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GRACO INC (GGG) Stock Fundamental Analysis

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

84.59  -0.25 (-0.29%)

After market: 84.59 0 (0%)

Fundamental Rating

7

Overall GGG gets a fundamental rating of 7 out of 10. We evaluated GGG against 127 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. This makes GGG very considerable for quality investing!


Dividend Valuation Growth Profitability Health

9

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.
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

GGG's Return On Assets of 15.84% is amongst the best of the industry. GGG outperforms 94.49% of its industry peers.
With an excellent Return On Equity value of 19.30%, GGG belongs to the best of the industry, outperforming 81.89% of the companies in the same industry.
GGG has a better Return On Invested Capital (17.81%) than 92.13% 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 10.91%.
Industry RankSector 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%
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

With an excellent Profit Margin value of 22.26%, GGG belongs to the best of the industry, outperforming 97.64% of the companies in the same industry.
In the last couple of years the Profit Margin of GGG has grown nicely.
GGG has a Operating Margin of 26.63%. This is amongst the best in the industry. GGG outperforms 98.43% of its industry peers.
In the last couple of years the Operating Margin of GGG has remained more or less at the same level.
With an excellent Gross Margin value of 52.25%, GGG belongs to the best of the industry, outperforming 93.70% of the companies in the same industry.
GGG's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
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.
GGG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, GGG has more shares outstanding
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

An Altman-Z score of 17.90 indicates that GGG is not in any danger for bankruptcy at the moment.
GGG's Altman-Z score of 17.90 is amongst the best of the industry. GGG outperforms 96.85% of its industry peers.
GGG has a debt to FCF ratio of 0.05. This is a very positive value and a sign of high solvency as it would only need 0.05 years to pay back of all of its debts.
GGG has a Debt to FCF ratio of 0.05. This is amongst the best in the industry. GGG outperforms 92.13% 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.
The Debt to Equity ratio of GGG (0.01) is better than 81.10% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.05
Altman-Z 17.9
ROIC/WACC1.8
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 3.55 indicates that GGG has no problem at all paying its short term obligations.
GGG has a better Current ratio (3.55) than 83.46% of its industry peers.
A Quick Ratio of 2.52 indicates that GGG has no problem at all paying its short term obligations.
GGG has a Quick ratio of 2.52. This is amongst the best in the industry. GGG outperforms 82.68% of its industry peers.
Industry RankSector Rank
Current Ratio 3.55
Quick Ratio 2.52
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 -5.72% 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.
Looking at the last year, GGG shows a small growth in Revenue. The Revenue has grown by 0.75% in the last year.
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

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.
GGG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.48% yearly.
EPS Next Y8.79%
EPS Next 2Y8.24%
EPS Next 3Y9.39%
EPS Next 5Y11.74%
Revenue Next Year6.06%
Revenue Next 2Y5.07%
Revenue Next 3Y5.81%
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

With a Price/Earnings ratio of 30.21, GGG can be considered very expensive at the moment.
62.20% of the companies in the same industry are cheaper than GGG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.05. GGG is around the same levels.
With a Price/Forward Earnings ratio of 26.16, GGG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GGG indicates a slightly more expensive valuation: GGG is more expensive than 62.99% of the companies listed in the same industry.
GGG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 37.67, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 30.21
Fwd PE 26.16
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 the industry average as 64.57% of the companies are valued more cheaply.
GGG's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 23.24
EV/EBITDA 20.11
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 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)3.44
PEG (5Y)3.9
EPS Next 2Y8.24%
EPS Next 3Y9.39%

5

5. Dividend

5.1 Amount

GGG has a Yearly Dividend Yield of 1.30%.
GGG's Dividend Yield is a higher than the industry average which is at 1.85.
Compared to an average S&P500 Dividend Yield of 2.30, GGG's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.3%

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
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 36.94% 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.
DP36.94%
EPS Next 2Y8.24%
EPS Next 3Y9.39%
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 (7/25/2025, 8:04:00 PM)

After market: 84.59 0 (0%)

84.59

-0.25 (-0.29%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)07-23 2025-07-23/amc
Earnings (Next)10-21 2025-10-21/amc
Inst Owners90.66%
Inst Owner Change0%
Ins Owners0.84%
Ins Owner Change1.64%
Market Cap14.14B
Analysts70
Price Target92.76 (9.66%)
Short Float %1.84%
Short Ratio4.3
Dividend
Industry RankSector Rank
Dividend Yield 1.3%
Yearly Dividend1.02
Dividend Growth(5Y)9.78%
DP36.94%
Div Incr Years1
Div Non Decr Years1
Ex-Date07-21 2025-07-21 (0.275)
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)1.99%
PT rev (3m)0.86%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)-0.78%
EPS NY rev (1m)0.21%
EPS NY rev (3m)-1.33%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)1.59%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.44%
Valuation
Industry RankSector Rank
PE 30.21
Fwd PE 26.16
P/S 6.52
P/FCF 23.24
P/OCF 21.04
P/B 5.65
P/tB 8.11
EV/EBITDA 20.11
EPS(TTM)2.8
EY3.31%
EPS(NY)3.23
Fwd EY3.82%
FCF(TTM)3.64
FCFY4.3%
OCF(TTM)4.02
OCFY4.75%
SpS12.97
BVpS14.96
TBVpS10.43
PEG (NY)3.44
PEG (5Y)3.9
Profitability
Industry RankSector 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 RankSector 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 17.9
F-Score5
WACC9.89%
ROIC/WACC1.8
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 Y8.79%
EPS Next 2Y8.24%
EPS Next 3Y9.39%
EPS Next 5Y11.74%
Revenue 1Y (TTM)0.75%
Revenue growth 3Y2.07%
Revenue growth 5Y5.13%
Sales Q2Q%3.36%
Revenue Next Year6.06%
Revenue Next 2Y5.07%
Revenue Next 3Y5.81%
Revenue Next 5Y9.48%
EBIT growth 1Y-9.14%
EBIT growth 3Y2.38%
EBIT growth 5Y6.08%
EBIT Next Year17.03%
EBIT Next 3Y10.94%
EBIT Next 5Y13.22%
FCF growth 1Y90.01%
FCF growth 3Y16.79%
FCF growth 5Y12.12%
OCF growth 1Y28.05%
OCF growth 3Y10.81%
OCF growth 5Y8.23%