GRACO INC (GGG)
US3841091040 - Common Stock
Taking everything into account, GGG scores 7 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. While showing a medium growth rate, GGG is valued expensive at the moment. These ratings could make GGG a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year GGG was profitable.
In the past year GGG had a positive cash flow from operations.
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 better Return On Assets (16.38%) than 95.38% of its industry peers.
GGG's Return On Equity of 19.39% is amongst the best of the industry. GGG outperforms 81.54% of its industry peers.
GGG's Return On Invested Capital of 18.98% is amongst the best of the industry. GGG outperforms 93.85% 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 11.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.38% | ||
| ROE | 19.39% | ||
| ROIC | 18.98% |
ROA(3y)18.5%
ROA(5y)18.49%
ROE(3y)24.43%
ROE(5y)26.51%
ROIC(3y)22.61%
ROIC(5y)22.67%
1.3 Margins
GGG has a Profit Margin of 22.87%. This is amongst the best in the industry. GGG outperforms 99.23% of its industry peers.
GGG's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 28.62%, 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 grown nicely.
With an excellent Gross Margin value of 53.64%, GGG belongs to the best of the industry, outperforming 95.38% 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 | 28.62% | ||
| PM (TTM) | 22.87% | ||
| GM | 53.64% |
OM growth 3Y4.84%
OM growth 5Y2.47%
PM growth 3Y4.82%
PM growth 5Y2.26%
GM growth 3Y0.68%
GM growth 5Y-0.19%
2. Health
2.1 Basic Checks
GGG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, GGG has about the same amount of shares outstanding.
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 21.18 indicates that GGG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 21.18, GGG belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
GGG has a debt to FCF ratio of 0.07. This is a very positive value and a sign of high solvency as it would only need 0.07 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.07, GGG belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that GGG is not too dependend on debt financing.
GGG's Debt to Equity ratio of 0.01 is fine compared to the rest of the industry. GGG outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.07 | ||
| Altman-Z | 21.18 |
ROIC/WACC2.06
WACC9.22%
2.3 Liquidity
GGG has a Current Ratio of 4.47. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of GGG (4.47) is better than 88.46% of its industry peers.
GGG has a Quick Ratio of 3.25. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
GGG has a better Quick ratio (3.25) than 89.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.25 |
3. Growth
3.1 Past
The earnings per share for GGG have decreased by -2.01% in the last year.
GGG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.04% yearly.
Looking at the last year, GGG shows a decrease in Revenue. The Revenue has decreased by -2.41% in the last year.
Measured over the past years, GGG shows a small growth in Revenue. The Revenue has been growing by 5.84% on average per year.
EPS 1Y (TTM)-2.01%
EPS 3Y16.08%
EPS 5Y10.04%
EPS Q2Q%-6.58%
Revenue 1Y (TTM)-2.41%
Revenue growth 3Y9.99%
Revenue growth 5Y5.84%
Sales Q2Q%-3.79%
3.2 Future
The Earnings Per Share is expected to grow by 8.54% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.48% on average over the next years. This is quite good.
EPS Next Y-3.58%
EPS Next 2Y0.89%
EPS Next 3Y3.73%
EPS Next 5Y8.54%
Revenue Next Year-3.34%
Revenue Next 2Y0.41%
Revenue Next 3Y2.34%
Revenue Next 5Y8.48%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.91, which means the current valuation is very expensive for GGG.
Compared to the rest of the industry, the Price/Earnings ratio of GGG indicates a slightly more expensive valuation: GGG is more expensive than 62.31% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.55, GGG is valued at the same level.
With a Price/Forward Earnings ratio of 27.19, GGG can be considered very expensive at the moment.
GGG's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. GGG is more expensive than 61.54% of the companies in the same industry.
GGG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.91 | ||
| Fwd PE | 27.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GGG indicates a slightly more expensive valuation: GGG is more expensive than 61.54% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as GGG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.71 | ||
| EV/EBITDA | 19.6 |
4.3 Compensation for Growth
The excellent profitability rating of GGG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.88
EPS Next 2Y0.89%
EPS Next 3Y3.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.30%, GGG has a reasonable but not impressive dividend return.
GGG's Dividend Yield is a higher than the industry average which is at 1.71.
Compared to an average S&P500 Dividend Yield of 2.36, GGG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
On average, the dividend of GGG grows each year by 12.19%, which is quite nice.
GGG has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of GGG decreased recently.
Dividend Growth(5Y)12.19%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
34.61% of the earnings are spent on dividend by GGG. This is a low number and sustainable payout ratio.
