GRACO INC (GGG) Stock Fundamental Analysis
NYSE:GGG • US3841091040
94.67 USD
+0.39 (+0.41%)
At close: Feb 13, 2026
94.67 USD
0 (0%)
After Hours: 2/13/2026, 8:13:19 PM
Taking everything into account, GGG scores 8 out of 10 in our fundamental rating. GGG was compared to 132 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making GGG a very profitable company, without any liquidiy or solvency issues. GGG is quite expensive at the moment. It does show 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.
- In the past year GGG had a positive cash flow from operations.
- In the past 5 years GGG has always been profitable.
- In the past 5 years GGG always reported a positive cash flow from operatings.
1.2 Ratios
- GGG has a Return On Assets of 15.94%. This is amongst the best in the industry. GGG outperforms 96.21% of its industry peers.
- GGG has a Return On Equity of 19.66%. This is amongst the best in the industry. GGG outperforms 89.39% of its industry peers.
- GGG's Return On Invested Capital of 18.47% is amongst the best of the industry. GGG outperforms 93.94% of its industry peers.
- GGG had an Average Return On Invested Capital over the past 3 years of 19.39%. This is significantly above the industry average of 10.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.94% | ||
| ROE | 19.66% | ||
| ROIC | 18.47% |
ROA(3y)16.68%
ROA(5y)17.38%
ROE(3y)20.42%
ROE(5y)22.35%
ROIC(3y)19.39%
ROIC(5y)20.59%
1.3 Margins
- With an excellent Profit Margin value of 23.33%, GGG belongs to the best of the industry, outperforming 99.24% of the companies in the same industry.
- GGG's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 28.52%, GGG belongs to the top of the industry, outperforming 99.24% of the companies in the same industry.
- In the last couple of years the Operating Margin of GGG has grown nicely.
- With an excellent Gross Margin value of 53.03%, GGG belongs to the best of the industry, outperforming 94.70% 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 | 28.52% | ||
| PM (TTM) | 23.33% | ||
| GM | 53.04% |
OM growth 3Y2.25%
OM growth 5Y2%
PM growth 3Y2.78%
PM growth 5Y3.1%
GM growth 3Y2.47%
GM growth 5Y0.49%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GGG is creating value.
- Compared to 1 year ago, GGG has less shares outstanding
- Compared to 5 years ago, GGG has less shares outstanding
- The debt/assets ratio for GGG has been reduced compared to a year ago.
2.2 Solvency
- GGG has an Altman-Z score of 17.50. This indicates that GGG is financially healthy and has little risk of bankruptcy at the moment.
- GGG has a better Altman-Z score (17.50) than 97.73% of its industry peers.
- GGG has a debt to FCF ratio of 0.04. This is a very positive value and a sign of high solvency as it would only need 0.04 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.04, GGG belongs to the top of the industry, outperforming 92.42% of the companies in the same industry.
- A Debt/Equity ratio of 0.01 indicates that GGG is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.01, GGG belongs to the top of the industry, outperforming 84.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 17.5 |
ROIC/WACC2.03
WACC9.11%
2.3 Liquidity
- A Current Ratio of 3.15 indicates that GGG has no problem at all paying its short term obligations.
- With a decent Current ratio value of 3.15, GGG is doing good in the industry, outperforming 79.55% of the companies in the same industry.
- GGG has a Quick Ratio of 2.29. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of GGG (2.29) is better than 81.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.15 | ||
| Quick Ratio | 2.29 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.88% over the past year.
- Measured over the past years, GGG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.63% on average per year.
- The Revenue has been growing slightly by 5.83% in the past year.
- Measured over the past years, GGG shows a small growth in Revenue. The Revenue has been growing by 6.27% on average per year.
EPS 1Y (TTM)6.88%
EPS 3Y3.77%
EPS 5Y8.63%
EPS Q2Q%20.31%
Revenue 1Y (TTM)5.83%
Revenue growth 3Y1.43%
Revenue growth 5Y6.27%
Sales Q2Q%8.11%
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 11.35% on average per year.
- GGG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.30% yearly.
EPS Next Y9.34%
EPS Next 2Y9.05%
EPS Next 3Y9.44%
EPS Next 5Y11.35%
Revenue Next Year5.9%
Revenue Next 2Y5.27%
Revenue Next 3Y5.64%
Revenue Next 5Y9.3%
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
- With a Price/Earnings ratio of 32.09, GGG can be considered very expensive at the moment.
- GGG's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of GGG to the average of the S&P500 Index (26.68), we can say GGG is valued slightly more expensively.
- Based on the Price/Forward Earnings ratio of 29.35, the valuation of GGG can be described as 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 28.06, GGG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.09 | ||
| Fwd PE | 29.35 |
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 65.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.6 | ||
| EV/EBITDA | 20.23 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of GGG may justify a higher PE ratio.
PEG (NY)3.44
PEG (5Y)3.72
EPS Next 2Y9.05%
EPS Next 3Y9.44%
5. Dividend
5.1 Amount
- GGG has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.18, GGG pays a bit more dividend than its industry peers.
- GGG's Dividend Yield is slightly below the S&P500 average, which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
- On average, the dividend of GGG grows each year by 9.45%, which is quite nice.
- GGG has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of GGG decreased recently.
Dividend Growth(5Y)9.45%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 35.14% of the earnings are spent on dividend by GGG. This is a low number and sustainable payout ratio.
