The Company in a Nutshell
| Date Reviewed | 08/08/2025 |
| Company Name | Graco Inc |
| Symbol | GGG |
| Sector | Industrials |
| Industry | Specialty Industrial Machinery |
| Beta | 1.09 |
| PRO Rating | 3 |
| Dividend Safety | 4 |
Business Model
Graco Inc. is a multinational manufacturing company. The Company supplies technology and expertise for the management of fluids and coatings in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and powder materials. Its segments include Contractor, Industrial and Expansion Markets. The Contractor segment markets sprayers and equipment that apply paint to walls and other structures, texture to walls and ceilings, insulation to building walls and other items, highly viscous coatings to roofs, and markings on roads, parking lots, athletic fields and floors. The Industrial segment includes its industrial and powder divisions. The Industrial segment markets equipment and solutions for moving and applying paints, powder coatings, sealants, adhesives and other fluids. The Expansion Markets segment includes environmental, semiconductor, high-pressure valves and electric motors businesses.
| Current price | 81.99 |
| ROE | 20.20 % |
| ROIC | 24.80 % |
| Shareholder Yield | -0.05 % |
| 5-Yr Total Return | 35.40 % |
| 1-Yr Total Return | 0.50 % |
| Next Earnings Date |
Latest Quarter Information
What the CEO said:
"Overall sales were up 3% in the quarter despite an organic revenue decline of 3%, primarily due to lower sales in the Contractor segment," said Mark Sheahan, Graco's President and Chief Executive Officer. "The Contractor segment organic sales decline was driven by softness in the North American construction markets, cautious channel and contractor investment, and reduced foot traffic in the home centers. The Americas drove the organic revenue decline as we saw growth in volume in both the EMEA and Asia Pacific regions. In addition, sales of powder finishing equipment continued to be strong during the quarter with improved activity in China."
What we say:
2025-08-06, Graco Inc reported a mixed quarter performance on EPS and revenue with -2.6% and +3.4% respectively. Graco’s revenue rose 3%, driven primarily by acquisitions, while organic sales declined. EPS fell due to higher product and tariff costs and lower-margin acquired operations. The company repurchased $361M in shares year-to-date, cutting diluted shares by ~2.3%. It reaffirmed its 2025 outlook for low single-digit organic growth. To offset weakness in the Americas, Graco continues to pursue acquisitions and geographic diversification.
Investment Thesis
Dividend Triangle
| 5-Yr Rev. Growth | 6.35 % |
| 5-Yr EPS Growth | 10.05 % |
| 5-Yr Div Growth | 9.05 % |
Potential Risks
| Debt/Equity | 0.00 |
| Financial Debt to EBITDA (TTM) | 0.05 |
| Current Ratio (Quarterly) | 3.70 |
| Credit Score | 100 |
Dividend Growth Perspective
| Dividend ($) | 1.1 |
| Dividend Yield Fwd | 1.35 % |
| Dividend Frequency | Quarterly |
| Average 5-Yr Yield | 1.25 % |
| Payout Ratio (%) | 36.20 |
| Cash Payout Ratio (%) | 29.40 |
| DGR 1-Yr | 5.90 |
| DGR 3-Yr | 8.75 |
| DGR 5-Yr | 9.05 |
| DGR Streak | 26 |
| Chowder Score | 10.40 |
| Next DVD PMT | 11-05-25 |
Valuation
(Data for `ddm_growth_rate_years` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
| Market Cap | 14 B |
| PE Ratio | 28.95 |
| Fwd PE | 26.60 |
| Price to Book Ratio | 5.40 |
| DDM Valuation | 0 |
| Average 5-Yr PE | 29.61 |
| Value Score | 23 |