📊 GGG Key Takeaways
Is Graco Inc. (GGG) a Good Investment?
Graco demonstrates exceptional operational profitability with 52% gross margins and 21.9% net margins, coupled with fortress-like financial health (zero debt, $712M cash, 3.56x current ratio). However, the fundamentally weak returns on equity (4.3%) and assets (3.6%)—combined with flat net income growth despite 5.8% revenue expansion—signal serious capital inefficiency that undermines investment appeal despite strong free cash flow generation.
GRACO INC shows high-quality fundamentals with exceptional margins, strong free cash flow generation, and a debt-free balance sheet supported by ample liquidity. Revenue growth remains positive and cash conversion is excellent, but flat net income suggests growth quality should be monitored to ensure margin strength and EPS gains remain operationally driven.
Why Buy Graco Inc. Stock? GGG Key Strengths
- Exceptional operational margins (52% gross, 25.5% operating, 21.9% net) demonstrate industry-leading cost control
- Financial fortress with zero debt, $712.2M cash, and excellent liquidity (3.56x current ratio, 2.63x quick ratio)
- Strong free cash flow generation at $108.1M annually with 20% FCF margin, providing capital flexibility
- Best-in-class profitability with 52.5% gross margin, 27.9% operating margin, and 23.3% net margin
- Excellent financial health with $624.08M cash, zero long-term debt, and strong liquidity ratios
- Very strong cash generation with $637.92M free cash flow and a 28.5% FCF margin
GGG Stock Risks: Graco Inc. Investment Risks
- Critically low ROE (4.3%) and ROA (3.6%) indicate severe capital inefficiency; company is generating returns far below cost of capital despite high margins
- Net income stagnant (+0.0% YoY) while revenue grew 5.8%, signaling margin compression or operational headwinds; EPS growth driven by buybacks masking weak earnings
- Modest 5.8% revenue growth in mature pumps/equipment sector with unclear organic growth catalysts; excess $712M cash suggests management lacks compelling deployment opportunities
- Net income was flat year over year despite revenue growth, which may indicate margin pressure or slower earnings conversion
- Growth profile is solid but not rapid, making future returns dependent on sustaining operational efficiency
- High profitability leaves less room for execution missteps if industrial demand softens
Key Metrics to Watch
- Return on Equity trajectory—must improve above 8%+ to justify equity capital employed
- Net income growth rate and operating margin trends—critical to confirm no further margin compression
- Management capital allocation decisions—how excess cash is deployed (acquisitions, dividends, buybacks) will determine whether value creation improves
- Net income growth relative to revenue growth
- Free cash flow margin sustainability
Graco Inc. (GGG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 20.0% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 3.56x current ratio provides a solid financial cushion.
GGG Profit Margin, ROE & Profitability Analysis
GGG vs Industrial Sector: How Graco Inc. Compares
How Graco Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Graco Inc. Stock Overvalued? GGG Valuation Analysis 2026
Based on fundamental analysis, Graco Inc. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Graco Inc. Balance Sheet: GGG Debt, Cash & Liquidity
GGG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Graco Inc.'s revenue has grown significantly by 13% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.94 reflects profitable operations.
GGG Revenue Growth, EPS Growth & YoY Performance
GGG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $528.3M | $118.5M | $0.70 |
| Q3 2025 | $519.2M | $122.2M | $0.71 |
| Q2 2025 | $553.2M | $127.6M | $0.76 |
| Q1 2025 | $492.2M | $122.2M | $0.71 |
| Q3 2024 | $519.2M | $122.2M | $0.71 |
| Q2 2024 | $553.2M | $133.0M | $0.77 |
| Q1 2024 | $492.2M | $122.2M | $0.71 |
| Q3 2023 | $539.7M | $116.2M | $0.67 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Graco Inc. Dividends, Buybacks & Capital Allocation
GGG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Graco Inc. (CIK: 0000042888)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GGG
What is the AI rating for GGG?
Graco Inc. (GGG) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GGG's key strengths?
Claude: Exceptional operational margins (52% gross, 25.5% operating, 21.9% net) demonstrate industry-leading cost control. Financial fortress with zero debt, $712.2M cash, and excellent liquidity (3.56x current ratio, 2.63x quick ratio). ChatGPT: Best-in-class profitability with 52.5% gross margin, 27.9% operating margin, and 23.3% net margin. Excellent financial health with $624.08M cash, zero long-term debt, and strong liquidity ratios.
What are the risks of investing in GGG?
Claude: Critically low ROE (4.3%) and ROA (3.6%) indicate severe capital inefficiency; company is generating returns far below cost of capital despite high margins. Net income stagnant (+0.0% YoY) while revenue grew 5.8%, signaling margin compression or operational headwinds; EPS growth driven by buybacks masking weak earnings. ChatGPT: Net income was flat year over year despite revenue growth, which may indicate margin pressure or slower earnings conversion. Growth profile is solid but not rapid, making future returns dependent on sustaining operational efficiency.
What is GGG's revenue and growth?
Graco Inc. reported revenue of $540.1M.
Does GGG pay dividends?
Graco Inc. pays dividends, with $48.8M distributed to shareholders in the trailing twelve months.
Where can I find GGG SEC filings?
Official SEC filings for Graco Inc. (CIK: 0000042888) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GGG's EPS?
Graco Inc. has a diluted EPS of $0.70.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GGG a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Graco Inc. has a BUY rating with 80% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is GGG stock overvalued or undervalued?
Valuation metrics for GGG: ROE of 4.3% (sector avg: 15%), net margin of 21.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy GGG stock in 2026?
Our dual AI analysis gives Graco Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is GGG's free cash flow?
Graco Inc.'s operating cash flow is $120.2M, with capital expenditures of $12.1M. FCF margin is 20.0%.
How does GGG compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 21.9% (avg: 10%), ROE 4.3% (avg: 15%), current ratio 3.56 (avg: 1.8).