Graco Inc. (GGG) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Graco Inc. (GGG) Industrial Operations Profile

Graco Inc. (GGG) is a global leader in fluid handling systems and equipment, providing solutions for moving, measuring, controlling, dispensing, and spraying fluids and powders. With a strong presence in industrial, process, and contractor markets, Graco leverages its technology and distribution network to serve diverse customer needs.

What Is the Investment Thesis for GGG?

Graco Inc. presents a notable research candidate due to its strong market position, diversified revenue streams, and consistent profitability. With a market capitalization of $12.3B and a P/E ratio of 23.52, Graco demonstrates financial stability. A gross margin of 52.3% and a profit margin of 23.0% indicate efficient operations. Key growth catalysts include expansion in emerging markets and new product development. However, potential risks include economic downturns affecting industrial spending and increased competition. The company's dividend yield of 1.47% offers a steady return for investors.

Based on FMP financials and quantitative analysis

GGG Key Highlights

Market capitalization of $12.3B, reflecting strong investor confidence.

• P/E ratio of 23.52, indicating a premium valuation relative to earnings.
• Gross margin of 52.3%, showcasing efficient cost management and pricing power.
• Profit margin of 23.0%, demonstrating strong profitability and operational efficiency.
• Dividend yield of 1.47%, providing a steady income stream for investors.

Who Are GGG's Competitors?

GGG is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are GGG's Key Strengths?

Strong brand recognition and reputation.

• Diversified product portfolio and end markets.
• Extensive distribution network.
• Consistent profitability and cash flow generation.

What Are GGG's Weaknesses?

Exposure to cyclical industries.

• Dependence on raw material prices.
• Potential for product liability claims.
• Geographic concentration in North America.

What Could Drive GGG Stock Higher?

GGG catalyst: Launch of new product lines in the Industrial segment targeting specific applications in emerging markets.

• Expansion of distribution network in Asia-Pacific region to capture growing demand.
• Continued investment in research and development to drive innovation and product differentiation.

What Are the Key Risks for GGG?

Inconsistent delivery — missed Wall Street EPS estimates in 5 of the last 8 reported quarters.

• Economic slowdown in key markets affecting industrial spending and demand for Graco's products.
• Increased competition from established players and new entrants in the fluid handling industry.
• Fluctuations in raw material prices impacting production costs and profitability.

What Are the Growth Opportunities for GGG?

• Growth opportunity 1: Expansion in emerging markets represents a significant growth opportunity for Graco. As developing economies industrialize, the demand for fluid handling systems and equipment is expected to increase. Graco can leverage its existing product portfolio and distribution network to penetrate these markets, focusing on regions with high growth potential, such as Asia-Pacific and Latin America. This expansion could contribute to a 10-15% increase in revenue over the next five years.
• Growth opportunity 2: New product development and innovation are crucial for Graco to maintain its competitive edge. Investing in research and development to create advanced fluid handling solutions can drive revenue growth and improve profitability. Focus areas include developing more efficient and environmentally friendly products, as well as integrating digital technologies into existing systems. Successful new product launches could boost revenue by 5-8% annually.
• Growth opportunity 3: Strategic acquisitions can provide Graco with access to new technologies, markets, and customers. Identifying and acquiring companies with complementary product lines or geographic presence can accelerate growth and enhance market share. Potential acquisition targets include companies specializing in niche applications or serving specific industries. Strategic acquisitions could contribute to a 8-12% increase in revenue over the next three years.
• Growth opportunity 4: Increasing demand for automation in industrial processes presents a significant growth opportunity for Graco. As manufacturers seek to improve efficiency and reduce costs, the adoption of automated fluid handling systems is expected to rise. Graco can capitalize on this trend by offering integrated automation solutions that streamline production processes and enhance productivity. This could lead to a 10-15% increase in sales in the industrial segment over the next five years.
• Growth opportunity 5: Enhancing aftermarket services and support can drive recurring revenue and strengthen customer relationships. Providing comprehensive maintenance, repair, and spare parts services can generate a steady stream of income and improve customer loyalty. Graco can expand its service offerings by investing in training, infrastructure, and technology. This could contribute to a 5-7% increase in revenue from aftermarket services over the next three years.

What Threats Does GGG Face?

• Economic downturns affecting industrial spending.
• Increased competition.
• Fluctuations in currency exchange rates.
• Changes in regulations and standards.

What Are GGG's Competitive Advantages?

