Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

Graco

NYSE:GGG
Snowflake Description

Flawless balance sheet with solid track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GGG
NYSE
$8B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Graco Inc. designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. The last earnings update was 47 days ago. More info.


Add to Portfolio Compare Print
GGG Share Price and Events
7 Day Returns
0.2%
NYSE:GGG
-0.2%
US Machinery
-2.8%
US Market
1 Year Returns
-12.1%
NYSE:GGG
-26.6%
US Machinery
-15.9%
US Market
GGG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Graco (GGG) 0.2% -10.2% -12.9% -12.1% 45.3% 92.5%
US Machinery -0.2% -20.4% -32.1% -26.6% -11.2% 2.3%
US Market -2.8% -18.8% -24% -15.9% 2.8% 13.3%
1 Year Return vs Industry and Market
  • GGG outperformed the Machinery industry which returned -26.6% over the past year.
  • GGG outperformed the Market in United States of America which returned -15.9% over the past year.
Price Volatility
GGG
Industry
5yr Volatility vs Market

Value

 Is Graco undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Graco to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Graco.

NYSE:GGG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:GGG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Machinery Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.96 (1 + (1- 21%) (2.66%))
0.986
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.986 * 5.44%)
7.11%

Discounted Cash Flow Calculation for NYSE:GGG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Graco is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:GGG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.11%)
2020 297.92 Analyst x5 278.15
2021 306.50 Analyst x2 267.18
2022 342.00 Analyst x1 278.34
2023 368.00 Analyst x1 279.63
2024 387.29 Est @ 5.24% 274.76
2025 403.52 Est @ 4.19% 267.29
2026 417.46 Est @ 3.46% 258.18
2027 429.74 Est @ 2.94% 248.14
2028 440.83 Est @ 2.58% 237.65
2029 451.10 Est @ 2.33% 227.05
Present value of next 10 years cash flows $2,616.00
NYSE:GGG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $451.10 × (1 + 1.74%) ÷ (7.11% – 1.74%)
$8,552.43
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $8,552.43 ÷ (1 + 7.11%)10
$4,304.68
NYSE:GGG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,616.00 + $4,304.68
$6,920.68
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,920.68 / 168.48
$41.08
NYSE:GGG Discount to Share Price
Calculation Result
Value per share (USD) From above. $41.08
Current discount Discount to share price of $45.57
= -1 x ($45.57 - $41.08) / $41.08
-10.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Graco is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Graco's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Graco's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:GGG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-27) in USD $2.06
NYSE:GGG Share Price ** NYSE (2020-04-03) in USD $45.57
United States of America Machinery Industry PE Ratio Median Figure of 97 Publicly-Listed Machinery Companies 14.5x
United States of America Market PE Ratio Median Figure of 2,947 Publicly-Listed Companies 12.21x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Graco.

NYSE:GGG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:GGG Share Price ÷ EPS (both in USD)

= 45.57 ÷ 2.06

22.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Graco is overvalued based on earnings compared to the US Machinery industry average.
  • Graco is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Graco's expected growth come at a high price?
Raw Data
NYSE:GGG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.07x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
0.4%per year
United States of America Machinery Industry PEG Ratio Median Figure of 82 Publicly-Listed Machinery Companies 1.06x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.88x

*Line of best fit is calculated by linear regression .

NYSE:GGG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.07x ÷ 0.4%

57.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Graco is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Graco's assets?
Raw Data
NYSE:GGG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-27) in USD $6.13
NYSE:GGG Share Price * NYSE (2020-04-03) in USD $45.57
United States of America Machinery Industry PB Ratio Median Figure of 127 Publicly-Listed Machinery Companies 1.44x
United States of America Market PB Ratio Median Figure of 5,146 Publicly-Listed Companies 1.2x
NYSE:GGG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:GGG Share Price ÷ Book Value per Share (both in USD)