The dividend of GGG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.61%
EPS Next 2Y0.89%
EPS Next 3Y3.73%
GRACO INC
NYSE:GGG (12/27/2024, 11:22:39 AM)
84.41
-0.47 (-0.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners91.48%
Inst Owner Change-2.98%
Ins Owners0.81%
Ins Owner Change0.27%
Market Cap14.25B
Analysts68.75
Price Target88.9 (5.32%)
Short Float %1.18%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Dividend Growth(5Y)12.19%
DP34.61%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.31%
Min EPS beat(2)-7.29%
Max EPS beat(2)-1.34%
EPS beat(4)1
Avg EPS beat(4)-5.52%
Min EPS beat(4)-13.51%
Max EPS beat(4)0.04%
EPS beat(8)4
Avg EPS beat(8)-0.4%
EPS beat(12)7
Avg EPS beat(12)-0.53%
EPS beat(16)10
Avg EPS beat(16)0.96%
Revenue beat(2)0
Avg Revenue beat(2)-3.65%
Min Revenue beat(2)-4.57%
Max Revenue beat(2)-2.72%
Revenue beat(4)0
Avg Revenue beat(4)-4.19%
Min Revenue beat(4)-9.13%
Max Revenue beat(4)-0.35%
Revenue beat(8)1
Avg Revenue beat(8)-2.62%
Revenue beat(12)4
Avg Revenue beat(12)-1.42%
Revenue beat(16)7
Avg Revenue beat(16)0.03%
PT rev (1m)-1.13%
PT rev (3m)-0.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.71%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-2.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.91 | ||
| Fwd PE | 27.19 | ||
| P/S | 6.69 | ||
| P/FCF | 30.71 | ||
| P/OCF | 23.91 | ||
| P/B | 5.67 | ||
| P/tB | 7.05 | ||
| EV/EBITDA | 19.6 |
EPS(TTM)2.92
EY3.46%
EPS(NY)3.1
Fwd EY3.68%
FCF(TTM)2.75
FCFY3.26%
OCF(TTM)3.53
OCFY4.18%
SpS12.62
BVpS14.88
TBVpS11.97
PEG (NY)N/A
PEG (5Y)2.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.38% | ||
| ROE | 19.39% | ||
| ROCE | 23.33% | ||
| ROIC | 18.98% | ||
| ROICexc | 26.69% | ||
| ROICexgc | 36.13% | ||
| OM | 28.62% | ||
| PM (TTM) | 22.87% | ||
| GM | 53.64% | ||
| FCFM | 21.78% |
ROA(3y)18.5%
ROA(5y)18.49%
ROE(3y)24.43%
ROE(5y)26.51%
ROIC(3y)22.61%
ROIC(5y)22.67%
ROICexc(3y)29.76%
ROICexc(5y)29.07%
ROICexgc(3y)43.77%
ROICexgc(5y)44.76%
ROCE(3y)27.89%
ROCE(5y)27.89%
ROICexcg growth 3Y-2.45%
ROICexcg growth 5Y-7.71%
ROICexc growth 3Y3.37%
ROICexc growth 5Y-2.8%
OM growth 3Y4.84%
OM growth 5Y2.47%
PM growth 3Y4.82%
PM growth 5Y2.26%
GM growth 3Y0.68%
GM growth 5Y-0.19%
F-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.07 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 160.59% | ||
| Cap/Sales | 6.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.12% | ||
| Profit Quality | 95.24% | ||
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.25 | ||
| Altman-Z | 21.18 |
F-Score7
WACC9.22%
ROIC/WACC2.06
Cap/Depr(3y)259.59%
Cap/Depr(5y)233.89%
Cap/Sales(3y)8.17%
Cap/Sales(5y)7.32%
Profit Quality(3y)67.93%
Profit Quality(5y)77.19%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.01%
EPS 3Y16.08%
EPS 5Y10.04%
EPS Q2Q%-6.58%
EPS Next Y-3.58%
EPS Next 2Y0.89%
EPS Next 3Y3.73%
EPS Next 5Y8.54%
Revenue 1Y (TTM)-2.41%
Revenue growth 3Y9.99%
Revenue growth 5Y5.84%
Sales Q2Q%-3.79%
Revenue Next Year-3.34%
Revenue Next 2Y0.41%
Revenue Next 3Y2.34%
Revenue Next 5Y8.48%
EBIT growth 1Y-4.28%
EBIT growth 3Y15.32%
EBIT growth 5Y8.45%
EBIT Next Year7.85%
EBIT Next 3Y7.3%
EBIT Next 5Y11.03%
FCF growth 1Y168.13%
FCF growth 3Y13.05%
FCF growth 5Y8.22%
OCF growth 1Y60.54%
OCF growth 3Y18.22%
OCF growth 5Y12.09%