse year than Generac (GNRC 3.01%). In fact, with a decline of 71%, it was the worst performer of the year in the S&P 500.
The maker of backup generators and other power-generating devices was a high flyer for much of 2021, when its market cap essentially doubled. But the stock began to decline after peaking in late 2021 and went on to lose an incredible 71% of its value in 2022. Generac investors are licking their wounds after a terrible 2022, but is there any reason for optimism that the beleaguered stock can bounce back in 2023?
I've got the power
Generac is best known for its generators which serve the residential and commercial markets. In recent years, it has also increasingly used acquisitions to diversify into additional areas like solar, battery storage, and energy management systems. The company has a great track record of long-term revenue growth, increasing sales at an outstanding 18% compound annual rate since going public in 2010.
It's the undisputed heavyweight in home generators, with a market share of about 75%. However, it still has a long runway for growth ahead as it estimates that this market is only 5.5% penetrated. Management sees further growth in home standby generation as a significant opportunity, and it's feasible that the severe winter storms of December 2022, which caused millions of customers across 13 states to lose power, will reinforce homeowners' interest in having backup power sources. Generac says that every additional percentage point of penetration for backup generators adds an additional $2.5 billion in addressable market for the company.
While this is a large opportunity in its core market, Generac also says that the acquisitions it has made over the past few years have expanded the size of its served addressable market by 500% since 2018. The company now makes inverters, which convert the DC electricity that solar panels generate into AC electricity -- the type that the grid supplies and our homes and businesses use. That's a market with potential -- solar power's installed capacity is expected to grow at a 12.7% compound annual rate over the next five years.
Beyond solar, the company has also moved into battery-powered lawnmowers with the acquisition of Mean Green, smart-home solutions with the acquisition of Ecobee, and more. If Generac can capture more market share in some of these new markets, it could add significantly to the company's growth in the years ahead.
Lower expectations create an attractive valuation
While Generac was punished for its sharp reduction in guidance, it's important to note that it hasn't suddenly turned into a slow-growth or no-growth company. This is still a profitable business, and the company still expects to report that it grew revenue by 22% to 24% in 2022. That isn't as compelling as the 36% to 40% it originally guided for, but it's still pretty impressive growth.
In some ways, Generac has been a victim of its own success, as the stock surged past $500 in October 2021 on the back of terrific growth. But as it lapped those difficult comps from 2021, its growth rate slowed, and the stock fell to just below $100 a share as of the end of 2022.
The stock contended with additional challenges over the course of the year, such as a lack of technicians to install its generators. The company now has partnerships with 8,500 dealers (300 more than the previous quarter), so it is working chip away at this challenge, and it says demand remains strong. Additionally, Generac dealt with a major customer declaring bankruptcy.
One area for concern is that the company's debt has increased significantly in recent times while its cash has decreased as it has pursued acquisitions. Total debt outstanding went from about $882 million in September of 2020 to over $1.3 billion as of the most recent quarter. The company now has a debt to EBITDA ratio of about 2.15. While this isn't egregious, it is something for investors to keep an eye on.
At this point, Generac's valuation looks undemanding. The stock trades at 15 times earnings and 14 times forward earnings, putting it just below the average multiple for the S&P 500.
Generac is actively engaging in share repurchases, and the company's Board recently authorized a new share repurchase program that will allow the company to buy back up to $500 million worth of its stock over the next two years.
With this lower valuation, and against a backdrop of lowered expectations, and more share buybacks on deck the stock looks a lot more palatable as a buy.
This won't be the worst stock in the S&P 500 again
Given the company's track record of growth and the long potential runway ahead of it, it seems likely that the present issues aret a speed bump on the road to Generac's long-term success. These lower prices offer investors a potentially favorable entry point. Janney Scott Mongomery recently initiated coverage of the stock with a buy rating, while Northland Capital went a step further, calling Generac its top pick of 2023.
Both analyst firms are of the opinion that the shares are undervalued, and Northland Capital thinks that the recent series of high-profile power outages across the United States could spur demand for home standby generators. The firms' new price targets of $160 and $180 imply meaningful upside from Generac's current share price. While such targets are best taken with a grain of salt, it's clear that there is the potential for plenty of upside ahead if Generac can get back on track, making it worthy of a small or more speculative investment for risk-tolerant investors.
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>>> GE buys out entire New York Times in first-ever advertising takeover, promoting new businesses
By Andy Brownfield
Cincinnati Business Courier
Dec 8, 2022
https://www.bizjournals.com/cincinnati/news/2022/12/06/ge-new-york-times.html?utm_source=sy&utm_medium=nsyp&utm_campaign=yh
General Electric, whose spinoff of its health care and energy companies will leave Evendale-based GE Aerospace as the sole company, bought out every single print ad in the New York Times Tuesday.
GE (NYSE: GE) on Tuesday executed an advertising takeover of the Times for the first time in the publication's 171-year history, promoting the company's transformation into three standalone, publicly traded companies: GE Aerospace (formerly GE Aviation), GE Vernova and GE HealthCare.
“GE is beginning again, on the path to create three companies all essential to modern life and all focused on delivering for the future," Linda Boff, GE chief marketing officer, said in a note announcing the advertising takeover.
The takeover includes every print ad space in the Times' Dec. 6 newspaper, as well as ads in the newspaper's desktop and mobile presences and on its podcast, "The Daily." The advertising, prepared by agency Giant Spoon, takes on the theme of "focus" as it applies to the focusing of each company on its industry as the giant conglomerate splits into three new companies.
"Today’s takeover of the New York Times print edition underscores our belief that focus is a superpower, especially in an age where our attention is divided among endless input, and that focus is the key to delivering long-term value," Boff said.
General Electric announced in November 2021 it is splitting itself into three publicly traded companies, spinning off GE HealthCare in early 2023 and GE Vernova – its energy business – in 2024. When the process is complete, GE Aerospace will remain as its own standalone company, leasing the "GE" name to the other two and owning a 19.9% stake in the health care firm.
GE CEO H. Lawrence Culp Jr. took over as CEO of GE Aviation in July, replacing John Slattery, who was named CEO in June 2020. Slattery was named executive vice president and chief commercial officer of the aviation business.
The advertising takeover of the Times included a cover wrap that encompasses the entire paper, showing off the logos of the three new companies. And then each section of the newspaper is devoted to one of the new companies: the main news or A section of the newspaper shows off GE Aerospace, the business section GE Vernova, the science section GE HealthCare and the art section is devoted to GE employee appreciation.
Included in the advertising are touches like a foldable paper airplane adapted by four-time Guinness World Record holder Ken Blackburn, who holds the record for the longest time keeping a paper airplane aloft; a Magic Eye optical illusion; and a circular crossword puzzle from award-winning puzzle maker Brendan Emmett Quigley.
GE did not disclose what it paid for the takeover of the New York Times.
GE Aerospace reported $6.7 billion in revenue for the third quarter of 2022, up 24% from the same quarter last year. That represented $1.2 billion in profit for the quarter, up 52% from the third quarter of 2021.
GE Aerospace, along with its joint venture with French firm Safran, CFM International, is the world's largest supplier of aircraft engines, responsible for 53% of the market. The company is Cincinnati's third-largest manufacturer, with 9,000 local employees, according to Business Courier research.
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>>> Ametek, Inc. (AME) manufactures and sells electronic instruments and electromechanical devices worldwide. It operates in two segments, Electronic Instruments (EIG) and Electromechanical (EMG). The company's EIG segment offers advanced instruments for the process, aerospace, power, and industrial markets; process and analytical instruments for the oil and gas, petrochemical, pharmaceutical, semiconductor, automation, and food and beverage industries; and instruments to the laboratory equipment, ultra-precision manufacturing, medical, and test and measurement markets. This segment also provides power quality monitoring and metering devices, uninterruptible power supplies, programmable power equipment, electromagnetic compatibility test equipment, gas turbines, and environmental health and safety market sensors, dashboard instruments for heavy trucks and other vehicles, and instrumentation and controls for the food and beverage industries; and aircraft and engine sensors, monitoring systems, power supplies, fuel and fluid measurement systems, and data acquisition systems for the aerospace industry. Its EMG segment offers engineered electrical connectors and electronics packaging to protect sensitive devices and mission-critical electronics; precision motion control products for data storage, medical devices, business equipment, automation, and other applications; high-purity powdered metals, strips and foils, specialty clad metals, and metal matrix composites; motor-blower systems and heat exchangers for use in thermal management, military, commercial aircraft, and military ground vehicles; and motors for use in commercial appliances, fitness equipment, food and beverage machines, hydraulic pumps, and industrial blowers. This segment also operates a network of aviation maintenance, repair, and overhaul facilities. In addition, the company offers clinical and educational communication solutions. AMETEK, Inc. was founded in 1930 and is headquartered in Berwyn, Pennsylvania.
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>>> Generac takes $55M charge likely related to Pink Energy matters
Milwaukee Business Journal
by Rich Kirchen
10-20-22
https://www.bizjournals.com/milwaukee/news/2022/10/20/generac-55m-charge.html?utm_source=sy&utm_medium=nsyp&utm_campaign=yh
Generac Power Systems stock plunged after the company announced its revenue and earnings would fall short of previous projections in part because of a $55 million charge likely related to the bankruptcy and financial challenges of former customer Pink Energy.
Generac said Wednesday the other significant cause of lower earnings and less-than-expected revenue growth was a continuing challenge of consumers ordering more home standby generators than the pace at which dealers and independent contractors can complete installations.
The company (NYSE: GNRC), which is based in Genesee Depot near Waukesha, said preliminary net sales in the quarter ending Sept. 30 were $1.09 billion, an increase of 15% over a year ago. Preliminary net income was $58 million, or 83 cents per share, compared with $132 million, or $1.93 per share, in the third quarter of 2021.
“Despite reporting mid-teens net sales growth, third quarter results fell short of our prior expectations,” president and CEO Aaron Jagdfeld said in a press release.
Generac stock's closing price on Wednesday fell to $110.30 per share from the day-earlier closing price of $147.74 per share on heavy trading volume of 12.8 million shares. The stock was trading Thursday between $106 per share and $116.39 per share with 4.4 million shares trading as of mid-afternoon.
The company’s third-quarter net income was impacted by incurring $55 million in pre-tax charges in Generac’s clean-energy business.
