GRACO INC (GGG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GGG - US3841091040 - Common Stock
82.28 USD
+2.6 (+3.26%)
82.28 USD
0 (0%)
GGG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. GGG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GGG is quite expensive at the moment. It does show a decent growth rate. With these ratings, GGG could be worth investigating further 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.
Each year in the past 5 years GGG has been profitable.
Each year in the past 5 years GGG had a positive operating cash flow.
1.2 Ratios
GGG has a Return On Assets of 15.41%. This is amongst the best in the industry. GGG outperforms 95.38% of its industry peers.
GGG has a Return On Equity of 19.09%. This is amongst the best in the industry. GGG outperforms 84.62% of its industry peers.
With an excellent Return On Invested Capital value of 17.91%, GGG belongs to the best of the industry, outperforming 93.08% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GGG is significantly above the industry average of 10.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.41% | ||
| ROE | 19.09% | ||
| ROIC | 17.91% |
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
Looking at the Profit Margin, with a value of 22.72%, GGG belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
In the last couple of years the Profit Margin of GGG has grown nicely.
With an excellent Operating Margin value of 27.61%, GGG belongs to the best of the industry, outperforming 99.23% 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.
With an excellent Gross Margin value of 52.68%, GGG belongs to the best of the industry, outperforming 94.62% 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 | 27.61% | ||
| PM (TTM) | 22.72% | ||
| GM | 52.68% |
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.
GGG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, GGG has more shares outstanding
GGG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 15.40 indicates that GGG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 15.40, GGG belongs to the best of the industry, outperforming 97.69% of the companies in the same industry.
The Debt to FCF ratio of GGG is 0.06, which is an excellent value as it means it would take GGG, only 0.06 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.06, GGG belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
GGG has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
GGG has a better Debt to Equity ratio (0.01) than 83.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 15.4 |
ROIC/WACC1.91
WACC9.38%
2.3 Liquidity
GGG has a Current Ratio of 3.18. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.18, GGG is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
A Quick Ratio of 2.27 indicates that GGG has no problem at all paying its short term obligations.
GGG has a Quick ratio of 2.27. This is amongst the best in the industry. GGG outperforms 81.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
GGG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.42%.
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 small growth in Revenue. The Revenue has grown by 2.85% in the last year.
The Revenue has been growing slightly by 5.13% on average over the past years.
EPS 1Y (TTM)-3.42%
EPS 3Y4.34%
EPS 5Y7.75%
EPS Q2Q%2.82%
Revenue 1Y (TTM)2.85%
Revenue growth 3Y2.07%
Revenue growth 5Y5.13%
Sales Q2Q%4.65%
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 11.64% on average per year.
The Revenue is expected to grow by 9.55% on average over the next years. This is quite good.
EPS Next Y8.7%
EPS Next 2Y8.11%
EPS Next 3Y8.97%
EPS Next 5Y11.64%
Revenue Next Year5.22%
Revenue Next 2Y5.03%
Revenue Next 3Y5.56%
Revenue Next 5Y9.55%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 29.18, which means the current valuation is very expensive for GGG.
GGG's Price/Earnings ratio is a bit more expensive when compared to the industry. GGG is more expensive than 60.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of GGG to the average of the S&P500 Index (25.47), we can say GGG is valued inline with the index average.
GGG is valuated quite expensively with a Price/Forward Earnings ratio of 25.51.
60.00% of the companies in the same industry are cheaper than GGG, based on the Price/Forward Earnings ratio.
GGG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.18 | ||
| Fwd PE | 25.51 |
4.2 Price Multiples
GGG's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GGG indicates a somewhat cheap valuation: GGG is cheaper than 63.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.82 | ||
| EV/EBITDA | 18.44 |
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.
The excellent profitability rating of GGG may justify a higher PE ratio.
PEG (NY)3.35
PEG (5Y)3.76
EPS Next 2Y8.11%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
GGG has a Yearly Dividend Yield of 1.38%.
Compared to an average industry Dividend Yield of 1.97, GGG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, GGG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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
GGG pays out 36.31% of its income as dividend. This is a sustainable payout ratio.
