GRACO INC (GGG)
US3841091040 - Common Stock
Overall GGG gets a fundamental rating of 7 out of 10. We evaluated GGG against 132 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. GGG is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make GGG suitable 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.
GGG had positive earnings in each of the past 5 years.
In the past 5 years GGG always reported a positive cash flow from operatings.
1.2 Ratios
GGG has a better Return On Assets (17.93%) than 96.90% of its industry peers.
GGG's Return On Equity of 21.39% is amongst the best of the industry. GGG outperforms 83.72% of its industry peers.
GGG has a Return On Invested Capital of 21.07%. This is amongst the best in the industry. GGG outperforms 95.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GGG is significantly above the industry average of 10.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.93% | ||
| ROE | 21.39% | ||
| ROIC | 21.07% |
ROA(3y)18.5%
ROA(5y)18.49%
ROE(3y)24.43%
ROE(5y)26.51%
ROIC(3y)22.61%
ROIC(5y)22.67%
1.3 Margins
GGG has a Profit Margin of 23.15%. This is amongst the best in the industry. GGG outperforms 99.22% of its industry peers.
In the last couple of years the Profit Margin of GGG has grown nicely.
With an excellent Operating Margin value of 29.24%, GGG belongs to the best of the industry, outperforming 99.22% of the companies in the same industry.
GGG's Operating Margin has improved in the last couple of years.
The Gross Margin of GGG (52.92%) is better than 95.35% 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 | 29.24% | ||
| PM (TTM) | 23.15% | ||
| GM | 52.92% |
OM growth 3Y4.84%
OM growth 5Y2.47%
PM growth 3Y4.82%
PM growth 5Y2.26%
GM growth 3Y0.68%
GM growth 5Y-0.19%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GGG is creating value.
GGG has about the same amout of 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.
2.2 Solvency
GGG has an Altman-Z score of 21.28. This indicates that GGG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 21.28, GGG belongs to the top of the industry, outperforming 97.67% of the companies in the same industry.
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 93.80% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that GGG is not too dependend on debt financing.
GGG has a better Debt to Equity ratio (0.01) than 83.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 21.28 |
ROIC/WACC2.3
WACC9.16%
2.3 Liquidity
GGG has a Current Ratio of 4.11. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
GGG has a Current ratio of 4.11. This is amongst the best in the industry. GGG outperforms 87.60% of its industry peers.
A Quick Ratio of 2.80 indicates that GGG has no problem at all paying its short term obligations.
GGG's Quick ratio of 2.80 is amongst the best of the industry. GGG outperforms 86.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.11 | ||
| Quick Ratio | 2.8 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.34% over the past year.
The Earnings Per Share has been growing by 10.04% on average over the past years. This is quite good.
Looking at the last year, GGG shows a decrease in Revenue. The Revenue has decreased by -0.94% in the last year.
GGG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.84% yearly.
EPS 1Y (TTM)5.34%
EPS 3Y16.08%
EPS 5Y10.04%
EPS growth Q2Q-12.16%
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y9.99%
Revenue growth 5Y5.84%
Revenue growth Q2Q-7.06%
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 9.02% yearly.
GGG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.96% yearly.
EPS Next Y4.57%
EPS Next 2Y5.64%
EPS Next 3Y6.64%
EPS Next 5Y9.02%
Revenue Next Year2.94%
Revenue Next 2Y3.83%
Revenue Next 3Y4.81%
Revenue Next 5Y8.96%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 28.22 indicates a quite expensive valuation of GGG.
GGG's Price/Earnings is on the same level as the industry average.
GGG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.11.
Based on the Price/Forward Earnings ratio of 24.54, the valuation of GGG can be described as rather expensive.
GGG's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.39, GGG is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.22 | ||
| Fwd PE | 24.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GGG indicates a slightly more expensive valuation: GGG is more expensive than 63.57% of the companies listed in the same industry.
GGG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.51 | ||
| EV/EBITDA | 18.94 |
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)6.18
PEG (5Y)2.81
EPS Next 2Y5.64%
EPS Next 3Y6.64%
5. Dividend
5.1 Amount
GGG has a Yearly Dividend Yield of 1.26%.
GGG's Dividend Yield is a higher than the industry average which is at 1.72.
Compared to an average S&P500 Dividend Yield of 2.40, GGG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
On average, the dividend of GGG grows each year by 12.19%, which is quite nice.
GGG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.19%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
GGG pays out 32.38% of its income as dividend. This is a sustainable payout ratio.
GGG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.38%
EPS Next 2Y5.64%
EPS Next 3Y6.64%
GRACO INC
NYSE:GGG (5/7/2024, 6:00:00 PM)
After market: 83.52 0 (0%)83.52
+0.67 (+0.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.22 | ||
| Fwd PE | 24.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)6.18
PEG (5Y)2.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.93% | ||
| ROE | 21.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.24% | ||
| PM (TTM) | 23.15% | ||
| GM | 52.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.11 | ||
| Quick Ratio | 2.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)5.34%
EPS 3Y16.08%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y9.99%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y