Graco Inc
GGG
Pumps & Pumping Equipment
Mkt Cap
$13.72BPE
27.46Debt
-Cash
$622.7MEV
-FCF
$495.4MP/E Ratio
27.46Debt
-Cash
$622.7MEV
-FCF
$495.4MCharts data: {"Earnings":[{"time":"2014-12-25","value":225573000},{"time":"2015-12-24","value":345713000},{"time":"2016-12-29","value":40674000},{"time":"2017-12-28","value":252412000},{"time":"2018-12-27","value":341054000},{"time":"2019-12-26","value":343853000},{"time":"2020-12-24","value":330456000},{"time":"2021-12-30","value":439866000},{"time":"2022-12-29","value":460645000},{"time":"2023-12-28","value":506511000}],"Sales":[{"time":"2014-12-25","value":1221130000},{"time":"2015-12-24","value":1286485000},{"time":"2016-12-29","value":1329293000},{"time":"2017-12-28","value":1474744000},{"time":"2018-12-27","value":1653292000},{"time":"2019-12-26","value":1646045000},{"time":"2020-12-24","value":1650115000},{"time":"2021-12-30","value":1987608000},{"time":"2022-12-29","value":2143521000},{"time":"2023-12-28","value":2195606000}],"Net Margins":[{"time":"2014-12-25","value":0.1847248040749142},{"time":"2015-12-24","value":0.26872680210029654},{"time":"2016-12-29","value":0.030598220256933574},{"time":"2017-12-28","value":0.1711564854645959},{"time":"2018-12-27","value":0.20628781848578473},{"time":"2019-12-26","value":0.20889647609877007},{"time":"2020-12-24","value":0.20026240595352446},{"time":"2021-12-30","value":0.22130420082833235},{"time":"2022-12-29","value":0.21490109030888896},{"time":"2023-12-28","value":0.23069302962371208}],"Assets":[{"time":"2014-12-25","value":1544778000},{"time":"2015-12-24","value":1391352000},{"time":"2016-12-29","value":1243109000},{"time":"2017-12-28","value":1379205000},{"time":"2018-12-27","value":1472741000},{"time":"2019-12-26","value":1692210000},{"time":"2020-12-24","value":1988128000},{"time":"2021-12-30","value":2443198000},{"time":"2022-12-29","value":2438900000},{"time":"2023-12-28","value":2722007000}],"Stockholders Equity":[{"time":"2014-12-25","value":596032000},{"time":"2015-12-24","value":635551000},{"time":"2016-12-29","value":573820000},{"time":"2017-12-28","value":723063000},{"time":"2018-12-27","value":751873000},{"time":"2019-12-26","value":1024931000},{"time":"2020-12-24","value":1283904000},{"time":"2021-12-30","value":1709343000},{"time":"2022-12-29","value":1859652000},{"time":"2023-12-28","value":2224225000}],"ROE":[{"time":"2014-12-25","value":0.37845786803393106},{"time":"2015-12-24","value":0.5439579199780977},{"time":"2016-12-29","value":0.0708828552507755},{"time":"2017-12-28","value":0.34908714731634727},{"time":"2018-12-27","value":0.4536058616282271},{"time":"2019-12-26","value":0.33548892559596694},{"time":"2020-12-24","value":0.25738372962464484},{"time":"2021-12-30","value":0.25733044801423705},{"time":"2022-12-29","value":0.24770494694706321},{"time":"2023-12-28","value":0.22772471310231654}],"ROA":[{"time":"2014-12-25","value":0.2160867127833255},{"time":"2015-12-24","value":0.3538687549951414},{"time":"2016-12-29","value":0.09190264087863574},{"time":"2017-12-28","value":0.2634097179172059},{"time":"2018-12-27","value":0.2963365588382479},{"time":"2019-12-26","value":0.25082938878744365},{"time":"2020-12-24","value":0.1970285615413092},{"time":"2021-12-30","value":0.21747029917346036},{"time":"2022-12-29","value":0.23481897576776414},{"time":"2023-12-28","value":0.23763458359952785}]}
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, and precision dispensing solutions. 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. The company's Process segment offers pumps to move and dispense chemicals, water, wastewater, petroleum, food, lubricants, and other fluids; pressure valves used in the oil and natural gas industry, other industrial processes, and research facilities; and chemical injection pumping solutions for injection of chemicals into producing oil wells and pipelines. It also supplies pumps, hose reels, meters, valves, and accessories for fast oil change facilities, service garages, fleet service centers, automobile dealerships, auto parts stores, truck builders, and heavy equipment service centers; and systems, components, and accessories for the automatic lubrication of bearings, gears, and generators in industrial and commercial equipment, compressors, turbines, and on- and off-road vehicles. The company's Contractor segment offers sprayers to apply paint to walls and other structures; and viscous coatings to roofs, as well as markings on roads, parking lots, athletic fields, and floors. It sells its products through distributors, original equipment manufacturers, and home center channels; and directly to end-users. The company was incorporated in 1926 and is headquartered in Minneapolis, Minnesota.
DCF
Discounted Cash Flow Valuation of Graco Inc
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $495.4M | $529.4M | $564.5M | $600.9M | $638.3M | $676.8M | $716.2M | $756.4M | $797.3M | $838.8M | $880.8M | $8.808B |
| DCF | $460.3M | $426.9M | $395.1M | $365M | $336.5M | $309.6M | $284.4M | $260.6M | $238.4M | $217.7M | $2.177B | |
| Value | $5.472B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 15%
Earnings Stability 37%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 27% | 3.1% | 17% | 21% | 21% | 20% | 22% | 21% | 23% | 23% |
| ROA | 35% | 9.2% | 26% | 30% | 25% | 20% | 22% | 23% | 24% | 23% |
| ROE | 54% | 7.1% | 35% | 45% | 34% | 26% | 26% | 25% | 23% | 21% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +21.37%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.46%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +23.9%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -0.92%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +29.65%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -3.98%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 2.66 | 1.35 | 0.76 | 0.85 | 0.57 | 0.46 | 0.70 | 0.43 | 0.00 | - |
| Debt Equity | 0.62 | 0.53 | 0.31 | 0.35 | 0.16 | 0.12 | 0.13 | 0.04 | 0.00 | - |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is -.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.13.
What is the Graham’s Stability?
Graham’s Stability measure stands at 1.00.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 7.4% | 5.8% | 10% | 2.4% | 0.15% |
| Net Income | 43% | 8.2% | 15% | 10% | -15% |
| Stockholders Equity | 21% | 24% | 20% | 20% | 2.4% |
| FCF | 11% | 8.2% | 13% | 160% | 7.1% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +5.84%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +0.15%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +8.23%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -15.14%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +24.22%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +2.38%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +8.22%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +7.07%.