📊 GGG Key Takeaways
Is GGG a Good Investment? Thesis Analysis
Graco demonstrates exceptional financial health with zero long-term debt, fortress-like liquidity ratios (3.15x current, 2.29x quick), and strong profitability margins (27.9% operating, 23.3% net). The company generates robust free cash flow of $637.9M with a 28.5% FCF margin, providing substantial financial flexibility for growth investments, acquisitions, or shareholder returns despite modest revenue growth of 5.8% YoY.
Why Buy GGG? Key Strengths
- Zero long-term debt with exceptional liquidity (3.15x current ratio, $624.1M cash)
- Industry-leading profitability with 52.5% gross margin and 23.3% net margin
- Strong cash generation with $637.9M free cash flow and 28.5% FCF margin
- Superior capital efficiency with 19.7% ROE and 15.9% ROA
- Outstanding interest coverage of 307.2x demonstrates zero financial distress risk
- Robust EPS growth of 9.2% YoY despite flat net income indicates share buyback activity
GGG Investment Risks to Consider
- Modest revenue growth of 5.8% YoY may signal market saturation or competitive pressures in core segments
- Net income growth of 0% despite revenue growth suggests margin compression or cost inflation
- Dependence on capital equipment cycles in industrial sector creates cyclical earnings volatility
- High insider trading activity (39 Form 4 filings in 90 days) warrants monitoring for insider sentiment shifts
Key Metrics to Watch
- Revenue growth acceleration (target >7% YoY to confirm market strength)
- Gross margin trend (monitor for input cost pressures or pricing power erosion)
- Free cash flow conversion and capital allocation decisions (dividends vs acquisitions)
- Operating cash flow sustainability relative to capex requirements
GGG Financial Metrics
💡 AI Analyst Insight
The 28.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 3.15x current ratio provides a solid financial cushion.
GGG Profitability Ratios
GGG vs Default Sector
How GRACO INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is GGG Overvalued or Undervalued?
Based on fundamental analysis, GRACO INC appears fundamentally strong relative to the Default 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.
GGG Balance Sheet & Liquidity
GGG 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
GGG Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $548.5M | $117.4M | $0.68 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
GGG Capital Allocation
GGG SEC 10-K & 10-Q Filing 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 an AI rating of STRONG BUY with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are GGG's key strengths?
Claude: Zero long-term debt with exceptional liquidity (3.15x current ratio, $624.1M cash). Industry-leading profitability with 52.5% gross margin and 23.3% net margin.
What are the risks of investing in GGG?
Claude: Modest revenue growth of 5.8% YoY may signal market saturation or competitive pressures in core segments. Net income growth of 0% despite revenue growth suggests margin compression or cost inflation.
What is GGG's revenue and growth?
GRACO INC reported revenue of $2.2B.
Does GGG pay dividends?
GRACO INC pays dividends, with $183.4M 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 $3.08.
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 March 2026, GRACO INC has a STRONG BUY rating with 92% 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 19.7% (sector avg: 15%), net margin of 23.3% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy GGG stock in 2026?
Our dual AI analysis gives GRACO INC a combined STRONG 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 $683.6M, with capital expenditures of $45.7M. FCF margin is 28.5%.
How does GGG compare to other Default stocks?
Vs Default sector averages: Net margin 23.3% (avg: 12%), ROE 19.7% (avg: 15%), current ratio 3.15 (avg: 1.8).