GRACO INC (GGG) Stock Fundamental Analysis
USA - NYSE:GGG - US3841091040 - Common Stock
85.18 USD
+0.32 (+0.38%)
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 could make GGG a good candidate for quality investing.
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.
Each year in the past 5 years GGG has been profitable.
Each year in the past 5 years GGG had a positive operating cash flow.
1.2 Ratios
GGG has a Return On Assets of 15.84%. This is amongst the best in the industry. GGG outperforms 95.35% of its industry peers.
GGG has a Return On Equity of 19.30%. This is amongst the best in the industry. GGG outperforms 83.72% of its industry peers.
The Return On Invested Capital of GGG (17.81%) is better than 93.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GGG is significantly above the industry average of 10.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.84% | ||
| ROE | 19.3% | ||
| ROIC | 17.81% |
ROA(3y)17.66%
ROA(5y)17.52%
ROE(3y)22.12%
ROE(5y)23.57%
ROIC(3y)21.05%
ROIC(5y)21.26%
1.3 Margins
GGG has a Profit Margin of 22.26%. This is amongst the best in the industry. GGG outperforms 98.45% of its industry peers.
GGG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 26.63%, GGG belongs to the top of the industry, outperforming 99.22% of the companies in the same industry.
GGG's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 52.25%, GGG belongs to the top of the industry, outperforming 94.57% of the companies in the same industry.
GGG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.63% | ||
| PM (TTM) | 22.26% | ||
| GM | 52.25% |
OM growth 3Y0.31%
OM growth 5Y0.9%
PM growth 3Y1.29%
PM growth 5Y1.94%
GM growth 3Y0.7%
GM growth 5Y0.33%
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.
Compared to 1 year ago, GGG has more shares outstanding
The number of shares outstanding for GGG has been increased compared to 5 years ago.
The debt/assets ratio for GGG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 17.82 indicates that GGG is not in any danger for bankruptcy at the moment.
The Altman-Z score of GGG (17.82) is better than 97.67% of its industry peers.
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.
The Debt to FCF ratio of GGG (0.05) is better than 92.25% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that GGG is not too dependend on debt financing.
GGG has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. GGG outperforms 82.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 17.82 |
ROIC/WACC1.82
WACC9.81%
2.3 Liquidity
GGG has a Current Ratio of 3.55. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of GGG (3.55) is better than 86.05% of its industry peers.
GGG has a Quick Ratio of 2.52. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of GGG (2.52) is better than 82.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.55 | ||
| Quick Ratio | 2.52 |
3. Growth
3.1 Past
GGG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.72%.
Measured over the past 5 years, GGG shows a small growth in Earnings Per Share. The EPS has been growing by 7.75% on average per year.
GGG shows a small growth in Revenue. In the last year, the Revenue has grown by 0.75%.
Measured over the past years, GGG shows a small growth in Revenue. The Revenue has been growing by 5.13% on average per year.
EPS 1Y (TTM)-5.72%
EPS 3Y4.34%
EPS 5Y7.75%
EPS Q2Q%-1.32%
Revenue 1Y (TTM)0.75%
Revenue growth 3Y2.07%
Revenue growth 5Y5.13%
Sales Q2Q%3.36%
3.2 Future
The Earnings Per Share is expected to grow by 11.41% on average over the next years. This is quite good.
Based on estimates for the next years, GGG will show a quite strong growth in Revenue. The Revenue will grow by 9.34% on average per year.
EPS Next Y8.33%
EPS Next 2Y8.24%
EPS Next 3Y9.48%
EPS Next 5Y11.41%
Revenue Next Year5.78%
Revenue Next 2Y4.98%
Revenue Next 3Y5.65%
Revenue Next 5Y9.34%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.42, which means the current valuation is very expensive for GGG.
The rest of the industry has a similar Price/Earnings ratio as GGG.
GGG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.86.
The Price/Forward Earnings ratio is 26.34, which means the current valuation is very expensive for GGG.
Based on the Price/Forward Earnings ratio, GGG is valued a bit more expensive than the industry average as 61.24% of the companies are valued more cheaply.
GGG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.42 | ||
| Fwd PE | 26.34 |
4.2 Price Multiples
GGG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. GGG is more expensive than 62.02% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GGG is valued a bit cheaper than the industry average as 61.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.2 | ||
| EV/EBITDA | 19.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GGG does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of GGG may justify a higher PE ratio.