Generac broke out the $55 million into two parts. The first is $37 million of product warranty-related matters. The second is $18 million of bad debt “related to a clean energy product customer that has filed for bankruptcy,” Generac said.
Generac's announcement didn't refer by name to Pink Energy or its parent company Power Home Solar LLC, but the bad-debt figure matches the amount Power Home Solar listed in bankruptcy documents as owed to Generac.
“Clean energy product shipments were negatively impacted by a large customer which ceased operations and has since filed for bankruptcy protection,” Jagdfeld said in the press release.
Robert W. Baird & Co. analysts said the magnitude of the impact is greater than they expected.
A Generac spokeswoman declined to confirm the identity of the party or parties involved in the $55 million in charges. Baird analysts said they suspect the charges are related to the Pink Energy situation.
“Given that we are in a quiet period, we won’t be commenting further until November 2, when our Q3 earnings are announced,” Tami Kou said Thursday.
Pink Energy used a Generac clean-energy component the SnapRS 801 and 801A in residential solar energy systems for homes.
Generac is offering to perform warranty services on its products for customers of Power Home Solar LLC, which did business as Pink Energy, filed Oct. 7 for Chapter 7 bankruptcy liquidation in its home state of North Carolina after ceasing operations.
The Chapter 7 bankruptcy filing listed Generac as Power Home Solar’s largest unsecured creditor at $17.7 million. Generac is likely to see little, if any, of that money as Power Home Solar’s secured creditors will be paid first from any liquidation proceeds.
As for the home standby generator business, Generac said installation capacity continued to grow but still lagged the company’s production output during the third quarter. That resulted in higher field inventory levels and lower home standby generator orders than Generac executives previously expected, the company said.
Consumer demand continues to be strong driven by elevated power outages, most notably from Hurricane Ian, Generac said.
Generac will release detailed third-quarter results on Nov. 2 and host an analyst call.
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>>> Why Generac Stock Is Plunging 20% Today
Motley Fool
By Howard Smith
Oct 19, 2022
https://www.fool.com/investing/2022/10/19/why-generac-stock-is-plunging-20-today/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
KEY POINTS
Demand continues to grow for home standby generators, but not as fast as expected.
The once high-flying stock's plunge this year has brought the P/E to below 15.
Generac still sees sales growth in 2022 of more than 20%, but that's nearly half of what it once thought.
What happened
Leading home generator supplier Generac Holdings (GNRC -25.34%) warned investors about its upcoming third-quarter results today, and the stock plunged in early trading. As of 11 a.m. ET, Generac shares were down 21.9%. That pushed the stock down more than 75% from its highs just one year ago.
So what
The leading provider of home backup generators said its revenue grew 15% compared to last year to more than $1 billion in the third quarter. However, that was shy of the company's own expectations. Net income was also hit with a charge of $18 million due to a customer in the clean energy sector ceasing operations and filing for bankruptcy. But the company's more meaningful issue is its residential customer sales.
Generac president and CEO Aaron Jagdfeld said shipments of its commercial and industrial products were in line with expectations. But while demand was still on the rise for its residential home standby generators, it didn't keep up with production, and inventories spiked. That mismatch of supply and demand came despite elevated power outages, including from Hurricane Ian.
This forced the company to reset expectations for the full year. It now sees net sales growth of 23% at the midpoint of its guidance range, down from the previous 38%. The company said it expects it to take at least through the middle of 2023 before surplus inventories are worked through.
Investors who may have been interested in this once-highflier but thought the stock may be too expensive should take another look. Shares that began the year with a price-to-earnings (P/E) ratio above 40 can now be had for a P/E of below 15, even with the lowered results. As long as the trend in demand continues to grow, that may look like a bargain over the long term.
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>>> Generac Holdings
https://finance.yahoo.com/m/f85da5ec-ca98-3a40-beaa-5ea91283e129/4-growth-stocks-to-buy-and.html
When most investors think of a home generator, they envision a dirty, gas-powered engine with a couple of electrical outlets attached, to be dragged out and dusted off in the event of a prolonged power outage.
That's anything but the sort of solutions Generac Holdings (GNRC) brings to the table, though. Its modern generators are automated, remotely monitored, and connected to a home's or business's wiring in a way that allows for seamless operation. And, even more important these days, Generac's portfolio provides energy storage solutions for solar panel systems that are generating excess energy during the day to supply electricity at night.
In an environment where self-sufficiency is king, Generac Holdings is holding the proverbial key. Although this year's projected revenue growth of nearly 39% is a tough act to follow, the company's projected follow-up growth rate of 9% for 2023 is still plenty healthy. Per-share earnings are expected to swell from last year's $9.63 to $11.73 per share this year, en route to next year's record-breaking $13.89.
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>>> Buy Generac Stock, Analyst Says. It’s a Top Alternative Energy Bet
Barron's
By Karishma Vanjani
June 2, 2022
https://www.barrons.com/articles/buy-generac-stock-analyst-51654203046?siteid=yhoof2
Demand for home standby generators post-pandemic is moderating, UBS said.
Generac Holdings’ stock got energized on Thursday after UBS called the generator market its top pick, citing the growth in the clean energy segment.
The stock (ticker: GNRC) jumped 10.3% to close at $268.95 on Thursday. It’s fallen some 24% this year. UBS analyst Jon Windham has a 12-month price target of $450 on the stock.
This is an attractive entry point for investors, Windham said, rating the stock at Buy. Windham sees a long-term upside from Generac’s smart home energy product rollout, driven by a more permanent shift in consumers’ inclination to spend on home improvement projects.
Generac recently acquired ecobee, a smart thermostat manufacturer, and offers generators that can be monitored using a smartphone. It also has a battery storage system called PWRcell that harnesses solar power to reduce electric bills and provide backup power during utility power outages.
He forecasts Generac’s Clean Energy revenue will grow to $1.7 billion by 2026 from roughly $550 million in 2022.
Windham also anticipates higher renewable penetration to drive new electricity rate structures in the U.S., which could boost the uptake of Generac’s products. There is a continuing trend toward time-of-use electricity rate structures, which charge customers varying prices per kilowatt-hour based on the demand at that time. Traditional electricity rates have a fixed charge.
That new structure encourages the growth of residential storage and other smart home hardware, he noted.
To be sure, Windham does highlight that demand for home standby generators post-pandemic is moderating, but that is fully reflected in the current share price, he added.
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>>> Avery Dennison Corporation (AVY) manufactures and markets pressure-sensitive materials and products in the United States, Europe, Asia, Latin America, and internationally.
The company's Label and Graphic Materials segment offers pressure-sensitive label and packaging materials; and graphics and reflective products under the Fasson, JAC, Avery Dennison, and Mactac brands, as well as durable cast and reflective films. It provides its products to the home and personal care, beer and beverage, durables, pharmaceutical, wine and spirits, and food market segments; architectural, commercial sign, digital printing, and other related market segments; construction, automotive, and fleet transportation market segments, as well as traffic and safety applications; and sign shops, commercial printers, and designers.
The company's Retail Branding and Information Solutions segment designs, manufactures, and sells brand embellishments, graphic tickets, tags and labels, and sustainable packaging solutions, as well as offers creative services; radio-frequency identification products; visibility and loss prevention solutions; price ticketing and marking solutions; care, content, and country of origin compliance solutions; and brand protection and security solutions. It serves retailers, brand owners, apparel manufacturers, distributors, and industrial customers.
The company's Industrial and Healthcare Materials segment offers tapes; pressure-sensitive adhesive based materials and converted products; medical fasteners; and performance polymers under the Fasson, Avery Dennison, and Yongle brands. It serves automotive, electronics, building and construction, general industrial, personal care, and medical markets. The company was formerly known as Avery International Corporation and changed its name to Avery Dennison Corporation in 1990. Avery Dennison Corporation was founded in 1935 and is headquartered in Glendale, California.
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https://finance.yahoo.com/quote/AVY/profile?p=AVY
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Oil and gas prices
President Biden promised to take down American energy during his campaign.
— Senator Ted Cruz (@SenTedCruz) May 18, 2022
Record gas prices are the intended effects of his deliberate actions. pic.twitter.com/MzGEerGpbv
>>> Generac (GNRC) Launches Two Powermate Portable Generators
Zacks Equity Research
May 11, 2022
https://finance.yahoo.com/news/generac-gnrc-launches-two-powermate-154203601.html
Generac Power Systems Inc. GNRC announces the launch of Powermate 4500-Watt Dual Fuel Portable Generator and the Powermate 7500-Watt Dual Fuel Portable Generator.
Both generators are available for purchase online at Powermate.com. The models are also available at a few select retail outlets.
Generac added that the new flexible generators are designed to use for home as well as recreational purposes by consumers.
The Powermate 4500-Watt Dual Fuel Portable Generator has a starting power of 4,500 watts and a running power of 3,600 watts (gas), enabling it to power small electrical appliances at an outdoor location (picnic or campground) and certain power tools for home DIY work.
The Powermate 7500-Watt Dual Fuel Portable Generator is also suitable for outdoor events and power tool use, with 7,500 starting watts and 6,000 running watts (gas).
Both variants are designed to run either on gasoline or LP gas fuel.
The generators are driven by Generac OHV engines, which deliver constant power for a variety of applications and have a simple dual-fuel dial that allows customers to choose between gasoline and LP gas. For simple travel, these include a steel frame and a compact design with integrated wheels and a handle.
The generators are equipped with innovative co-sense technology that enables them to shut down if the surrounding carbon monoxide levels become dangerous.
Headquartered in Waukesha WI, Generac is a leading manufacturer of power generation equipment, energy storage systems and other power products — including portable, residential, commercial and industrial generators. In addition, the company manufactures light towers, which provide temporary lighting solutions for various end markets, and commercial and industrial mobile heaters and pumps used in the oil & gas, construction and other industrial markets.
GNRC reported first-quarter 2022 adjusted earnings of $2.09 per share, which beat the Zacks Consensus Estimate by 10%. However, the bottom line declined 12.2% year over year.
Net sales increased 41% year over year to $1.14 billion and beat the consensus mark by 4.9%. Robust demand for Residential and Commercial & Industrial products and effective M&A strategies boosted Generac’s first-quarter performance.
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>>> Generac (GNRC) Launches EV Charging Solution for Utilities
Zacks Equity Research
May 16, 2022
https://finance.yahoo.com/news/generac-gnrc-launches-ev-charging-155903142.html
Generac Power Systems’ GNRC subsidiary, Generac Grid, rolled out electric-vehicle charging solutions for utilities and EV owners.
