GRACO INC (GGG) Stock Fundamental Analysis
USA - NYSE:GGG - US3841091040 - Common Stock
81.95 USD
-0.45 (-0.55%)
81.95 USD
0 (0%)
Taking everything into account, GGG scores 7 out of 10 in our fundamental rating. 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 quite expensive at the moment. It does show a decent growth rate. These ratings could make GGG a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year GGG was profitable.
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's Return On Assets of 15.41% is amongst the best of the industry. GGG outperforms 96.15% of its industry peers.
GGG's Return On Equity of 19.09% is amongst the best of the industry. GGG outperforms 83.85% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.64%, GGG belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GGG is significantly above the industry average of 10.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.41% | ||
| ROE | 19.09% | ||
| ROIC | 17.64% |
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
With an excellent Profit Margin value of 22.72%, GGG belongs to the best 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 27.20% is amongst the best of the industry. GGG outperforms 99.23% of its industry peers.
In the last couple of years the Operating Margin of GGG has remained more or less at the same level.
GGG has a Gross Margin of 52.27%. This is amongst the best in the industry. GGG outperforms 94.62% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.2% | ||
| PM (TTM) | 22.72% | ||
| GM | 52.27% |
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
The debt/assets ratio for GGG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 15.41 indicates that GGG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 15.41, GGG belongs to the top of the industry, outperforming 96.92% of the companies in the same industry.
GGG has a debt to FCF ratio of 0.06. This is a very positive value and a sign of high solvency as it would only need 0.06 years to pay back of all of its debts.
GGG has a better Debt to FCF ratio (0.06) than 92.31% 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 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 15.41 |
ROIC/WACC1.86
WACC9.49%
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.
Looking at the Current ratio, with a value of 3.18, GGG is in the better half of the industry, outperforming 79.23% of the companies in the same industry.
A Quick Ratio of 2.27 indicates that GGG has no problem at all paying its short term obligations.
The Quick ratio of GGG (2.27) is better than 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
The earnings per share for GGG have decreased by -3.42% in the last year.
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.
The Revenue has been growing slightly by 2.85% in the past year.
The Revenue has been growing slightly by 5.13% on average over the past years.
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
Based on estimates for the next years, GGG will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.41% on average per year.
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
A Price/Earnings ratio of 29.06 indicates a quite expensive valuation of GGG.
The rest of the industry has a similar Price/Earnings ratio as GGG.
When comparing the Price/Earnings ratio of GGG to the average of the S&P500 Index (27.08), we can say GGG is valued inline with the index average.
The Price/Forward Earnings ratio is 25.34, which means the current valuation is very expensive for GGG.
The rest of the industry has a similar Price/Forward Earnings ratio as GGG.
When comparing the Price/Forward Earnings ratio of GGG to the average of the S&P500 Index (23.09), we can say GGG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.06 | ||
| Fwd PE | 25.34 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GGG.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GGG indicates a somewhat cheap valuation: GGG is cheaper than 65.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.73 | ||
| EV/EBITDA | 18.71 |
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)3.49
PEG (5Y)3.75
EPS Next 2Y8.24%
EPS Next 3Y9.48%
5. Dividend
5.1 Amount
GGG has a Yearly Dividend Yield of 1.33%.
Compared to an average industry Dividend Yield of 1.78, GGG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, GGG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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
5.3 Sustainability
GGG pays out 36.31% 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.
DP36.31%
EPS Next 2Y8.24%
EPS Next 3Y9.48%
81.95
-0.45 (-0.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.99%
Inst Owner Change0.01%
Ins Owners0.85%
Ins Owner Change0.01%
Market Cap13.58B
Revenue(TTM)2.19B
Net Income(TTM)498.06M
Analysts71.76
Price Target94.46 (15.27%)
Short Float %2.5%
Short Ratio5.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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)-4.21%
Max Revenue beat(2)-4.09%
Revenue beat(4)0
Avg Revenue beat(4)-2.89%
Min Revenue beat(4)-4.21%
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%
PT rev (3m)1.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.06 | ||
| Fwd PE | 25.34 | ||
| P/S | 6.19 | ||
| P/FCF | 21.73 | ||
| P/OCF | 20.19 | ||
| P/B | 5.2 | ||
| P/tB | 7.64 | ||
| EV/EBITDA | 18.71 |
EPS(TTM)2.82
EY3.44%
EPS(NY)3.23
Fwd EY3.95%
FCF(TTM)3.77
FCFY4.6%
OCF(TTM)4.06
OCFY4.95%
SpS13.23
BVpS15.75
TBVpS10.73
PEG (NY)3.49
PEG (5Y)3.75
Graham Number31.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.41% | ||
| ROE | 19.09% | ||
| ROCE | 21.56% | ||
| ROIC | 17.64% | ||
| ROICexc | 22.64% | ||
| ROICexgc | 36.59% | ||
| OM | 27.2% | ||
| PM (TTM) | 22.72% | ||
| GM | 52.27% | ||
| 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 | 96.53% | ||
| Profit Quality | 125.46% | ||
| Current Ratio | 3.18 | ||
| Quick Ratio | 2.27 | ||
| Altman-Z | 15.41 |
F-Score5
WACC9.49%
ROIC/WACC1.86
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 Y8.33%
EPS Next 2Y8.24%
EPS Next 3Y9.48%
EPS Next 5Y11.41%
Revenue 1Y (TTM)2.85%
Revenue growth 3Y2.07%
Revenue growth 5Y5.13%
Sales Q2Q%4.65%
Revenue Next Year5.78%
Revenue Next 2Y4.98%
Revenue Next 3Y5.65%
Revenue Next 5Y9.34%
EBIT growth 1Y-2.26%
EBIT growth 3Y2.38%
EBIT growth 5Y6.08%
EBIT Next Year17.91%
EBIT Next 3Y11.23%
EBIT Next 5Y12.88%
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 29.06 and the Price/Book (PB) ratio is 5.2.
What is the financial health of GRACO INC (GGG) stock?
The financial health rating of GRACO INC (GGG) is 9 / 10.