Graco Inc.

Graco Inc.

GGGยทNYSE

$73.79

-0.35%
IndustrialsIndustrial - Machinery

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.

At a Glance

Live Snapshot
Market Cap$12.25B
EPS3.1400
P/E Ratio26.59
Earnings Date07/22/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 26.6).

Valuation inputs: P/E 26.6, earnings yield +3.8%, momentum -0.4%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is strong (ROE +19.7%, ROIC +17.5%).

Profitability stack: net margin +23.3%, ROE +19.7%, ROIC +17.5%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile looks controlled across current risk inputs.

Risk factors: liabilities/assets +18.9%, momentum -0.4%, net margin +23.3%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Graco Inc. Market vs Earnings Trajectory

GGG ยท NYSE

Loading price and EPS data...

Graco Inc.

Graco Inc. Fair Value Envelope

GGG ยท NYSE

Our analysis suggests that GGG has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $73.79, this represents a potential HIDDEN relative to our calculated worth for Graco Inc..

Intrinsic Value
Current Price: $73.79
3Y+4.0%
5Y+15.0%
10Y+54.0%
3Y+2.0%
5Y+4.0%
10Y+35.0%
3Y+3.0%
5Y+13.0%
10Y+53.0%
3Y+5.0%
5Y+81.0%
10Y+86.0%
3Y+37.0%
5Y+262.0%
10Y+103.0%
3Y+20.0%
5Y+34.0%
10Y+122.0%
Graco Inc.

Graco Inc. Profit Bridge

GGG ยท NYSE
Revenue2.24B
Cost of Goods Sold (1.06B)
Gross Profit1.17B
Operating Expenses (562.45M)
Operating Income610.74M
Interest Expense (2.89M)
Other Income/Expense30.46M
Pretax Income641.20M
Income Tax (119.36M)
Net Income521.84M
Net Income
521.84M

Profitability Analysis

Gross Margin

52.5%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

27.3%

Outstanding operational efficiency. The company generates substantial profit from core operations.

Net Profit Margin

23.3%

Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.

Effective Tax Rate

18.6%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.

52.45%
Gross Profit Margin
-1%
3Y-1.0%
5Y+6.0%
10Y-2.0%
27.31%
Operating Profit Margin
1%
3Y-7.0%
5Y+2.0%
10Y+3.0%
23.33%
Net Profit Margin
1%
3Y+1.0%
5Y+9.0%
10Y+13.0%
19.66%
Return on Equity
5%
3Y-14.0%
5Y-21.0%
10Y-57.0%
15.94%
Return on Assets
3%
3Y-14.0%
5Y-16.0%
10Y-31.0%
17.55%
Return on Invested Capital
3%
3Y-23.0%
5Y-22.0%
10Y-43.0%
GGG

Graco Inc. Cash Conversion Engine

GGG ยท NYSE
Net Income521.84M
Depreciation & Amortization107.43M
Stock-Based Compensation34.33M
Change in Working Capital47.46M
Others-18.80M
Capital Expenditures-45.67M
Free Cash Flow637.92M

Cash Flow Quality Analysis

FCF Conversion Rate

122.2%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

6.7%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+23.9%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$47.46M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

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Graco Inc. Funding & Solvency Profile

GGG ยท NYSE
Cash & Cash Equivalents712.17M
Net Receivables390.37M
Inventory407.65M
Other Current Assets56.38M
Total Current Assets2 B
Property, Plant & Equipment770.27M
Goodwill & Intangible Assets873.59M
Long-Term Investments0.00
Other Non-Current Assets95.34M
Total Non-Current Assets866 M
Total Assets
3.33B

Financial Health Analysis

Current Ratio

3.56x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.22x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

1 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

47% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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Graco Inc. Street Expectations Map

GGG ยท NYSE

Wall Street analysts project that GGG stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 95.67, with estimates ranging from a low of 92.00 to a high of 100.00.

Lowest Target
92.00
24.68%
Consensus Target
95.67
29.65%
Highest Target
100.00
35.52%

The consensus 1-year price target stands at 95.67, with estimates ranging from a low of 92.00 to a high of 100.00.

Analyst Consensus Analysis

Upside Potential

+29.6%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

8.4% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

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Graco Inc. Insider Positioning

GGG ยท NYSE

During the last 12 months, insiders have purchased $100K and sold $5.08M worth of GGG shares, resulting in $4.98M of net selling activity.

3 Months

Bought

1.2K

99.86K

Sold

0

0.00

Net Activity

+100K

+$100K

3-6 Months

Bought

0

0.00

Sold

42.6K

3.77M

Net Activity

-3.8M

-$3.77M

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

15.1K

1.31M

Net Activity

-1.3M

-$1.31M

Top Buyers

1
SAH

Simon Andrea Helen

Director

1.2K sharesโ€ข1 transactions

$100K

Top Sellers

1
MC

Merengo Claudio

Officer: Pres, Global Powder Division

23.5K sharesโ€ข2 transactions

$2.05M

2
GJK

Gilligan J Kevin

Director

12.9K sharesโ€ข1 transactions

$1.15M

3
OPJ

O'Shea Peter J

Officer: Pres, Global Industrial Divis

8.8K sharesโ€ข1 transactions

$777K

4
EE

Etchart Eric

Director

6.0K sharesโ€ข1 transactions

$515K

5
WAF

Wordell Angela F

Officer: Evp, Chief Op And Supply Chain

2.8K sharesโ€ข1 transactions

$264K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $4.98M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.02:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$100K

Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.

Insider Participation

High Selling

5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.

0.00%
Dividend Yield
-100%
3Y-100.0%
5Y-100.0%
10Y-100.0%
ย 

ggg Dividend History

GGG
10Y CAGR +10%
Latest $0.295
Annual $1.415
5 year growth trend
Last Period: +0%