The company’s EV charging solutions, including Geotab telematics, are now accessible worldwide.
The utility-focused product is powered by Geotab telematics technologies to empower EV owners of most makes and models to take control of their car charging. It also provides utilities with vital monitoring data supplied directly from a Geotab GO device that is installed in the vehicle's onboard diagnostic port.
Through its telematics solutions, Geotab provides secure and reliable data acquired from electric vehicles. According to Generac Grid Services, EVs are a critical distributed energy resource to shift load to capture low-carbon, clean energy and manage peak demand, which will play a key factor in decarbonizing the transportation sector.
Generac Grid Services is using its comprehensive utility program design experience (including Geotab telematics offerings) to deliver a variety of solutions to the utilities to aid them at every stage of their EV strategy rollouts, like monitoring to behavioral response, smart charging, and advanced vehicle-to-home and vehicle-to-grid solutions.
The charging data can be used by monitoring programs to help with grid planning and rate design. In contrast, behavioral programs can use charging data insights combined with strategic consumer messaging and incentives to impact long-term charging habits.
Further, EV drivers can avail financial incentives by enrolling in various utility schemes that leverage data streaming from the Geotab GO gadget. Data from Geotab GO can provide information regarding rate structures, utility system planning, regulatory requirements, and the verification of participation in smart-charging programs and events added Generac.
Generac Grid Services maintains agreements with EV charging station manufacturers to offer new smart charging options in addition to supplying vehicle-side data through Geotab telematics systems.
For example, Generac Grid Services ensures that the signal is received by Concerto (Generac's real-time energy-balancing platform) by sending a signal directly to EV chargers instructing them to start or stop charging, and it also works with charger manufacturers. By combining both solution types, Generac supplies programming that supports major charging station providers and more than 220 EV models from all class sizes (including light to heavy-duty electric cars).
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Generac - >>> Higher prices, slower economy don't dampen Generac's red-hot home standby generator sales: Jagdfeld
Demand for Generac's standby generators exceeded executives’ expectations during the company's first quarter.
By Rich Kirchen
Milwaukee Business Journal
May 6, 2022
https://www.bizjournals.com/milwaukee/news/2022/05/06/higher-prices-dont-dampen-generacs-red-hot-home.html?ana=yahoo
Generac Power Systems implemented price increases on its home standby generators the past year or so, but homeowners continue showing strong demand that president and CEO Aaron Jagdfeld believes would continue if the economy slows.
Generac (NYSE: GNRC) raised prices on the standby generators in the “upper teens” percentages the past 15 to 18 months, Jagdfeld told analysts this week. The Waukesha-based company plans another price increase effective June 1.
The price increases have covered part of Generac’s higher costs for raw materials, logistics and labor, Jagdfeld said during a May 4 analyst call. Demand has exceeded executives’ expectations and Generac saw higher-than-expected shipments of the home standby generators for the quarter ending March 31, he said.
The all-in price for installing a home standby generator used to be $9,000 to $10,000 and now has increased to $11,000 to $11,500, Jagdfeld said. The Generac product itself is "maybe half of the total cost of the project," he said.
The extra expense “doesn’t seem to be dampening the enthusiasm for demand for the category,” Jagdfeld said.
The strength in home standby generator sales is driven by continuing trends in which homeowners are seeking resiliency in their power sources, Jagdfeld said.
“The category is incredibly durable with respect to the demand and with respect to the impact from pricing,” he said.
Jagdfeld pointed to the 2008-2009 recession as an example of the durability of the demand.
“Our overall consumer or residential business was up even in the depths of that,” Jagdfeld said. “And I think if anybody would have said that, that category would be up — kind of a large ticket kind of arguably discretionary product tied to residential investment — I think most people would have said, ‘You're kind of nuts.’ But we actually did outperform.”
Homeowners' standby generator projects fall into the category of home improvement, Jagdfeld said.
“Think of it as the impact of the price of that product in relation to the home's value,” he said. “A lot of home values are way up. So when you think about it in the context of as a percentage of the home's value, it's not up significantly at all.”
Robert W. Baird & Co. analyst Mike Halloran said in an investment update that Generac’s price increases raise questions “around friction with channel partners” who have to either pass along price increases to customers or absorb the higher prices. Generac executives said the push back has been less than they anticipated, Halloran said.
Generac reported sales increased 41%, to $1.14 billion, for the quarter ending March 31 compared with $807 million in the same quarter a year earlier.
The company’s adjusted net income decreased to $113.9 million, or $2.09 per share, from $149 million, or $2.38 per share a year ago. The per-share profits exceeded the analyst consensus of $1.92.
The heavy demand has caused the backlog to grow for Generac home standby generators to over $1 billion, executives said. However, the company’s production levels have increased at its Wisconsin and South Carolina plants, which enabled Generac to reduce lead times to 20 weeks from 27 weeks as of year-end 2021.
Generac is seeing some moderation in increases of commodity costs. The company is a big user of steel, copper and aluminum with steel remaining elevated and copper moderating, said chief financial officer York Ragen.
The company increased its full-year 2022 net sales guidance to an increase of between 36% and 40%. Generac previously predicted sales would increase 32% to 36% this year.
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>>> Steel Dynamics, Inc. (STLD), together with its subsidiaries, operates as a steel producer and metal recycler in the United States. It operates through three segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. The Steel Operations segment offers hot roll, cold roll, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; and engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars. The company also engages in turning, polishing, straightening, chamfering, threading, precision saw-cutting, and heat treating of bar products; and cutting to length, straightening, hole punching, shot blasting, welding, galvanizing, and coating of specialty products. Its products are used in construction, automotive, manufacturing, transportation, heavy and agriculture equipment, and pipe and tube markets. This segment sells directly to end-users, steel fabricators, and service centers. The Metals Recycling Operations segment purchases, processes, and resells ferrous and nonferrous scrap metals into reusable forms and grades. Its ferrous products include heavy melting steel, busheling, bundled scrap, shredded scrap, steel turnings, and cast-iron products; and nonferrous products comprise aluminum, brass, copper, stainless steel, and other nonferrous metals. This segment also provides transportation logistics, marketing, brokerage, and scrap management services. The Steel Fabrication Operations segment produces non-residential steel building components, such as steel joists, girders, trusses, and steel deck products. The company also exports its products. Steel Dynamics, Inc. was incorporated in 1993 and is headquartered in Fort Wayne, Indiana. <<<
>>> 3 Top Stocks to Buy During a Sell-Off
Motley Fool
By Reuben Gregg Brewer -
Mar 17, 2022
https://www.fool.com/investing/2022/03/17/3-top-stocks-to-buy-during-a-sell-off/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Steel Dynamics is a fast-growing steelmaker that is following a well-honed playbook.
1. Steel Dynamics: Smaller, but growing faster
Steel stocks are extremely expensive today, as they put up record-breaking results. That includes Steel Dynamics ( STLD 8.07% ), which is a relative newcomer compared to industry giant Nucor and iconic United States Steel.
That said, the company's production is built on electric arc mini-mills (like Nucor's fleet) that are more flexible than blast furnaces, which are a big piece of U.S. Steel's business. This is an important distinction because Nucor has long been the industry's leading name.
So why not buy Nucor in a sell-off? Well, you could, and you'd likely be happy doing so. But Steel Dynamics was co-founded by an ex-Nucor employee and uses its "stepsister's" playbook to a large degree. However, with a market cap of around $14 billion, it is less than half the size of Nucor. That means it takes less investment to move the top and bottom lines significantly. And this in turn gives Steel Dynamics a stronger growth outlook.
One place where that's shown up is on the dividend front, where Steel Dynamics' dividend has grown at an annualized clip of roughly 10% over the past decade, compared to the low-single-digit annualized dividend growth at Nucor over the same time span.
If you are on the lookout for a steel name and are focused on dividend growth, Steel Dynamics is probably the best name for your bear market wish list.
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>>> Generac Stock Is Spiking. It Expects ‘Exceptional Revenue Growth’ in 2022.
Barron's
By Sabrina Escobar
Feb. 16, 2022
https://www.barrons.com/articles/generac-gnrc-stock-earnings-revenue-forecast-51645020931?siteid=yhoof2
Shares of Generac Holdings GNRC-2.66% were surging Wednesday after the generator maker’s 2022 outlook energized investors.
“The company is initiating guidance for 2022 that anticipates another year of exceptional revenue growth as compared to the prior year,” the company said on Wednesday in its fourth-quarter earnings release.
Generac said it believes net sales will increase between 32% and 36% from the previous year, driven by increasing home standby production capacity, growth in clean energy markets, recent acquisitions, and strong global demand. The net income margin is expected to be approximately 13% to 14% for 2022.
Investors also cheered the company’s solid fourth-quarter performance. Generac reported adjusted earnings of $2.51 a share on $1.07 billion in revenue. Analysts surveyed by FactSet were expecting earnings of $2.42 a share on revenue of $1.02 billion.
For the fiscal year, net sales increased 50% to a record $3.75 billion in 2021, topping forecasts for $3.69 billion. Adjusted earnings were $9.63 a share, beating estimates for $9.59.
“We’re proud of our execution during the quarter as the continued progress on our capacity expansion helped drive top line results ahead of our expectations despite ongoing supply chain challenges,” said CEO Aaron Jagdfeld.
Generac’s gross profit margin was 34% for the quarter, compared to 39.4% in the year-earlier quarter. Margins were compressed by supply-chain constraints and inflationary pressures that drove up prices for commodities, labor, logistics, and starting up new plants. The costs were partially offset by pricing changes that were first implemented last year and will be fully realized throughout 2022, the company said.
Domestic sales increased 39%, while international sales increased 47%, with acquisitions contributing about 21% of revenue growth in the segment for the quarter.
Generac shares were rising 12.2% to $310.46 on Wednesday.
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>>> Here's What General Electric's Big Split Means For Investors
Let's dig into the details of the conglomerate's major announcement earlier this week.
Motley Fool
by Lee Samaha
Nov 13, 2021
https://www.fool.com/investing/2021/11/13/what-general-electric-big-split-means-investors/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Key Points
The three-way split will create much more focused companies.
The new companies will be more able to engage in mergers and acquisitions.
The question of just how much debt each company will carry after the breakup has yet to be answered.
