GRACO INC (GGG) Stock Fundamental Analysis
USA - NYSE:GGG - US3841091040 - Common Stock
81.65 USD
+0.41 (+0.5%)
81.65 USD
0 (0%)
GGG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. GGG gets an excellent profitability rating and is at the same time showing great financial health properties. GGG has a correct valuation and a medium growth rate. This makes GGG very considerable 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.
GGG had positive earnings in each of the past 5 years.
Each year in the past 5 years GGG had a positive operating cash flow.
1.2 Ratios
GGG's Return On Assets of 15.41% is amongst the best of the industry. GGG outperforms 95.38% of its industry peers.
GGG has a Return On Equity of 19.09%. This is amongst the best in the industry. GGG outperforms 83.08% of its industry peers.
GGG has a better Return On Invested Capital (17.91%) than 93.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GGG is significantly above the industry average of 10.24%.
| 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
Looking at the Profit Margin, with a value of 22.72%, GGG belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
In the last couple of years the Profit Margin of GGG has grown nicely.
Looking at the Operating Margin, with a value of 27.61%, GGG belongs to the top of the industry, outperforming 99.23% of the companies in the same industry.
GGG's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 52.68%, GGG belongs to the best of the industry, outperforming 94.62% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GGG is creating value.
Compared to 1 year ago, GGG has more shares outstanding
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
An Altman-Z score of 15.30 indicates that GGG is not in any danger for bankruptcy at the moment.
GGG's Altman-Z score of 15.30 is amongst the best of the industry. GGG outperforms 96.92% of its industry peers.
GGG has a debt to FCF ratio of 0.06. This is a very positive value and a sign of high solvency as it would only need 0.06 years to pay back of all of its debts.
GGG has a Debt to FCF ratio of 0.06. This is amongst the best in the industry. GGG outperforms 92.31% of its industry peers.
GGG has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
GGG's Debt to Equity ratio of 0.01 is amongst the best of the industry. GGG outperforms 83.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 15.3 |
ROIC/WACC1.88
WACC9.53%
2.3 Liquidity
A Current Ratio of 3.18 indicates that GGG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.18, GGG is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
A Quick Ratio of 2.27 indicates that GGG has no problem at all paying its short term obligations.
The Quick ratio of GGG (2.27) is better than 80.77% of its industry peers.
| 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.
Measured over the past 5 years, GGG shows a small growth in Earnings Per Share. The EPS has been growing by 7.75% on average per year.
The Revenue has been growing slightly by 2.85% in the past year.
The Revenue has been growing slightly by 5.13% on average over the past years.
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.
Based on estimates for the next years, GGG will show a quite strong growth in Revenue. The Revenue will grow by 9.55% on average per year.
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
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.
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
With a Price/Earnings ratio of 28.95, GGG can be considered very expensive at the moment.
GGG's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of GGG to the average of the S&P500 Index (26.06), we can say GGG is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 25.31, the valuation of GGG can be described as expensive.
GGG's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 32.73. GGG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.95 | ||
| Fwd PE | 25.31 |
4.2 Price Multiples
GGG's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, GGG is valued a bit cheaper than the industry average as 63.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.65 | ||
| EV/EBITDA | 18.3 |
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)3.33
PEG (5Y)3.73
EPS Next 2Y8.11%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
GGG has a Yearly Dividend Yield of 1.35%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.85, GGG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, GGG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
The dividend of GGG is nicely growing with an annual growth rate of 9.78%!
GGG has paid a dividend for at least 10 years, which is a reliable track record.
GGG has decreased its dividend recently.
Dividend Growth(5Y)9.78%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
GGG pays out 36.31% 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.
DP36.31%
EPS Next 2Y8.11%
EPS Next 3Y8.97%
81.65
+0.41 (+0.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.99%
Inst Owner Change-1.03%
Ins Owners0.85%
Ins Owner Change0.01%
Market Cap13.53B
Revenue(TTM)2.19B
Net Income(TTM)498.06M
Analysts71.76
Price Target93.66 (14.71%)
Short Float %2.5%
Short Ratio5.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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 | 28.95 | ||
| Fwd PE | 25.31 | ||
| P/S | 6.17 | ||
| P/FCF | 21.65 | ||
| P/OCF | 20.12 | ||
| P/B | 5.19 | ||
| P/tB | 7.61 | ||
| EV/EBITDA | 18.3 |
EPS(TTM)2.82
EY3.45%
EPS(NY)3.23
Fwd EY3.95%
FCF(TTM)3.77
FCFY4.62%
OCF(TTM)4.06
OCFY4.97%
SpS13.23
BVpS15.75
TBVpS10.73
PEG (NY)3.33
PEG (5Y)3.73
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 | 15.3 |
F-Score5
WACC9.53%
ROIC/WACC1.88
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 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.
What is the valuation of GRACO INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GRACO INC (GGG) is 28.95 and the Price/Book (PB) ratio is 5.19.
What is the financial health of GRACO INC (GGG) stock?
The financial health rating of GRACO INC (GGG) is 9 / 10.