GRACO INC (GGG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GGG - US3841091040 - Common Stock
82.315 USD
+1.47 (+1.82%)
We assign a fundamental rating of 7 out of 10 to GGG. GGG was compared to 130 industry peers in the Machinery industry. GGG gets an excellent profitability rating and is at the same time showing great financial health properties. GGG is not valued too expensively and it also shows a decent growth rate. This makes GGG very considerable for quality investing!
1. Profitability
1.1 Basic Checks
GGG had positive earnings in the past year.
GGG had a positive operating cash flow in the past year.
Each year in the past 5 years GGG has been profitable.
In the past 5 years GGG always reported a positive cash flow from operatings.
1.2 Ratios
GGG's Return On Assets of 15.41% is amongst the best of the industry. GGG outperforms 95.38% of its industry peers.
GGG's Return On Equity of 19.09% is amongst the best of the industry. GGG outperforms 84.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.91%, GGG belongs to the top of the industry, outperforming 93.08% of the companies in the same industry.
GGG had an Average Return On Invested Capital over the past 3 years of 21.05%. This is significantly above the industry average of 10.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.41% | ||
| ROE | 19.09% | ||
| ROIC | 17.91% |
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
Looking at the Profit Margin, with a value of 22.72%, GGG belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
In the last couple of years the Profit Margin of GGG has grown nicely.
GGG's Operating Margin of 27.61% is amongst the best of the industry. GGG outperforms 99.23% of its industry peers.
GGG's Operating Margin has been stable in the last couple of years.
GGG has a Gross Margin of 52.68%. This is amongst the best in the industry. GGG outperforms 94.62% of its industry peers.
GGG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.61% | ||
| PM (TTM) | 22.72% | ||
| GM | 52.68% |
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.
The number of shares outstanding for GGG has been increased compared to 1 year ago.
Compared to 5 years ago, GGG has more shares outstanding
GGG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 15.17 indicates that GGG is not in any danger for bankruptcy at the moment.
GGG's Altman-Z score of 15.17 is amongst the best of the industry. GGG outperforms 96.92% of its industry peers.
The Debt to FCF ratio of GGG is 0.06, which is an excellent value as it means it would take GGG, only 0.06 years of fcf income to pay off all of its debts.
GGG has a Debt to FCF ratio of 0.06. This is amongst the best in the industry. GGG outperforms 92.31% of its industry peers.
GGG has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.01, GGG belongs to the best of the industry, outperforming 83.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 15.17 |
ROIC/WACC1.91
WACC9.38%
2.3 Liquidity
GGG has a Current Ratio of 3.18. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of GGG (3.18) is better than 78.46% of its industry peers.
GGG has a Quick Ratio of 2.27. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
GGG has a Quick ratio of 2.27. This is amongst the best in the industry. GGG outperforms 81.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
GGG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.42%.
The Earnings Per Share has been growing slightly by 7.75% on average over the past years.
GGG shows a small growth in Revenue. In the last year, the Revenue has grown by 2.85%.
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)-3.42%
EPS 3Y4.34%
EPS 5Y7.75%
EPS Q2Q%2.82%
Revenue 1Y (TTM)2.85%
Revenue growth 3Y2.07%
Revenue growth 5Y5.13%
Sales Q2Q%4.65%
3.2 Future
The Earnings Per Share is expected to grow by 11.64% on average over the next years. This is quite good.
GGG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.55% yearly.
EPS Next Y8.7%
EPS Next 2Y8.11%
EPS Next 3Y8.97%
EPS Next 5Y11.64%
Revenue Next Year5.22%
Revenue Next 2Y5.03%
Revenue Next 3Y5.56%
Revenue Next 5Y9.55%
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 29.19, which means the current valuation is very expensive for GGG.
Compared to the rest of the industry, the Price/Earnings ratio of GGG is on the same level as its industry peers.
GGG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.65, which is the current average of the S&P500 Index.
GGG is valuated quite expensively with a Price/Forward Earnings ratio of 25.52.
GGG's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of GGG to the average of the S&P500 Index (34.45), we can say GGG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.19 | ||
| Fwd PE | 25.52 |
4.2 Price Multiples
GGG's Enterprise Value to EBITDA ratio is in line with the industry average.
GGG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GGG is cheaper than 63.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.83 | ||
| EV/EBITDA | 18.11 |
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)3.36
PEG (5Y)3.76
EPS Next 2Y8.11%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.38%, GGG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.97, GGG pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.38, GGG pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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.
GGG has decreased its dividend recently.
Dividend Growth(5Y)9.78%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
36.31% of the earnings are spent on dividend by GGG. This is a low number and 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.
