Analyzing the Quality Characteristics of GRACO INC (NYSE:GGG).

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if GRACO INC (NYSE:GGG) is suited for quality investing. Investors should of course do their own research, but we spotted GRACO INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Why GGG may be interesting for quality investors.

• GGG has demonstrated significant revenue growth over the past 5 years, with a 5.13% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• GGG demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 34.58% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• GGG maintains a healthy Debt/Free Cash Flow Ratio of 0.06, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• The Profit Quality (5-year) of GGG stands at 81.48%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• GGG has demonstrated consistent growth in EBIT over the past 5 years, with a strong 6.08%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• The EBIT 5-year growth of GGG has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

How does the complete fundamental picture look for GGG?

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

GGG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 129 industry peers in the Machinery industry. GGG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, GGG is valued expensive at the moment. These ratings would make GGG suitable for quality investing!

For an up to date full fundamental analysis you can check the fundamental report of GGG

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.