A Business at a Glance
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GRACO INC
GGG
$13.5B
Mkt Cap
$79.50
+2.25%
GRACO INC (GGG) has a current P/E ratio of 25.8, compared to its historical median P/E of 28.4. The stock is currently considered Fair based on its historical valuation range.
GRACO INC (GGG) has a 5-year average return on invested capital (ROIC) of 25.7%. This indicates strong capital allocation and a potential competitive advantage.
GRACO INC (GGG) has a market capitalization of $13.4B. It is classified as a large-cap stock.
Yes, GRACO INC (GGG) pays a dividend with a trailing twelve-month yield of 1.39%. The company also returns capital through share buybacks, with a buyback yield of 1.47%.
Based on historical P/E analysis, GRACO INC (GGG) appears fair. The current P/E of 25.8 is 9% below its historical median of 28.4. The estimated fair value CAGR (P/E method) is 8.0%.
GRACO INC (GGG) operates in the Pumps & Pumping Equipment industry, within the Industrials sector.
GRACO INC (GGG) reported annual revenue of $2.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Graco Inc. is a multinational manufacturing company that designs, manufactures, and markets systems and equipment for managing fluids and coatings in industrial and commercial applications. The company specializes in providing solutions for difficult-to-handle materials with high viscosities, abrasive or corrosive properties, and multiple-component materials requiring precise ratio control, serving niche markets across manufacturing, processing, construction, and maintenance industries. Graco operates through three reportable segments: Contractor (spray equipment and related products for professional and DIY users), Industrial (including the newly formed Industrial Division and Powder Division for automated dosing and powder finishing systems), and Expansion Markets (environmental, semiconductor, high-pressure valves, and electric motors businesses). The company primarily sells through third-party distributors positioned across geographic regions—the Americas (approximately 60% of 2025 sales), EMEA (approximately 24%), and Asia Pacific (approximately 16%)—while maintaining direct sales personnel and application support in each region. Graco manufactures a majority of its products in the United States, with additional manufacturing in Switzerland, Italy, China, India, Belgium, and Romania, leveraging focused factories and product cells with in-house critical machining, assembly, and testing to control quality and maximize cost-effectiveness. The company pursues growth through targeted acquisitions to broaden product offerings, enhance capabilities, expand manufacturing and distribution, and strengthen geographic presence, complemented by significant investments in product innovation, new geographic market expansion through third-party distribution, and leveraging product technologies across new applications and industries.
【Cautious near-term, order momentum building】 Management maintains low single-digit organic revenue growth guidance for 2026 on a constant currency basis, with mid-single-digit growth expected when including contributions from recent acquisitions, supported by improving order trends and backlog expansion observed in early 2026. Despite a slower-than-expected start to 2026 particularly in January, business activity improved steadily through the quarter with bookings up 3% at actual currency rates and a $26 million increase in backlog primarily in the industrial segment, providing confidence in achieving full-year guidance. The company expects favorable second-half comparisons reflecting easier contractor comparisons in the third quarter and expected timing of project activity in industrial businesses toward year-end, though management characterizes the overall outlook as cautious given macro uncertainty. Currency is expected to provide a 1% favorable impact on net sales and 2% favorable impact on net earnings for full year 2026 based on current exchange rates, and the company continues to pursue targeted pricing actions and operational efficiency improvements to offset cost pressures while managing expenses carefully.
