Graco Inc. (GGG)
Industrials · NYQ · US
Fundamentals
Valuation and ratings
Graco Inc. trades at USD76.17, which is 61% above the USD29.52 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 70 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 24.1 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Graco Inc.
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. It operates through three segments: Contractor, Industrial and Expansion Markets. 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 designs and manufactures liquid finishing and advanced fluid dispensing equipment; pumps to move chemicals, petroleum, food, and other fluids; and systems, components, and accessories for the automatic lubrication of bearings, gears, and generators; supplies equipment for equipment maintenance and vehicle servicing applications, as well as make powder finishing products and complete powder finishing systems. The Expansion Markets segment manufactures pumps for use in the semiconductor industry; high pressure and ultra-high-pressure valves used in the oil and natural gas industry; and environmental monitoring and remediation equipment that is used to conduct ground water sampling, ground water remediation, and for landfill liquid and gas management. Graco Inc. was incorporated in 1926 and is headquartered in Minneapolis, Minnesota.
GGG passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
12 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Mairs & Power, MAIRS & POWER INC$323.00M · 3.3% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$189.68M · 0.1% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$92.93M · 0.0% of book
- Burgundy Asset Management, Burgundy Asset Management Ltd.$84.31M · 0.8% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$80.79M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Graco Inc. (GGG) undervalued?
Against our discounted cash flow estimate of USD29.52, GGG at USD76.17 is 61% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own GGG?
12 of the institutions we track reported a position in GGG in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is GGG's P/E ratio?
GGG trades at 24.1 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for GGG, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.