- GGG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.14%
EPS Next 2Y9.05%
EPS Next 3Y9.44%
94.67
+0.39 (+0.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-26 2026-01-26/amc
Earnings (Next)04-21 2026-04-21
Inst Owners91.17%
Inst Owner Change0.9%
Ins Owners0.85%
Ins Owner Change2.96%
Market Cap15.70B
Revenue(TTM)2.24B
Net Income(TTM)521.84M
Analysts72.94
Price Target98.39 (3.93%)
Short Float %2.55%
Short Ratio4.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend1.09
Dividend Growth(5Y)9.45%
DP35.14%
Div Incr Years1
Div Non Decr Years1
Ex-Date01-16 2026-01-16 (0.295)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.11%
Min EPS beat(2)-2.04%
Max EPS beat(2)-0.17%
EPS beat(4)1
Avg EPS beat(4)-1.44%
Min EPS beat(4)-5.58%
Max EPS beat(4)2.02%
EPS beat(8)1
Avg EPS beat(8)-5.66%
EPS beat(12)4
Avg EPS beat(12)-2.65%
EPS beat(16)7
Avg EPS beat(16)-2.06%
Revenue beat(2)0
Avg Revenue beat(2)-2.32%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)-0.42%
Revenue beat(4)0
Avg Revenue beat(4)-2.41%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)-0.42%
Revenue beat(8)0
Avg Revenue beat(8)-3.55%
Revenue beat(12)1
Avg Revenue beat(12)-2.69%
Revenue beat(16)3
Avg Revenue beat(16)-1.99%
PT rev (1m)5.3%
PT rev (3m)5.04%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)0.53%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)1.15%
Revenue NQ rev (3m)1.41%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.09 | ||
| Fwd PE | 29.35 | ||
| P/S | 7.02 | ||
| P/FCF | 24.6 | ||
| P/OCF | 22.96 | ||
| P/B | 5.91 | ||
| P/tB | 8.89 | ||
| EV/EBITDA | 20.23 |
EPS(TTM)2.95
EY3.12%
EPS(NY)3.23
Fwd EY3.41%
FCF(TTM)3.85
FCFY4.06%
OCF(TTM)4.12
OCFY4.36%
SpS13.49
BVpS16.01
TBVpS10.64
PEG (NY)3.44
PEG (5Y)3.72
Graham Number32.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.94% | ||
| ROE | 19.66% | ||
| ROCE | 22.72% | ||
| ROIC | 18.47% | ||
| ROICexc | 23.69% | ||
| ROICexgc | 39.68% | ||
| OM | 28.52% | ||
| PM (TTM) | 23.33% | ||
| GM | 53.04% | ||
| FCFM | 28.52% |
ROA(3y)16.68%
ROA(5y)17.38%
ROE(3y)20.42%
ROE(5y)22.35%
ROIC(3y)19.39%
ROIC(5y)20.59%
ROICexc(3y)25.2%
ROICexc(5y)27%
ROICexgc(3y)38.22%
ROICexgc(5y)40.95%
ROCE(3y)23.92%
ROCE(5y)25.45%
ROICexgc growth 3Y0.9%
ROICexgc growth 5Y-1.91%
ROICexc growth 3Y-4.53%
ROICexc growth 5Y-2.33%
OM growth 3Y2.25%
OM growth 5Y2%
PM growth 3Y2.78%
PM growth 5Y3.1%
GM growth 3Y2.47%
GM growth 5Y0.49%
F-Score7
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.04 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 42.51% | ||
| Cap/Sales | 2.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.73% | ||
| Profit Quality | 122.25% | ||
| Current Ratio | 3.15 | ||
| Quick Ratio | 2.29 | ||
| Altman-Z | 17.5 |
F-Score7
WACC9.11%
ROIC/WACC2.03
Cap/Depr(3y)138.06%
Cap/Depr(5y)188.86%
Cap/Sales(3y)5.17%
Cap/Sales(5y)6.32%
Profit Quality(3y)106.75%
Profit Quality(5y)86.4%
High Growth Momentum
Growth
EPS 1Y (TTM)6.88%
EPS 3Y3.77%
EPS 5Y8.63%
EPS Q2Q%20.31%
EPS Next Y9.34%
EPS Next 2Y9.05%
EPS Next 3Y9.44%
EPS Next 5Y11.35%
Revenue 1Y (TTM)5.83%
Revenue growth 3Y1.43%
Revenue growth 5Y6.27%
Sales Q2Q%8.11%
Revenue Next Year5.9%
Revenue Next 2Y5.27%
Revenue Next 3Y5.64%
Revenue Next 5Y9.3%
EBIT growth 1Y11.88%
EBIT growth 3Y3.71%
EBIT growth 5Y8.39%
EBIT Next Year22.87%
EBIT Next 3Y18.15%
EBIT Next 5Y13.9%
FCF growth 1Y23.88%
FCF growth 3Y53.55%
FCF growth 5Y14.6%
OCF growth 1Y9.96%
OCF growth 3Y21.9%
OCF growth 5Y11.65%
GRACO INC / GGG FAQ
Can you provide the ChartMill fundamental rating for GRACO INC?
ChartMill assigns a fundamental rating of 8 / 10 to GGG.
What is the valuation status for GGG stock?
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.
Can you provide the financial health for GGG stock?
The financial health rating of GRACO INC (GGG) is 10 / 10.
Can you provide the expected EPS growth for GGG stock?
The Earnings per Share (EPS) of GRACO INC (GGG) is expected to grow by 9.34% in the next year.