General Electric (NYSE:GE) surprised the market earlier this week by announcing its intent to divide itself into three companies. The plan makes sense and should result in a significant release of value for investors, but there's still some risk attached. Here's the lowdown.
Two reasons why the breakup makes sense
First, following the breakup, each of the newly public offspring companies could trade at higher valuation multiples than they would be credited with as parts of the current GE due to what's now called the "conglomerate discount."
That's not how it used to be. Conglomerate stocks once commanded a valuation premium, reflecting the attractiveness of a company with diverse revenue streams that could generate earnings across a range of market conditions. However, with the advent of exchange-traded funds (ETFs), it has become much easier for investors to get exposure across various industries and sectors with just a few investments.
Second, once they are broken up into separate parts, the new companies should be run better. During the investor update, CEO Larry Culp argued that the post-split companies would have better "focus" and "more tailored capital structures and capital allocation frameworks that are aligned with each company's distinct strategies and industry dynamics."
That argument makes sense because bond investors may be more willing to invest in, say, a stand-alone healthcare company than they would if it was part of GE. Similarly, heavy investment in developing aircraft engines, for example, might be held back by management because of financial difficulties at other parts of GE.
What General Electric will do
The key points of the plan are as follows:
GE Healthcare will be spun off in early 2023, with GE retaining a 19.9% stake.
The GE Power, GE Renewable Energy, and GE Digital units will be put together and spun off in 2024.
The remaining GE will be an aviation-focused company.
The process will result in one-time separation costs of $2 billion.
GE's stakes in AerCap, Baker Hughes, and the (post-split) GE Healthcare will give the company the financial flexibility to ensure that its renewable energy and power business can also have an investment-grade capital structure when it's spun off.
It makes sense for GE Digital to be included with the power and renewable energy businesses because its main focus is on energy right now. For example, digital services and Internet of Things (IoT) capabilities are used to gather vast amounts of data that are used to more effectively service GE's wind and gas turbines. At the same time, IoT improves the utilization of the electricity grid.
Which spinoff gets what debt?
As for the difficult question of which company will get what debt, management plans for all three companies to have investment-grade capital structures -- although it will, of course, be up to the rating agencies to ultimately decide if a company is "investment grade" or not. That said, the definition usually implies a net-debt-to-EBITDA (earnings before interest, taxation, depreciation, and amortization) ratio of 2.5 or less.
A quick look at the numbers from the industrial businesses reveals the nature of the problem. The healthcare and aviation businesses have tended to generate much more EBITDA.
Moreover, management's assumptions for 2023 call for operating profits of $6 billion at GE Aviation, around $3 billion to $4 billion at GE Healthcare, and $1 billion to $2 billion at GE Power. Management's implied assumption for GE Renewable Energy is for zero operating profits.
It all leads to the question of just what kind of debt load the power and renewable energy business will have. That's a pertinent question given that management's previous guidance called for net debt of $33 billion to $37 billion in 2023.
Of course, the answer won't come until the spinoff, and GE has a couple of years to improve earnings at power and renewable energy. Meanwhile, as noted above, its ownership stakes in Baker Hughes, AerCap, and GE Healthcare will give it some financial flexibility before management has to make the final decision in 2024.
A smart plan, but there are still risks
Power and renewable energy are complementary businesses that serve the electricity generation industry. Healthcare has little overlap with the rest of GE's businesses, and companies in that sector tend to command high valuations. They are also popular in the capital markets. Aviation stocks tend to command high multiples that reflect their long-term growth potential.
The one caveat is that GE will have to meet its target of $13 billion to $14 billion in EBITDA in 2023 and get reasonable prices on any sales of assets to ensure all three companies will have investment-grade debt ratings. As such, this plan does carry some risk. Still, based on management's targets, the breakup is good news for investors and should be welcomed.
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>>> Generac (GNRC) Boosts Energy Offerings With Smart Grid Ready
Zacks Equity Research
August 26, 2021
https://finance.yahoo.com/news/generac-gnrc-boosts-energy-offerings-123412985.html
Generac Holdings Inc. GNRC has announced that its home standby generators, commercial generators and PWRcell solar + battery storage systems are being built as Smart Grid Ready.
The move allows its customers to sell power back to the grid and offset their energy expenses. The Smart Grid Ready capabilities are being offered through Generac’s Enbala Concerto platform.
The Enbala Concerto energy-balancing platform provides an approach for creating controllable energy resources from loads, energy storage and renewable energy sources. It gives energy retailers and utilities the flexibility to operate in real-time and better manage the complexities of variable energy assets.
Generac’s shareholders’ money has more than doubled over the past year. The stock has risen 128.2% in this time frame compared with the industry’s growth of 68.2%.
The integration allows Generac’s customers to make contributions to grid reliability and sustainability. Climate change and an aging electrical grid with frequent power outages are spurring growth opportunities for the company.
With Smart Grid Ready, customers can play a crucial role in being part of the solution. They will have the chance to get additional return on investment by using Generac units to contribute energy to the grid and get payment for the excess power.
Through the new platform, Generac’s Smart Grid Ready products become distributed energy resources (DERs), which form virtual power plants — collections of DERs capable of boosting the grid services provided by traditional power generation. The DERs work as traditional power backup devices and enable the sale of power back to the grid during peak demand.
Generac boasts an end-to-end solution that combines solar, battery storage, generators and load management. The current PWRcell and home standby generator customers will be able to access Generac’s Concerto platform via a firmware update.
In January 2021, Generac created a new business organization as part of its ‘Powering Our Future’ strategy. Named Energy Technology, it comprises all Generac’s businesses, which mainly focus on products or services related to storage and energy management products.
Generac is currently a Zacks Rank #3 (Hold) stock.
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>>> Generac Announces Further Expansion in Waukesha County
Yahoo Finance
August 3, 2021
https://finance.yahoo.com/news/generac-announces-further-expansion-waukesha-204500385.html
Company Acquires Additional Site to Create New Customer Contact Center
WAUKESHA, Wis., Aug. 3, 2021 /PRNewswire/ -- Generac Power Systems, a leading global designer and manufacturer of energy technology solutions and other power products, today announced the expansion of its corporate operations into the Village of Pewaukee with the purchase of a new building. The new site, located adjacent to I-94 on Highway J, will serve as the Company's new Customer Contact Center. The 75,000 square-foot office building will house approximately 300 employees.
"Generac has experienced tremendous growth over the past decade as the combination of an aging grid and extreme weather are resulting in more frequent and longer lasting power outages, and that success has only intensified over the last 18 months with more people needing backup power at home where they're doing everything from working to learning to shopping," said Aaron Jagdfeld, president and CEO of Generac. "As we continue to add employees to serve our customers and support our rapidly evolving business, we have outgrown our current headquarters facility in Waukesha. Expanding to this new location will allow us to continue to grow Generac to serve our customers, partners and our people, as we work to meet the incredible market demand."
Generac Power Systems is investing more than $8 million to purchase and renovate the building located at W236N1402 Busse Road in the Village of Pewaukee. The new location will house key sales and support groups, as well as portions of the Company's marketing team. The Company closed on the new site on July 29, 2021 and will begin occupancy in August.
In addition to the new location in Pewaukee, Generac opened a new plant in Trenton, South Carolina earlier this year to increase the Company's capacity to meet growing demand for Generac's home standby generators. Furthermore, within the last month, Generac opened additional offices in Denver and Boston to accommodate tremendous growth in demand for Clean Energy products.
The Company's global headquarters has been in Waukesha, WI since 1959 and will remain its primary location for corporate operations as well as research and development activities.
About Generac (NYSE: GNRC)
Founded in 1959, Generac is a leading global designer and manufacturer of a wide range of energy technology solutions and other power products. As an industry leader serving residential, light commercial, and industrial markets, Generac's products and solutions are available globally through a broad network of independent dealers, distributors, retailers, e-commerce partners, wholesalers and equipment rental companies, as well as sold direct to certain end user customers. For more information about Generac and its products and services, visit Generac.com.
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The World's First Small Nuclear Reactor Is Now Under Construction
https://www.zerohedge.com/energy/worlds-first-small-nuclear-reactor-now-under-construction
China National Nuclear Corporation (CNNC) launched on Tuesday the construction of the first onshore small nuclear reactor in the world, in its efforts to gain a leading position in the modular reactors market.
Construction began on the demonstration project at the Changjiang Nuclear Power Plant in the Hainan province in southern China, local publication Global Times reports.
The start of the construction for the ‘Linglong One’ small nuclear reactor comes four years later than initially planned, due to delays in regulatory clearances, Reuters notes.
The small reactor was originally planned to see the start of the construction phase in 2017.
A year earlier, the Linglong One small reactor had become the first to pass a safety review from the International Atomic Energy Agency (IAEA).
Once completed and commissioned, the small nuclear reactor is expected to meet the annual power needs of around 526,000 households, Global Times reports, without giving a timeline for the completion.
CNNC has been developing small reactor technology for the past ten years, the outlet says.
According to the World Nuclear Association, interest is growing in small and simpler technology to generate nuclear power, due to lower costs and the desire to provide power away from large grid systems.
“Overall SMR research and development in China is very active, with vigorous competition among companies encouraging innovation,” the association says, noting that the U.S., the UK, and Canada also develop and support their respective domestic small reactor technology.
In the United States, Advanced Small Modular Reactors (SMRs) are a key part of the Department of Energy’s goal to develop safe, clean, and affordable nuclear power options, DOE says. The Department has provided support to the development of light water-cooled SMRs, which are under licensing review by the Nuclear Regulatory Commission (NRC) and will likely be deployed in the late 2020s to early 2030s.
Generac - >>> Bronstein, Gewirtz & Grossman, LLC Notifies Shareholders of Generac Holdings Inc. (GNRC) Investigation
Yahoo Finance
August 2, 2021
https://finance.yahoo.com/news/bronstein-gewirtz-grossman-llc-notifies-233000505.html
NEW YORK, NY / ACCESSWIRE / August 2, 2021 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Generac Holdings Inc. ("Generac" or the "Company") (NYSE:GNRC). Investors who purchased Generac sharesare encouraged to obtain additional information and assist the investigation by visiting the firm's site: www.bgandg.com/gnrc.
The investigation concerns whether Generac and certain of its officers and/or directors have violated federal securities laws.