= 45.57 ÷ 6.13

7.44x

* Primary Listing of Graco.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Graco is overvalued based on assets compared to the US Machinery industry average.
X
Value checks
We assess Graco's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Graco has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Graco expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Graco expected to grow at an attractive rate?
  • Graco's earnings growth is positive but not above the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Graco's earnings growth is positive but not above the United States of America market average.
  • Graco's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:GGG Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:GGG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 0.4%
NYSE:GGG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 1.3%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 5.7%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 0.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:GGG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:GGG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,738 421 360 1
2022-12-31 1,677 392 333 2
2021-12-31 1,692 394 334 8
2020-12-31 1,612 388 309 10
2020-04-05
2019-12-31 1,627 429 324 10
NYSE:GGG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-27 1,646 419 344
2019-09-27 1,640 413 333
2019-06-28 1,656 361 341
2019-03-29 1,652 360 342
2018-12-28 1,653 368 341
2018-09-28 1,622 346 304
2018-06-29 1,586 373 287
2018-03-30 1,541 346 277
2017-12-29 1,475 338 252
2017-09-29 1,449 314 112
2017-06-30 1,396 318 91
2017-03-31 1,365 297 62
2016-12-30 1,329 276 41

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Graco's earnings are expected to grow by 0.4% yearly, however this is not considered high growth (20% yearly).
  • Graco's revenue is expected to grow by 1.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:GGG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Graco Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GGG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 2.09 2.09 2.09 1.00
2022-12-31 1.93 1.93 1.93 1.00
2021-12-31 1.95 2.13 1.77 5.00
2020-12-31 1.80 1.98 1.54 6.00
2020-04-05
2019-12-31 1.89 1.91 1.87 5.00
NYSE:GGG Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-27 2.06
2019-09-27 2.00
2019-06-28 2.05
2019-03-29 2.06
2018-12-28 2.04
2018-09-28 1.81
2018-06-29 1.70
2018-03-30 1.65
2017-12-29 1.50
2017-09-29 0.67
2017-06-30 0.54
2017-03-31 0.37
2016-12-30 0.24

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Graco is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Graco's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Graco has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Graco performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Graco's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Graco's year on year earnings growth rate has been positive over the past 5 years.
  • Graco's 1-year earnings growth is less than its 5-year average (0.9% vs 5.9%)
  • Graco's earnings growth has exceeded the US Machinery industry average in the past year (0.9% vs -2%).
Earnings and Revenue History
Graco's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Graco Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GGG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-27 1,646.05 343.85 372.74 67.56
2019-09-27 1,640.19 332.74 385.28 66.61
2019-06-28 1,655.57 341.29 387.52 65.62
2019-03-29 1,651.81 342.29 390.44 64.40
2018-12-28 1,653.29 341.05 390.99 63.12
2018-09-28 1,621.71 303.72 392.89 62.88
2018-06-29 1,585.59 286.50 388.60 61.70
2018-03-30 1,540.50 277.19 374.14 60.25
2017-12-29 1,474.74 252.41 363.24 59.22
2017-09-29 1,448.95 111.81 345.60 59.12
2017-06-30 1,396.33 90.74 337.97 59.23
2017-03-31 1,364.97 61.85 341.95 60.18
2016-12-30 1,329.29 40.67 345.14 59.57
2016-09-23 1,305.79 198.43 339.91 58.54
2016-06-24 1,297.58 194.73 337.94 58.66
2016-03-25 1,284.94 316.42 328.57 57.96
2015-12-25 1,286.49 345.71 324.02 58.56
2015-09-25 1,266.93 341.21 323.32 58.88
2015-06-26 1,250.56 350.07 317.95 57.88
2015-03-27 1,237.62 243.67 313.73 56.38
2014-12-26 1,221.13 225.57 303.57 54.25
2014-09-26 1,187.05 221.28 290.01 54.38
2014-06-27 1,161.47 217.83 285.52 53.10
2014-03-28 1,124.94 209.44 278.98 52.17
2013-12-27 1,104.02 210.82 276.26 51.43
2013-09-27 1,085.78 208.34 274.11 49.69
2013-06-28 1,065.22 189.37 261.59 49.67

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Graco has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Graco used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.
  • Graco has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Graco's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Graco has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Graco's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Graco's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Graco is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Graco's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Graco's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 4.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Graco Company Filings, last reported 3 months ago.

