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GRACO INC (GGG) Stock Fundamental Analysis

NYSE:GGG - New York Stock Exchange, Inc. - US3841091040 - Common Stock - Currency: USD

88.79  +0.3 (+0.34%)

After market: 88.79 0 (0%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to GGG. GGG was compared to 128 industry peers in the Machinery industry. GGG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. GGG is quite expensive at the moment. It does show a decent growth rate. These ratings could make GGG a good candidate for quality investing.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

GGG had positive earnings in the past year.
In the past year GGG had a positive cash flow from operations.
In the past 5 years GGG has always been profitable.
In the past 5 years GGG always reported a positive cash flow from operatings.
GGG Yearly Net Income VS EBIT VS OCF VS FCFGGG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

1.2 Ratios

The Return On Assets of GGG (16.22%) is better than 94.53% of its industry peers.
GGG's Return On Equity of 19.69% is amongst the best of the industry. GGG outperforms 82.81% of its industry peers.
The Return On Invested Capital of GGG (18.12%) is better than 92.19% of its industry peers.
GGG had an Average Return On Invested Capital over the past 3 years of 21.05%. This is significantly above the industry average of 10.71%.
Industry RankSector Rank
ROA 16.22%
ROE 19.69%
ROIC 18.12%
ROA(3y)17.66%
ROA(5y)17.52%
ROE(3y)22.12%
ROE(5y)23.57%
ROIC(3y)21.05%
ROIC(5y)21.26%
GGG Yearly ROA, ROE, ROICGGG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

1.3 Margins

The Profit Margin of GGG (22.70%) is better than 97.66% of its industry peers.
In the last couple of years the Profit Margin of GGG has grown nicely.
GGG has a better Operating Margin (27.04%) than 98.44% of its industry peers.
GGG's Operating Margin has been stable in the last couple of years.
GGG's Gross Margin of 52.76% is amongst the best of the industry. GGG outperforms 93.75% 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 RankSector Rank
OM 27.04%
PM (TTM) 22.7%
GM 52.76%
OM growth 3Y0.31%
OM growth 5Y0.9%
PM growth 3Y1.29%
PM growth 5Y1.94%
GM growth 3Y0.7%
GM growth 5Y0.33%
GGG Yearly Profit, Operating, Gross MarginsGGG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

9

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.
The number of shares outstanding for GGG has been increased compared to 1 year ago.
The number of shares outstanding for GGG has been increased compared to 5 years ago.
Compared to 1 year ago, GGG has an improved debt to assets ratio.
GGG Yearly Shares OutstandingGGG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
GGG Yearly Total Debt VS Total AssetsGGG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

GGG has an Altman-Z score of 19.16. This indicates that GGG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 19.16, GGG belongs to the best of the industry, outperforming 97.66% of the companies in the same industry.
The Debt to FCF ratio of GGG is 0.05, which is an excellent value as it means it would take GGG, only 0.05 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.05, GGG belongs to the top of the industry, outperforming 91.41% of the companies in the same industry.
GGG has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of GGG (0.01) is better than 81.25% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.05
Altman-Z 19.16
ROIC/WACC1.83
WACC9.89%
GGG Yearly LT Debt VS Equity VS FCFGGG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

A Current Ratio of 3.61 indicates that GGG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.61, GGG belongs to the top of the industry, outperforming 83.59% of the companies in the same industry.
GGG has a Quick Ratio of 2.53. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
GGG has a better Quick ratio (2.53) than 82.81% of its industry peers.
Industry RankSector Rank
Current Ratio 3.61
Quick Ratio 2.53
GGG Yearly Current Assets VS Current LiabilitesGGG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B

5

3. Growth

3.1 Past

The earnings per share for GGG have decreased by -5.07% in the last year.
GGG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.75% yearly.
GGG shows a decrease in Revenue. In the last year, the revenue decreased by -0.40%.
GGG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.13% yearly.
EPS 1Y (TTM)-5.07%
EPS 3Y4.34%
EPS 5Y7.75%
EPS Q2Q%7.69%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y2.07%
Revenue growth 5Y5.13%
Sales Q2Q%7.33%

3.2 Future

GGG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.74% yearly.
The Revenue is expected to grow by 9.48% on average over the next years. This is quite good.
EPS Next Y8.57%
EPS Next 2Y8.18%
EPS Next 3Y9.26%
EPS Next 5Y11.74%
Revenue Next Year6.02%
Revenue Next 2Y5.03%
Revenue Next 3Y5.67%
Revenue Next 5Y9.48%

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 accelerating.
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.
GGG Yearly Revenue VS EstimatesGGG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B
GGG Yearly EPS VS EstimatesGGG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3 4

2

4. Valuation

4.1 Price/Earnings Ratio

GGG is valuated quite expensively with a Price/Earnings ratio of 31.60.
GGG's Price/Earnings ratio is a bit more expensive when compared to the industry. GGG is more expensive than 61.72% of the companies in the same industry.
When comparing the Price/Earnings ratio of GGG to the average of the S&P500 Index (27.45), we can say GGG is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 27.49, the valuation of GGG can be described as expensive.
63.28% of the companies in the same industry are cheaper than GGG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GGG to the average of the S&P500 Index (21.90), we can say GGG is valued slightly more expensively.
Industry RankSector Rank
PE 31.6
Fwd PE 27.49
GGG Price Earnings VS Forward Price EarningsGGG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GGG is valued a bit more expensive than 64.84% of the companies in the same industry.
GGG's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 27.08
EV/EBITDA 21.25
GGG Per share dataGGG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GGG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.69
PEG (5Y)4.08
EPS Next 2Y8.18%
EPS Next 3Y9.26%