On July 29, 2021, Generac issued a recall of certain models of the Company's portable generators, citing reports of seven finger amputations and a finger-crushing incident. On this news, Generac's stock price $31.04 per share, or 7.2%, over three trading sessions, closing at $400.00 per share on August 2, 2021.
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Yes, with GNRC the 50 MA turned out to be the exact bottom on Wednesday. Today and yesterday the support was the lower Bollinger band (~ 415), but that also happens to be right near the current 34 MA (417).
I mainly just use the 50 and 200 MA, plus the Bol bands (the middle Bol band = 20 MA). So this keeps it simple, and these seem to be be the most commonly used reference points by Wall Street, along with the 100 MA.
In addition I use the previous highs and lows, plus candlestick patterns, and the common chart patterns like head + shoulders, ascending triangle, etc. Then there are the main indicators RSI and MACD, plus I use Full Stoch, CCI, and the Vortex indicator to help determine tops/bottoms.
But there's still a lot of guesswork, and I'm still learning. I haven't been doing much trading lately. After a great 2020/21, no sense giving it back :o) Most of those gains came from buy/hold, the market had gotten so cheap last year it was easy to just load up and stay long. But not so easy now.
GNRC, interesting how the 34 and 50 day MA'a were a factor in each of the last days trading
>>> Generac Earnings Soar; This Climate Change Stock Is a Buy
Generac stock is up 90% in 2021, but has a long runway for growth stemming from the effects of climate change and the global transitioning to clean energy.
Motley Fool
Beth McKenna
Jul 29, 2021
https://www.fool.com/investing/2021/07/29/generac-earnings-soar-this-climate-change-stock-is/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Key Points
Year-over-year revenue and adjusted EPS surged 68% and 71%, respectively.
Management raised 2021 revenue guidance by about 6%.
Generac Holdings (NYSE:GNRC), which makes backup power generators and other energy technology solutions, reported powerful second-quarter 2021 results before the market open on Wednesday.
Shares opened more than 7% lower on Wednesday, but climbed back and closed down just 1.8%.
The drop in the stock likely mostly stems from some investors (or at least short-term traders) focusing on what they viewed as a hiccup in the report, which overall was stellar. However, a portion of the decline can probably be attributed to recent market dynamics, as the market has struggled during the last couple of days.
The stellar features of the report include Q2 revenue and earnings beating Wall Street's expectations, and management solidly raising full-year 2021 revenue guidance. The minor blip was management slightly lowering its 2021 outlook for the profitability metric it provides.
In 2021 to date (July 28), Generac stock is up 89.5% compared the S&P 500's 18.1% return. (A five-year stock chart follows below to show the bigger picture.)
Generac's key numbers
Metric
Q2 2021
Q2 2020
Change
Revenue
$920 million
$547 million
68%
GAAP operating income
$183 million $90 million 103%
GAAP net income
$127 million
$66 million 92%
Adjusted net income
$153 million $88 million 74%
GAAP earnings per share
$2.01 $1.02 97%
Adjusted EPS
$2.39 $1.40 71%
DATA SOURCE: GENERAC. GAAP = GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.
Revenue and adjusted earnings set all-time quarterly records. Given the company was founded in 1959 (it went public in 2010), such records are particularly impressive.
The company's "core sales" grew a robust 64% year over year. (This metric excludes the impact of acquisitions and foreign currency exchange).
Wall Street was looking for adjusted EPS of $2.31 on revenue of $863 million, so the company comfortably surpassed both expectations.
Granted, Generac had relatively easy year-over-year comparables, as the pandemic hurt its commercial and industrial business in the year-ago period. Nonetheless, even taking into consideration the modest growth in the year-ago period (year-over-year sales and adjusted EPS rose 1% and 17%, respectively), the Q2 2021 performance was still strong.
Cash flows were solid. Cash flow from operations was $122 million, up 20% year over year. Free cash flow was $96 million, up 8%.
Sales breakdown by product class and geography
Product class:
Residential product sales rocketed 76% year over year to $600 million.
Commercial and industrial product sales surged 64% to $254 million. (These categories don't add up to the company's total revenue because there is a relatively small "other" category, which accounted for about 7% of sales.)
Geographic segment:
Domestic sales soared 70% year over year to $784.1 million, with acquisitions made over the last year contributing about 2% of growth.
International sales (which consist primarily of commercial and industrial products) jumped 58% to $135.8 million, and core growth was about 45%.
What the CEO had to say
Here's much of what CEO Aaron Jagdfeld had to say in the earnings release:
Second quarter results were again exceptional... We are particularly proud of achieving this tremendous top-line growth along with a record level of adjusted EBITDA [earnings before interest, taxes, depreciation, and amortization] despite numerous supply chain challenges.
Shipments of home standby generators were almost double compared to the prior year due to incredible demand for these products and our successful capacity-expansion efforts. Our PWRcell energy storage systems were also up dramatically compared to the prior year as well as sequentially. ... Additionally, shipments of C&I [commercial and industrial] products were up significantly over the prior year as we continue to see demand recover across a number of markets and geographies from the prior-year pandemic lows, with growth of these products now solidly above 2019 levels.
GNRC Chart
DATA BY YCHARTS.
Full-year 2021 guidance
Management increased its 2021 sales outlook but slightly lowered its profitability expectation. The main reasons for the sales guidance hike are the company's production of home standby generators at a better-than-expected rate, and the increasing demand for its energy storage systems.
The lowering of the net income margin metric was due to input costs expected to be higher than management previously projected because of rising commodities and logistics costs. Logistics costs are still elevated due to the pandemic.
Metric
New 2021 Guidance
Prior 2021 Guidance
Revenue growth YOY
47% to 50%
40% to 45%
Net income margin before deducting for non-controlling interests YOY 15.5% to 16% 16% to 17%
DATA SOURCE: GENERAC. YOY = YEAR OVER YEAR.
Revenue guidance includes about 3% of favorable impact from acquisitions and foreign currency exchange.
A stock to consider buying
In short, Generac's Q2 report was stellar. I encourage long-term investors to further explore this company. It's likely to get a stronger tailwind from the effects of climate change (increasing frequency and severity of power outages due to extreme weather events) and the global transitioning to clean energy than Wall Street analysts have taken into account in their long-term growth projections, in my opinion.
Jagdfeld said on the earnings call that guidance doesn't include the potential for preemptive electric power shutoffs by utilities in any parts of the country. These shutoffs increase demand for the company's home standby generators. Over the last two years, utilities instituted multiday shutoffs several times across California during dry and windy weather to help lessen the potential for their equipment to contribute to the spread of wildfires.
In other words, if there are any pre-emptive power shutoffs through year-end, Generac's 2021 guidance will likely prove too conservative.
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>>> Generac Reports Record Second Quarter 2021 Results
Yahoo Finance
Generac Holdings Inc
July 28, 2021
https://finance.yahoo.com/news/generac-reports-record-second-quarter-100000083.html
Continued elevated demand and strong execution across the business drives exceptional revenue and earnings growth; 2021 outlook further increased
WAUKESHA, Wis., July 28, 2021 (GLOBE NEWSWIRE) -- Generac Holdings Inc. (NYSE: GNRC) (“Generac” or the “Company”), a leading global designer and manufacturer of energy technology solutions and other power products, today reported financial results for its second quarter ended June 30, 2021 and provided an update on its outlook for the full year 2021.
Second Quarter 2021 Highlights
Net sales increased 68% to a record $920 million during the second quarter of 2021 as compared to $547 million in the prior-year second quarter. Core sales growth, which excludes both the impact of acquisitions and foreign currency, increased approximately 64%.
Residential product sales grew 76% to $600 million as compared to $341 million last year.
Commercial & Industrial (“C&I”) product sales increased 64% to $254 million as compared to $155 million in the prior year.
Net income attributable to the Company during the second quarter was $127 million, or $2.01 per share, as compared to $66 million, or $1.02 per share, for the same period of 2020.
Adjusted net income attributable to the Company, as defined in the accompanying reconciliation schedules, was a record $153 million, or $2.39 per share, as compared to $88 million, or $1.40 per share, in the second quarter of 2020.
Adjusted EBITDA before deducting for noncontrolling interests, as defined in the accompanying reconciliation schedules, was a record $218 million, or 23.7% of net sales, as compared to $123 million, or 22.5% of net sales, in the prior year.
Cash flow from operations was $122 million, a record for the second quarter of a year, as compared to $102 million in the prior year. Free cash flow, as defined in the accompanying reconciliation schedules, was also a second quarter record at $96 million as compared to $89 million for 2020. The increase in cash flow was primarily due to higher net income in the current year quarter, which was partially offset by a higher level of income taxes paid and capital expenditures in the current year relative to the prior year quarter.
On June 1st, the Company closed on the acquisition of Deep Sea Electronics Limited, an advanced controls designer and manufacturer headquartered in Hunmanby, United Kingdom.
On July 2nd, the Company closed on the acquisition of Chilicon Power, LLC (“Chilicon”). Based in California, Chilicon is a designer and provider of grid-interactive microinverter and monitoring solutions for the solar market.
The Company achieved a significant milestone by starting production of home standby generators at its new manufacturing facility in Trenton, South Carolina in early July.
“Second quarter results were again exceptional with broad-based growth of 68% leading to all-time record revenue of $920 million. We are particularly proud of achieving this tremendous top-line growth along with a record level of adjusted EBITDA despite numerous supply chain challenges,” said Aaron Jagdfeld, President and Chief Executive Officer. “Shipments of home standby generators were almost double compared to the prior year due to incredible demand for these products and our successful capacity-expansion efforts. Our PWRcell® energy storage systems were also up dramatically compared to the prior year as well as sequentially as these products continued to gain important traction in the rapidly expanding clean energy market. Additionally, shipments of C&I products were up significantly over the prior year as we continue to see demand recover across a number of markets and geographies from the prior-year pandemic lows, with growth of these products now solidly above 2019 levels.”
Jagdfeld continued, “We recently announced two strategic acquisitions we believe will enable us to expand our capabilities and accelerate our strategy to continue Generac’s transition into an energy technology solutions company. In June, we closed on the acquisition of Deep Sea Electronics, which will improve our expertise and bandwidth for advanced systems controls and help us more quickly develop our product roadmap for the future. In early July, we further added to our suite of clean energy solutions by entering the large and growing microinverter market for solar applications with the acquisition of Chilicon Power.”
