GRACO INC (GGG)
US3841091040 - Common Stock
GGG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making GGG a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, GGG is valued expensive at the moment. With these ratings, GGG could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year GGG was profitable.
In the past year GGG had a positive cash flow from operations.
GGG had positive earnings in each of the past 5 years.
GGG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 17.93%, GGG belongs to the top of the industry, outperforming 96.92% of the companies in the same industry.
With an excellent Return On Equity value of 21.39%, GGG belongs to the best of the industry, outperforming 83.85% of the companies in the same industry.
GGG's Return On Invested Capital of 21.07% is amongst the best of the industry. GGG outperforms 95.38% of its industry peers.
GGG had an Average Return On Invested Capital over the past 3 years of 22.61%. This is significantly above the industry average of 10.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.93% | ||
| ROE | 21.39% | ||
| ROIC | 21.07% |
ROA(3y)18.5%
ROA(5y)18.49%
ROE(3y)24.43%
ROE(5y)26.51%
ROIC(3y)22.61%
ROIC(5y)22.67%
1.3 Margins
GGG has a Profit Margin of 23.15%. This is amongst the best in the industry. GGG outperforms 99.23% of its industry peers.
GGG's Profit Margin has improved in the last couple of years.
The Operating Margin of GGG (29.24%) is better than 99.23% of its industry peers.
In the last couple of years the Operating Margin of GGG has grown nicely.
The Gross Margin of GGG (52.92%) is better than 95.38% of its industry peers.
In the last couple of years the Gross Margin of GGG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.24% | ||
| PM (TTM) | 23.15% | ||
| GM | 52.92% |
OM growth 3Y4.84%
OM growth 5Y2.47%
PM growth 3Y4.82%
PM growth 5Y2.26%
GM growth 3Y0.68%
GM growth 5Y-0.19%
2. Health
2.1 Basic Checks
GGG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
GGG has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, GGG has more shares outstanding
The debt/assets ratio for GGG has been reduced compared to a year ago.
2.2 Solvency
GGG has an Altman-Z score of 21.41. This indicates that GGG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GGG (21.41) is better than 97.69% of its industry peers.
GGG has a debt to FCF ratio of 0.06. This is a very positive value and a sign of high solvency as it would only need 0.06 years to pay back of all of its debts.
The Debt to FCF ratio of GGG (0.06) is better than 93.85% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that GGG is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.01, GGG belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 21.41 |
ROIC/WACC2.31
WACC9.11%
2.3 Liquidity
GGG has a Current Ratio of 4.11. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.11, GGG belongs to the top of the industry, outperforming 86.92% of the companies in the same industry.
A Quick Ratio of 2.80 indicates that GGG has no problem at all paying its short term obligations.
GGG has a better Quick ratio (2.80) than 85.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.11 | ||
| Quick Ratio | 2.8 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.34% over the past year.
Measured over the past years, GGG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.04% on average per year.
GGG shows a decrease in Revenue. In the last year, the revenue decreased by -0.94%.
The Revenue has been growing slightly by 5.84% on average over the past years.
EPS 1Y (TTM)5.34%
EPS 3Y16.08%
EPS 5Y10.04%
EPS growth Q2Q-12.16%
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y9.99%
Revenue growth 5Y5.84%
Revenue growth Q2Q-7.07%
3.2 Future
Based on estimates for the next years, GGG will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.02% on average per year.
GGG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.96% yearly.
EPS Next Y4.57%
EPS Next 2Y5.64%
EPS Next 3Y6.64%
EPS Next 5Y9.02%
Revenue Next Year2.94%
Revenue Next 2Y3.83%
Revenue Next 3Y4.81%
Revenue Next 5Y8.96%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.05, the valuation of GGG can be described as expensive.
GGG's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.15, GGG is valued at the same level.
With a Price/Forward Earnings ratio of 24.39, GGG is valued on the expensive side.
Based on the Price/Forward Earnings ratio, GGG is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of GGG to the average of the S&P500 Index (20.20), we can say GGG is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.05 | ||
| Fwd PE | 24.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GGG indicates a slightly more expensive valuation: GGG is more expensive than 63.08% of the companies listed in the same industry.
GGG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.34 | ||
| EV/EBITDA | 19.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of GGG may justify a higher PE ratio.
PEG (NY)6.14
PEG (5Y)2.79
EPS Next 2Y5.64%
EPS Next 3Y6.64%
5. Dividend
5.1 Amount
GGG has a Yearly Dividend Yield of 1.22%.
GGG's Dividend Yield is a higher than the industry average which is at 1.66.
Compared to an average S&P500 Dividend Yield of 2.33, GGG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
On average, the dividend of GGG grows each year by 12.19%, which is quite nice.
GGG has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)12.19%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
GGG pays out 32.38% of its income as dividend. This is a sustainable payout ratio.
The dividend of GGG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.38%
EPS Next 2Y5.64%
EPS Next 3Y6.64%
GRACO INC
NYSE:GGG (5/17/2024, 7:04:00 PM)
After market: 83.02 0 (0%)83.02
-0.39 (-0.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.05 | ||
| Fwd PE | 24.39 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)6.14
PEG (5Y)2.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.93% | ||
| ROE | 21.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.24% | ||
| PM (TTM) | 23.15% | ||
| GM | 52.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.11 | ||
| Quick Ratio | 2.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)5.34%
EPS 3Y16.08%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y9.99%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y