GRACO INC (GGG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GGG - US3841091040 - Common Stock
85.95 USD
+0.76 (+0.89%)
85.95 USD
0 (0%)
Overall GGG gets a fundamental rating of 7 out of 10. We evaluated GGG against 132 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. GGG is quite expensive at the moment. It does show a decent growth rate. 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.
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 15.41%, GGG belongs to the best of the industry, outperforming 94.70% of the companies in the same industry.
With an excellent Return On Equity value of 19.09%, GGG belongs to the best of the industry, outperforming 84.09% of the companies in the same industry.
GGG has a Return On Invested Capital of 17.91%. This is amongst the best in the industry. GGG outperforms 93.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GGG is significantly above the industry average of 10.25%.
| 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
With an excellent Profit Margin value of 22.72%, GGG belongs to the best of the industry, outperforming 97.73% of the companies in the same industry.
In the last couple of years the Profit Margin of GGG has grown nicely.
The Operating Margin of GGG (27.61%) is better than 99.24% of its industry peers.
In the last couple of years the Operating Margin of GGG has remained more or less at the same level.
Looking at the Gross Margin, with a value of 52.68%, GGG belongs to the top of the industry, outperforming 94.70% of the companies in the same industry.
GGG's Gross Margin has been stable in the last couple of years.
| 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.
GGG has more shares outstanding than it did 1 year ago.
GGG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for GGG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 16.00 indicates that GGG is not in any danger for bankruptcy at the moment.
GGG's Altman-Z score of 16.00 is amongst the best of the industry. GGG outperforms 96.21% 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 has a Debt to FCF ratio of 0.06. This is amongst the best in the industry. GGG outperforms 92.42% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that GGG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.01, GGG belongs to the top of the industry, outperforming 84.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 16 |
ROIC/WACC1.89
WACC9.49%
2.3 Liquidity
GGG has a Current Ratio of 3.18. This indicates that GGG is financially healthy and has no problem in meeting its short term obligations.
GGG's Current ratio of 3.18 is fine compared to the rest of the industry. GGG outperforms 78.79% 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.
GGG's Quick ratio of 2.27 is amongst the best of the industry. GGG outperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
GGG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.42%.
The Earnings Per Share has been growing slightly by 7.75% on average over the past years.
Looking at the last year, GGG shows a small growth in Revenue. The Revenue has grown by 2.85% in the last year.
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
The Earnings Per Share is expected to grow by 11.64% on average over the next years. This is quite good.
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 Y8.88%
EPS Next 2Y8.06%
EPS Next 3Y8.93%
EPS Next 5Y11.64%
Revenue Next Year5.22%
Revenue Next 2Y5.03%
Revenue Next 3Y5.45%
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.
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
A Price/Earnings ratio of 30.48 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 27.19.
GGG is valuated quite expensively with a Price/Forward Earnings ratio of 26.67.
GGG's Price/Forward Earnings ratio is in line with the industry average.
GGG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.48 | ||
| Fwd PE | 26.67 |
4.2 Price Multiples
GGG's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, GGG is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.8 | ||
| EV/EBITDA | 19.32 |
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.
The excellent profitability rating of GGG may justify a higher PE ratio.
PEG (NY)3.43
PEG (5Y)3.93
EPS Next 2Y8.06%
EPS Next 3Y8.93%
5. Dividend
5.1 Amount
GGG has a Yearly Dividend Yield of 1.39%.
Compared to an average industry Dividend Yield of 0.80, GGG pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 1.92, GGG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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 2Y8.06%
EPS Next 3Y8.93%
85.95
+0.76 (+0.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners91.17%
Inst Owner Change0.08%
Ins Owners0.85%
Ins Owner Change0.12%
Market Cap14.25B
Revenue(TTM)2.19B
Net Income(TTM)498.06M
Analysts71.76
Price Target93.44 (8.71%)
Short Float %2.84%
Short Ratio5.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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)-0.24%
PT rev (3m)-1.08%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)1.5%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.48 | ||
| Fwd PE | 26.67 | ||
| P/S | 6.5 | ||
| P/FCF | 22.8 | ||
| P/OCF | 21.19 | ||
| P/B | 5.46 | ||
| P/tB | 8.02 | ||
| EV/EBITDA | 19.32 |
EPS(TTM)2.82
EY3.28%
EPS(NY)3.22
Fwd EY3.75%
FCF(TTM)3.77
FCFY4.39%
OCF(TTM)4.06
OCFY4.72%
SpS13.22
BVpS15.74
TBVpS10.72
PEG (NY)3.43
PEG (5Y)3.93
Graham Number31.6
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 | 16 |
F-Score5
WACC9.49%
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 Y8.88%
EPS Next 2Y8.06%
EPS Next 3Y8.93%
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 3Y5.45%
Revenue Next 5Y9.55%
EBIT growth 1Y-0.78%
EBIT growth 3Y2.38%
EBIT growth 5Y6.08%
EBIT Next Year17.39%
EBIT Next 3Y10.97%
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.
What is the valuation status for GGG stock?
ChartMill assigns a valuation rating of 3 / 10 to GRACO INC (GGG). This can be considered as Overvalued.
How profitable is GRACO INC (GGG) stock?
GRACO INC (GGG) has a profitability rating of 9 / 10.
Can you provide the financial health for GGG stock?
The financial health rating of GRACO INC (GGG) is 9 / 10.
Can you provide the expected EPS growth for GGG stock?
The Earnings per Share (EPS) of GRACO INC (GGG) is expected to grow by 8.88% in the next year.