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GGG

GRACO INC

Industrials • CIK: 0000042888

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Market Cap
P/E (TTM)
26.6x
Rev Growth (TTM)
+5.8%
Net Margin (TTM)
23.3%
FCF Yield (TTM)
FCF Margin (TTM)
28.5%

LATEST EARNINGS

Q4 2025
about 1 month ago
View source
Revenue
$593.16M
+8.0%
Net Income
$132.49M
+22.0%
EPS
$0.79
+25.0%
Gross
51.7% +0.8%
Operating
26.7% +3.0%
Net
22.3% +2.5%
  • Net sales for the fourth quarter increased 8% to $593.2 million, with growth in Contractor and Industrial segments.
  • Full-year net sales increased 6% to $2,236.6 million, with growth in all segments and regions.
  • Net earnings increased 22% for the fourth quarter to $132.5 million.
  • Diluted EPS increased 25% for the fourth quarter to $0.79.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$638M
Q4 '25
$184M+5%
Q3 '25
$176M+8%
FCF Margin
TTM28.5%
Q4 '2531.1%-4%
Sector: 5.4%Top 10%
OCF Margin30.6%
OCF/NI1.31x
CapEx Coverage15.0x
FCF Yield
FCF Growth (2Y)+54%
Cash Conversion Cycle
177 days
DSO: 62+DIO: 141DPO: 26

Capital Allocation & Returns

Growth Focused
Total Shareholder YieldFY
FY1.3%
Div Yield1.3%
+
Buyback (FY)3.0%

Prioritizing reinvestment over distributions

Dividend & Payout Metrics
Dividend Yield (TTM)1.3%
Free Cash Flow (TTM)$637.9M
Stock Repurchases (FY)$423.1M
Capital Return / FCF95.1%
0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
19.7%
Stable
+0.0% YoY-0.5%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
22.7%
Asset Turnover
0.72x
8Q: 0.72x
Leverage (1+D/E)
1.00x
D/E: 0.00x
DuPont: 16.3%19.7% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
2.93x
8Q:2.85x
+32.2%
Invested Cap Turn
0.87x
8Q:0.86x
Flat
CapEx Intensity
1.8%
8Q:2.6%
CapEx/Depreciation
0.43x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2025Q3 2024Q2 2024Q1 2024
Revenue
$2.2B
$593.2M9.2%
$543.4M5.0%
$571.8M8.2%
$528.3M3.7%
$548.7M5.7%
$519.2M6.2%
$553.2M12.4%
$492.2M
Operating Income
$624.8M
$158.6M3.7%
$164.7M4.6%
$157.5M9.4%
$144.0M10.8%
$130.0M10.8%
$145.7M9.7%
$161.4M21.3%
$133.0M
Net Income
$521.8M
$132.5M3.7%
$137.6M7.8%
$127.6M2.8%
$124.1M14.2%
$108.7M11.0%
$122.2M8.1%
$133.0M8.8%
$122.2M
Operating Cash Flow
$683.6M
$196.3M9.6%
$179.2M1.9%
$182.7M45.7%
$125.4M32.3%
$185.2M3.7%
$178.6M28.5%
$139.0M16.9%
$118.9M
Free Cash Flow
$637.9M
$184.3M4.9%
$175.7M7.7%
$163.1M42.0%
$114.8M33.0%
$171.3M7.6%
$159.2M55.0%
$102.7M25.7%
$81.7M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
26.6x
Volatile
8Q: 112.3x-1718%
Valuation Lenses
Earnings
26.6x
vs sector
Cash Flow
-0.9x
EV/FCF vs
Growth-Adj
2.9xPEG
Expensive for growth
Quality-Adj
1.3P/E per %ROIC
ROIC: 19.7%
Shareholder Returns
Dividend
1.3%
Buyback
Total Yield
1.3%
Market Cap$0
EV$-584.65M
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
98/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 25%
20.5%
8Q:
Return on Invested Capital (ROIC)Top 25%
19.7%
8Q:
Flat
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 22.7%
Asset Turnover: 0.72x

Earnings Quality

Cash Conversion

1.31x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin52.5%

Capital Efficiency

Invested Capital Turnover0.87x

Working Capital

Cash Conversion Cycle177 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
66/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
5.8%
OpInc Growth YoY
22.0%
EPS Growth YoY
9.2%
FCF 3Y CAGR
53.5%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
52.5%
Operating
27.9%
Top 25% in sector
Net
23.3%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+5.2 pts
FCF: 28.5% | Net: 23.3%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $622.46M
Interest Coverage
+Net cash position: $622.46M
Leverage Metrics
Debt-to-Equity
0.00x
Balance sheet risk & solvency analysis