DP36.31%
EPS Next 2Y8.11%
EPS Next 3Y8.97%
NYSE:GGG (11/25/2025, 11:26:55 AM)
82.315
+1.47 (+1.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.99%
Inst Owner Change0.65%
Ins Owners0.85%
Ins Owner Change0.01%
Market Cap13.64B
Revenue(TTM)2.19B
Net Income(TTM)498.06M
Analysts71.76
Price Target93.66 (13.78%)
Short Float %2.62%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend1.02
Dividend Growth(5Y)9.78%
DP36.31%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.81%
Min EPS beat(2)-5.58%
Max EPS beat(2)-2.04%
EPS beat(4)1
Avg EPS beat(4)-5.73%
Min EPS beat(4)-17.34%
Max EPS beat(4)2.02%
EPS beat(8)2
Avg EPS beat(8)-5.63%
EPS beat(12)5
Avg EPS beat(12)-2.18%
EPS beat(16)8
Avg EPS beat(16)-1.83%
Revenue beat(2)0
Avg Revenue beat(2)-4.15%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)-4.09%
Revenue beat(4)0
Avg Revenue beat(4)-2.89%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)-0.89%
Revenue beat(8)0
Avg Revenue beat(8)-3.54%
Revenue beat(12)1
Avg Revenue beat(12)-2.71%
Revenue beat(16)4
Avg Revenue beat(16)-1.79%
PT rev (1m)-0.84%
PT rev (3m)-0.84%
EPS NQ rev (1m)1.38%
EPS NQ rev (3m)1.38%
EPS NY rev (1m)0.34%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.19 | ||
| Fwd PE | 25.52 | ||
| P/S | 6.22 | ||
| P/FCF | 21.83 | ||
| P/OCF | 20.28 | ||
| P/B | 5.23 | ||
| P/tB | 7.67 | ||
| EV/EBITDA | 18.11 |
EPS(TTM)2.82
EY3.43%
EPS(NY)3.23
Fwd EY3.92%
FCF(TTM)3.77
FCFY4.58%
OCF(TTM)4.06
OCFY4.93%
SpS13.23
BVpS15.75
TBVpS10.73
PEG (NY)3.36
PEG (5Y)3.76
Graham Number31.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.41% | ||
| ROE | 19.09% | ||
| ROCE | 21.89% | ||
| ROIC | 17.91% | ||
| ROICexc | 22.98% | ||
| ROICexgc | 37.14% | ||
| OM | 27.61% | ||
| PM (TTM) | 22.72% | ||
| GM | 52.68% | ||
| FCFM | 28.51% |
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%
ROICexgc growth 3Y-12.63%
ROICexgc 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 Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 47.39% | ||
| Cap/Sales | 2.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.3% | ||
| Profit Quality | 125.46% | ||
| Current Ratio | 3.18 | ||
| Quick Ratio | 2.27 | ||
| Altman-Z | 15.17 |
F-Score5
WACC9.38%
ROIC/WACC1.91
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)-3.42%
EPS 3Y4.34%
EPS 5Y7.75%
EPS Q2Q%2.82%
EPS Next Y8.7%
EPS Next 2Y8.11%
EPS Next 3Y8.97%
EPS Next 5Y11.64%
Revenue 1Y (TTM)2.85%
Revenue growth 3Y2.07%
Revenue growth 5Y5.13%
Sales Q2Q%4.65%
Revenue Next Year5.22%
Revenue Next 2Y5.03%
Revenue Next 3Y5.56%
Revenue Next 5Y9.55%
EBIT growth 1Y-0.78%
EBIT growth 3Y2.38%
EBIT growth 5Y6.08%
EBIT Next Year17.91%
EBIT Next 3Y11.23%
EBIT Next 5Y13.1%
FCF growth 1Y57.16%
FCF growth 3Y16.79%
FCF growth 5Y12.12%
OCF growth 1Y12.6%
OCF growth 3Y10.81%
OCF growth 5Y8.23%
GRACO INC / GGG FAQ
Can you provide the ChartMill fundamental rating for GRACO INC?
ChartMill assigns a fundamental rating of 7 / 10 to GGG.
Can you provide the valuation status for GRACO INC?
ChartMill assigns a valuation rating of 3 / 10 to GRACO INC (GGG). This can be considered as Overvalued.
How profitable is GRACO INC (GGG) stock?
GRACO INC (GGG) has a profitability rating of 9 / 10.
What is the valuation of GRACO INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GRACO INC (GGG) is 29.19 and the Price/Book (PB) ratio is 5.23.
What is the financial health of GRACO INC (GGG) stock?
The financial health rating of GRACO INC (GGG) is 9 / 10.