NYSE:GGG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-27 1,024.93 172.03 220.97
2019-09-27 983.80 196.79 177.31
2019-06-28 925.96 261.37 180.88
2019-03-29 844.44 256.30 119.71
2018-12-28 751.87 277.47 132.12
2018-09-28 796.56 270.38 137.59
2018-06-29 711.81 303.84 109.85
2018-03-30 727.18 297.13 113.83
2017-12-29 723.06 232.61 103.66
2017-09-29 719.99 306.22 140.00
2017-06-30 651.56 322.08 75.45
2017-03-31 567.01 387.04 76.57
2016-12-30 573.82 314.60 52.37
2016-09-23 711.77 364.16 53.32
2016-06-24 676.13 442.80 43.86
2016-03-25 636.91 472.18 36.49
2015-12-25 635.55 408.60 52.30
2015-09-25 636.49 384.24 51.91
2015-06-26 712.36 310.76 44.26
2015-03-27 616.94 819.05 449.45
2014-12-26 596.03 620.02 445.42
2014-09-26 646.04 514.91 450.50
2014-06-27 653.31 535.36 451.34
2014-03-28 642.65 514.06 446.38
2013-12-27 634.37 417.95 442.05
2013-09-27 601.29 413.78 439.56
2013-06-28 560.12 473.59 453.55
  • Graco's level of debt (16.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (104.7% vs 16.8% today).
  • Debt is well covered by operating cash flow (243.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 32x coverage).
X
Financial health checks
We assess Graco's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Graco has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Graco's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.54%
Current annual income from Graco dividends. Estimated to be 1.56% next year.
If you bought $2,000 of Graco shares you are expected to receive $31 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Graco's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (2.07%).
  • Graco's dividend is below the markets top 25% of dividend payers in United States of America (5.82%).
Upcoming dividend payment

Purchase Graco before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:GGG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 74 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1936 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2.1%
United States of America Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:GGG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.72 1.00
2021-12-31 0.75 4.00
2020-12-31 0.69 6.00
2020-04-05
2019-12-31 0.64 6.00
NYSE:GGG Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-14 0.700 1.450
2019-12-06 0.700 1.326
2019-09-20 0.640 1.379
2019-06-14 0.640 1.340
2019-02-15 0.640 1.296
2018-12-07 0.640 1.511
2018-09-21 0.530 1.249
2018-06-15 0.530 1.142
2018-02-16 0.530 1.159
2017-12-08 0.530 1.170
2017-09-22 0.480 1.125
2017-06-16 0.480 1.274
2017-02-17 0.480 1.436
2016-12-09 0.480 1.662
2016-09-16 0.440 1.725
2016-06-17 0.440 1.743
2016-02-12 0.440 1.639
2015-12-04 0.440 1.895
2015-09-18 0.400 1.673
2015-06-12 0.400 1.718
2015-02-13 0.400 1.642
2014-12-05 0.400 1.562
2014-09-19 0.367 1.453
2014-06-13 0.367 1.443
2014-02-14 0.367 1.478
2013-12-06 0.367 1.470
2013-09-20 0.333 1.311
2013-06-07 0.333 1.461
2013-02-15 0.333 1.690
2012-12-07 0.333 1.839
2012-09-14 0.300 1.837
2012-06-08 0.300 1.912
2012-02-17 0.300 1.744
2011-12-02 0.300 2.089
2011-09-16 0.280 2.143
2011-06-10 0.280 1.957
2011-02-18 0.280 1.858
2010-12-03 0.280 2.076
2010-09-17 0.267 2.353
2010-06-11 0.267 2.664
2010-02-12 0.267 2.563
2009-12-04 0.267 2.771
2009-09-18 0.253 2.638
2009-06-12 0.253 3.170

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Graco's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Graco's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Graco afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Graco has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Graco's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Pat McHale
COMPENSATION $8,520,558
AGE 58
TENURE AS CEO 12.8 years
CEO Bio

Mr. Patrick J. McHale, also known as Pat, serves as the Chief Executive Officer of Graco Minnesota Inc. Mr. McHale has been the Chief Executive Officer and President of Graco Inc. since June 12, 2007. He joined Graco Inc., in December 1989. Mr. McHale served as Vice President and General Manager of Lubrication Equipment Division of Graco Inc., from June 16, 2003 to June 12, 2007. He served as Vice President of Manufacturing and Distribution Operations for Graco Inc., from March 19, 2001 to June 16, 2003. From February 2000 to March 2001, he served as Vice President of Contractor Equipment Division for Graco Inc., and served as Vice President of Lubrication Equipment Division, from September 1999 to February 2000. He served as Contractor Equipment Manufacturing – Distribution Operations Manager of Graco Inc., from February 1998 to September 1999 and from March 1997 to February 1998, Mr. McHale served as Director of Michigan Operations. From February 1996 to March 1997, he served as Contractor Equipment Manufacturing Operations Manager for Graco Inc. and from January 1994 to February 1996, he served as Sioux Falls Plant Manager. Mr. McHale has been Director Graco Inc. since June 12, 2007. He serves as a Trustee of North Memorial Health Care.

