GRACO INC (GGG) Stock Fundamental Analysis
NYSE:GGG - New York Stock Exchange, Inc. - US3841091040 - Common Stock - Currency: USD
GGG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 is valued expensive and it does not seem to be growing.
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.
Of the past 5 years GGG 4 years were profitable.
Of the past 5 years GGG 4 years had a positive operating cash flow.
1.2 Ratios
GGG has a better Return On Assets (16.38%) than 95.28% of its industry peers.
Looking at the Return On Equity, with a value of 19.39%, GGG belongs to the top of the industry, outperforming 81.10% of the companies in the same industry.
The Return On Invested Capital of GGG (18.98%) is better than 93.70% 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 11.19%.
| 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
GGG has a better Profit Margin (22.87%) than 99.21% of its industry peers.
GGG's Profit Margin has improved in the last couple of years.
GGG's Operating Margin of 28.62% is amongst the best of the industry. GGG outperforms 99.21% of its industry peers.
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.
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 | 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.
GGG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
GGG has an Altman-Z score of 20.63. This indicates that GGG is financially healthy and has little risk of bankruptcy at the moment.
GGG has a better Altman-Z score (20.63) than 96.85% of its industry peers.
The Debt to FCF ratio of GGG is 0.07, which is an excellent value as it means it would take GGG, only 0.07 years of fcf income to pay off all of its debts.
GGG has a better Debt to FCF ratio (0.07) than 92.91% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that GGG is not too dependend on debt financing.
GGG has a better Debt to Equity ratio (0.01) than 80.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.07 | ||
| Altman-Z | 20.63 |
ROIC/WACC1.95
WACC9.73%
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 88.98% of its industry peers.
GGG has a Quick Ratio of 3.25. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
GGG has a Quick ratio of 3.25. This is amongst the best in 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
The earnings per share for GGG have decreased by -9.51% in the last year.
GGG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.75% yearly.
EPS 1Y (TTM)-9.51%
EPS 3Y4.34%
EPS 5Y7.75%
EPS Q2Q%-20%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.17%
3.2 Future
Based on estimates for the next years, GGG will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.59% on average per year.
The Revenue is expected to grow by 11.60% on average over the next years. This is quite good.
EPS Next Y13.05%
EPS Next 2Y11.71%
EPS Next 3Y13.54%
EPS Next 5Y13.59%
Revenue Next Year5.41%
Revenue Next 2Y6.11%
Revenue Next 3Y10.41%
Revenue Next 5Y11.6%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.40, which means the current valuation is very expensive for GGG.
Compared to the rest of the industry, the Price/Earnings ratio of GGG indicates a slightly more expensive valuation: GGG is more expensive than 62.20% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.51. GGG is around the same levels.
With a Price/Forward Earnings ratio of 26.89, GGG can be considered very expensive at the moment.
60.63% of the companies in the same industry are cheaper than GGG, based on the Price/Forward Earnings ratio.
GGG is valuated cheaply when we compare the Price/Forward Earnings ratio to 93.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.4 | ||
| Fwd PE | 26.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GGG is on the same level as its industry peers.
GGG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.52 | ||
| EV/EBITDA | 18.99 |
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.
GGG's earnings are expected to grow with 13.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.33
PEG (5Y)3.92
EPS Next 2Y11.71%
EPS Next 3Y13.54%
5. Dividend
5.1 Amount
GGG has a Yearly Dividend Yield of 1.32%.
GGG's Dividend Yield is a higher than the industry average which is at 1.61.
With a Dividend Yield of 1.32, GGG pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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.
The dividend of GGG decreased recently.
Dividend Growth(5Y)12.19%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
GGG pays out 34.61% of its income as dividend. This is a sustainable payout ratio.
