GRACO INC (GGG) Stock Fundamental Analysis
NYSE:GGG - New York Stock Exchange, Inc. - US3841091040 - Common Stock - Currency: USD
Taking everything into account, GGG scores 7 out of 10 in our fundamental rating. GGG was compared to 128 industry peers in the Machinery industry. GGG gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, GGG is valued expensive at the moment. 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.
Each year in the past 5 years GGG has been profitable.
In the past 5 years GGG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.22%, GGG belongs to the top of the industry, outperforming 95.31% of the companies in the same industry.
GGG has a Return On Equity of 19.69%. This is amongst the best in the industry. GGG outperforms 83.59% of its industry peers.
GGG has a better Return On Invested Capital (18.12%) than 91.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GGG is significantly above the industry average of 10.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.22% | ||
| ROE | 19.69% | ||
| ROIC | 18.12% |
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's Profit Margin of 22.70% is amongst the best of the industry. GGG outperforms 97.66% of its industry peers.
GGG's Profit Margin has improved in the last couple of years.
GGG's Operating Margin of 27.04% is amongst the best of the industry. GGG outperforms 99.22% 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 52.76%, GGG belongs to the best of the industry, outperforming 94.53% of the companies in the same industry.
GGG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.04% | ||
| PM (TTM) | 22.7% | ||
| GM | 52.76% |
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
The number of shares outstanding for GGG has been increased compared to 5 years ago.
Compared to 1 year ago, GGG has an improved debt to assets ratio.
2.2 Solvency
GGG has an Altman-Z score of 18.38. This indicates that GGG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GGG (18.38) is better than 97.66% 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 90.63% 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 82.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 18.38 |
ROIC/WACC1.72
WACC10.52%
2.3 Liquidity
A Current Ratio of 3.61 indicates that GGG has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.61, GGG belongs to the best of the industry, outperforming 83.59% of the companies in the same industry.
GGG has a Quick Ratio of 2.53. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.53, GGG belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.61 | ||
| Quick Ratio | 2.53 |
3. Growth
3.1 Past
GGG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.07%.
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 decrease in Revenue. The Revenue has decreased by -0.40% 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)-5.07%
EPS 3Y4.34%
EPS 5Y7.75%
EPS Q2Q%7.69%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y2.07%
Revenue growth 5Y5.13%
Sales Q2Q%7.33%
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 11.60% on average per year.
GGG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.10% yearly.
EPS Next Y8.57%
EPS Next 2Y8.18%
EPS Next 3Y9.26%
EPS Next 5Y11.6%
Revenue Next Year6.02%
Revenue Next 2Y5.03%
Revenue Next 3Y5.67%
Revenue Next 5Y10.1%
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
With a Price/Earnings ratio of 30.05, GGG can be considered very expensive at the moment.
Based on the Price/Earnings ratio, GGG is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.03, GGG is valued at the same level.
A Price/Forward Earnings ratio of 26.15 indicates a quite expensive valuation of GGG.
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 64.84% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GGG to the average of the S&P500 Index (21.94), we can say GGG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.05 | ||
| Fwd PE | 26.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GGG is valued a bit more expensive than 64.06% of the companies 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 | 25.75 | ||
| EV/EBITDA | 20.22 |
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.
GGG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.51
PEG (5Y)3.88
EPS Next 2Y8.18%
EPS Next 3Y9.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.28%, GGG has a reasonable but not impressive dividend return.
GGG's Dividend Yield is a higher than the industry average which is at 1.83.
Compared to an average S&P500 Dividend Yield of 2.36, GGG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
The dividend of GGG is nicely growing with an annual growth rate of 9.78%!
GGG has paid a dividend for at least 10 years, which is 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
36.03% of the earnings are spent on dividend by GGG. This is a low number and 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.
DP36.03%
EPS Next 2Y8.18%
EPS Next 3Y9.26%
NYSE:GGG (5/22/2025, 12:34:07 PM)
84.45
-0.17 (-0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.65%
Inst Owner Change-0.78%
Ins Owners0.85%
Ins Owner Change3.07%
Market Cap14.11B
Analysts70
Price Target90.95 (7.7%)
Short Float %1.62%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend1.02
Dividend Growth(5Y)9.78%
DP36.03%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.66%
Min EPS beat(2)-17.34%
Max EPS beat(2)2.02%
EPS beat(4)1
Avg EPS beat(4)-5.98%
Min EPS beat(4)-17.34%
Max EPS beat(4)2.02%
EPS beat(8)3
Avg EPS beat(8)-5.21%
EPS beat(12)7
Avg EPS beat(12)-1.35%
EPS beat(16)9
Avg EPS beat(16)-1.98%
Revenue beat(2)0
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-2.37%
Max Revenue beat(2)-0.89%
Revenue beat(4)0
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-4.57%
Max Revenue beat(4)-0.89%
Revenue beat(8)0
Avg Revenue beat(8)-3.5%
Revenue beat(12)3
Avg Revenue beat(12)-1.54%
Revenue beat(16)5
Avg Revenue beat(16)-1.06%
PT rev (1m)-2.73%
PT rev (3m)-4.03%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)-1.25%
EPS NY rev (1m)-1.54%
EPS NY rev (3m)-1.86%
Revenue NQ rev (1m)1.46%
Revenue NQ rev (3m)1.46%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.05 | ||
| Fwd PE | 26.15 | ||
| P/S | 6.57 | ||
| P/FCF | 25.75 | ||
| P/OCF | 22.47 | ||
| P/B | 5.7 | ||
| P/tB | 8.06 | ||
| EV/EBITDA | 20.22 |
EPS(TTM)2.81
EY3.33%
EPS(NY)3.23
Fwd EY3.82%
FCF(TTM)3.28
FCFY3.88%
OCF(TTM)3.76
OCFY4.45%
SpS12.86
BVpS14.83
TBVpS10.47
PEG (NY)3.51
PEG (5Y)3.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.22% | ||
| ROE | 19.69% | ||
| ROCE | 22.11% | ||
| ROIC | 18.12% | ||
| ROICexc | 22.71% | ||
| ROICexgc | 34.57% | ||
| OM | 27.04% | ||
| PM (TTM) | 22.7% | ||
| GM | 52.76% | ||
| FCFM | 25.5% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 87.17% | ||
| Cap/Sales | 3.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.33% | ||
| Profit Quality | 112.31% | ||
| Current Ratio | 3.61 | ||
| Quick Ratio | 2.53 | ||
| Altman-Z | 18.38 |
F-Score5
WACC10.52%
ROIC/WACC1.72
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)-5.07%
EPS 3Y4.34%
EPS 5Y7.75%
EPS Q2Q%7.69%
EPS Next Y8.57%
EPS Next 2Y8.18%
EPS Next 3Y9.26%
EPS Next 5Y11.6%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y2.07%
Revenue growth 5Y5.13%
Sales Q2Q%7.33%
Revenue Next Year6.02%
Revenue Next 2Y5.03%
Revenue Next 3Y5.67%
Revenue Next 5Y10.1%
EBIT growth 1Y-7.91%
EBIT growth 3Y2.38%
EBIT growth 5Y6.08%
EBIT Next Year20.82%
EBIT Next 3Y12.54%
EBIT Next 5Y13.65%
FCF growth 1Y124.15%
FCF growth 3Y16.79%
FCF growth 5Y12.12%
OCF growth 1Y43.78%
OCF growth 3Y10.81%
OCF growth 5Y8.23%