PEG (NY)3.65
PEG (5Y)3.92
EPS Next 2Y8.24%
EPS Next 3Y9.48%
5. Dividend
5.1 Amount
GGG has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.79, GGG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, GGG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
On average, the dividend of GGG grows each year by 9.78%, which is quite nice.
GGG has been paying a dividend for at least 10 years, so it has a reliable track record.
GGG has decreased its dividend recently.
Dividend Growth(5Y)9.78%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
GGG pays out 36.94% of its income as dividend. This is a sustainable payout ratio.
GGG's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP36.94%
EPS Next 2Y8.24%
EPS Next 3Y9.48%
NYSE:GGG (10/3/2025, 2:18:46 PM)
85.18
+0.32 (+0.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.99%
Inst Owner Change-0.85%
Ins Owners0.85%
Ins Owner Change0.01%
Market Cap14.11B
Analysts71.76
Price Target94.46 (10.89%)
Short Float %2.36%
Short Ratio5.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend1.02
Dividend Growth(5Y)9.78%
DP36.94%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.78%
Min EPS beat(2)-5.58%
Max EPS beat(2)2.02%
EPS beat(4)1
Avg EPS beat(4)-7.05%
Min EPS beat(4)-17.34%
Max EPS beat(4)2.02%
EPS beat(8)3
Avg EPS beat(8)-5.06%
EPS beat(12)6
Avg EPS beat(12)-1.88%
EPS beat(16)8
Avg EPS beat(16)-2.37%
Revenue beat(2)0
Avg Revenue beat(2)-2.49%
Min Revenue beat(2)-4.09%
Max Revenue beat(2)-0.89%
Revenue beat(4)0
Avg Revenue beat(4)-2.98%
Min Revenue beat(4)-4.57%
Max Revenue beat(4)-0.89%
Revenue beat(8)0
Avg Revenue beat(8)-3.53%
Revenue beat(12)2
Avg Revenue beat(12)-2.03%
Revenue beat(16)4
Avg Revenue beat(16)-1.63%
PT rev (1m)0%
PT rev (3m)3.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.42 | ||
| Fwd PE | 26.34 | ||
| P/S | 6.51 | ||
| P/FCF | 23.2 | ||
| P/OCF | 21.01 | ||
| P/B | 5.64 | ||
| P/tB | 8.1 | ||
| EV/EBITDA | 19.99 |
EPS(TTM)2.8
EY3.29%
EPS(NY)3.23
Fwd EY3.8%
FCF(TTM)3.67
FCFY4.31%
OCF(TTM)4.06
OCFY4.76%
SpS13.08
BVpS15.09
TBVpS10.52
PEG (NY)3.65
PEG (5Y)3.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.84% | ||
| ROE | 19.3% | ||
| ROCE | 21.72% | ||
| ROIC | 17.81% | ||
| ROICexc | 22.23% | ||
| ROICexgc | 34.35% | ||
| OM | 26.63% | ||
| PM (TTM) | 22.26% | ||
| GM | 52.25% | ||
| FCFM | 28.06% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 63.94% | ||
| Cap/Sales | 2.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.32% | ||
| Profit Quality | 126.06% | ||
| Current Ratio | 3.55 | ||
| Quick Ratio | 2.52 | ||
| Altman-Z | 17.82 |
F-Score5
WACC9.81%
ROIC/WACC1.82
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)-5.72%
EPS 3Y4.34%
EPS 5Y7.75%
EPS Q2Q%-1.32%
EPS Next Y8.33%
EPS Next 2Y8.24%
EPS Next 3Y9.48%
EPS Next 5Y11.41%
Revenue 1Y (TTM)0.75%
Revenue growth 3Y2.07%
Revenue growth 5Y5.13%
Sales Q2Q%3.36%
Revenue Next Year5.78%
Revenue Next 2Y4.98%
Revenue Next 3Y5.65%
Revenue Next 5Y9.34%
EBIT growth 1Y-9.14%
EBIT growth 3Y2.38%
EBIT growth 5Y6.08%
EBIT Next Year17.91%
EBIT Next 3Y11.23%
EBIT Next 5Y12.88%
FCF growth 1Y90.01%
FCF growth 3Y16.79%
FCF growth 5Y12.12%
OCF growth 1Y28.05%
OCF growth 3Y10.81%
OCF growth 5Y8.23%