GRACO INC (GGG) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:GGG • US3841091040
87.33 USD
-0.25 (-0.29%)
At close: Jan 30, 2026
87.33 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
Taking everything into account, GGG scores 8 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 has a decent growth rate and is not valued too expensively. With these ratings, GGG could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year GGG was profitable.
- GGG had a positive operating cash flow in the past year.
- In the past 5 years GGG has always been profitable.
- Each year in the past 5 years GGG had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 15.94%, GGG belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 19.66%, GGG belongs to the top of the industry, outperforming 87.12% of the companies in the same industry.
- GGG has a better Return On Invested Capital (18.35%) than 93.18% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GGG is significantly above the industry average of 10.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.94% | ||
| ROE | 19.66% | ||
| ROIC | 18.35% |
ROA(3y)16.68%
ROA(5y)17.38%
ROE(3y)20.42%
ROE(5y)22.35%
ROIC(3y)19.25%
ROIC(5y)20.51%
1.3 Margins
- Looking at the Profit Margin, with a value of 23.33%, GGG belongs to the top of the industry, outperforming 98.48% of the companies in the same industry.
- In the last couple of years the Profit Margin of GGG has grown nicely.
- The Operating Margin of GGG (28.34%) is better than 99.24% of its industry peers.
- GGG's Operating Margin has improved in the last couple of years.
- GGG has a Gross Margin of 52.86%. This is amongst the best in the industry. GGG outperforms 94.70% of its industry peers.
- GGG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.34% | ||
| PM (TTM) | 23.33% | ||
| GM | 52.86% |
OM growth 3Y1.5%
OM growth 5Y1.55%
PM growth 3Y2.78%
PM growth 5Y3.1%
GM growth 3Y2.07%
GM growth 5Y0.25%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GGG is creating value.
- The number of shares outstanding for GGG has been reduced compared to 1 year ago.
- GGG has less shares outstanding than it did 5 years ago.
- GGG has a better debt/assets ratio than last year.
2.2 Solvency
- GGG has an Altman-Z score of 16.32. This indicates that GGG is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 16.32, GGG belongs to the best of the industry, outperforming 96.21% of the companies in the same industry.
- GGG has a debt to FCF ratio of 0.04. This is a very positive value and a sign of high solvency as it would only need 0.04 years to pay back of all of its debts.
- GGG has a better Debt to FCF ratio (0.04) than 92.42% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that GGG is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.01, GGG belongs to the top of the industry, outperforming 84.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 16.32 |
ROIC/WACC1.9
WACC9.66%
2.3 Liquidity
- A Current Ratio of 3.15 indicates that GGG has no problem at all paying its short term obligations.
- GGG's Current ratio of 3.15 is fine compared to the rest of the industry. GGG outperforms 78.79% of its industry peers.
- GGG has a Quick Ratio of 2.29. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
- GGG has a better Quick ratio (2.29) than 81.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.15 | ||
| Quick Ratio | 2.29 |
3. Growth
3.1 Past
- GGG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.88%.
- Measured over the past years, GGG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.63% on average per year.
- GGG shows a small growth in Revenue. In the last year, the Revenue has grown by 5.83%.
- Measured over the past years, GGG shows a small growth in Revenue. The Revenue has been growing by 6.27% on average per year.
EPS 1Y (TTM)6.88%
EPS 3Y3.77%
EPS 5Y8.63%
EPS Q2Q%20.31%
Revenue 1Y (TTM)5.83%
Revenue growth 3Y1.43%
Revenue growth 5Y6.27%
Sales Q2Q%8.11%
3.2 Future
- The Earnings Per Share is expected to grow by 12.87% on average over the next years. This is quite good.
- Based on estimates for the next years, GGG will show a quite strong growth in Revenue. The Revenue will grow by 10.66% on average per year.
EPS Next Y8.9%
EPS Next 2Y9.55%
EPS Next 3Y13.76%
EPS Next 5Y12.87%
Revenue Next Year4.74%
Revenue Next 2Y5.42%
Revenue Next 3Y10.16%
Revenue Next 5Y10.66%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- GGG is valuated quite expensively with a Price/Earnings ratio of 29.60.
- Compared to the rest of the industry, the Price/Earnings ratio of GGG is on the same level as its industry peers.
- GGG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 27.18, GGG can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Forward Earnings ratio as GGG.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. GGG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.6 | ||
| Fwd PE | 27.18 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as GGG.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GGG indicates a somewhat cheap valuation: GGG is cheaper than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.7 | ||
| EV/EBITDA | 18.69 |
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.
- GGG's earnings are expected to grow with 13.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.33
PEG (5Y)3.43
EPS Next 2Y9.55%
EPS Next 3Y13.76%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.35%, GGG has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.01, GGG pays a bit more dividend than its industry peers.
- GGG's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
- The dividend of GGG is nicely growing with an annual growth rate of 9.45%!
- GGG has paid a dividend for at least 10 years, which is a reliable track record.
- GGG has decreased its dividend recently.
Dividend Growth(5Y)9.45%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- GGG pays out 35.14% of its income as dividend. This is a sustainable payout ratio.
- The dividend of GGG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.14%
EPS Next 2Y9.55%
EPS Next 3Y13.76%
GRACO INC / GGG FAQ
Can you provide the ChartMill fundamental rating for GRACO INC?
ChartMill assigns a fundamental rating of 8 / 10 to GGG.
What is the valuation status for GGG stock?
ChartMill assigns a valuation rating of 4 / 10 to GRACO INC (GGG). This can be considered as Fairly Valued.
How profitable is GRACO INC (GGG) stock?
GRACO INC (GGG) has a profitability rating of 9 / 10.
Can you provide the financial health for GGG stock?
The financial health rating of GRACO INC (GGG) is 10 / 10.
Can you provide the expected EPS growth for GGG stock?
The Earnings per Share (EPS) of GRACO INC (GGG) is expected to grow by 8.9% in the next year.