GRACO INC (GGG)
US3841091040 - Common Stock
We assign a fundamental rating of 7 out of 10 to GGG. GGG was compared to 132 industry peers in the Machinery industry. GGG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
In the past year GGG had a positive cash flow from operations.
In the past 5 years GGG has always been profitable.
Each year in the past 5 years GGG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 17.93%, GGG belongs to the top of the industry, outperforming 96.92% of the companies in the same industry.
The Return On Equity of GGG (21.39%) is better than 83.85% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.07%, GGG belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
GGG had an Average Return On Invested Capital over the past 3 years of 22.61%. This is significantly above the industry average of 10.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.93% | ||
| ROE | 21.39% | ||
| ROIC | 21.07% |
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
With an excellent Profit Margin value of 23.15%, GGG belongs to the best of the industry, outperforming 99.23% of the companies in the same industry.
GGG's Profit Margin has improved in the last couple of years.
The Operating Margin of GGG (29.24%) is better than 99.23% of its industry peers.
In the last couple of years the Operating Margin of GGG has grown nicely.
The Gross Margin of GGG (52.92%) is better than 95.38% of its industry peers.
GGG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.24% | ||
| PM (TTM) | 23.15% | ||
| GM | 52.92% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GGG is creating value.
The number of shares outstanding for GGG remains at a similar level compared to 1 year ago.
The number of shares outstanding for GGG has been increased compared to 5 years ago.
Compared to 1 year ago, GGG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 21.32 indicates that GGG is not in any danger for bankruptcy at the moment.
GGG's Altman-Z score of 21.32 is amongst the best of the industry. GGG outperforms 97.69% 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.
With an excellent Debt to FCF ratio value of 0.06, GGG belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
GGG has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
GGG has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. GGG outperforms 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 21.32 |
ROIC/WACC2.3
WACC9.18%
2.3 Liquidity
GGG has a Current Ratio of 4.11. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.11, GGG belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
GGG has a Quick Ratio of 2.80. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.80, GGG belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.11 | ||
| Quick Ratio | 2.8 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.34% over the past year.
Measured over the past years, GGG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.04% on average per year.
GGG shows a decrease in Revenue. In the last year, the revenue decreased by -0.94%.
GGG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.84% yearly.
EPS 1Y (TTM)5.34%
EPS 3Y16.08%
EPS 5Y10.04%
EPS growth Q2Q-12.16%
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y9.99%
Revenue growth 5Y5.84%
Revenue growth Q2Q-7.07%
3.2 Future
The Earnings Per Share is expected to grow by 9.02% 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 8.96% on average per year.
EPS Next Y4.57%
EPS Next 2Y5.64%
EPS Next 3Y6.64%
EPS Next 5Y9.02%
Revenue Next Year2.94%
Revenue Next 2Y3.83%
Revenue Next 3Y4.81%
Revenue Next 5Y8.96%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 28.05, GGG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of GGG is on the same level as its industry peers.
When comparing the Price/Earnings ratio of GGG to the average of the S&P500 Index (28.60), we can say GGG is valued inline with the index average.
GGG is valuated rather expensively with a Price/Forward Earnings ratio of 24.39.
Based on the Price/Forward Earnings ratio, GGG is valued a bit more expensive than 60.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.15. GGG is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.05 | ||
| Fwd PE | 24.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GGG is valued a bit more expensive than the industry average as 63.08% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as GGG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.34 | ||
| EV/EBITDA | 18.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GGG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.14
PEG (5Y)2.79
EPS Next 2Y5.64%
EPS Next 3Y6.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.22%, GGG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.66, GGG pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.22, GGG pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
The dividend of GGG is nicely growing with an annual growth rate of 12.19%!
GGG has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)12.19%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
32.38% of the earnings are spent on dividend by GGG. This is a low number and sustainable payout ratio.
GGG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.38%
EPS Next 2Y5.64%
EPS Next 3Y6.64%
GRACO INC
NYSE:GGG (5/17/2024, 7:04:00 PM)
After market: 83.02 0 (0%)83.02
-0.39 (-0.47%)
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 Cap14.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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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 | 28.05 | ||
| Fwd PE | 24.39 | ||
| 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)6.14
PEG (5Y)2.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.93% | ||
| ROE | 21.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.24% | ||
| PM (TTM) | 23.15% | ||
| GM | 52.92% | ||
| 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 Turnover0.77
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 | 4.11 | ||
| Quick Ratio | 2.8 | ||
| 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)
Growth
EPS 1Y (TTM)5.34%
EPS 3Y16.08%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y9.99%
Revenue growth 5Y
Revenue growth 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