GRACO INC (GGG) Stock Fundamental Analysis
USA - NYSE:GGG - US3841091040 - Common Stock
79.68 USD
+0.32 (+0.4%)
79.68 USD
0 (0%)
Overall GGG gets a fundamental rating of 7 out of 10. We evaluated GGG 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 has a correct valuation and a medium growth rate. 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.
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 better Return On Assets (15.41%) than 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.
GGG has a Return On Invested Capital of 17.91%. This is amongst the best in the industry. GGG outperforms 93.08% 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 10.24%.
| 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
GGG's Profit Margin of 22.72% is amongst the best of the industry. GGG outperforms 98.46% of its industry peers.
In the last couple of years the Profit Margin of GGG has grown nicely.
The Operating Margin of GGG (27.61%) is better than 99.23% of its industry peers.
GGG's Operating Margin has been stable in the last couple of years.
The Gross Margin of GGG (52.68%) is better than 94.62% of its industry peers.
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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
GGG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 14.99 indicates that GGG is not in any danger for bankruptcy at the moment.
GGG has a better Altman-Z score (14.99) than 96.92% of its industry peers.
GGG has a debt to FCF ratio of 0.06. This is a very positive value and a sign of high solvency as it would only need 0.06 years to pay back of 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 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 14.99 |
ROIC/WACC1.88
WACC9.53%
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.
The Current ratio of GGG (3.18) is better than 79.23% of its industry peers.
A Quick Ratio of 2.27 indicates that GGG has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.27, GGG belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
The earnings per share for GGG have decreased by -3.42% in the last year.
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.
Looking at the last year, GGG shows a small growth in Revenue. The Revenue has grown by 2.85% in the last year.
GGG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.13% yearly.
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
The Earnings Per Share is expected to grow by 11.64% 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 9.55% on average per year.
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.
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
With a Price/Earnings ratio of 28.26, GGG can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as GGG.
When comparing the Price/Earnings ratio of GGG to the average of the S&P500 Index (25.07), we can say GGG is valued inline with the index average.
GGG is valuated rather expensively with a Price/Forward Earnings ratio of 24.70.
GGG's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.08. GGG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.26 | ||
| Fwd PE | 24.7 |
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 61.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.13 | ||
| EV/EBITDA | 17.83 |
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)3.25
PEG (5Y)3.64
EPS Next 2Y8.11%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.36%, GGG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.87, GGG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, GGG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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
36.31% 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.
DP36.31%
EPS Next 2Y8.11%
EPS Next 3Y8.97%
79.68
+0.32 (+0.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.99%
Inst Owner Change0.62%
Ins Owners0.85%
Ins Owner Change0.01%
Market Cap13.20B
Revenue(TTM)2.19B
Net Income(TTM)498.06M
Analysts71.76
Price Target93.66 (17.55%)
Short Float %2.62%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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)-0.09%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.26 | ||
| Fwd PE | 24.7 | ||
| P/S | 6.02 | ||
| P/FCF | 21.13 | ||
| P/OCF | 19.63 | ||
| P/B | 5.06 | ||
| P/tB | 7.43 | ||
| EV/EBITDA | 17.83 |
EPS(TTM)2.82
EY3.54%
EPS(NY)3.23
Fwd EY4.05%
FCF(TTM)3.77
FCFY4.73%
OCF(TTM)4.06
OCFY5.09%
SpS13.23
BVpS15.75
TBVpS10.73
PEG (NY)3.25
PEG (5Y)3.64
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 | 14.99 |
F-Score5
WACC9.53%
ROIC/WACC1.88
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 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.
What is the valuation of GRACO INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GRACO INC (GGG) is 28.26 and the Price/Book (PB) ratio is 5.06.
What is the financial health of GRACO INC (GGG) stock?
The financial health rating of GRACO INC (GGG) is 9 / 10.