GRACO INC (GGG) Stock Fundamental Analysis
USA - NYSE:GGG - US3841091040 - Common Stock
84.75 USD
0 (0%)
84.75 USD
0 (0%)
Overall GGG gets a fundamental rating of 7 out of 10. We evaluated GGG against 128 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. 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.
GGG had a positive operating cash flow in the past year.
GGG had positive earnings in each of the past 5 years.
In the past 5 years GGG always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 15.84%, GGG belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
GGG has a better Return On Equity (19.30%) than 83.59% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.81%, GGG belongs to the top of the industry, outperforming 93.75% 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 10.02%.
| 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
Looking at the Profit Margin, with a value of 22.26%, GGG belongs to the top of the industry, outperforming 98.44% of the companies in the same industry.
GGG's Profit Margin has improved in the last couple of years.
GGG has a Operating Margin of 26.63%. This is amongst the best in the industry. GGG outperforms 99.22% of its industry peers.
In the last couple of years the Operating Margin of GGG has remained more or less at the same level.
The Gross Margin of GGG (52.25%) is better than 94.53% 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 | 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
GGG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for GGG has been increased compared to 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 17.80 indicates that GGG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 17.80, GGG belongs to the top of the industry, outperforming 97.66% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 0.05, GGG belongs to the best of the industry, outperforming 92.19% 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 amongst the best of the industry. GGG outperforms 82.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 17.8 |
ROIC/WACC1.79
WACC9.93%
2.3 Liquidity
A Current Ratio of 3.55 indicates that GGG has no problem at all paying its short term obligations.
The Current ratio of GGG (3.55) is better than 85.16% of its industry peers.
A Quick Ratio of 2.52 indicates that GGG has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.52, GGG belongs to the top of the industry, outperforming 82.81% of the companies in the same industry.
| 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 -5.72%.
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.
GGG shows a small growth in Revenue. In the last year, the Revenue has grown by 0.75%.
The Revenue has been growing slightly by 5.13% on average over the past years.
EPS 1Y (TTM)-5.72%
EPS 3Y4.34%
EPS 5Y7.75%
EPS Q2Q%-1.32%
Revenue 1Y (TTM)0.75%
Revenue growth 3Y2.07%
Revenue growth 5Y5.13%
Sales Q2Q%3.36%
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 30.27 indicates a quite expensive valuation of GGG.
GGG's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of GGG to the average of the S&P500 Index (27.20), we can say GGG is valued inline with the index average.
A Price/Forward Earnings ratio of 26.21 indicates a quite expensive valuation of GGG.
GGG's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, GGG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.27 | ||
| Fwd PE | 26.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GGG is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GGG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.08 | ||
| EV/EBITDA | 19.97 |
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.
GGG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.63
PEG (5Y)3.9
EPS Next 2Y8.24%
EPS Next 3Y9.48%
5. Dividend
5.1 Amount
GGG has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.74, GGG pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.28, GGG pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
On average, the dividend of GGG grows each year by 9.78%, 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)9.78%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
GGG pays out 36.94% of its income as dividend. This is a 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%
84.75
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners91.25%
Inst Owner Change-0.84%
Ins Owners0.85%
Ins Owner Change0.78%
Market Cap14.04B
Analysts71.76
Price Target94.46 (11.46%)
Short Float %2.33%
Short Ratio5.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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)3.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.49%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.27 | ||
| Fwd PE | 26.21 | ||
| P/S | 6.48 | ||
| P/FCF | 23.08 | ||
| P/OCF | 20.9 | ||
| P/B | 5.61 | ||
| P/tB | 8.06 | ||
| EV/EBITDA | 19.97 |
EPS(TTM)2.8
EY3.3%
EPS(NY)3.23
Fwd EY3.82%
FCF(TTM)3.67
FCFY4.33%
OCF(TTM)4.06
OCFY4.78%
SpS13.08
BVpS15.09
TBVpS10.52
PEG (NY)3.63
PEG (5Y)3.9
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%
ROICexcg growth 3Y-12.63%
ROICexcg 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 | 17.8 |
F-Score5
WACC9.93%
ROIC/WACC1.79
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)-5.72%
EPS 3Y4.34%
EPS 5Y7.75%
EPS Q2Q%-1.32%
EPS Next Y8.33%
EPS Next 2Y8.24%
EPS Next 3Y9.48%
EPS Next 5Y11.41%
Revenue 1Y (TTM)0.75%
Revenue growth 3Y2.07%
Revenue growth 5Y5.13%
Sales Q2Q%3.36%
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%