GRACO INC (GGG)
US3841091040 - Common Stock
Overall GGG gets a fundamental rating of 7 out of 10. We evaluated GGG against 131 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 is valied quite expensively at the moment, while it does show a decent growth rate. This makes GGG very considerable 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.
GGG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 16.38%, GGG belongs to the best of the industry, outperforming 96.06% of the companies in the same industry.
GGG's Return On Equity of 19.39% is amongst the best of the industry. GGG outperforms 81.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.98%, GGG belongs to the top of the industry, outperforming 92.91% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GGG is significantly above the industry average of 11.01%.
| 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
The Profit Margin of GGG (22.87%) is better than 100.00% 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 28.62%, GGG belongs to the top of the industry, outperforming 99.21% of the companies in the same industry.
In the last couple of years the Operating Margin of GGG has grown nicely.
GGG has a better Gross Margin (53.64%) than 95.28% of its industry peers.
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.
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 22.21. This indicates that GGG is financially healthy and has little risk of bankruptcy at the moment.
GGG's Altman-Z score of 22.21 is amongst the best of the industry. GGG outperforms 96.85% of its industry peers.
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.
GGG has a better Debt to FCF ratio (0.07) than 93.70% 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's Debt to Equity ratio of 0.01 is amongst the best of the industry. GGG outperforms 80.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.07 | ||
| Altman-Z | 22.21 |
ROIC/WACC2.06
WACC9.2%
2.3 Liquidity
A Current Ratio of 4.47 indicates that GGG has no problem at all paying its short term obligations.
GGG has a Current ratio of 4.47. This is amongst the best in the industry. GGG outperforms 89.76% of its industry peers.
A Quick Ratio of 3.25 indicates that GGG has no problem at all paying its short term obligations.
GGG's Quick ratio of 3.25 is amongst the best of the industry. GGG outperforms 89.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.25 |
3. Growth
3.1 Past
GGG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.01%.
The Earnings Per Share has been growing by 10.04% on average over the past years. This is quite good.
GGG shows a decrease in Revenue. In the last year, the revenue decreased by -2.41%.
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
GGG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.02% yearly.
The Revenue is expected to grow by 8.96% on average over the next years. This is quite good.
EPS Next Y-3.56%
EPS Next 2Y0.94%
EPS Next 3Y3.78%
EPS Next 5Y9.02%
Revenue Next Year-3.34%
Revenue Next 2Y0.45%
Revenue Next 3Y2.38%
Revenue Next 5Y8.96%
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 stable.
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
GGG is valuated quite expensively with a Price/Earnings ratio of 30.68.
Based on the Price/Earnings ratio, GGG is valued a bit more expensive than the industry average as 63.78% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 28.96, GGG is valued at the same level.
GGG is valuated quite expensively with a Price/Forward Earnings ratio of 28.83.
Based on the Price/Forward Earnings ratio, GGG is valued a bit more expensive than 60.63% of the companies in the same industry.
GGG is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.68 | ||
| Fwd PE | 28.83 |
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 62.99% of the companies listed in the same industry.
GGG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.6 | ||
| EV/EBITDA | 20.75 |
4.3 Compensation for Growth
GGG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.05
EPS Next 2Y0.94%
EPS Next 3Y3.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.14%, GGG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.54, GGG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, GGG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
On average, the dividend of GGG grows each year by 12.19%, which is quite nice.
GGG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.19%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
GGG pays out 34.61% of its income as dividend. This is a 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 2Y0.94%
EPS Next 3Y3.78%
GRACO INC
NYSE:GGG (11/21/2024, 8:04:00 PM)
After market: 89.6 0 (0%)89.6
+1.08 (+1.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.68 | ||
| Fwd PE | 28.83 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)3.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.38% | ||
| ROE | 19.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.62% | ||
| PM (TTM) | 22.87% | ||
| GM | 53.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.25 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-2.01%
EPS 3Y16.08%
EPS 5Y
EPS Q2Q%
EPS Next Y-3.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.41%
Revenue growth 3Y9.99%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y