CEO Compensation
  • Pat's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Pat's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Graco management team in years:

2.5
Average Tenure
58.5
Average Age
  • The tenure for the Graco management team is about average.
Management Team

Pat McHale

TITLE
President
COMPENSATION
$9M
AGE
58
TENURE
12.8 yrs

Mark Sheahan

TITLE
CFO & Treasurer
COMPENSATION
$2M
AGE
55
TENURE
1.8 yrs

Dale Johnson

TITLE
President of Worldwide Contractor Equipment Division
COMPENSATION
$2M
AGE
65
TENURE
3.2 yrs

Jeff Johnson

TITLE
President of New Ventures
COMPENSATION
$977K
AGE
59
TENURE
1.8 yrs

Christian Rothe

TITLE
President of Worldwide Applied Fluid Technologies Division
COMPENSATION
$1M
AGE
45
TENURE
1.8 yrs

Angie Wordell

TITLE
Former Executive VP of Operations and President of the Worldwide Oil & Natural Gas Division
AGE
47
TENURE
1.3 yrs

Karen Gallivan

TITLE
Executive VP
COMPENSATION
$1M
AGE
62
TENURE
14.6 yrs

David Ahlers

TITLE
Executive Vice President of Human Resources & Corporate Communications
AGE
61
TENURE
10 yrs

David Lowe

TITLE
President of the Worldwide Process Division
COMPENSATION
$1M
AGE
62
TENURE
8 yrs

Brian Zumbolo

TITLE
President of Asia Pacific
AGE
50
TENURE
1.8 yrs
Board of Directors Tenure

Average tenure and age of the Graco board of directors in years:

14.5
Average Tenure
63.5
Average Age
  • The average tenure for the Graco board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Lee Mitau

TITLE
Independent Chairman
COMPENSATION
$280K
AGE
70
TENURE
12.8 yrs

Pat McHale

TITLE
President
COMPENSATION
$9M
AGE
58
TENURE
12.8 yrs

William Carroll

TITLE
Independent Director
COMPENSATION
$229K
AGE
74
TENURE
20.8 yrs

J. Gilligan

TITLE
Independent Director
COMPENSATION
$216K
AGE
64
TENURE
19.2 yrs

Jack Eugster

TITLE
Independent Director
COMPENSATION
$209K
AGE
73
TENURE
16.2 yrs

Bill Van Sant

TITLE
Independent Director
COMPENSATION
$209K
AGE
80
TENURE
16.2 yrs

Marti Morfitt

TITLE
Independent Director
COMPENSATION
$244K
AGE
61
TENURE
24.5 yrs

Eric Etchart

TITLE
Independent Director
COMPENSATION
$209K
AGE
62
TENURE
9.3 yrs

Jody Feragen

TITLE
Independent Director
COMPENSATION
$209K
AGE
63
TENURE
4.6 yrs

Emily White

TITLE
Independent Director
COMPENSATION
$209K
AGE
40
TENURE
2.2 yrs
Who owns this company?
Recent Insider Trading
  • Graco individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Jan 20 Sell Bernard Moreau Individual 10. Jan 20 10. Jan 20 -6,184 $52.55 $-324,993
13. Sep 19 Sell William Carroll Individual 12. Sep 19 12. Sep 19 -6,000 $46.53 $-279,173
06. Jun 19 Sell Jeffrey Johnson Individual 06. Jun 19 06. Jun 19 -15,000 $48.85 $-732,750
X
Management checks
We assess Graco's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Graco has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Kind Of Investor Owns Most Of Graco Inc. (NYSE:GGG)?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. … See our latest analysis for Graco NYSE:GGG Ownership Summary, August 31st 2019 What Does The Institutional Ownership Tell Us About Graco?

Simply Wall St -

Should You Be Impressed By Graco Inc.'s (NYSE:GGG) ROE?

Does Graco Have A Good Return On Equity? … Combining Graco's Debt And Its 37% Return On Equity Although Graco does use debt, its debt to equity ratio of 0.28 is still low. … Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises.

