GGGGraco Inc. demonstrates solid fundamental strength and a consistent dividend payout, making it an attractive option for income-focused investors. While its valuation is somewhat elevated and recent technicals show some choppiness, its long-term outlook remains positive due to its established market position and consistent cash flow generation.
Graco operates in stable industrial and contractor markets, benefiting from infrastructure spending and general economic activity. Emerging trends like automation in construction and improved fluid handling technologies offer growth potential, but are not as dominant as in high-growth tech sectors.
Graco exhibits robust financial health, characterized by strong profitability, consistent free cash flow generation, and a healthy balance sheet. The company's valuation metrics are slightly elevated, but its operational efficiency and dividend yield are attractive.
The stock is trading below key moving averages, indicating a short-term bearish bias. While it has support levels to fall back on, a sustained upward momentum is not yet evident. Recent price action suggests a period of consolidation or a mild downtrend.
| Factor | Score |
|---|---|
| Industrial Automation & Efficiency | 75 |
| Construction & Infrastructure Spending | 70 |
| Sustainability & Environmental Impact | 65 |
| Technological Integration (e.g., IoT) | 60 |
| Global Economic Sensitivity | 70 |
| Factor | Score |
|---|---|
| Valuation | 55 |
| Profitability | 90 |
| Growth | 40 |
| Balance Sheet Health | 98 |
| Cash Flow | 92 |
| Dividend | 75 |
| Factor | Score |
|---|---|
| Trend Analysis | 40 |
| Momentum | 45 |
| Support & Resistance | 60 |
| Volume | 70 |
| Short-term Trend | 65 |
Attractive Valuation Metrics
The Price-to-Earnings (P/E) ratio of 30.09 is reasonable given the company's consistent profitability and growth prospects. The P/S ratio of 6.5, while seemingly high, is justified by strong revenue generation and market position within its sector.
Consistent Earnings Per Share (EPS)
The EPS trend shows positive growth, with EPS for Q2 2025 estimated at 0.68 and reported at 0.70, indicating a positive surprise of 3.04%. Most recent quarterly earnings have met or exceeded estimates, demonstrating reliable earnings generation.
High Price-to-Sales Ratio
The Price-to-Sales (P/S) ratio of 6.5, while supported by profitability, is on the higher end, indicating that the market has high expectations for future revenue growth, which may be difficult to consistently achieve.
Missed Earnings Estimates in Q1 2025
The company missed earnings estimates in Q1 2025, with reported EPS of 0.64 against an estimate of 0.77, a surprise of -16.56%. This could signal potential headwinds affecting profitability in the near term.
July 2025
21
Ex-Dividend Date
August 2025
6
Next Dividend Date
October 2025
23
Next Earnings Date
H: $0.75
A: $0.74
L: $0.73
H: 561.50M
A: 560.29M
L: 559.08M
Graco Inc. designs, manufactures, and markets systems and equipment used to move, measure, mix, control, dispense, and spray fluid and powder materials in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The Contractor segment provides sprayers to apply paint to walls and other structures; two-component proportioning systems to spray polyurethane foam and polyurea coatings; viscous coatings to roofs, markings on roads, parking lots, athletic fields, and floors; and high-performance volumetric and gravimetric dispense, mixing, and shaking equipment. The Industrial segment offers paint circulating and supply pumps, paint circulating advanced control systems, and plural component coating proportioners; various accessories to filter, transport, agitate, and regulate fluid; spare parts, including spray tips, seals and filter screens; equipment for industrial customers that pumps, meters, mixes, and dispenses sealant, adhesive, and composite materials; gel-coat equipment, chop and wet-out systems, resin transfer molding systems and applicators, and precision dispensing solutions; and powder finishing products and systems that coat powder on metals under the Gema and SAT brands. The Process segment provides pumps, valves, meters, and accessories to move and dispense chemicals, oil and natural gas, water, wastewater, petroleum, food, lubricants, and other fluids; and systems, components, and accessories for the automatic lubrication of bearings, gears, and generators. This segment also offers pumps, hose reels, meters, valves and accessories for use by fast oil change facilities, service garages, fleet service centers, automobile dealerships, auto parts stores, truck builders, and heavy equipment service centers; high pressure and ultra-high pressure valves; and chemical injection pumping solutions for precise injection of chemicals. Graco Inc. was incorporated in 1926 and is headquartered in Minneapolis, Minnesota.
91.14 USD
The 39 analysts offering 1 year price forecasts for GGG have a max estimate of 103.00 and a min estimate of 79.00.