GRACO INC (GGG) Stock Fundamental Analysis
USA - NYSE:GGG - US3841091040 - Common Stock
84.44 USD
-1.62 (-1.88%)
84.44 USD
0 (0%)
Overall GGG gets a fundamental rating of 7 out of 10. We evaluated GGG against 128 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. 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.
GGG had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 15.84%, GGG belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
GGG has a better Return On Equity (19.30%) than 83.59% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.81%, GGG belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
GGG had an Average Return On Invested Capital over the past 3 years of 21.05%. This is significantly above the industry average of 10.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.84% | ||
| ROE | 19.3% | ||
| ROIC | 17.81% |
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 22.26% is amongst the best of the industry. GGG outperforms 98.44% of its industry peers.
In the last couple of years the Profit Margin of GGG has grown nicely.
Looking at the Operating Margin, with a value of 26.63%, GGG belongs to the top of the industry, outperforming 99.22% of the companies in the same industry.
In the last couple of years the Operating Margin of GGG has remained more or less at the same level.
Looking at the Gross Margin, with a value of 52.25%, GGG belongs to the top of the industry, outperforming 94.53% 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 | 26.63% | ||
| PM (TTM) | 22.26% | ||
| GM | 52.25% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GGG 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
Compared to 1 year ago, GGG has an improved debt to assets ratio.
2.2 Solvency
GGG has an Altman-Z score of 18.04. This indicates that GGG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GGG (18.04) is better than 97.66% of its industry peers.
The Debt to FCF ratio of GGG is 0.05, which is an excellent value as it means it would take GGG, only 0.05 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GGG (0.05) is better than 92.19% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that GGG is not too dependend on debt financing.
The Debt to Equity ratio of GGG (0.01) is better than 82.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 18.04 |
ROIC/WACC1.79
WACC9.93%
2.3 Liquidity
GGG has a Current Ratio of 3.55. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
GGG's Current ratio of 3.55 is amongst the best of the industry. GGG outperforms 85.16% of its industry peers.
GGG has a Quick Ratio of 2.52. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.52, GGG belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.55 | ||
| Quick Ratio | 2.52 |
3. Growth
3.1 Past
GGG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.72%.
The Earnings Per Share has been growing slightly by 7.75% on average over the past years.
Looking at the last year, GGG shows a small growth in Revenue. The Revenue has grown by 0.75% 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)-5.72%
EPS 3Y4.34%
EPS 5Y7.75%
EPS Q2Q%-1.32%
Revenue 1Y (TTM)0.75%
Revenue growth 3Y2.07%
Revenue growth 5Y5.13%
Sales Q2Q%3.36%
3.2 Future
The Earnings Per Share is expected to grow by 11.41% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.34% on average over the next years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 30.16 indicates a quite expensive valuation of GGG.
The rest of the industry has a similar Price/Earnings ratio as GGG.
GGG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 26.11, GGG can be considered very expensive at the moment.
61.72% of the companies in the same industry are cheaper than GGG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GGG to the average of the S&P500 Index (22.73), we can say GGG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.16 | ||
| Fwd PE | 26.11 |
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 62.50% 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 | 23 | ||
| EV/EBITDA | 20.29 |
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)3.62
PEG (5Y)3.89
EPS Next 2Y8.24%
EPS Next 3Y9.48%
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 1.78.
With a Dividend Yield of 1.28, GGG pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
On average, the dividend of GGG grows each year by 9.78%, 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)9.78%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
36.94% 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.
DP36.94%
EPS Next 2Y8.24%
EPS Next 3Y9.48%
84.44
-1.62 (-1.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners91.25%
Inst Owner Change-0.84%
Ins Owners0.85%
Ins Owner Change0.78%
Market Cap13.99B
Analysts71.76
Price Target94.46 (11.87%)
Short Float %2.22%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend1.02
Dividend Growth(5Y)9.78%
DP36.94%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.78%
Min EPS beat(2)-5.58%
Max EPS beat(2)2.02%
EPS beat(4)1
Avg EPS beat(4)-7.05%
Min EPS beat(4)-17.34%
Max EPS beat(4)2.02%
EPS beat(8)3
Avg EPS beat(8)-5.06%
EPS beat(12)6
Avg EPS beat(12)-1.88%
EPS beat(16)8
Avg EPS beat(16)-2.37%
Revenue beat(2)0
Avg Revenue beat(2)-2.49%
Min Revenue beat(2)-4.09%
Max Revenue beat(2)-0.89%
Revenue beat(4)0
Avg Revenue beat(4)-2.98%
Min Revenue beat(4)-4.57%
Max Revenue beat(4)-0.89%
Revenue beat(8)0
Avg Revenue beat(8)-3.53%
Revenue beat(12)2
Avg Revenue beat(12)-2.03%
Revenue beat(16)4
Avg Revenue beat(16)-1.63%
PT rev (1m)1.83%
PT rev (3m)3.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.78%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.16 | ||
| Fwd PE | 26.11 | ||
| P/S | 6.45 | ||
| P/FCF | 23 | ||
| P/OCF | 20.82 | ||
| P/B | 5.59 | ||
| P/tB | 8.03 | ||
| EV/EBITDA | 20.29 |
EPS(TTM)2.8
EY3.32%
EPS(NY)3.23
Fwd EY3.83%
FCF(TTM)3.67
FCFY4.35%
OCF(TTM)4.06
OCFY4.8%
SpS13.08
BVpS15.09
TBVpS10.52
PEG (NY)3.62
PEG (5Y)3.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.84% | ||
| ROE | 19.3% | ||
| ROCE | 21.72% | ||
| ROIC | 17.81% | ||
| ROICexc | 22.23% | ||
| ROICexgc | 34.35% | ||
| OM | 26.63% | ||
| PM (TTM) | 22.26% | ||
| GM | 52.25% | ||
| FCFM | 28.06% |
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 | 63.94% | ||
| Cap/Sales | 2.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.32% | ||
| Profit Quality | 126.06% | ||
| Current Ratio | 3.55 | ||
| Quick Ratio | 2.52 | ||
| Altman-Z | 18.04 |
F-Score5
WACC9.93%
ROIC/WACC1.79
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)-5.72%
EPS 3Y4.34%
EPS 5Y7.75%
EPS Q2Q%-1.32%
EPS Next Y8.33%
EPS Next 2Y8.24%
EPS Next 3Y9.48%
EPS Next 5Y11.41%
Revenue 1Y (TTM)0.75%
Revenue growth 3Y2.07%
Revenue growth 5Y5.13%
Sales Q2Q%3.36%
Revenue Next Year5.78%
Revenue Next 2Y4.98%
Revenue Next 3Y5.65%
Revenue Next 5Y9.34%
EBIT growth 1Y-9.14%
EBIT growth 3Y2.38%
EBIT growth 5Y6.08%
EBIT Next Year17.91%
EBIT Next 3Y11.23%
EBIT Next 5Y12.88%
FCF growth 1Y90.01%
FCF growth 3Y16.79%
FCF growth 5Y12.12%
OCF growth 1Y28.05%
OCF growth 3Y10.81%
OCF growth 5Y8.23%