GRACO INC (GGG) Stock Fundamental Analysis
USA - NYSE:GGG - US3841091040 - Common Stock
81.77 USD
+1.11 (+1.38%)
81.77 USD
0 (0%)
Overall GGG gets a fundamental rating of 7 out of 10. We evaluated GGG against 130 industry peers in the Machinery industry. GGG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
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
The Return On Assets of GGG (15.41%) is better than 96.15% of its industry peers.
GGG has a Return On Equity of 19.09%. This is amongst the best in the industry. GGG outperforms 83.85% of its industry peers.
With an excellent Return On Invested Capital value of 17.64%, GGG belongs to the best 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
GGG has a Profit Margin of 22.72%. This is amongst the best in the industry. GGG outperforms 98.46% of its industry peers.
In the last couple of years the Profit Margin of GGG has grown nicely.
GGG has a Operating Margin of 27.20%. This is amongst the best in the industry. GGG outperforms 99.23% of its industry peers.
GGG's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 52.27%, GGG belongs to the top of the industry, outperforming 94.62% of the companies in the same industry.
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.
Compared to 1 year ago, GGG has more shares outstanding
GGG has more shares outstanding than it did 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 15.14 indicates that GGG is not in any danger for bankruptcy at the moment.
The Altman-Z score of GGG (15.14) is better than 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 better Debt to FCF ratio (0.06) than 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.
The Debt to Equity ratio of GGG (0.01) is better than 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 15.14 |
ROIC/WACC1.85
WACC9.55%
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.
GGG has a Current ratio of 3.18. This is in the better half of the industry: GGG outperforms 79.23% of its industry peers.
A Quick Ratio of 2.27 indicates that GGG has no problem at all paying its short term obligations.
GGG has a better Quick ratio (2.27) 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.
Looking at the last year, GGG shows a small growth in Revenue. The Revenue has grown by 2.85% in the last year.
GGG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.13% yearly.
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
GGG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.41% yearly.
GGG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.34% yearly.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.00 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 (26.10), we can say GGG is valued inline with the index average.
A Price/Forward Earnings ratio of 25.29 indicates a quite expensive valuation of GGG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GGG is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.52. GGG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29 | ||
| Fwd PE | 25.29 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GGG.
Based on the Price/Free Cash Flow ratio, GGG is valued a bit cheaper than 66.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.68 | ||
| EV/EBITDA | 18.3 |
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)3.48
PEG (5Y)3.74
EPS Next 2Y8.24%
EPS Next 3Y9.48%
5. Dividend
5.1 Amount
GGG has a Yearly Dividend Yield of 1.36%. 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.
With a Dividend Yield of 1.36, GGG pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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
36.31% of the earnings are spent on dividend by GGG. This is a low number and sustainable payout ratio.
The dividend of GGG is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP36.31%
EPS Next 2Y8.24%
EPS Next 3Y9.48%
81.77
+1.11 (+1.38%)
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 Cap13.55B
Revenue(TTM)2.19B
Net Income(TTM)498.06M
Analysts71.76
Price Target93.66 (14.54%)
Short Float %2.5%
Short Ratio5.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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%
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 | ||
| Fwd PE | 25.29 | ||
| P/S | 6.18 | ||
| P/FCF | 21.68 | ||
| P/OCF | 20.15 | ||
| P/B | 5.19 | ||
| P/tB | 7.62 | ||
| EV/EBITDA | 18.3 |
EPS(TTM)2.82
EY3.45%
EPS(NY)3.23
Fwd EY3.95%
FCF(TTM)3.77
FCFY4.61%
OCF(TTM)4.06
OCFY4.96%
SpS13.23
BVpS15.75
TBVpS10.73
PEG (NY)3.48
PEG (5Y)3.74
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 | 15.14 |
F-Score5
WACC9.55%
ROIC/WACC1.85
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 and the Price/Book (PB) ratio is 5.19.
What is the financial health of GRACO INC (GGG) stock?
The financial health rating of GRACO INC (GGG) is 9 / 10.