Additional Second Quarter 2021 Consolidated Highlights
Gross profit margin was 36.9% as compared to 38.2% in the prior-year second quarter. The current quarter’s margin performance was impacted by higher input costs relating to raw materials, labor, logistics and plant start-up costs, which was partially offset by improved pricing along with favorable overhead absorption from higher sales volumes.
Operating expenses increased $37.4 million, or 31.3%, as compared to the second quarter of 2020. The increase was primarily driven by higher variable expenses from the significant increase in sales volumes, higher employee costs and incentive compensation, and the impact of acquisitions.
Provision for income taxes for the current year quarter was $46.4 million, or an effective tax rate of 26.6%, as compared to $18.5 million, or a 22.5% effective tax rate, for the prior year. The increase in effective tax rate was primarily due to a discrete tax item resulting from a legislative tax rate change in a foreign jurisdiction which revalued deferred tax liabilities by $7.0 million, or approximately 4% tax rate impact, during the current year quarter.
Business Segment Results
Domestic Segment
Domestic segment sales increased 70% to $784.1 million as compared to $460.8 million in the prior year quarter, with the impact of acquisitions contributing approximately 2% of the revenue growth for the quarter. The core sales growth was driven by broad-based strength across both residential and C&I products highlighted by very strong growth with home standby generators, PWRcell® energy storage systems, telecom national account customers and C&I mobile products.
Adjusted EBITDA for the segment was $203.9 million, or 26.0% of net sales, as compared to $121.3 million in the prior year, or 26.3% of net sales. This margin performance was impacted by higher input costs in the current year quarter, which were mostly offset by improved pricing and higher operating leverage from the substantial revenue growth for the segment during the quarter.
International Segment
International segment sales increased 58% to $135.8 million as compared to $86.1 million in the prior year quarter, with the impact of acquisitions and foreign currency contributing approximately 13% of the revenue growth for the quarter. The core sales growth for the segment was primarily due to strength in the European and Latin American regions that are seeing a sharp increase in demand as end markets recover off the prior-year COVID lows.
Adjusted EBITDA for the segment, before deducting for noncontrolling interests, was $13.7 million, or 10.1% of net sales, as compared to $1.9 million, or 2.2% of net sales, in the prior year. The increase in margin was primarily due to improved operating leverage on the higher sales volumes and the impact of the Deep Sea Electronics acquisition.
Updated 2021 Outlook
The Company continues to expand its production of home standby generators at a better-then-expected rate, and demand for PWRcell® energy storage systems continues to increase combined with additional supply chain execution, which is leading to further increase in the shipment outlook for these products for the full-year 2021. The outlook for C&I products has also improved due to a further broad-based rebound in demand highlighted by a continued pickup in activity from telecom national account customers, overall stronger outlooks for domestic and international markets and the closing of the Deep Sea Electronics acquisition. However, the Company continues to experience higher input costs relative to our previous guidance due to rising commodities and significantly higher logistics costs.
As a result of these factors, the Company is increasing its full-year 2021 net sales growth guidance to now be approximately 47 to 50% compared to the prior year, which includes approximately 3% of favorable impact from acquisitions and foreign currency. This is an increase from the as-reported growth guidance of 40 to 45% previously expected.
Net income margin, before deducting for non-controlling interests, is now expected to be approximately 15.5 to 16.0% for the full-year 2021 as compared to the prior expectation of between 16.0 to 17.0%. The corresponding adjusted EBITDA margin is now expected to be 24.5 to 25.0%, as compared to the previous guidance range of approximately 24.5 to 25.5%.
Operating and free cash flow generation is still expected to be strong, with the conversion of adjusted net income to free cash flow still expected to be approximately 90%.
Conference Call and Webcast
Generac management will hold a conference call at 10:00 a.m. EDT on Wednesday, July 28, 2021 to discuss second quarter 2021 operating results. The conference call can be accessed by dialing (866) 415-3113 (domestic) or +1 (678) 509-7544 (international) and entering passcode 1966865.
The conference call will also be webcast simultaneously on Generac's website (http://www.generac.com), accessed under the Investor Relations link. The webcast link will be made available on the Company’s website prior to the start of the call within the Events section of the Investor Relations website.
Following the live webcast, a replay will be available on the Company's website. A telephonic replay will also be available approximately two hours after the call and can be accessed by dialing (855) 859-2056 (domestic) or +1 (404) 537-3406 (international) and entering passcode 1966865. The telephonic replay will be available for 7 days.
About Generac
Founded in 1959, Generac is a leading global designer and manufacturer of a wide range of energy technology solutions and other power products. As an industry leader serving residential, commercial, and industrial markets, Generac's products and solutions are available globally through a broad network of independent dealers, distributors, retailers, e-commerce partners, wholesalers and equipment rental companies, as well as sold direct to certain end user customers.
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GNRC, nice 4 year gain too, from about $35 to $430. 3X gain the lasr=t 12 months.
>>> Why Generac Stock Surged 82.6% in the First Half of 2021
The backup power generator is uniquely positioned to profit in the current environment.
Motley Fool
by Lee Samaha
Jul 14, 2021
https://www.fool.com/investing/2021/07/14/why-generac-stock-surged-826-in-the-first-half-of/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Key Points
Generac has been a beneficiary of the power outages in Texas.
Management has already upgraded guidance in 2021.
The company is a long-term play on the rise of solar power.
What happened
Backup power generation equipment manufacturer Generac Holdings (NYSE:GNRC) soared a remarkable 82.6% in the first half of 2021, according to data from S&P Global Market Intelligence. The move follows a remarkable 252% rise in the stock over the last year.
Just about everything is going right for the company right now. If it isn't the stay-at-home measures encouraging spending on the home (Generac generates 65% of its sales to residential customers), it's power outages in Texas leading to a pickup in demand for standby generators. In addition, California has suffered power shutoffs to guard against the risk of wildfires. Moreover, Generac is a beneficiary of the movement toward renewable energy due to its energy storage batteries.
It all comes together to produce a robust outlook for 2021. On the first-quarter earnings call in April, management outlined expectations for revenue to grow by 40% to 45% in 2021, with residential products growing at a rate of over 50%. For reference, the previous guidance was for a 25% to 30% increase.
It's all driven by a better U.S. outlook as domestic sales increased 84.2% to $692.7 million in the first quarter, whereas international sales "only" grew 14.8% to $114.7 million.
So what
Generac has a bright future. The energy transition creates demand for energy storage, and the variable nature of renewable energy means backup generators have a crucial role to play.
That said, there's a feeling that a lot of the good news is already included in the price. For example, the company now trades on nearly 40 times its estimated 2022 earnings, and 44 times estimated 2021 earnings. Also, there's no guarantee that future inclement weather will produce the sort of power outages experienced this year.
Now what
As ever with richly rated stocks, the question is whether the company can keep surprising investors to the upside. The good news is you won't have to wait long to find out -- second-quarter earnings are due on July 28. Generac may well have to raise guidance again to keep investors happy. Still, any sell-off in the stock should be considered an opportunity to buy into a very attractive long-term story.
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>>> Generac (GNRC) Enters Microinverter Space With Chilicon Buyout
Zacks Equity Research
July 7, 2021
https://finance.yahoo.com/news/generac-gnrc-enters-microinverter-space-133501909.html
Generac Holdings Inc. GNRC have forayed in to the microinverter market with the acquisition of Chilicon Power, LLC for an undisclosed amount. The transaction is likely to expand its suite of clean energy products and augment its leading position in the market.
Based in Pacific Palisades, CA, Chilicon designs and manufactures grid-interactive inverter systems and monitoring solutions and reportedly builds the world's highest efficiency 60-cell module inverter. Its highly scalable technology offers simple yet powerful and robust microinverter solutions that boast key intelligence to power residential or business operations from AC coupling to battery storage and generators with the push of a button. In particular, its power inversion and monitoring system technology maximizes PV system production, lowers installation cost and promotes end-user satisfaction.
The acquisition expands Generac’s solar and storage product offerings as significant changes in the energy landscape, drastic climate change, aging power infrastructure and deployment of superfast 5G technology spur secular growth opportunities. The company aims to capitalize on these key growth drivers by generating more sales through higher market penetration and continued focus on research and development. A diversified distribution channel further ensures that the products reach a broad global customer base. Notably, the company has the largest network of factory direct independent generator dealers in the industry in North America.
With more than six decades of industry experience and technology knowhow, Generac is one of the leading manufacturers of home backup generators, offering the widest range of power products in the marketplace for diversified end users. The company intends to leverage its experience and core competencies to strengthen its position in the emerging residential energy storage and monitoring markets. While its Mobile Link remote monitoring capability offers a Wi-Fi-enabled feature to conveniently check the status of a generator online and receive maintenance and service alerts, the “Fleet” feature enables its distribution partners to monitor the installed base of customers for a more proactive service experience. Such a comprehensive product portfolio and service capabilities augur well for the long-term growth of the company.
Generac intends to diversify its business model from being solely ‘‘equipment centric’’ to a systems and services provider through connectivity solutions and subscription-based applications, with emphasis on improving the end-user experience and helping customers lower utility costs. This, in turn, is likely to help unlock new business opportunities and generate steady revenues from subscriptions and spare parts. The company leverages data obtained from connected devices by developing predictive analytics that help in continuously improving product quality, sales processes and tools, energy optimization, aftermarket penetration, customer experience and alignment with dealers. In addition, the company pursues potential acquisition opportunities to monetize an ecosystem of devices that relate to energy use, storage, generation, control and optimization to further strengthen its leading market position. This holistic growth strategy offers a competitive advantage to Generac against other firms.
In addition, Generac’s products are well suited to accelerate the transition from traditional fossil fuel to clean environment-friendly natural gas. The emergence of low cost, environment-friendly natural gas generators have helped to increase the penetration of standby generators over the past decade in the light commercial market. Moreover, low and stable natural gas prices offer an enticing opportunity to end users to reduce utility bills by using renewable energy solutions. An aging population and increased cases of power outages due to inclement weather conditions and catastrophic events like wildfires have amplified the importance of backup power for critical infrastructure facilities. In addition, a large installed base of backup power for essential telecommunications infrastructure for the rollout of next-generation 5G wireless networks has enabled the uninterrupted flow of critical communications and other voice and data services.
Amid such positive growth drivers, the buyout is further likely to strengthen its competitive position in the market. Shares of Generac have surged 239.2% over the past year compared with the industry’s growth of 151.4%.
