GRACO INC (GGG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GGG - US3841091040 - Common Stock
82.72 USD
-1.73 (-2.05%)
82.72 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to GGG. GGG was compared to 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 is quite expensive at the moment. It does show a decent growth rate. With these ratings, GGG could be worth investigating further 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 better Return On Assets (15.41%) than 94.62% of its industry peers.
Looking at the Return On Equity, with a value of 19.09%, GGG belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.91%, GGG belongs to the top of the industry, outperforming 93.08% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GGG is significantly above the industry average of 10.32%.
| 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 Profit Margin of 22.72%. This is amongst the best in the industry. GGG outperforms 97.69% of its industry peers.
In the last couple of years the Profit Margin of GGG has grown nicely.
GGG has a Operating Margin of 27.61%. This is amongst the best in the industry. GGG outperforms 99.23% of its industry peers.
In the last couple of years the Operating Margin of GGG has remained more or less at the same level.
GGG's Gross Margin of 52.68% is amongst the best of the industry. GGG outperforms 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.
GGG has more shares outstanding than it did 1 year ago.
GGG has more shares outstanding than it did 5 years ago.
GGG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 15.76 indicates that GGG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 15.76, GGG belongs to the best of the industry, outperforming 96.92% of the companies in the same industry.
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 92.31% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that GGG is not too dependend on debt financing.
GGG has a better Debt to Equity ratio (0.01) than 83.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 15.76 |
ROIC/WACC1.85
WACC9.66%
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 Current ratio of 3.18. This is in the better half of the industry: GGG outperforms 78.46% 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 Quick ratio of 2.27. This is amongst the best in the industry. GGG outperforms 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.
GGG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.75% yearly.
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
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 Y8.91%
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
Based on the Price/Earnings ratio of 29.33, the valuation of GGG can be described as expensive.
GGG's Price/Earnings is on the same level as the industry average.
GGG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.43.
A Price/Forward Earnings ratio of 25.64 indicates a quite expensive valuation of GGG.
The rest of the industry has a similar Price/Forward Earnings ratio as GGG.
The average S&P500 Price/Forward Earnings ratio is at 23.66. GGG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.33 | ||
| Fwd PE | 25.64 |
4.2 Price Multiples
GGG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. GGG is more expensive than 60.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GGG is valued a bit cheaper than the industry average as 63.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.95 | ||
| EV/EBITDA | 18.97 |
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)3.29
PEG (5Y)3.78
EPS Next 2Y8.11%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.41%, GGG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.00, GGG pays a bit more dividend than its industry peers.
GGG's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
On average, the dividend of GGG grows each year by 9.78%, which is quite nice.
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%
82.72
-1.73 (-2.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners91.18%
Inst Owner Change0.68%
Ins Owners0.85%
Ins Owner Change0.01%
Market Cap13.71B
Revenue(TTM)2.19B
Net Income(TTM)498.06M
Analysts71.76
Price Target93.66 (13.23%)
Short Float %2.75%
Short Ratio5.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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%
PT rev (3m)-0.84%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)1.65%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.33 | ||
| Fwd PE | 25.64 | ||
| P/S | 6.26 | ||
| P/FCF | 21.95 | ||
| P/OCF | 20.39 | ||
| P/B | 5.26 | ||
| P/tB | 7.72 | ||
| EV/EBITDA | 18.97 |
EPS(TTM)2.82
EY3.41%
EPS(NY)3.23
Fwd EY3.9%
FCF(TTM)3.77
FCFY4.56%
OCF(TTM)4.06
OCFY4.9%
SpS13.22
BVpS15.74
TBVpS10.72
PEG (NY)3.29
PEG (5Y)3.78
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 | 15.76 |
F-Score5
WACC9.66%
ROIC/WACC1.85
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 Y8.91%
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 Year17.43%
EBIT Next 3Y11.04%
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 29.33 and the Price/Book (PB) ratio is 5.26.
What is the financial health of GRACO INC (GGG) stock?
The financial health rating of GRACO INC (GGG) is 9 / 10.