| Metric | Target | Period |
|---|---|---|
| Revenue growth (organic, constant currency) | low single-digit | FY2026 |
| Revenue growth (including acquisitions) | mid-single digit | FY2026 |
| Currency impact on net sales | 1% favorable | FY2026 |
| Currency impact on net earnings | 2% favorable | FY2026 |
| Unallocated corporate expenses | $40 million-$43 million | FY2026 |
| Capital expenditures | $90 million-$100 million | FY2026 |
| Capital expenditures for facility expansion | approximately $50 million | FY2026 |
Revenue growth (organic, constant currency) (FY2026): “we're maintaining our 2026 revenue guidance of low single-digit organic growth on a constant currency basis and mid-single digit growth, including contributions from acquisitions”
Revenue growth (including acquisitions) (FY2026): “we're maintaining our 2026 revenue guidance of low single-digit organic growth on a constant currency basis and mid-single digit growth, including contributions from acquisitions”
Currency impact on net sales (FY2026): “Based on current exchange rates and assuming similar volume, product mix, and business mix as in 2025, currency is expected to have a 1% favorable impact on net sales and a 2% favorable impact on net earnings for the full year 2026”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 2.2B | 2.2B | 2.1B | 2.2B | 2.1B | 2.0B |
| Net Income | 516M | 522M | 486M | 507M | 461M | 440M |
| EPS | $3.07 | $3.08 | $2.82 | $2.94 | $2.66 | $2.52 |
| Free Cash Flow | 631M | 638M | 515M | 466M | 176M | 323M |
| ROIC | 25.0% | 25.5% | 25.9% | 27.7% | 23.2% | 26.4% |
| Gross Margin | 52.3% | 52.5% | 53.1% | 52.9% | 49.3% | 52.0% |
| Debt/Equity | 0.00 | 0.01 | 0.01 | 0.00 | 0.36 | 0.44 |
| Dividends/Share | $1.10 | $1.12 | $1.04 | $0.96 | $0.87 | $0.77 |
| Operating Income | 619M | 625M | 570M | 647M | 573M | 531M |
| Operating Margin | 27.5% | 27.9% | 27.0% | 29.5% | 26.7% | 26.7% |
| ROE | 18.8% | 19.9% | 20.2% | 24.8% | 25.8% | 29.4% |
| Shares Outstanding | 168M | 169M | 172M | 172M | 173M | 175M |
GRACO INC passes 7 of 9 quality checks, indicating strong fundamentals.
GRACO INC trades at 25.8x trailing earnings, compared to its 15-year median P/E of 28.4x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 20.6x vs a median of 33.8x. The company's 5-year average ROIC is 25.7% with a gross margin of 52.0%. Total shareholder yield (dividends + buybacks) is 2.9%. At current prices, the estimated annualized return to fair value is +10.0%.
GRACO INC (GGG) has a net profit margin of 23.3%. This is a strong margin indicating high profitability.
GRACO INC (GGG) generated $638 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
GRACO INC (GGG) has a debt-to-equity ratio of 0.01. This indicates a conservatively financed balance sheet.
GRACO INC (GGG) reported earnings per share (EPS) of $3.08 in its most recent fiscal year.
GRACO INC (GGG) has a return on equity (ROE) of 19.9%. This indicates the company generates strong returns for shareholders.
GRACO INC (GGG) has a 5-year average gross margin of 52.0%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 18 years of financial data for GRACO INC (GGG), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
GRACO INC (GGG) has a book value per share of $15.66, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management maintains low single-digit organic revenue growth guidance for 2026 on a constant currency basis, with mid-single-digit growth expected when including contributions from recent acquisitions, supported by improving order trends and backlog expansion observed in early 2026. Despite a slower-than-expected start to 2026 particularly in January, business activity improved steadily through the quarter with bookings up 3% at actual currency rates and a $26 million increase in backlog primarily in the industrial segment, providing confidence in achieving full-year guidance. The company expects favorable second-half comparisons reflecting easier contractor comparisons in the third quarter and expected timing of project activity in industrial businesses toward year-end, though management characterizes the overall outlook as cautious given macro uncertainty. Currency is expected to provide a 1% favorable impact on net sales and 2% favorable impact on net earnings for full year 2026 based on current exchange rates, and the company continues to pursue targeted pricing actions and operational efficiency improvements to offset cost pressures while managing expenses carefully.
Based on recent SEC filings and earnings calls, GRACO INC (GGG) has provided the following forward guidance: Revenue growth (organic, constant currency): low single-digit (FY2026); Revenue growth (including acquisitions): mid-single digit (FY2026); Currency impact on net sales: 1% favorable (FY2026); Currency impact on net earnings: 2% favorable (FY2026); Unallocated corporate expenses: $40 million-$43 million (FY2026), plus 2 additional metrics.
Currency impact on net earnings (FY2026): “Based on current exchange rates and assuming similar volume, product mix, and business mix as in 2025, currency is expected to have a 1% favorable impact on net sales and a 2% favorable impact on net earnings for the full year 2026”
Unallocated corporate expenses (FY2026): “For the full year, we continue to expect unallocated corporate expenses of $40million-$43 million and capital expenditures of $90 million-$100 million, including approximately $50 million for facility expansion projects”
Capital expenditures (FY2026): “For the full year, we continue to expect unallocated corporate expenses of $40million-$43 million and capital expenditures of $90 million-$100 million, including approximately $50 million for facility expansion projects”
Capital expenditures for facility expansion (FY2026): “For the full year, we continue to expect unallocated corporate expenses of $40million-$43 million and capital expenditures of $90 million-$100 million, including approximately $50 million for facility expansion projects”