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GGG

NYSE
Favorable · 66/100

Graco Inc

Industrials
Machinery

$75.28

0.1%

Updated Today 12:11 PM ET

Report Card

GGG at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Favorable · 66/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▼ Down 15.2% over the last 12 months

Price 50-day average 200-day averageDCF fair value ±15%Source: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$12.49B

P/E

24.19x

Forward P/E (est.)

22.36x

ROE

19.7%

Revenue Growth

4.6%

EPS Growth

8.2%

Profit Margin

23.0%

FCF Yield

4.6%

Debt / Equity

0.01x

ROIC

18.0%

Interest Coverage

120.36x

Current Ratio

3.56x

Dividend Yield

1.6%

Implied Growth (rev. DCF)

3.7%

Rating Score

66/100

Business Overview
Research

Graco Inc (GGG) is a large-cap company in the Machinery industry, part of the Industrials sector of the S&P 500, with a market value around $12.49B.

In its latest reported year it generated about $2.24B in revenue and $521.84M in net profit.

Our model rates GGG Favorable (66/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what GGG's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. GGG trades near $75.28, below its 50-day average ($76.41) and 200-day average ($83.16). Price below both averages is a downtrend — momentum is against buyers for now.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 54 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. GGG's is $1.39 (~1.8% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month GGG found buyers near $73.15 (support) and sellers near $77.12 (resistance); its 52-week range is $73.15–$95.69. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.2× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

3.0%

3/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $1.33B in 2016 to $2.24B in 2025, a 6.0% compound annual growth rate. The most recent year was roughly flat (4.6%) year over year. Slower, mature growth is common for established businesses.

Profitability
Research
4/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

52.5%

Operating Margin

27.9%

Net Margin

23.3%

ROE

19.7%

Graco Inc keeps about 23.0% of each sales dollar as net profit, with a 52.5% gross margin and 27.9% operating margin. Return on equity is 19.7% and return on invested capital about 18.0%. Margins this wide usually signal pricing power or a cost advantage.

Debt Analysis
Research
4/4 checks passedDebt under 1× equityDebt under 2× equityInterest covered 3×+Short-term bills covered

Total Debt

$1.62M

Net Debt

-$710.55M

Net cash position

Net Debt / EBITDA

-1.14x

Debt / Equity

0.01x

Leverage: debt-to-equity is 0.0x, and operating profit covers interest about 120.4x, with a current ratio of 3.6x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $1.62M of total debt against $712.17M of cash.

Cash Flow Analysis
Research
3/3 checks passedPositive free cash flowFCF yield above 2%Market expects achievable growth (<8%)

Operating CF

$683.59M

Free Cash Flow

$637.92M

FCF Margin

28.5%

In the latest year Graco Inc produced about $683.59M of operating cash flow and $637.92M of free cash flow after capital spending. That is a free-cash-flow yield of about 4.6% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.

Valuation Analysis
Research
3/4 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)Trading below DCF fair value

P/E

24.19x

P/S

5.58x

P/B

5.21x

EV / EBITDA

16.08x

GGG trades at 24.2x trailing earnings (about 22.4x on estimated forward earnings), 5.6x sales, and 5.2x book value. Reverse-engineering today's price implies the market expects roughly 3.7% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

$68.31

Current price

$75.28

-9% · Near fair-value estimate

Starting FCF (latest 10-K)

$637.92M

Growth, years 1–5

4.6%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$5.06B
PV of terminal value$6.27B
Estimated equity value$11.34B
Shares outstanding166M

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Sector Range

Where GGG sits versus its Industrials sector peers in the S&P 500.

TTM P/E
24.2xFair
Forward P/E
22.4xFair
P/S ratio
5.6xExpensive
Revenue growth
4.6%Average
EPS growth
8.2%Average
Gross margin
52.5%Strong
Net margin
23.0%Strong
ROE
19.7%Average

Bands show the middle half (25th–75th percentile) of the 87 Industrials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.

Sector Peer Comparison

How GGG stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.

In the Industrials sector (165 S&P 500 companies), GGG ranks #9 of 165 by our overall rating. It trades at a discount versus the sector on earnings (24.2x P/E vs. 32x median) with a lower return on equity (19.7% vs. 19.7%) and slower revenue growth (4.6% vs. 5.2%).

P/E vs sector

24.2x

median 32x

ROE vs sector

19.7%

median 19.7%

Growth vs sector

4.6%

median 5.2%

Sector rank

#9

of 165 by rating

CompanyP/ERev Gr.Rating
GGGThis stock24.2x4.6%Favorable· 66
MLI14.8x11.5%Strong· 82
CR38.5x7.2%Neutral· 45
CNH34.4x-4.0%Weak· 15
DCI23.5x4.4%Favorable· 64
ITT36.5x16.6%Neutral· 50
ASTENot rated
BLBDNot rated
Industrials median32x5.2%21/100

Valuation vs. quality map

sector medianMLICRCNHDCIITTGGGP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 165 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $75.28 today · expected CAGR -6%5%

Metric20262027202820292030
Revenue$2.35B$2.47B$2.59B$2.72B$2.85B
Net income$540.14M$567.15M$595.50M$625.28M$656.54M
EPS$3.25$3.42$3.59$3.77$3.96
Share price (low)$45.56$47.84$50.23$52.74$55.38
Share price (high)$78.11$82.01$86.11$90.42$94.94
CAGR (low–high)-39% / 4%-20% / 4%-13% / 5%-9% / 5%-6% / 5%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for GGG:

  • High net margins (23.0%) point to pricing power or efficiency.
  • Strong return on equity (19.7%) shows capital is put to work well.
  • Healthy free-cash-flow yield (~4.6%) funds buybacks and dividends.
  • A conservative balance sheet (debt/equity 0.0x) lowers risk.
  • Our model's overall read is Favorable (66/100).
Bear Case

The case against GGG:

  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen favourably: Graco Inc is a large-cap industrials business growing at a mature pace, with solid profitability, and a sound balance sheet. It trades at 24.2x earnings, which our model scores Favorable (66/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

GGG — frequently asked questions

Is GGG a good stock to buy?

We don't give buy or sell advice. Our model rates Graco Inc Favorable (66/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is GGG's rating on The Stocks School?

Graco Inc currently scores 66/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does GGG's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Graco Inc's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for GGG calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this GGG analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell GGG. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.