GRACO INC (GGG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GGG - US3841091040 - Common Stock
83.425 USD
+0.44 (+0.52%)
We assign a fundamental rating of 7 out of 10 to GGG. GGG was compared to 130 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 correct valuation and a medium growth rate. These ratings would make GGG suitable 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.
In the past 5 years GGG has always been profitable.
In the past 5 years GGG always reported a positive cash flow from operatings.
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.
Looking at the Return On Equity, with a value of 19.09%, GGG belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
The Return On Invested Capital of GGG (17.91%) is better than 93.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GGG is significantly above the industry average of 10.39%.
| 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
The Profit Margin of GGG (22.72%) is better than 98.46% of its industry peers.
GGG's Profit Margin has improved in the last couple of years.
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.
GGG's Operating Margin has been stable in the last couple of years.
GGG has a better Gross Margin (52.68%) than 94.62% of its industry peers.
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.
The number of shares outstanding for GGG has been increased compared to 5 years ago.
The debt/assets ratio for GGG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 15.52 indicates that GGG is not in any danger for bankruptcy at the moment.
The Altman-Z score of GGG (15.52) is better than 96.92% of its industry peers.
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.
A Debt/Equity ratio of 0.01 indicates that GGG is not too dependend on debt financing.
The Debt to Equity ratio of GGG (0.01) is better than 83.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 15.52 |
ROIC/WACC1.9
WACC9.42%
2.3 Liquidity
A Current Ratio of 3.18 indicates that GGG has no problem at all paying 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's Quick ratio of 2.27 is amongst the best of 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%.
The Earnings Per Share has been growing slightly by 7.75% on average over the past years.
The Revenue has been growing slightly by 2.85% in the past year.
Measured over the past years, GGG shows a small growth in Revenue. The Revenue has been growing by 5.13% on average per year.
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
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
With a Price/Earnings ratio of 29.58, GGG can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as GGG.
The average S&P500 Price/Earnings ratio is at 26.37. GGG is around the same levels.
A Price/Forward Earnings ratio of 25.86 indicates a quite expensive valuation of GGG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GGG is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of GGG to the average of the S&P500 Index (36.20), we can say GGG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.58 | ||
| Fwd PE | 25.86 |
4.2 Price Multiples
GGG's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, GGG is valued a bit cheaper than 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.13 | ||
| EV/EBITDA | 18.62 |
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)3.4
PEG (5Y)3.82
EPS Next 2Y8.11%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
GGG has a Yearly Dividend Yield of 1.34%.
GGG's Dividend Yield is a higher than the industry average which is at 1.90.
Compared to an average S&P500 Dividend Yield of 2.32, GGG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
The dividend of GGG is nicely growing with an annual growth rate of 9.78%!
GGG has been paying a dividend for at least 10 years, so it has a reliable track record.
GGG has decreased its dividend 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.
GGG's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP36.31%
EPS Next 2Y8.11%
EPS Next 3Y8.97%
NYSE:GGG (12/4/2025, 3:28:10 PM)
83.425
+0.44 (+0.52%)
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 Cap13.83B
Revenue(TTM)2.19B
Net Income(TTM)498.06M
Analysts71.76
Price Target93.66 (12.27%)
Short Float %2.82%
Short Ratio5.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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%
PT rev (3m)-0.84%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)1.38%
EPS NY rev (1m)0.34%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.58 | ||
| Fwd PE | 25.86 | ||
| P/S | 6.31 | ||
| P/FCF | 22.13 | ||
| P/OCF | 20.57 | ||
| P/B | 5.3 | ||
| P/tB | 7.78 | ||
| EV/EBITDA | 18.62 |
EPS(TTM)2.82
EY3.38%
EPS(NY)3.23
Fwd EY3.87%
FCF(TTM)3.77
FCFY4.52%
OCF(TTM)4.06
OCFY4.86%
SpS13.22
BVpS15.74
TBVpS10.72
PEG (NY)3.4
PEG (5Y)3.82
Graham Number31.6
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 | 15.52 |
F-Score5
WACC9.42%
ROIC/WACC1.9
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 29.58 and the Price/Book (PB) ratio is 5.3.
What is the financial health of GRACO INC (GGG) stock?
The financial health rating of GRACO INC (GGG) is 9 / 10.