Graco Inc GGG

Morningstar Rating

Company Report

Graco Lowers Full-Year Guidance After Slow First Half

Graco is a wide-moat industrial firm that has consistently delivered returns on invested capital above 20%. The company differentiates itself by manufacturing specialized products that handle difficult-to-move liquids, often used for niche applications where competition is limited. The firm offers a wide array of products, including pumps used to move peanut butter or caramel, automotive paint spray systems, and injection pumps for the oil and gas industry.

Price vs Fair Value

GGG is trading at a 694% premium.
Price
$87.64
Fair Value
$48.00
Uncertainty
Medium
1-Star Price
$343.70
5-Star Price
$53.10
Economic Moat
Jxypw
Capital Allocation
Vtbzxsm

Bulls Say, Bears Say

Bulls

Graco has a large installed base and leading market share across a wide range of niche products.

Bears

Organic revenue growth may be elusive if industrial production remains soft.

News

Trading Information

Previous Close Price
Day Range
52-Week Range
Bid/Ask
/
Market Cap
Volume/Avg
/

Key Statistics

Price/Earnings (Normalized)
29.16
Price/Sales
7.02
Dividend Yield (Trailing)
1.14%
Dividend Yield (Forward)
1.16%
Total Yield
1.53%

Company Profile

Graco manufactures equipment used for managing fluids, coatings, and adhesives, specializing in difficult-to-handle materials. Graco’s business is organized into three segments: industrial, process, and contractor. The Minnesota-based firm serves a wide range of end markets, including industrial, automotive, and construction, and its broad array of products include pumps, valves, meters, sprayers, and equipment used to apply coatings, sealants, and adhesives. The firm generated roughly $2.2 billion in sales in 2023.
Sector
Industrials
Industry
Specialty Industrial Machinery
Stock Style Box
Mid Core
Total Number of Employees
4,000

Competitors

Valuation

Metric
GGG
NDSN
IEX
Price/Earnings (Normalized)
29.1627.7627.25
Price/Book Value
6.125.254.47
Price/Sales
7.025.665.12
Price/Cash Flow
23.5824.1924.81
Price/Earnings
GGG
NDSN
IEX

Financial Strength

Metric
GGG
NDSN
IEX
Quick Ratio
2.811.362.36
Current Ratio
4.212.363.41
Interest Coverage
175.467.7918.19
Quick Ratio
GGG
NDSN
IEX

Profitability

Metric
GGG
NDSN
IEX
Return on Assets (Normalized)
18.64%10.82%10.31%
Return on Equity (Normalized)
22.75%20.04%17.13%
Return on Invested Capital (Normalized)
22.18%14.21%12.85%
Return on Assets
GGG
NDSN
IEX

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