Exploring GRACO INC (NYSE:GGG)s quality characteristics.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if GRACO INC (NYSE:GGG) is suited for quality investing. Investors should of course do their own research, but we spotted GRACO INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of GRACO INC

• GRACO INC has shown strong performance in revenue growth over the past 5 years, with a 7.77% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a notable ROIC excluding cash and goodwill at 41.26%, GRACO INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• The Debt/Free Cash Flow Ratio of GRACO INC stands at 0.07, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• With a favorable Profit Quality (5-year) ratio of 77.2%, GRACO INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• The 5-year EBIT growth of GRACO INC has been remarkable, with 8.62% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• GRACO INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

How does the complete fundamental picture look for NYSE:GGG?

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, GGG scores 7 out of 10 in our fundamental rating. GGG was compared to 132 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 valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, GGG could be worth investigating further for quality investing!.

Our latest full fundamental report of GGG contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.