Simply Wall St -

How Does Graco Inc.'s (NYSE:GGG) Earnings Growth Stack Up Against Industry Performance?

In this article, I will take a look at Graco Inc.'s (NYSE:GGG) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … Let's take a look at whether it is solely because of industry tailwinds, or if Graco has seen some company-specific growth. … I suggest you continue to research Graco to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for GGG’s future growth?

Simply Wall St -

Here's What Graco Inc.'s (NYSE:GGG) P/E Is Telling Us

We'll look at Graco Inc.'s (NYSE:GGG) P/E ratio and reflect on what it tells us about the company's share price. … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Graco: P/E of 22.45 = $46.06 ÷ $2.05 (Based on the trailing twelve months to June 2019.) Is A High P/E Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Does Graco's P/E Ratio Compare To Its Peers?

Simply Wall St -

Estimating The Intrinsic Value Of Graco Inc. (NYSE:GGG)

Using the most recent financial data, we'll take a look at whether the stock is fairly priced by estimating the company's future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $337.0m $378.0m $422.0m $458.0m $489.0m $516.3m $540.6m $562.9m $583.8m $603.7m Growth Rate Estimate Source Analyst x6 Analyst x1 Analyst x1 Est @ 8.52% Est @ 6.79% Est @ 5.57% Est @ 4.72% Est @ 4.12% Est @ 3.7% Est @ 3.41% Present Value ($, Millions) Discounted @ 9.15% $308.7 $317.3 $324.5 $322.7 $315.7 $305.3 $292.9 $279.4 $265.5 $251.6 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $3.0b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … NYSE:GGG Intrinsic value, July 30th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Here's Why We Think Graco (NYSE:GGG) Is Well Worth Watching

View our latest analysis for Graco How Fast Is Graco Growing Its Earnings Per Share? … Graco maintained stable EBIT margins over the last year, all while growing revenue 7.3% to US$1.7b. … But as a growth investor I always like to check out companies that do have those features.

Simply Wall St -

These Factors Make Graco Inc. (NYSE:GGG) An Interesting Investment

NYSE:GGG Historical Dividend Yield, July 4th 2019 Next Steps: For Graco, I've put together three important factors you should further examine: Future Outlook: What are well-informed industry analysts predicting for GGG’s future growth? … Take a look at our free research report of analyst consensus for GGG’s outlook. … The intrinsic value infographic in our free research report helps visualize whether GGG is currently mispriced by the market.

Simply Wall St -

Why Graco Inc.’s (NYSE:GGG) Return On Capital Employed Is Impressive

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Graco: 0.35 = US$421m ÷ (US$1.5b - US$354m) (Based on the trailing twelve months to March 2019.) Therefore, Graco has an ROCE of 35%. … How Graco's Current Liabilities Impact Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Graco Inc. (NYSE:GGG) Earns Among The Best Returns In Its Industry

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Graco: 0.35 = US$421m ÷ (US$1.5b - US$354m) (Based on the trailing twelve months to March 2019.) Therefore, Graco has an ROCE of 35%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Read This Before Buying Graco Inc. (NYSE:GGG) Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Graco Inc. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for Graco The Last 12 Months Of Insider Transactions At Graco Over the last year, we can see that the biggest insider sale was by the , Jeffrey Johnson, for US$733k worth of shares, at about US$48.85 per share. … While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign.

Simply Wall St -

Company Info

Description

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. 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, oil and natural gas, 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 primarily sells its products through distributors, original equipment manufacturers, and home center channels; and directly to end-users. The company was founded in 1926 and is headquartered in Minneapolis, Minnesota.

Details
Name: Graco Inc.
GGG
Exchange: NYSE
Founded: 1926
$7,677,699,858
168,481,454
Website: http://www.graco.com
Address: Graco Inc.
88–11th Avenue Northeast,
Minneapolis,
Minnesota, 55413,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE GGG Common Stock New York Stock Exchange US USD 02. Jan 1980
DB GA8 Common Stock Deutsche Boerse AG DE EUR 02. Jan 1980
BRSE GA8 Common Stock Berne Stock Exchange CH CHF 02. Jan 1980
Number of employees
Current staff
Staff numbers
3,700
Graco employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/05 06:34
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/03
Last earnings filing: 2020/02/18
Last earnings reported: 2019/12/27
Last annual earnings reported: 2019/12/27


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.