GRACO INC (GGG) Fundamental Analysis & Valuation
NYSE:GGG • US3841091040
88.01 USD
+0.05 (+0.06%)
At close: Mar 11, 2026
88.01 USD
0 (0%)
After Hours: 3/11/2026, 4:15:00 PM
This GGG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 8 out of 10 to GGG. GGG was compared to 131 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. This makes GGG very considerable for quality investing!
1. GGG Profitability Analysis
1.1 Basic Checks
- In the past year GGG was profitable.
- GGG had a positive operating cash flow in the past year.
- Each year in the past 5 years GGG has been profitable.
- In the past 5 years GGG always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of GGG (15.94%) is better than 96.18% of its industry peers.
- The Return On Equity of GGG (19.66%) is better than 88.55% of its industry peers.
- The Return On Invested Capital of GGG (18.49%) is better than 94.66% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for GGG is significantly above the industry average of 10.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.94% | ||
| ROE | 19.66% | ||
| ROIC | 18.49% |
ROA(3y)16.68%
ROA(5y)17.38%
ROE(3y)20.42%
ROE(5y)22.35%
ROIC(3y)19.39%
ROIC(5y)20.59%
1.3 Margins
- Looking at the Profit Margin, with a value of 23.33%, GGG belongs to the top of the industry, outperforming 99.24% 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 28.56%. This is amongst the best in the industry. GGG outperforms 99.24% of its industry peers.
- GGG's Operating Margin has improved in the last couple of years.
- GGG's Gross Margin of 53.08% is amongst the best of the industry. GGG outperforms 93.89% of its industry peers.
- GGG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.56% | ||
| PM (TTM) | 23.33% | ||
| GM | 53.08% |
OM growth 3Y2.25%
OM growth 5Y2%
PM growth 3Y2.78%
PM growth 5Y3.1%
GM growth 3Y2.47%
GM growth 5Y0.49%
2. GGG Health Analysis
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.
- Compared to 1 year ago, GGG has less shares outstanding
- GGG has less 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 16.38. This indicates that GGG is financially healthy and has little risk of bankruptcy at the moment.
- GGG's Altman-Z score of 16.38 is amongst the best of the industry. GGG outperforms 97.71% of its industry peers.
- GGG has a debt to FCF ratio of 0.04. This is a very positive value and a sign of high solvency as it would only need 0.04 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.04, GGG belongs to the top of the industry, outperforming 93.13% 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 83.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 16.38 |
ROIC/WACC1.98
WACC9.36%
2.3 Liquidity
- A Current Ratio of 3.15 indicates that GGG has no problem at all paying its short term obligations.
- GGG has a better Current ratio (3.15) than 78.63% of its industry peers.
- A Quick Ratio of 2.29 indicates that GGG has no problem at all paying its short term obligations.
- GGG's Quick ratio of 2.29 is amongst the best of the industry. GGG outperforms 80.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.15 | ||
| Quick Ratio | 2.29 |
3. GGG Growth Analysis
3.1 Past
- GGG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.88%.
- Measured over the past years, GGG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.63% on average per year.
- GGG shows a small growth in Revenue. In the last year, the Revenue has grown by 5.83%.
- Measured over the past years, GGG shows a small growth in Revenue. The Revenue has been growing by 6.27% on average per year.
EPS 1Y (TTM)6.88%
EPS 3Y3.77%
EPS 5Y8.63%
EPS Q2Q%20.31%
Revenue 1Y (TTM)5.83%
Revenue growth 3Y1.43%
Revenue growth 5Y6.27%
Sales Q2Q%8.11%
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 11.35% yearly.
- Based on estimates for the next years, GGG will show a quite strong growth in Revenue. The Revenue will grow by 9.30% on average per year.
EPS Next Y9.34%
EPS Next 2Y9.05%
EPS Next 3Y9.44%
EPS Next 5Y11.35%
Revenue Next Year5.9%
Revenue Next 2Y5.27%
Revenue Next 3Y5.64%
Revenue Next 5Y9.3%
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. GGG Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 29.83 indicates a quite expensive valuation of GGG.
- GGG's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 26.25, GGG is valued at the same level.
- A Price/Forward Earnings ratio of 27.29 indicates a quite expensive valuation of GGG.
- GGG's Price/Forward Earnings is on the same level as the industry average.
- GGG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.83 | ||
| Fwd PE | 27.29 |
4.2 Price Multiples
- GGG's Enterprise Value to EBITDA is on the same level as the industry average.
- 66.41% of the companies in the same industry are more expensive than GGG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.81 | ||
| EV/EBITDA | 18.65 |
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)3.2
PEG (5Y)3.46
EPS Next 2Y9.05%
EPS Next 3Y9.44%
5. GGG Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.29%, GGG has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.13, GGG pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, GGG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
5.2 History
- The dividend of GGG is nicely growing with an annual growth rate of 9.49%!
- 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)9.49%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- GGG pays out 35.14% 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.
