GRACO INC (GGG) Stock Fundamental Analysis
USA - NYSE:GGG - US3841091040 - Common Stock
81.61 USD
-2.25 (-2.68%)
81.61 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. Both the health and profitability get an excellent rating, making GGG a very profitable company, without any liquidiy or solvency issues. GGG is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make GGG suitable 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.
In the past 5 years GGG has always been profitable.
GGG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GGG has a better Return On Assets (15.84%) than 96.15% of its industry peers.
The Return On Equity of GGG (19.30%) is better than 83.85% of its industry peers.
With an excellent Return On Invested Capital value of 17.81%, GGG belongs to the best of the industry, outperforming 93.85% 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 10.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.84% | ||
| ROE | 19.3% | ||
| ROIC | 17.81% |
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
GGG has a Profit Margin of 22.26%. This is amongst the best in the industry. GGG outperforms 98.46% of its industry peers.
GGG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 26.63%, GGG belongs to the top 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.
Looking at the Gross Margin, with a value of 52.25%, GGG belongs to the top of the industry, outperforming 94.62% of the companies in the same industry.
In the last couple of years the Gross Margin of GGG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.63% | ||
| PM (TTM) | 22.26% | ||
| GM | 52.25% |
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.
Compared to 1 year ago, GGG has more shares outstanding
GGG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GGG has an improved debt to assets ratio.
2.2 Solvency
GGG has an Altman-Z score of 17.23. This indicates that GGG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GGG (17.23) is better than 98.46% of its industry peers.
The Debt to FCF ratio of GGG is 0.05, which is an excellent value as it means it would take GGG, only 0.05 years of fcf income to pay off all of its debts.
GGG has a Debt to FCF ratio of 0.05. This is amongst the best in the industry. GGG outperforms 92.31% of its industry peers.
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 Debt to Equity ratio of 0.01. This is amongst the best in the industry. GGG outperforms 83.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 17.23 |
ROIC/WACC1.89
WACC9.41%
2.3 Liquidity
GGG has a Current Ratio of 3.55. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of GGG (3.55) is better than 86.15% of its industry peers.
GGG has a Quick Ratio of 2.52. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
GGG has a better Quick ratio (2.52) than 82.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.55 | ||
| Quick Ratio | 2.52 |
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%.
Measured over the past 5 years, GGG shows a small growth in Earnings Per Share. The EPS has been growing by 7.75% on average per year.
The Revenue has decreased by -3.75% in the past 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)-3.75%
Revenue growth 3Y2.07%
Revenue growth 5Y5.13%
Sales Q2Q%4.65%
3.2 Future
The Earnings Per Share is expected to grow by 11.41% 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 9.34% on average per year.
EPS Next Y8.33%
EPS Next 2Y8.24%
EPS Next 3Y9.48%
EPS Next 5Y11.41%
Revenue Next Year5.78%
Revenue Next 2Y4.98%
Revenue Next 3Y5.65%
Revenue Next 5Y9.34%
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
A Price/Earnings ratio of 28.94 indicates a quite expensive valuation of GGG.
The rest of the industry has a similar Price/Earnings ratio as GGG.
The average S&P500 Price/Earnings ratio is at 27.57. GGG is around the same levels.
GGG is valuated quite expensively with a Price/Forward Earnings ratio of 25.24.
The rest of the industry has a similar Price/Forward Earnings ratio as GGG.
GGG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.94 | ||
| Fwd PE | 25.24 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GGG.
Based on the Price/Free Cash Flow ratio, GGG is valued a bit cheaper than 64.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.23 | ||
| EV/EBITDA | 19.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GGG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.47
PEG (5Y)3.73
EPS Next 2Y8.24%
EPS Next 3Y9.48%
5. Dividend
5.1 Amount
GGG has a Yearly Dividend Yield of 1.31%.
Compared to an average industry Dividend Yield of 1.80, GGG pays a bit more dividend than its industry peers.
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 | 1.31% |
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
36.94% of the earnings are spent on dividend by GGG. This is a low number and 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.
DP36.94%
EPS Next 2Y8.24%
EPS Next 3Y9.48%
81.61
-2.25 (-2.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.99%
Inst Owner Change0%
Ins Owners0.85%
Ins Owner Change0.01%
Market Cap13.52B
Revenue(TTM)2.11B
Net Income(TTM)482.63M
Analysts71.76
Price Target94.46 (15.75%)
Short Float %2.36%
Short Ratio5.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend1.02
Dividend Growth(5Y)9.78%
DP36.94%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.78%
Min EPS beat(2)-5.58%
Max EPS beat(2)2.02%
EPS beat(4)1
Avg EPS beat(4)-7.05%
Min EPS beat(4)-17.34%
Max EPS beat(4)2.02%
EPS beat(8)3
Avg EPS beat(8)-5.06%
EPS beat(12)6
Avg EPS beat(12)-1.88%
EPS beat(16)8
Avg EPS beat(16)-2.37%
Revenue beat(2)0
Avg Revenue beat(2)-2.49%
Min Revenue beat(2)-4.09%
Max Revenue beat(2)-0.89%
Revenue beat(4)0
Avg Revenue beat(4)-2.98%
Min Revenue beat(4)-4.57%
Max Revenue beat(4)-0.89%
Revenue beat(8)0
Avg Revenue beat(8)-3.53%
Revenue beat(12)2
Avg Revenue beat(12)-2.03%
Revenue beat(16)4
Avg Revenue beat(16)-1.63%
PT rev (1m)0%
PT rev (3m)1.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.94 | ||
| Fwd PE | 25.24 | ||
| P/S | 6.24 | ||
| P/FCF | 22.23 | ||
| P/OCF | 20.13 | ||
| P/B | 5.41 | ||
| P/tB | 7.76 | ||
| EV/EBITDA | 19.2 |
EPS(TTM)2.82
EY3.46%
EPS(NY)3.23
Fwd EY3.96%
FCF(TTM)3.67
FCFY4.5%
OCF(TTM)4.06
OCFY4.97%
SpS13.08
BVpS15.09
TBVpS10.52
PEG (NY)3.47
PEG (5Y)3.73
Graham Number30.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.84% | ||
| ROE | 19.3% | ||
| ROCE | 21.72% | ||
| ROIC | 17.81% | ||
| ROICexc | 22.23% | ||
| ROICexgc | 34.35% | ||
| OM | 26.63% | ||
| PM (TTM) | 22.26% | ||
| GM | 52.25% | ||
| FCFM | 28.06% |
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 Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 63.94% | ||
| Cap/Sales | 2.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.32% | ||
| Profit Quality | 126.06% | ||
| Current Ratio | 3.55 | ||
| Quick Ratio | 2.52 | ||
| Altman-Z | 17.23 |
F-Score5
WACC9.41%
ROIC/WACC1.89
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 Y8.33%
EPS Next 2Y8.24%
EPS Next 3Y9.48%
EPS Next 5Y11.41%
Revenue 1Y (TTM)-3.75%
Revenue growth 3Y2.07%
Revenue growth 5Y5.13%
Sales Q2Q%4.65%
Revenue Next Year5.78%
Revenue Next 2Y4.98%
Revenue Next 3Y5.65%
Revenue Next 5Y9.34%
EBIT growth 1Y-9.14%
EBIT growth 3Y2.38%
EBIT growth 5Y6.08%
EBIT Next Year17.91%
EBIT Next 3Y11.23%
EBIT Next 5Y12.88%
FCF growth 1Y90.01%
FCF growth 3Y16.79%
FCF growth 5Y12.12%
OCF growth 1Y28.05%
OCF growth 3Y10.81%
OCF growth 5Y8.23%