Why the quality investor may take a look at NYSE:GGG.

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.

A Deep Dive into GRACO INC's Quality Metrics.

• GRACO INC has shown strong performance in revenue growth over the past 5 years, with a 5.84% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• GRACO INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 40.75% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• GRACO INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.06, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• 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.
• The 5-year EBIT growth of GRACO INC has been remarkable, with 8.45% 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.

Zooming in on the fundamentals.

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.

GGG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 133 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. These ratings could make GGG a good candidate for quality investing.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

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.