Bedrijfsoverzicht
Graco Inc. is a specialized manufacturer dedicated to designing, producing, and marketing comprehensive systems and equipment that facilitate the movement, measurement, mixing, control, dispensing, and spraying of fluid and powder materials across the Americas, Europe, the Middle East, Africa, and the Asia Pacific region. The company operates within the Industrials sector, specifically focusing on the Specialty Industrial Machinery industry, which positions it as a provider of essential infrastructure for various manufacturing and construction applications. This industrial entity employs a workforce of 4,400 individuals and holds a substantial market capitalization of $14.52 billion, reflecting its established presence in the global supply chain. The reported annual revenue of $2.24 billion combined with the significant market cap indicates that Graco Inc. maintains a large-scale operational footprint and commands a premium valuation relative to typical industrial peers, suggesting a robust market position.
Financiële gezondheid
The company reported a trailing twelve-month revenue of $2.24 billion, generating a net income of $521.84 million and an EBITDA of $723.17 million, which highlights a distinct gap between top-line sales and bottom-line profit that reveals a cost structure heavily influenced by operating expenses and tax obligations. Graco Inc. demonstrates strong financial flexibility with a free cash flow of $517.79 million, a figure that underscores the company's ability to fund capital expenditures, reduce debt, or pursue strategic acquisitions without reliance on external financing. Profitability analysis reveals a gross margin of 52.5%, indicating efficient production and pricing power; an operating margin of 27.5%, which reflects effective cost management and operational efficiency; and a profit margin of 23.3%, demonstrating the final ability to convert sales into shareholder value after all costs are deducted. The balance sheet presents a highly conservative profile with cash holdings of $624.08 million significantly exceeding total debt of $51.60 million, while the debt-to-equity ratio of 1.94 suggests a moderate leverage level relative to equity. Short-term liquidity is exceptionally strong, evidenced by a current ratio of 3.15, which indicates the company possesses more than three times the liquid assets required to cover its current liabilities. Management effectiveness is further illuminated by a return on equity of 19.9% and a return on assets of 12.0%, metrics that collectively demonstrate the efficient generation of profits from the shareholders' invested capital and the total asset base.
Waarderingsbeoordeling
Valuation multiples indicate that the market prices Graco Inc. at a trailing P/E ratio of 28.44, while the forward P/E stands at 25.27, implying that the market expects earnings growth to accelerate in the coming periods to justify the current price. The price-to-book ratio is calculated at 5.45, which signifies a substantial market premium over the company's book value, suggesting investors are willing to pay significantly more for the tangible assets than their accounting value. Alternative valuation metrics provide further context, with a price-to-sales ratio of 6.49 and an EV/EBITDA of 19.24, suggesting that the company is valued based on high growth expectations and strong earnings generation relative to its enterprise value. Regarding price volatility, the stock has a 52-week high of $95.69 and a 52-week low of $75.91, meaning the current trading price sits at a specific point within this range that reflects recent market sentiment. The beta value of 1.09 indicates that the stock's price volatility is slightly higher than the broader market, moving with a sensitivity that is marginally more responsive to market fluctuations than the general index.
Growth & Income
The company exhibits a revenue growth rate of 8.1% year-over-year, accompanied by a more robust earnings growth rate of 23.8% year-over-year, which implies that the business is successfully managing costs and pricing to expand profitability at a pace faster than its top-line sales are increasing. As a dividend payer, Graco Inc. offers a dividend yield of 1.4% with a payout ratio of 35.7%, a conservative level that suggests the dividend is highly sustainable given the earnings growth and low debt levels. The relatively low payout ratio allows the company to retain a significant portion of earnings for reinvestment into growth initiatives rather than distributing the maximum possible cash to shareholders. Overall, the growth and income profile characterizes Graco Inc. as a mature industrial firm delivering steady revenue expansion, accelerating earnings growth, and providing a stable, sustainable income stream through dividends while maintaining a conservative capital structure.