• Strong brand reputation and established market presence.
• Extensive distribution network and customer relationships.
• Diversified product portfolio serving multiple industries.
• Technological expertise and innovation in fluid handling systems.

What Does GGG Do?

Graco Inc., founded in 1926 and headquartered in Minneapolis, Minnesota, is a global leader in the design, manufacture, and marketing of systems and equipment used to manage fluids and powders. The company operates through three primary segments: Industrial, Process, and Contractor. The Industrial segment offers solutions for spraying polyurethane foam and polyurea coatings, dispensing sealants and adhesives, and liquid and powder finishing. The Process segment provides pumps for various fluids, pressure valves, and chemical injection solutions. The Contractor segment focuses on sprayers for paint and coatings applications. Graco's products are sold through distributors, original equipment manufacturers, and directly to end-users. The company's evolution from a small manufacturing firm to a global corporation reflects its commitment to innovation and customer satisfaction. Graco's broad product portfolio and extensive distribution network position it as a key player in the fluid handling industry.

What Products and Services Does GGG Offer?

• Design, manufacture, and market fluid handling systems and equipment.
• Offer solutions for moving, measuring, controlling, dispensing, and spraying fluids and powders.
• Serve diverse industries through Industrial, Process, and Contractor segments.
• Provide equipment for spraying polyurethane foam and polyurea coatings.
• Supply pumps for chemicals, water, wastewater, petroleum, and other fluids.
• Offer sprayers for paint and coatings applications on walls, roofs, and other structures.
• Provide systems for automatic lubrication of bearings, gears, and generators.

How Does GGG Make Money?

• Graco generates revenue through the sale of fluid handling systems and equipment.
• The company operates through three segments: Industrial, Process, and Contractor.
• Sales are made through distributors, original equipment manufacturers, and directly to end-users.
• Aftermarket services and spare parts contribute to recurring revenue.

What Industry Does GGG Operate In?

Graco Inc. operates in the industrial machinery industry, which is characterized by steady growth and technological advancements. The market is driven by increasing demand for automation, efficiency, and precision in fluid handling processes. Graco competes with companies like AMETEK, Inc. (AME), Ingersoll Rand Inc. (IR), IDEX Corporation (IEX), ITT Inc. (ITT), and Pentair plc (PNR). The industry is subject to economic cycles, with growth closely tied to industrial production and capital spending. Graco's diversified product portfolio and global presence provide a competitive edge in this dynamic market.

Who Are GGG's Key Customers?

• Industrial manufacturers using fluid handling systems in their production processes.
• Contractors applying paint and coatings to buildings and infrastructure.
• Oil and gas companies requiring chemical injection pumping solutions.
• Automotive service centers and fleet service centers using lubrication equipment.

Graco Inc. Financial Trajectory

Graco Inc. (GGG) reported $590.6M in revenue for Q2 FY2026, reflecting 9.3% growth compared to the prior quarter. The company recorded net income of $144.9M, with diluted EPS of $0.86. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Industrials. Across the four most recent quarters, GGG averaged $0.79 in diluted EPS.

Company Profile

Graco Inc. operates in the Industrial - Machinery industry within the Industrials sector. It is headquartered in Minneapolis, US. The company is led by CEO Mark W. Sheahan. GGG has traded publicly since 1980.

How Graco Inc. Is Valued

Graco Inc. carries a market capitalization of $12.3B, placing it in the large-cap category. Analyst price targets span from $94.00 to $96.00, with a consensus of $95.00. At the current price of $75.97, that implies approximately 25% upside potential. Relative to its peer group, GGG's quantitative score of 91/100 is above the peer average of 69/100.

Return on equity for Graco Inc. stands at 19.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 15.5%, showing how much profit it generates from its asset base. GGG trades at a trailing price-to-earnings ratio of 23.52, below the Industrials sector average of ~28.00x. Its free cash flow yield is 5.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 3.56 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 4.2%, the inverse of the P/E and a quick read on earnings relative to price.

Graco Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 14.57 places it in the safe zone, indicating low near-term bankruptcy risk.

Graco Inc. has missed Wall Street's EPS estimate in 5 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 2.8% below estimates on average.

Over the past six months, Graco Inc. insiders filed 18 SEC Form 4 transactions — 2 sales and 16 purchases. On net that is roughly 68K shares acquired (about $4.5M) — insiders putting money in tends to read as conviction.

GGG Financials

GGG Latest News

GGG Analyst Consensus

GGG MoonshotScore

Graco Inc. Industrials Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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