Graco Inc

Industrials
Fluid Controls
www.graco.com

Earnings Score
Moat Score

Market Cap $15.08B
PE 31
Debt $NaN
Cash $764.45M
EV $NaN
FCF $464.20M

Earnings

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Sales & Net Margins

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Earnings	$487.33M
EBIT	$622.40M
ROE	19%
ROA	21%
FCF	$464.20M
Equity	$2.51B
Growth Stability	100%
PE	30.94
PEG	2.51
PB	6
P/FCF	32.49
P/S	7.08
Price/Cash	0.05
Net Margins	24%
Gross Margins	54%
Op. Margins	29%
Earnings CAGR	17%
Sales Growth YoY	-4%
Sales Growth QoQ	-6%
Sales CAGR	7%
FCF CAGR	8%
Equity CAGR	18%
Earnings Stability	0.49
Earnings Growth YoY	-8%
Earnings Growth QoQ	-8%

Earnings CAGR 5Y	12%
Sales CAGR 5Y	8%
FCF CAGR 5Y	6%
Equity CAGR 5Y	22%
Earnings CAGR 3Y	3%
Sales CAGR 3Y	3%
FCF CAGR 3Y	40%
Equity CAGR 3Y	17%
Market Cap	$15.08B
Revenue	$2.13B
Dividend Yield	1%
Payout Ratio	35%
Assets	$2.98B
Cash	$764.45M
Shares Outstanding	168.47M
Earnings Score	72%
Moat Score	96%
Working Capital	1.25B
Current Ratio	4.47
Gross Profit	$1.14B
Shares Growth 3y	-0%
Equity Growth QoQ	4%
Equity Growth YoY	15%

Assets & ROA

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Stockholders Equity & ROE

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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 billion in sales and $531 million in operating income in 2021.

SEC Filings

Direct access to Graco Inc (GGG) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 27
- 10-Q Jun 28
- 10-Q Mar 29
2023
- 10-K Dec 29
- 10-Q Sep 29
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 30
- 10-Q Sep 30
- 10-Q Jul 01
- 10-Q Apr 01

Sector Comparison

How does Graco Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Graco Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 17%

Stability 49%

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Graco Inc Discounted Cash Flow

Fully customizable DCF calculator online for Graco Inc.

Years

Calculation mode

= $7.8B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$464M	$499M	$537M	$578M	$621M	$668M	$719M	$773M	$832M	$895M	$962M	$9.6B
DCF		$454M	$444M	$434M	$424M	$415M	$406M	$397M	$388M	$379M	$371M	$3.7B
Value	$7.8B

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	18%	27%	3%	17%	21%	21%	20%	22%	21%	23%	24%
ROA	-	35%	9%	26%	30%	25%	20%	22%	23%	24%	21%
ROE	-	54%	7%	35%	45%	34%	26%	26%	25%	23%	19%

Good Net Margins (24.12%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	2.66	1.35	0.76	0.85	0.57	0.46	0.7	0.43	0	-
Debt over Equity	1.03	0.62	0.53	0.31	0.35	0.16	0.12	0.13	0.04	0	-
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	5%	3%	11%	12%	-0%	0%	20%	8%	2%	8%
Earnings YoY growth	-	53%	-88%	521%	35%	1%	-4%	33%	5%	10%	12%
Equity YoY growth	-	7%	-10%	26%	4%	36%	25%	33%	9%	20%	22%
FCF YoY growth	-	-30%	53%	31%	6%	-7%	11%	0%	-45%	165%	6%