Should Quality Investors Include NYSE:GGG in Their Portfolio?

In this article we will dive into GRACO INC (NYSE:GGG) as a possible candidate for quality investing. Investors should always do their own research, but we noticed GRACO INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Highlighting Notable Quality Metrics of NYSE:GGG.

• The 5-year revenue growth of GRACO INC has been remarkable, with 5.84% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• GRACO INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 40.75% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a favorable Debt/Free Cash Flow Ratio of 0.06, GRACO INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• With a robust Profit Quality (5-year) ratio of 77.19%, GRACO INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• GRACO INC has experienced impressive EBIT growth over the past 5 years, with 8.45% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• GRACO INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Zooming in on the fundamentals.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall GGG gets a fundamental rating of 7 out of 10. We evaluated GGG against 133 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 could make GGG a good candidate for quality investing.

For an up to date full fundamental analysis you can check the fundamental report of GGG

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.