GRACO INC (GGG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GGG - US3841091040 - Common Stock
82.28 USD
+2.6 (+3.26%)
82.28 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to GGG. GGG was compared to 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 decent growth rate and is not valued too expensively. These ratings would make GGG suitable for quality investing!
1. Profitability
1.1 Basic Checks
GGG had positive earnings in the past year.
GGG had a positive operating cash flow in the past year.
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 Return On Assets of 15.41%. This is amongst the best in the industry. GGG outperforms 95.38% of its industry peers.
GGG's Return On Equity of 19.09% is amongst the best of the industry. GGG outperforms 84.62% of its industry peers.
GGG's Return On Invested Capital of 17.91% is amongst the best of 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 has a Profit Margin of 22.72%. 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.
With an excellent Operating Margin value of 27.61%, 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 remained more or less at the same level.
GGG's Gross Margin of 52.68% is amongst the best of the industry. GGG outperforms 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
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.
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 14.99. This indicates that GGG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GGG (14.99) is better than 96.92% of its industry peers.
The Debt to FCF ratio of GGG is 0.06, which is an excellent value as it means it would take GGG, only 0.06 years of fcf income to pay off all of its debts.
GGG's Debt to FCF ratio of 0.06 is amongst the best of the industry. GGG outperforms 92.31% of its industry peers.
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/WACC1.89
WACC9.45%
2.3 Liquidity
A Current Ratio of 3.18 indicates that GGG has no problem at all paying its short term obligations.
The Current ratio of GGG (3.18) is better than 79.23% of its industry peers.
GGG has a Quick Ratio of 2.27. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.27, GGG belongs to the best 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.
The Earnings Per Share has been growing slightly by 7.75% on average over the past years.
GGG shows a small growth in Revenue. In the last year, the Revenue has grown by 2.85%.
Measured over the past years, GGG shows a small growth in Revenue. The Revenue has been growing by 5.13% on average per year.
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
GGG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.64% yearly.
GGG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.55% yearly.
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.
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 29.18 indicates a quite expensive valuation of GGG.
GGG's Price/Earnings ratio is in line with the industry average.
GGG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.45.
GGG is valuated quite expensively with a Price/Forward Earnings ratio of 25.51.
GGG's Price/Forward Earnings is on the same level as the industry average.
GGG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.18 | ||
| Fwd PE | 25.51 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GGG.
GGG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GGG is cheaper than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.82 | ||
| EV/EBITDA | 17.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of GGG may justify a higher PE ratio.
PEG (NY)3.35
PEG (5Y)3.76
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 2.45, GGG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
The dividend of GGG is nicely growing with an annual growth rate of 9.78%!
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
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%
82.28
+2.6 (+3.26%)
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 Cap13.63B
Revenue(TTM)2.19B
Net Income(TTM)498.06M
Analysts71.76
Price Target93.66 (13.83%)
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 | 29.18 | ||
| Fwd PE | 25.51 | ||
| P/S | 6.22 | ||
| P/FCF | 21.82 | ||
| P/OCF | 20.27 | ||
| P/B | 5.23 | ||
| P/tB | 7.67 | ||
| EV/EBITDA | 17.83 |
EPS(TTM)2.82
EY3.43%
EPS(NY)3.23
Fwd EY3.92%
FCF(TTM)3.77
FCFY4.58%
OCF(TTM)4.06
OCFY4.93%
SpS13.23
BVpS15.75
TBVpS10.73
PEG (NY)3.35
PEG (5Y)3.76
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
WACC9.45%
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 Y8.7%
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 29.18 and the Price/Book (PB) ratio is 5.23.
What is the financial health of GRACO INC (GGG) stock?
The financial health rating of GRACO INC (GGG) is 9 / 10.