5

5. Dividend

5.1 Amount

GGG has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
GGG's Dividend Yield is a higher than the industry average which is at 1.87.
Compared to an average S&P500 Dividend Yield of 2.42, GGG's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.28%

5.2 History

The dividend of GGG is nicely growing with an annual growth rate of 9.78%!
GGG has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of GGG decreased recently.
Dividend Growth(5Y)9.78%
Div Incr Years1
Div Non Decr Years1
GGG Yearly Dividends per shareGGG Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

GGG pays out 36.03% of its income as dividend. This is a sustainable payout ratio.
GGG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.03%
EPS Next 2Y8.18%
EPS Next 3Y9.26%
GGG Yearly Income VS Free CF VS DividendGGG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
GGG Dividend Payout.GGG Dividend Payout, showing the Payout Ratio.GGG Dividend Payout.PayoutRetained Earnings

GRACO INC

NYSE:GGG (7/3/2025, 7:31:21 PM)

After market: 88.79 0 (0%)

88.79

+0.3 (+0.34%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)04-23 2025-04-23/amc
Earnings (Next)07-23 2025-07-23/amc
Inst Owners90.66%
Inst Owner Change-0.79%
Ins Owners0.84%
Ins Owner Change3.02%
Market Cap14.84B
Analysts70
Price Target90.95 (2.43%)
Short Float %1.99%
Short Ratio4.13
Dividend
Industry RankSector Rank
Dividend Yield 1.28%
Yearly Dividend1.02
Dividend Growth(5Y)9.78%
DP36.03%
Div Incr Years1
Div Non Decr Years1
Ex-Date04-14 2025-04-14 (0.275)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.66%
Min EPS beat(2)-17.34%
Max EPS beat(2)2.02%
EPS beat(4)1
Avg EPS beat(4)-5.98%
Min EPS beat(4)-17.34%
Max EPS beat(4)2.02%
EPS beat(8)3
Avg EPS beat(8)-5.21%
EPS beat(12)7
Avg EPS beat(12)-1.35%
EPS beat(16)9
Avg EPS beat(16)-1.98%
Revenue beat(2)0
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-2.37%
Max Revenue beat(2)-0.89%
Revenue beat(4)0
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-4.57%
Max Revenue beat(4)-0.89%
Revenue beat(8)0
Avg Revenue beat(8)-3.5%
Revenue beat(12)3
Avg Revenue beat(12)-1.54%
Revenue beat(16)5
Avg Revenue beat(16)-1.06%
PT rev (1m)0%
PT rev (3m)-2.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
Industry RankSector Rank
PE 31.6
Fwd PE 27.49
P/S 6.9
P/FCF 27.08
P/OCF 23.62
P/B 5.99
P/tB 8.48
EV/EBITDA 21.25
EPS(TTM)2.81
EY3.16%
EPS(NY)3.23
Fwd EY3.64%
FCF(TTM)3.28
FCFY3.69%
OCF(TTM)3.76
OCFY4.23%
SpS12.86
BVpS14.83
TBVpS10.47
PEG (NY)3.69
PEG (5Y)4.08
Profitability
Industry RankSector Rank
ROA 16.22%
ROE 19.69%
ROCE 22.11%
ROIC 18.12%
ROICexc 22.71%
ROICexgc 34.57%
OM 27.04%
PM (TTM) 22.7%
GM 52.76%
FCFM 25.5%
ROA(3y)17.66%
ROA(5y)17.52%
ROE(3y)22.12%
ROE(5y)23.57%
ROIC(3y)21.05%
ROIC(5y)21.26%
ROICexc(3y)26.67%
ROICexc(5y)27.9%
ROICexgc(3y)38.29%
ROICexgc(5y)42.21%
ROCE(3y)25.69%
ROCE(5y)26.03%
ROICexcg growth 3Y-12.63%
ROICexcg growth 5Y-6.63%
ROICexc growth 3Y-11.33%
ROICexc growth 5Y-5.14%
OM growth 3Y0.31%
OM growth 5Y0.9%
PM growth 3Y1.29%
PM growth 5Y1.94%
GM growth 3Y0.7%
GM growth 5Y0.33%
F-Score5
Asset Turnover0.71
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.05
Debt/EBITDA 0.04
Cap/Depr 87.17%
Cap/Sales 3.73%
Interest Coverage 250
Cash Conversion 93.33%
Profit Quality 112.31%
Current Ratio 3.61
Quick Ratio 2.53
Altman-Z 19.16
F-Score5
WACC9.89%
ROIC/WACC1.83
Cap/Depr(3y)225.5%
Cap/Depr(5y)206.15%
Cap/Sales(3y)7.62%
Cap/Sales(5y)6.78%
Profit Quality(3y)78.75%
Profit Quality(5y)81.48%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.07%
EPS 3Y4.34%
EPS 5Y7.75%
EPS Q2Q%7.69%
EPS Next Y8.57%
EPS Next 2Y8.18%
EPS Next 3Y9.26%
EPS Next 5Y11.74%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y2.07%
Revenue growth 5Y5.13%
Sales Q2Q%7.33%
Revenue Next Year6.02%
Revenue Next 2Y5.03%
Revenue Next 3Y5.67%
Revenue Next 5Y9.48%
EBIT growth 1Y-7.91%
EBIT growth 3Y2.38%
EBIT growth 5Y6.08%
EBIT Next Year17.03%
EBIT Next 3Y10.94%
EBIT Next 5Y13.22%
FCF growth 1Y124.15%
FCF growth 3Y16.79%
FCF growth 5Y12.12%
OCF growth 1Y43.78%
OCF growth 3Y10.81%
OCF growth 5Y8.23%