company background image
GGG

GracoNYSE:GGG Stock Report

Market Cap

US$12.3b

7D

4.9%

1Y

10.8%

Updated

19 Oct, 2021

Data

Company Financials +
GGG fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance6/6
Financial Health6/6
Dividends4/6

GGG Overview

Graco Inc. designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide.

Graco Competitors

Dover

NYSE:DOV

US$24.0b

Xylem

NYSE:XYL

US$22.5b

IDEX

NYSE:IEX

US$16.2b

Nordson

NasdaqGS:NDSN

US$14.2b

Price History & Performance

Summary of all time highs, changes and price drops for Graco
Historical stock prices
Current Share PriceUS$72.19
52 Week HighUS$60.65
52 Week LowUS$80.48
Beta0.64
1 Month Change-3.96%
3 Month Change-7.83%
1 Year Change10.76%
3 Year Change88.04%
5 Year Change188.64%
Change since IPO13,417.11%

Recent News & Updates

Oct 18

Graco Is Fairly Valued Right Now

Graco reported impressive quarterly results with growth stemming from all three segments. The company has a great balance sheet, can report high growth rates and has a wide economic moat. And right now, the stock could be more or less fairly valued.

Oct 04
Estimating The Intrinsic Value Of Graco Inc. (NYSE:GGG)

Estimating The Intrinsic Value Of Graco Inc. (NYSE:GGG)

Does the October share price for Graco Inc. ( NYSE:GGG ) reflect what it's really worth? Today, we will estimate the...

Shareholder Returns

GGGUS MachineryUS Market
7D4.9%4.4%4.0%
1Y10.8%26.6%30.5%

Return vs Industry: GGG underperformed the US Machinery industry which returned 25.9% over the past year.

Return vs Market: GGG underperformed the US Market which returned 30% over the past year.

Price Volatility

Is GGG's price volatile compared to industry and market?
GGG volatility
GGG Beta0.64
Industry Beta1.26
Market Beta1

Stable Share Price: GGG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: GGG's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19263,700Mark Sheahanhttps://www.graco.com

Graco Inc. designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. The company’s Industrial segment offers proportioning systems to spray polyurethane foam and polyurea coatings; equipment that pumps, meters, mixes, and dispenses sealant, adhesive, and composite materials; and gel-coat equipment, chop and wet-out systems, resin transfer molding systems, and applicators. It also provides liquid finishing equipment; paint circulating and supply pumps; paint circulating advanced control systems; plural component coating proportioners; spare parts and accessories; and powder finishing products to coat powder finishing on metals under the Gema and SAT brands.

Graco Fundamentals Summary

How do Graco's earnings and revenue compare to its market cap?
GGG fundamental statistics
Market CapUS$12.25b
Earnings (TTM)US$444.61m
Revenue (TTM)US$1.87b

27.6x

P/E Ratio

6.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GGG income statement (TTM)
RevenueUS$1.87b
Cost of RevenueUS$886.01m
Gross ProfitUS$984.94m
ExpensesUS$540.32m
EarningsUS$444.61m

Last Reported Earnings

Jun 25, 2021

Next Earnings Date

Oct 20, 2021

Earnings per share (EPS)2.62
Gross Margin52.64%
Net Profit Margin23.76%
Debt/Equity Ratio11.0%

How did GGG perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

28%

Payout Ratio

Valuation

Is Graco undervalued compared to its fair value and its price relative to the market?

27.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GGG ($72.19) is trading above our estimate of fair value ($69.35)

Significantly Below Fair Value: GGG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GGG is good value based on its PE Ratio (27.6x) compared to the US Machinery industry average (29.1x).

PE vs Market: GGG is poor value based on its PE Ratio (27.6x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: GGG is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: GGG is overvalued based on its PB Ratio (8.3x) compared to the US Machinery industry average (2.8x).


Future Growth

How is Graco forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GGG's forecast earnings growth (6.6% per year) is above the savings rate (2%).

Earnings vs Market: GGG's earnings (6.6% per year) are forecast to grow slower than the US market (15.1% per year).

High Growth Earnings: GGG's earnings are forecast to grow, but not significantly.

Revenue vs Market: GGG's revenue (7.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: GGG's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GGG's Return on Equity is forecast to be high in 3 years time (25.7%)


Past Performance

How has Graco performed over the past 5 years?

21.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GGG has high quality earnings.

Growing Profit Margin: GGG's current net profit margins (23.8%) are higher than last year (17.5%).


Past Earnings Growth Analysis

Earnings Trend: GGG's earnings have grown significantly by 21.3% per year over the past 5 years.

Accelerating Growth: GGG's earnings growth over the past year (63.9%) exceeds its 5-year average (21.3% per year).

Earnings vs Industry: GGG earnings growth over the past year (63.9%) exceeded the Machinery industry 21.7%.


Return on Equity

High ROE: GGG's Return on Equity (30%) is considered high.


Financial Health

How is Graco's financial position?


Financial Position Analysis

Short Term Liabilities: GGG's short term assets ($1.2B) exceed its short term liabilities ($358.7M).

Long Term Liabilities: GGG's short term assets ($1.2B) exceed its long term liabilities ($389.2M).


Debt to Equity History and Analysis

Debt Level: GGG's debt to equity ratio (11%) is considered satisfactory.

Reducing Debt: GGG's debt to equity ratio has reduced from 65.2% to 11% over the past 5 years.

Debt Coverage: GGG's debt is well covered by operating cash flow (289.1%).

Interest Coverage: GGG's interest payments on its debt are well covered by EBIT (49.2x coverage).


Balance Sheet


Dividend

What is Graco current dividend yield, its reliability and sustainability?

1.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GGG's dividend (1.04%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: GGG's dividend (1.04%) is low compared to the top 25% of dividend payers in the US market (3.49%).


Stability and Growth of Payments

Stable Dividend: GGG's dividends per share have been stable in the past 10 years.

Growing Dividend: GGG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.9%), GGG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GGG's dividends in 3 years are forecast to be well covered by earnings (29.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Mark Sheahan (57 yo)

0.33

Tenure

US$2,102,506

Compensation

Mr. Mark W. Sheahan has been the President, Chief Executive Officer and Director at Graco Inc. since June 10, 2021 and served as its Chief Financial Officer and Treasurer since June 18, 2018 until June 10,...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD2.10M) is below average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GGG's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: GGG's board of directors are considered experienced (8.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Graco Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Graco Inc.
  • Ticker: GGG
  • Exchange: NYSE
  • Founded: 1926
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$12.254b
  • Shares outstanding: 169.74m
  • Website: https://www.graco.com

Number of Employees


Location

  • Graco Inc.
  • 88–11th Avenue Northeast
  • Minneapolis
  • Minnesota
  • 55413
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 23:33
End of Day Share Price2021/10/19 00:00
Earnings2021/06/25
Annual Earnings2020/12/25


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.