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Another way to find gold and treasure -
Generac - >>> Wall Street Is Lighting a Fire Under These 2 Stocks
On a mixed day for the stock market, a couple of favorites saw nice gains.
Motley Fool
Dan Caplinger
Jun 8, 2021
https://www.fool.com/investing/2021/06/08/wall-street-is-lighting-a-fire-under-these-2-stock/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Wall Street still has a huge amount of influence over stocks. Especially when it comes to day-to-day fluctuations, you can often attribute big gains or losses to what analysts have to say about a company.
On Tuesday, a couple of stocks stood out in getting attention from Wall Street pros. With the Dow Jones Industrial Average (DJINDICES:^DJI), S&P 500 (SNPINDEX:^GSPC), and Nasdaq Composite (NASDAQINDEX:^IXIC) all seeing modest gains on the day, the moves for Generac Holdings (NYSE:GNRC) and NextDecade (NASDAQ:NEXT) were notable and raised some eyebrows among market participants.
This powerful stock is heating up
Shares of Generac Holdings climbed more than 6% on Tuesday. The maker of backup generator equipment for residential and commercial customers earned some favorable comments from analysts looking for ways to play the summer storm season.
The positive views came from analysts at KeyBanc, who reaffirmed their price target of $400 per share on Generac. As they see it, the company trades at an attractive level compared to its past earnings and future prospects, especially given rising interest in its products to provide standby power for homes when grid power becomes unavailable. It's common at various points of the year for investors to start paying attention to Generac again, whether it's when winter storms hit or as hurricane and tornado season approaches in the late spring and summer months.
Solar energy storage is also a potential growth area for Generac. As more homeowners have seen the value of keeping their property in shape and in optimal condition during the pandemic, the value of Generac systems has gone up in the eyes of many.
With today's rise, Generac is among the few huge performers from 2020 that have regained nearly all of their losses in the past few months. The stock is now challenging record highs, and continued success in driving demand could be what pushes Generac over the top.
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Generac - >>> 3 Great Stocks for Low-Risk Investors
These companies with low-risk businesses will hold up over the long run.
Motley Fool
by Jim Crumly
Feb 28, 2021
https://www.fool.com/investing/2021/02/28/3-great-stocks-for-low-risk-investors/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
The average stock in the S&P 500 index is selling for 22 times earnings expected by analysts in the upcoming year, which is higher than at any time since the dot-com crash of 2000-2002. The market's valuation has some investors nervous now. If you're looking for stocks with lower risk, you're not alone.
No one really knows how the market will move next, but investors can avoid a lot of risk by simply being patient, buying stocks of strong businesses, and holding for the long term. The longer an investor holds shares, the more the quality of the business overshadows fluctuations in valuation.
Here are three high-quality stocks that should appeal to investors who want growth but are concerned about a downturn. The shares of these companies could go down in a market correction along with almost everything else, but their low-risk businesses should outperform in the long run, rewarding patient shareholders.
Abbott Laboratories
Healthcare stocks tend to be "defensive," meaning that their businesses tend to hold up well during downturns in the economy. Abbott Laboratories (NYSE:ABT) is one of the most consistent growth stocks you'll find in the sector. The highly diversified seller of medical devices, diagnostics, pharmaceuticals for emerging market countries, and nutrition products puts together one solid quarter after another and hasn't had an earnings disappointment in over a decade.
Abbott's fourth-quarter results got a big boost from COVID-19 testing. Sales growth of 28% over the period a year ago would be flat if you subtracted the $2.4 billion of sales related to coronavirus testing. But sales of routine diagnostics and medical devices were depressed during the quarter as medical procedures around the world dropped due to the late-year surge in the pandemic. Abbott thinks the demand for COVID-19 testing hasn't peaked yet and will remain strong beyond 2021. Meanwhile, a rebound in routine medical procedures will cause the rest of its business to bounce back, and sales of its FreeStyle Libre continuous glucose monitor are growing more than 40%.
Looking forward, Abbott expects 2021 earnings per share of $5.00, a level that analysts hadn't projected the company to hit until after 2023, and it thinks it will continue to grow profits from there, even after the pandemic. The company continued its streak of 49 years of dividend hikes when it recently boosted the payout by 25%, resulting in a yield of 1.5% and helping investors in this blue chip stock sleep at night.
Prologis
The pandemic accelerated the shift in retail from brick-and-mortar stores to e-commerce, and one consequence has been a boom in demand for warehouse space. That trend created a tailwind for Prologis (NYSE:PLD), a real estate investment trust that's the global leader in logistics real estate. Stable long-term cash flows had made the company an attractive choice for low-risk investors long before that.
Prologis owns almost a billion square feet of logistics real estate housed in 4,700 buildings in 19 countries. The value of the goods passing through its properties represents fully 2.5% of the world's gross national product. That produces a huge and stable base of rents that grows as space in key locations becomes more valuable and the company develops new properties. Core funds from operations per share grew 15% in 2020 and the dividend rose 9.4%, with shares now yielding 2.3%.
An economic recovery aided by stimulus checks and vaccines means that warehouse space will remain in high demand in 2021. Prologis says that inventory levels compared with sales are near record lows and that there are signs that businesses are restocking their inventories to prepare for higher consumer spending and more growth of e-commerce.
The pandemic exposed weaknesses in global supply chains, and Prologis thinks that long-term investments to position goods closer to consumers and make supply chains more resilient will result in incremental demand for 200 million square feet of logistics space in the U.S., a trend that will take several years to play out.
The strong trends fueling Prologis' growth and the durable nature of its cash flows make the business attractive to risk-averse investors.
Generac Holdings
A glance at a chart of the share price of Generac Holdings (NYSE:GNRC) over the last couple of years might lead you to believe that the company is a high-flying tech stock. Shares rose 226% in 2020 and are up 38% already this year. But the maker of industrial equipment for over 60 years is in the sweet spot of some important trends and gives investors the opportunity to tap into long-term growth with less risk than you'd have in many tech stocks.
Generac is the leader in backup generators for home and industrial use. Sales of those products surged during the hurricanes and wildfires of 2019, got a boost from the working-from-home trend in 2020, and will surely benefit from the massive grid failure in Texas this month. The aging U.S. electrical grid and a greater urge to invest in disaster readiness among consumers are powerful tailwinds for the business that should last for years. Residential sales boomed 55% in the fourth quarter, leading to 29% top-line growth and a 39% increase in net profit.
But Generac is moving into new markets in the energy security business that should open up important new opportunities for growth. The company has created a residential clean energy solution that combines solar power generation with high-capacity batteries, the industry's largest inverter for converting direct current to the alternating current that the grid uses, and a load management system. The company's PWRcell energy storage system keeps a whole home functioning off the grid during outages, and when integrated with generators later this year, will be able to keep a home powered indefinitely during grid failures. Sales went from zero to $115 million in 2020 and the company expects 50% to 75% growth in 2021.
Generac also has an opportunity during the global 5G roll-out to sell more power backup systems for cell tower installations, where it's the leader in market share in the U.S. Longer term, the company aspires to help utilities meet peak demand through "virtual power plants," the ability to remotely turn on commercial and residential standby generators and feed power back into the grid, earning income for their owners from assets that sit idle most of the time.
Shares of the stock aren't cheap at 37 times expected 2021 earnings, but Generac's dominance of its niche gives low-risk investors a rapidly growing but easy-to-understand business that has a long runway ahead.
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>>> Generac Expands Capacity With New Manufacturing and Distribution Facility
Yahoo Finance
February 10, 2021
https://finance.yahoo.com/news/generac-expands-capacity-manufacturing-distribution-160000194.html
Demand for power generation and new energy technologies has driven growth that requires increased production
WAUKESHA, Wis., Feb. 10, 2021 /PRNewswire/ -- Generac Power Systems today announced plans to open a new manufacturing, assembly, and distribution operation in Trenton, South Carolina. The facility will support increased demand for home standby generators and associated energy technologies, and serve as a distribution center to customers in the southeast part of the United States, creating approximately 450 new jobs over the next two years.
"With significant demand for Generac products across the country, we're excited to expand our operational capacity to accommodate the increased interest in residential power systems," said Aaron Jagdfeld, President and CEO of Generac Power Systems, Inc. "The Trenton facility is strategically located closer to our customers in the southern part of the country and has access to a local labor force capable of helping us meet growing demand while strengthening our market-leading position."
The expansion of the company's manufacturing and distribution capacity begins with the acquisition and upgrade of a 421,000-square-foot manufacturing, distribution and office facility located at 30 Industrial Park Boulevard in Trenton, conveniently located between Charleston, South Carolina; Columbia, South Carolina; Charlotte, North Carolina; and Atlanta. The facility is expected to be operational by the third quarter and has the capability to expand further when needed.
"We're proud to welcome Generac to the South Carolina business community and look forward to seeing all that we know they will achieve in Edgefield County," said South Carolina Gov. Henry McMaster. "With a workforce at its disposal that is second to none and one of the most competitive business environments in the world, we know that Generac will have the tools necessary for success."
With this increase in production and distribution capabilities, Generac is inviting individuals seeking career opportunities at the Trenton plant to learn more about Generac on its careers webpage.
MEDIA CONTACT: Dave Racine: david@punch-pr.com | 414-534-6948
About Generac
Generac Power Systems, Inc. (NYSE: GNRC) is a leading global energy solutions company, supplying backup power and prime power systems, engine-powered and battery-powered tools and equipment, and solar energy storage systems. In 1959 our founder designed and manufactured the first affordable backup generator. 62 years later, the same dedication to innovation, quality and performance has expanded the company's industry-leading product portfolio into homes and small businesses, job sites, and industrial and mobile applications across the globe. Generac offers battery storage systems for homes, energy management systems for businesses and utilities, backup and prime power systems up to 2 megawatts, and paralleled power solutions up to 100 megawatts.
About S.C. Department of Commerce
As South Carolina's leading economic development agency, the Department of Commerce works to recruit new businesses and help existing business grow. S.C. Commerce has recruited world-class companies to South Carolina such as BMW, Boeing, Continental, Giti Tire, LPL Financial Holdings, Mercedes-Benz Vans, Samsung, Toray and Volvo Cars and also supports startups, small and existing business, innovation, and rural development initiatives. S.C. Commerce partners with the S.C. Technical College System via readySC to support workforce training and recruiting, and with the S.C. Department of Employment and Workforce, which provides worker training and employment opportunities within the state. With a strong international footprint, the Palmetto State has consistently been among the top in the nation for attracting jobs through foreign direct investment on a per capita basis. Additionally, the state has won the Gold or Silver Shovel Award from Area Development magazine every year since 2011. For more information, visit www.SCcommerce.com.