DP35.14%
EPS Next 2Y9.05%
EPS Next 3Y9.44%
GGG Fundamentals: All Metrics, Ratios and Statistics
88.01
+0.05 (+0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-26 2026-01-26/amc
Earnings (Next)04-21 2026-04-21
Inst Owners91.79%
Inst Owner Change1.09%
Ins Owners0.89%
Ins Owner Change2.96%
Market Cap14.55B
Revenue(TTM)2.24B
Net Income(TTM)521.84M
Analysts72.94
Price Target98.39 (11.79%)
Short Float %8.75%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend1.1
Dividend Growth(5Y)9.49%
DP35.14%
Div Incr Years1
Div Non Decr Years1
Ex-Date04-13 2026-04-13 (0.295)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.11%
Min EPS beat(2)-2.04%
Max EPS beat(2)-0.17%
EPS beat(4)1
Avg EPS beat(4)-1.44%
Min EPS beat(4)-5.58%
Max EPS beat(4)2.02%
EPS beat(8)1
Avg EPS beat(8)-5.66%
EPS beat(12)4
Avg EPS beat(12)-2.65%
EPS beat(16)7
Avg EPS beat(16)-2.06%
Revenue beat(2)0
Avg Revenue beat(2)-2.32%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)-0.42%
Revenue beat(4)0
Avg Revenue beat(4)-2.41%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)-0.42%
Revenue beat(8)0
Avg Revenue beat(8)-3.55%
Revenue beat(12)1
Avg Revenue beat(12)-2.69%
Revenue beat(16)3
Avg Revenue beat(16)-1.99%
PT rev (1m)0%
PT rev (3m)5.04%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)0.51%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.83 | ||
| Fwd PE | 27.29 | ||
| P/S | 6.51 | ||
| P/FCF | 22.81 | ||
| P/OCF | 21.29 | ||
| P/B | 5.48 | ||
| P/tB | 8.25 | ||
| EV/EBITDA | 18.65 |
EPS(TTM)2.95
EY3.35%
EPS(NY)3.23
Fwd EY3.66%
FCF(TTM)3.86
FCFY4.38%
OCF(TTM)4.13
OCFY4.7%
SpS13.53
BVpS16.05
TBVpS10.67
PEG (NY)3.2
PEG (5Y)3.46
Graham Number32.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.94% | ||
| ROE | 19.66% | ||
| ROCE | 22.76% | ||
| ROIC | 18.49% | ||
| ROICexc | 23.73% | ||
| ROICexgc | 39.75% | ||
| OM | 28.56% | ||
| PM (TTM) | 23.33% | ||
| GM | 53.08% | ||
| FCFM | 28.52% |
ROA(3y)16.68%
ROA(5y)17.38%
ROE(3y)20.42%
ROE(5y)22.35%
ROIC(3y)19.39%
ROIC(5y)20.59%
ROICexc(3y)25.2%
ROICexc(5y)27%
ROICexgc(3y)38.26%
ROICexgc(5y)40.97%
ROCE(3y)23.92%
ROCE(5y)25.45%
ROICexgc growth 3Y1%
ROICexgc growth 5Y-1.86%
ROICexc growth 3Y-4.53%
ROICexc growth 5Y-2.33%
OM growth 3Y2.25%
OM growth 5Y2%
PM growth 3Y2.78%
PM growth 5Y3.1%
GM growth 3Y2.47%
GM growth 5Y0.49%
F-Score7
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.04 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 42.51% | ||
| Cap/Sales | 2.04% | ||
| Interest Coverage | 212.93 | ||
| Cash Conversion | 91.61% | ||
| Profit Quality | 122.25% | ||
| Current Ratio | 3.15 | ||
| Quick Ratio | 2.29 | ||
| Altman-Z | 16.38 |
F-Score7
WACC9.36%
ROIC/WACC1.98
Cap/Depr(3y)138.06%
Cap/Depr(5y)188.86%
Cap/Sales(3y)5.17%
Cap/Sales(5y)6.32%
Profit Quality(3y)106.75%
Profit Quality(5y)86.4%
High Growth Momentum
Growth
EPS 1Y (TTM)6.88%
EPS 3Y3.77%
EPS 5Y8.63%
EPS Q2Q%20.31%
EPS Next Y9.34%
EPS Next 2Y9.05%
EPS Next 3Y9.44%
EPS Next 5Y11.35%
Revenue 1Y (TTM)5.83%
Revenue growth 3Y1.43%
Revenue growth 5Y6.27%
Sales Q2Q%8.11%
Revenue Next Year5.9%
Revenue Next 2Y5.27%
Revenue Next 3Y5.64%
Revenue Next 5Y9.3%
EBIT growth 1Y12.05%
EBIT growth 3Y3.71%
EBIT growth 5Y8.39%
EBIT Next Year26.46%
EBIT Next 3Y13.64%
EBIT Next 5Y13.9%
FCF growth 1Y23.88%
FCF growth 3Y53.55%
FCF growth 5Y14.6%
OCF growth 1Y9.96%
OCF growth 3Y21.9%
OCF growth 5Y11.65%
GRACO INC / GGG FAQ
Can you provide the ChartMill fundamental rating for GRACO INC?
ChartMill assigns a fundamental rating of 8 / 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 10 / 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 9.34% in the next year.