GGG's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP34.61%
EPS Next 2Y11.71%
EPS Next 3Y13.54%
GRACO INC
NYSE:GGG (1/30/2025, 4:52:58 PM)
After market: 83.9 0 (0%)83.9
+1.51 (+1.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners91.48%
Inst Owner Change0.64%
Ins Owners0.81%
Ins Owner Change1.66%
Market Cap14.17B
Analysts70
Price Target94.76 (12.94%)
Short Float %1.11%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend0.94
Dividend Growth(5Y)12.19%
DP34.61%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.31%
Min EPS beat(2)-7.29%
Max EPS beat(2)-1.34%
EPS beat(4)1
Avg EPS beat(4)-5.52%
Min EPS beat(4)-13.51%
Max EPS beat(4)0.04%
EPS beat(8)4
Avg EPS beat(8)-0.4%
EPS beat(12)7
Avg EPS beat(12)-0.53%
EPS beat(16)10
Avg EPS beat(16)0.96%
Revenue beat(2)0
Avg Revenue beat(2)-3.65%
Min Revenue beat(2)-4.57%
Max Revenue beat(2)-2.72%
Revenue beat(4)0
Avg Revenue beat(4)-4.19%
Min Revenue beat(4)-9.13%
Max Revenue beat(4)-0.35%
Revenue beat(8)1
Avg Revenue beat(8)-2.62%
Revenue beat(12)4
Avg Revenue beat(12)-1.42%
Revenue beat(16)7
Avg Revenue beat(16)0.03%
PT rev (1m)1.43%
PT rev (3m)0.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.4 | ||
| Fwd PE | 26.89 | ||
| P/S | 6.65 | ||
| P/FCF | 30.52 | ||
| P/OCF | 23.77 | ||
| P/B | 5.64 | ||
| P/tB | 7.01 | ||
| EV/EBITDA | 18.99 |
EPS(TTM)2.76
EY3.29%
EPS(NY)3.12
Fwd EY3.72%
FCF(TTM)2.75
FCFY3.28%
OCF(TTM)3.53
OCFY4.21%
SpS12.62
BVpS14.88
TBVpS11.97
PEG (NY)2.33
PEG (5Y)3.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.38% | ||
| ROE | 19.39% | ||
| ROCE | 23.33% | ||
| ROIC | 18.98% | ||
| ROICexc | 26.69% | ||
| ROICexgc | 36.13% | ||
| OM | 28.62% | ||
| PM (TTM) | 22.87% | ||
| GM | 53.64% | ||
| FCFM | 21.78% |
ROA(3y)18.5%
ROA(5y)18.49%
ROE(3y)24.43%
ROE(5y)26.51%
ROIC(3y)22.61%
ROIC(5y)22.67%
ROICexc(3y)29.76%
ROICexc(5y)29.07%
ROICexgc(3y)43.77%
ROICexgc(5y)44.76%
ROCE(3y)27.89%
ROCE(5y)27.89%
ROICexcg growth 3Y-2.45%
ROICexcg growth 5Y-7.71%
ROICexc growth 3Y3.37%
ROICexc growth 5Y-2.8%
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%
F-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.07 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 160.59% | ||
| Cap/Sales | 6.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.12% | ||
| Profit Quality | 95.24% | ||
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.25 | ||
| Altman-Z | 20.63 |
F-Score7
WACC9.73%
ROIC/WACC1.95
Cap/Depr(3y)259.59%
Cap/Depr(5y)233.89%
Cap/Sales(3y)8.17%
Cap/Sales(5y)7.32%
Profit Quality(3y)67.93%
Profit Quality(5y)77.19%
High Growth Momentum
Growth
EPS 1Y (TTM)-9.51%
EPS 3Y4.34%
EPS 5Y7.75%
EPS Q2Q%-20%
EPS Next Y13.05%
EPS Next 2Y11.71%
EPS Next 3Y13.54%
EPS Next 5Y13.59%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.17%
Revenue Next Year5.41%
Revenue Next 2Y6.11%
Revenue Next 3Y10.41%
Revenue Next 5Y11.6%
EBIT growth 1Y-4.28%
EBIT growth 3Y15.32%
EBIT growth 5Y8.45%
EBIT Next Year7.86%
EBIT Next 3Y7.54%
EBIT Next 5Y11.03%
FCF growth 1Y168.13%
FCF growth 3Y13.05%
FCF growth 5Y8.22%
OCF growth 1Y60.54%
OCF growth 3Y18.22%
OCF growth 5Y12.09%