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>>> The AZEK Company Inc. (AZEK) engages in designing, manufacturing, and selling building products for residential, commercial, and industrial markets in the United States. The operates in two segments, Residential and Commercial. Its products include trims, decks, porches, moldings, railings, pavers, and bathroom and locker systems, as well as extruded plastic sheet products and other non-fabricated products for special applications in industrial markets. The AZEK Company Inc. offers its products under the brand names of Celtec, Playboard, Seaboard, Flametec, Designboard, Cortec, Sanatec, Scranton Products, Aria Partitions, Eclipse Partitions, Hiny Hiders, Tufftec Lockers, and Duralife Lockers. The company was formerly known as CPG Newco LLC and changed its name to The AZEK Company Inc. in June 2020. The AZEK Company Inc. was founded in 2013 and is headquartered in Chicago, Illinois. <<<
Article -
https://investorshub.advfn.com/secure/post_new.aspx?board_id=38031
Generac - >>> Powering Up This Fund
https://investorshub.advfn.com/secure/post_new.aspx?board_id=38031
IBD: Generac soared in 2020. What's your thesis?
Grossman: They dominate the residential stationary backup power generation market with over a 75% share. But that standby backup power generation market is just 5% penetrated in the U.S., so there's a long runway for growth.
They're also viewed as a clean-energy source, since their generators are run by natural gas, often replacing diesel generators.
And several years ago they got into residential solar battery storage. They made acquisitions. Now they're one of the leading solar power management systems along with Tesla (TSLA). There's an even longer runway for growth on the solar home battery side. So we see 15% growth for them for some time.
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>>> Trex Company, Inc. (TREX) manufactures and distributes wood and plastic composite products, and related accessories for residential and commercial decking, and railing applications in the United States. It offers Trex Transcend, Trex Select, and Trex Enhance protective shells for protection against fading, staining, mold, and scratching; and Trex Hideaway, a hidden fastening system for grooved boards; and Trex DeckLighting, a LED dimmable deck lighting for use on posts, floors, and steps. The company also provides Trex Transcend Railing products used in Trex decking products and other decking materials; Trex Select Railing for simple clean finished look; Trex Enhance railing system; and Trex Signature aluminum railing for contemporary look. In addition, it offers Trex Seclusions fencing product, including structural posts, bottom and top rails, pickets, and decorative post caps; and Trex Elevations, a steel deck framing system. Further, the company acts as a licensor in various licensing agreements with third parties to manufacture and sell products under the Trex name, including Trex Outdoor Furniture; Trex RainEscape, an above joist deck drainage system; Trex CustomCurve that allows contractors to heat and bend Trex products; Trex Pergola, a cellular PVC product; Trex Latticeworks outdoor lattice boards; Trex Cornhole boards; Diablo Trex Blade, a saw blade for wood-plastic composite decking; Trex SpiralStairs and structural steel posts; Trex Outdoor Kitchens, Cabinetry, and Storage; and Trex Outdoor Fire & Water products. Additionally, it offers architectural and aluminum railing systems, and staging equipment and accessories. The company sells its products through wholesale distributors, retail lumber dealers, and Home Depot and Lowe's stores, as well as through its direct sales staff, independent sales representatives, and bidding on projects. The company was founded in 1996 and is headquartered in Winchester, Virginia.
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>>> Generac Announces New Business Organization, Executive Appointments
January 19, 2021
Yahoo Finance
New organization, C-level positions showcase Generac's commitment to energy technology industry
https://finance.yahoo.com/news/generac-announces-business-organization-executive-173000399.html
WAUKESHA, Wis., Jan. 19, 2021 /PRNewswire/ -- Generac Power Systems (NYSE: GNRC) has appointed three executives to new positions and has established a new business organization as part of its "Powering Our Future" strategy, the Company announced today.
The new organization, called Energy Technology (ET), will consist of all Generac businesses whose primary focus is on products or services related to storage and energy management products. This includes the Company's acquisitions of Pika Energy, Neurio Technologies and Enbala Power Networks as well as Generac's existing Connectivity business. Combining these teams into one operating group will help position the Company as an emerging leader in the energy storage and management industry, while internally aligning objectives and business priorities, and accelerating the Company's go-to-market efforts. Further, the ET organization will serve as the operating platform for future potential acquisitions in the energy technology space.
Russ Minick will lead the new ET organization, with the title of president, Energy Technology. Under his leadership, the ET team will collaborate with Generac's business groups to deliver a wide range of clean energy products and services to end-markets globally. Minick will also retain his duties as Chief Marketing Officer, leading the Company's corporate marketing strategy, as he has since 2016.
Patrick Forsythe has been appointed to the newly created position of Chief Technical Officer. In his new role, Forsythe will be responsible for the integration of new and transformative technologies into Generac's products and building a technical team to further support future technical product development needs. Forsythe has led Generac's global engineering team since rejoining the company in 2015. His extensive experience will be pivotal in creating market-defining technologies across the Generac portfolio of products.
Steve Goran has been appointed Chief Strategy Officer. This critical new position is tasked with quickly assessing new business opportunities and ventures, while simultaneously formulating long-term strategy, while also managing the year-round strategic planning and development efforts at the Company. Goran has more than 30 years of experience with Generac, having served in many roles within the organization.
"Creation of the Energy Technology organization and these three new roles signals our commitment to leading the energy management industry of the future," said Aaron Jagdfeld, Chairman and CEO of Generac. "Along with the board of directors, I congratulate Steve, Patrick, and Russ on their new leadership roles and look forward to the continued growth I know they will help us achieve."
MEDIA CONTACT: Ashley Kast: akast@punch-pr.com | 608-633-2404
About Generac
Generac Power Systems, Inc. (NYSE: GNRC) is a leading global supplier of backup power and prime power products, systems, engine-powered tools, and solar energy storage systems. In 1959, our founder was committed to designing, engineering and manufacturing the first affordable backup generator. More than 60 years later, that dedication to innovation, durability and excellence has resulted in the company's ability to expand its industry-leading product portfolio into homes and small businesses, on job sites, and in industrial and mobile applications across the globe. Generac offers single engine backup and prime power systems up to 2 MW and paralleled solutions up to 100 MW, and uses a variety of fuel sources to support power needs for our customers. Generac hosts Power Outage Central, the definitive source of U.S. power outage data, at Generac.com/poweroutagecentral. For more information about Generac and its products and services, visit Generac.com.
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Generac - >>> Here's Why I Think Generac Holdings (NYSE:GNRC) Might Deserve Your Attention Today
Simply Wall St
January 20, 2021
https://finance.yahoo.com/news/heres-why-think-generac-holdings-061926833.html
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. And in their study titled Who Falls Prey to the Wolf of Wall Street?' Leuz et. al. found that it is 'quite common' for investors to lose money by buying into 'pump and dump' schemes.
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Generac Holdings (NYSE:GNRC). While profit is not necessarily a social good, it's easy to admire a business that can consistently produce it. Loss-making companies are always racing against time to reach financial sustainability, but time is often a friend of the profitable company, especially if it is growing.
Generac Holdings's Earnings Per Share Are Growing.
As one of my mentors once told me, share price follows earnings per share (EPS). That makes EPS growth an attractive quality for any company. Impressively, Generac Holdings has grown EPS by 35% per year, compound, in the last three years. This has no doubt fueled the optimism that sees the stock trading on a high multiple of earnings.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. While we note Generac Holdings's EBIT margins were flat over the last year, revenue grew by a solid 6.3% to US$2.3b. That's a real positive.
The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers.
Are Generac Holdings Insiders Aligned With All Shareholders?
Since Generac Holdings has a market capitalization of US$17b, we wouldn't expect insiders to hold a large percentage of shares. But we do take comfort from the fact that they are investors in the company. Indeed, they have a glittering mountain of wealth invested in it, currently valued at US$276m. This suggests to me that leadership will be very mindful of shareholders' interests when making decisions!
It's good to see that insiders are invested in the company, but are remuneration levels reasonable? A brief analysis of the CEO compensation suggests they are. I discovered that the median total compensation for the CEOs of companies like Generac Holdings, with market caps over US$8.0b, is about US$11m.
Generac Holdings offered total compensation worth US$6.1m to its CEO in the year to . That comes in below the average for similar sized companies, and seems pretty reasonable to me. CEO compensation is hardly the most important aspect of a company to consider, but when its reasonable that does give me a little more confidence that leadership are looking out for shareholder interests. I'd also argue reasonable pay levels attest to good decision making more generally.
Should You Add Generac Holdings To Your Watchlist?
For growth investors like me, Generac Holdings's raw rate of earnings growth is a beacon in the night. If you need more convincing beyond that EPS growth rate, don't forget about the reasonable remuneration and the high insider ownership. Each to their own, but I think all this makes Generac Holdings look rather interesting indeed. You should always think about risks though. Case in point, we've spotted 2 warning signs for Generac Holdings you should be aware of.
You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here is a list of companies with insider buying in the last three months.
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>>> Hubbell Incorporated (HUBB), together with its subsidiaries, designs, manufactures, and sells electrical and electronic products in the United States and internationally. The company operates through two segments, Electrical and Power. The Electrical segment offers standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures and controls, and other electrical equipment for use in industrial, commercial, and institutional facilities by electrical contractors, maintenance personnel, electricians, utilities, and telecommunications companies, as well as components and assemblies for the natural gas distribution market. It also designs and manufactures various high voltage test, industrial controls, and communication systems for use in the non-residential and industrial markets, as well as in the oil and gas, and mining industries. This segment sells its products through electrical and industrial distributors, home centers, retail and hardware outlets, lighting showrooms, and residential product oriented Internet sites; special application products primarily through wholesale distributors to contractors, industrial customers, and original equipment manufacturers; and high voltage products directly to its customers through sales engineers. The Power segment designs, manufactures, and sells distribution, transmission, substation, and telecommunications products. This segment sells its products to distributors, as well as directly to users, such as utilities, telecommunication companies, pipeline and mining operations, industrial firms, construction and engineering firms, and civil construction, water utility, transportation industries. Hubbell Incorporated was founded in 1888 and is headquartered in Shelton, Connecticut.
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