The dividend of GGG is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP36.31%
EPS Next 2Y8.11%
EPS Next 3Y8.97%
82.28
+2.6 (+3.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.99%
Inst Owner Change0.65%
Ins Owners0.85%
Ins Owner Change0.01%
Market Cap13.63B
Revenue(TTM)2.19B
Net Income(TTM)498.06M
Analysts71.76
Price Target93.66 (13.83%)
Short Float %2.62%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend1.02
Dividend Growth(5Y)9.78%
DP36.31%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.81%
Min EPS beat(2)-5.58%
Max EPS beat(2)-2.04%
EPS beat(4)1
Avg EPS beat(4)-5.73%
Min EPS beat(4)-17.34%
Max EPS beat(4)2.02%
EPS beat(8)2
Avg EPS beat(8)-5.63%
EPS beat(12)5
Avg EPS beat(12)-2.18%
EPS beat(16)8
Avg EPS beat(16)-1.83%
Revenue beat(2)0
Avg Revenue beat(2)-4.15%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)-4.09%
Revenue beat(4)0
Avg Revenue beat(4)-2.89%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)-0.89%
Revenue beat(8)0
Avg Revenue beat(8)-3.54%
Revenue beat(12)1
Avg Revenue beat(12)-2.71%
Revenue beat(16)4
Avg Revenue beat(16)-1.79%
PT rev (1m)-0.84%
PT rev (3m)-0.84%
EPS NQ rev (1m)1.38%
EPS NQ rev (3m)1.38%
EPS NY rev (1m)0.34%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.18 | ||
| Fwd PE | 25.51 | ||
| P/S | 6.22 | ||
| P/FCF | 21.82 | ||
| P/OCF | 20.27 | ||
| P/B | 5.23 | ||
| P/tB | 7.67 | ||
| EV/EBITDA | 18.44 |
EPS(TTM)2.82
EY3.43%
EPS(NY)3.23
Fwd EY3.92%
FCF(TTM)3.77
FCFY4.58%
OCF(TTM)4.06
OCFY4.93%
SpS13.23
BVpS15.75
TBVpS10.73
PEG (NY)3.35
PEG (5Y)3.76
Graham Number31.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.41% | ||
| ROE | 19.09% | ||
| ROCE | 21.89% | ||
| ROIC | 17.91% | ||
| ROICexc | 22.98% | ||
| ROICexgc | 37.14% | ||
| OM | 27.61% | ||
| PM (TTM) | 22.72% | ||
| GM | 52.68% | ||
| FCFM | 28.51% |
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%
ROICexgc growth 3Y-12.63%
ROICexgc 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 Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 47.39% | ||
| Cap/Sales | 2.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.3% | ||
| Profit Quality | 125.46% | ||
| Current Ratio | 3.18 | ||
| Quick Ratio | 2.27 | ||
| Altman-Z | 15.4 |
F-Score5
WACC9.38%
ROIC/WACC1.91
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)-3.42%
EPS 3Y4.34%
EPS 5Y7.75%
EPS Q2Q%2.82%
EPS Next Y8.7%
EPS Next 2Y8.11%
EPS Next 3Y8.97%
EPS Next 5Y11.64%
Revenue 1Y (TTM)2.85%
Revenue growth 3Y2.07%
Revenue growth 5Y5.13%
Sales Q2Q%4.65%
Revenue Next Year5.22%
Revenue Next 2Y5.03%
Revenue Next 3Y5.56%
Revenue Next 5Y9.55%
EBIT growth 1Y-0.78%
EBIT growth 3Y2.38%
EBIT growth 5Y6.08%
EBIT Next Year17.91%
EBIT Next 3Y11.23%
EBIT Next 5Y13.1%
FCF growth 1Y57.16%
FCF growth 3Y16.79%
FCF growth 5Y12.12%
OCF growth 1Y12.6%
OCF growth 3Y10.81%
OCF growth 5Y8.23%
GRACO INC / GGG FAQ
Can you provide the ChartMill fundamental rating for GRACO INC?
ChartMill assigns a fundamental rating of 7 / 10 to GGG.
Can you provide the valuation status for GRACO INC?
ChartMill assigns a valuation rating of 3 / 10 to GRACO INC (GGG). This can be considered as Overvalued.
How profitable is GRACO INC (GGG) stock?
GRACO INC (GGG) has a profitability rating of 9 / 10.
What is the valuation of GRACO INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GRACO INC (GGG) is 29.18 and the Price/Book (PB) ratio is 5.23.
What is the financial health of GRACO INC (GGG) stock?
The financial health rating of GRACO INC (GGG) is 9 / 10.