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Graco Inc GGG

Morningstar Rating
$82.56 −0.57 (0.69%)
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Company Report

Graco Earnings: Full-Year Outlook Maintained Despite Slow Start to the Year

Wide-moat-rated Graco posted disappointing first-quarter results, as its net sales of $492 million and adjusted EPS of $0.65 both fell short of the FactSet consensus estimates of $536 million and $0.74, respectively. We’ve lowered our fair value estimate to $78 from $80, which reflects our more muted near-term revenue growth and operating margin projections, partially offset by time value of money. The stock fell nearly 7% following the earnings release on April 25 and is now trading in 3-star territory.

Price vs Fair Value

GGG is trading at a 10% premium.
Price
$88.20
Fair Value
$53.00
Uncertainty
Medium
1-Star Price
$599.00
5-Star Price
$34.00
Economic Moat
Xgmj
Capital Allocation
Dyvzyljtk

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.

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News

Trading Information

Previous Close Price
$83.13
Day Range
$82.5483.66
52-Week Range
$69.7894.77
Bid/Ask
$79.58 / $86.66
Market Cap
$13.96 Bil
Volume/Avg
1.1 Mil / 684,902

Key Statistics

Price/Earnings (Normalized)
27.85
Price/Sales
6.64
Dividend Yield (Trailing)
1.19%
Dividend Yield (Forward)
1.24%
Total Yield
1.32%

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 Growth
Total Number of Employees
4,000

Competitors

Valuation

Metric
GGG
IEX
NDSN
Price/Earnings (Normalized)
27.8528.0428.05
Price/Book Value
6.004.715.46
Price/Sales
6.645.285.66
Price/Cash Flow
22.1925.4921.72
Price/Earnings
GGG
IEX
NDSN

Financial Strength

Metric
GGG
IEX
NDSN
Quick Ratio
2.262.291.22
Current Ratio
3.463.372.19
Interest Coverage
118.2816.319.80
Quick Ratio
GGG
IEX
NDSN

Profitability

Metric
GGG
IEX
NDSN
Return on Assets (Normalized)
18.98%10.56%11.57%
Return on Equity (Normalized)
23.50%17.83%20.84%
Return on Invested Capital (Normalized)
22.73%13.20%14.98%
Return on Assets
GGG
IEX
NDSN
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