Market Cap
US$12.4b
Last Updated
2021/04/11 22:03 UTC
Data Sources
Company Financials +
Executive Summary
Graco Inc. designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. More Details
Rewards
Risk Analysis
No risks detected for GGG from our risk checks.
Snowflake Analysis
Flawless balance sheet average dividend payer.
Similar Companies
Share Price & News
How has Graco's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GGG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: GGG's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
0.7%
GGG
0.5%
US Machinery
2.1%
US Market
1 Year Return
53.0%
GGG
79.1%
US Machinery
56.3%
US Market
Return vs Industry: GGG underperformed the US Machinery industry which returned 79.1% over the past year.
Return vs Market: GGG underperformed the US Market which returned 56.3% over the past year.
Shareholder returns
| GGG | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.7% | 0.5% | 2.1% |
| 30 Day | 5.9% | 1.9% | 2.4% |
| 90 Day | -2.6% | 11.3% | 6.1% |
| 1 Year | 54.9%53.0% | 83.5%79.1% | 59.1%56.3% |
| 3 Year | 66.1%60.3% | 61.1%49.7% | 65.7%55.1% |
| 5 Year | 177.0%159.8% | 155.3%129.2% | 122.3%97.6% |
Long-Term Price Volatility Vs. Market
How volatile is Graco's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Graco Inc.'s (NYSE:GGG) Stock Has Fared Decently: Is the Market Following Strong Financials?3 weeks ago | Simply Wall St
Is Graco Inc.'s (NYSE:GGG) 1.1% Dividend Worth Your Time?1 month ago | Simply Wall St
Are Insiders Selling Graco Inc. (NYSE:GGG) Stock?Valuation
Is Graco undervalued compared to its fair value and its price relative to the market?
37.2x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: GGG ($73.4) is trading above our estimate of fair value ($53.33)
Significantly Below Fair Value: GGG is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: GGG is poor value based on its PE Ratio (37.2x) compared to the US Machinery industry average (36.1x).
PE vs Market: GGG is poor value based on its PE Ratio (37.2x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: GGG is poor value based on its PEG Ratio (3.6x)
Price to Book Ratio
PB vs Industry: GGG is overvalued based on its PB Ratio (9.6x) compared to the US Machinery industry average (3.3x).
Future Growth
How is Graco forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
10.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GGG's forecast earnings growth (10.3% per year) is above the savings rate (2%).
Earnings vs Market: GGG's earnings (10.3% per year) are forecast to grow slower than the US market (18.6% per year).
High Growth Earnings: GGG's earnings are forecast to grow, but not significantly.
Revenue vs Market: GGG's revenue (6.7% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: GGG's revenue (6.7% 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 (22.8%)
Past Performance
How has Graco performed over the past 5 years?
12.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GGG has high quality earnings.
Growing Profit Margin: GGG's current net profit margins (20%) are lower than last year (20.9%).
Past Earnings Growth Analysis
Earnings Trend: GGG's earnings have grown by 12.7% per year over the past 5 years.
Accelerating Growth: GGG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GGG had negative earnings growth (-3.9%) over the past year, making it difficult to compare to the Machinery industry average (-13.3%).
Return on Equity
High ROE: GGG's Return on Equity (25.7%) is considered high.
Financial Health
How is Graco's financial position?
Financial Position Analysis
Short Term Liabilities: GGG's short term assets ($1.0B) exceed its short term liabilities ($321.4M).
Long Term Liabilities: GGG's short term assets ($1.0B) exceed its long term liabilities ($382.8M).
Debt to Equity History and Analysis
Debt Level: GGG's debt to equity ratio (13.4%) is considered satisfactory.
Reducing Debt: GGG's debt to equity ratio has reduced from 64.5% to 13.4% over the past 5 years.
Debt Coverage: GGG's debt is well covered by operating cash flow (228.8%).
Interest Coverage: GGG's interest payments on its debt are well covered by EBIT (37.4x coverage).
Balance Sheet
Dividend
What is Graco current dividend yield, its reliability and sustainability?
1.02%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: GGG's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.26%).
High Dividend: GGG's dividend (1.02%) is low compared to the top 25% of dividend payers in the US market (3.5%).
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 (36.1%), 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 (33.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Pat McHale (59 yo)
13.83yrs
Tenure
US$8,992,789
Compensation
Mr. Patrick J. McHale, also known as Pat, serves as the Chief Executive Officer of Graco Minnesota Inc. Mr. McHale has been the Chief Executive Officer and President of Graco Inc. since June 12, 2007. He j...
CEO Compensation Analysis
Compensation vs Market: Pat's total compensation ($USD8.99M) is about average for companies of similar size in the US market ($USD10.98M).
Compensation vs Earnings: Pat'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 seasoned and experienced ( 13.8 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 company bio, 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$12.398b
- Shares outstanding: 168.91m
- Website: https://www.graco.com
Number of Employees
Location
- Graco Inc.
- 88–11th Avenue Northeast
- Minneapolis
- Minnesota
- 55413
- United States
Listings
Biography
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 proport...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/11 22:03 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2020/12/25 |
| Annual Earnings | 2020/12/25 |
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.