GRACO INC (GGG) Stock Fundamental Analysis
USA - NYSE:GGG - US3841091040 - Common Stock
79.36 USD
+0.22 (+0.28%)
Overall GGG gets a fundamental rating of 7 out of 10. We evaluated GGG 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 not valued too expensively and it also shows a decent growth rate. These ratings would make GGG suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year GGG was profitable.
GGG had a positive operating cash flow in the past year.
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 has a Return On Assets of 15.41%. This is amongst the best in the industry. GGG outperforms 95.38% of its industry peers.
The Return On Equity of GGG (19.09%) is better than 84.62% of its industry peers.
GGG has a Return On Invested Capital of 17.91%. This is amongst the best in the industry. GGG outperforms 93.08% of its industry peers.
GGG had an Average Return On Invested Capital over the past 3 years of 21.05%. This 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
GGG has a better Profit Margin (22.72%) than 98.46% of its industry peers.
In the last couple of years the Profit Margin of GGG has grown nicely.
GGG has a better Operating Margin (27.61%) than 99.23% of its industry peers.
GGG's Operating Margin has been stable in the last couple of years.
GGG has a better Gross Margin (52.68%) than 94.62% of its industry peers.
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
The number of shares outstanding for GGG has been increased compared to 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 14.90 indicates that GGG is not in any danger for bankruptcy at the moment.
GGG has a better Altman-Z score (14.90) than 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.
Looking at the Debt to FCF ratio, with a value of 0.06, GGG belongs to the top of the industry, outperforming 92.31% 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 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 14.9 |
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.
GGG has a better Current ratio (3.18) than 79.23% of its industry peers.
A Quick Ratio of 2.27 indicates that GGG has no problem at all paying its short term obligations.
GGG has a better Quick ratio (2.27) than 81.54% 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.
The Earnings Per Share has been growing slightly by 7.75% on average over the past years.
The Revenue has been growing slightly by 2.85% in the past 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
GGG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.64% yearly.
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
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
Based on the Price/Earnings ratio of 28.14, the valuation of GGG can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of GGG is on the same level as its industry peers.
GGG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.51.
A Price/Forward Earnings ratio of 24.60 indicates a rather expensive valuation of GGG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GGG is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, GGG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.14 | ||
| Fwd PE | 24.6 |
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 a bit cheaper when compared to the industry. GGG is cheaper than 62.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.04 | ||
| EV/EBITDA | 17.71 |
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.
GGG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.24
PEG (5Y)3.63
EPS Next 2Y8.11%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
GGG has a Yearly Dividend Yield of 1.36%.
Compared to an average industry Dividend Yield of 1.87, GGG pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.36, GGG pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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.
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%
NYSE:GGG (11/19/2025, 1:20:44 PM)
79.36
+0.22 (+0.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.99%
Inst Owner Change0.62%
Ins Owners0.85%
Ins Owner Change0.01%
Market Cap13.15B
Revenue(TTM)2.19B
Net Income(TTM)498.06M
Analysts71.76
Price Target93.66 (18.02%)
Short Float %2.62%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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 | 28.14 | ||
| Fwd PE | 24.6 | ||
| P/S | 6 | ||
| P/FCF | 21.04 | ||
| P/OCF | 19.55 | ||
| P/B | 5.04 | ||
| P/tB | 7.4 | ||
| EV/EBITDA | 17.71 |
EPS(TTM)2.82
EY3.55%
EPS(NY)3.23
Fwd EY4.06%
FCF(TTM)3.77
FCFY4.75%
OCF(TTM)4.06
OCFY5.11%
SpS13.23
BVpS15.75
TBVpS10.73
PEG (NY)3.24
PEG (5Y)3.63
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 | 14.9 |
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 28.14 and the Price/Book (PB) ratio is 5.04.
What is the financial health of GRACO INC (GGG) stock?
The financial health rating of GRACO INC (GGG) is 9 / 10.