Graco GGG
Graco manufactures fluid handling and coating equipment for industrial and commercial applications. Graco shows excellent financial health (net cash, ND/EBITDA -0.62) and a solid moat (ROIC 26.18%, gross margin 52.64%), but its valuation (P/E 24.48, EV/EBITDA 16.54) is not attractive and momentum is negative (-5.08% over 12 months), suggesting a quality business at a fair price with moderate growth.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Graco manufactures fluid handling and coating equipment for industrial and commercial applications. Graco shows excellent financial health (net cash, ND/EBITDA -0.62) and a solid moat (ROIC 26.18%, gross margin 52.64%), but its valuation (P/E 24.48, EV/EBITDA 16.54) is not attractive and momentum is negative (-5.08% over 12 months), suggesting a quality business at a fair price with moderate growth.
Score by category
| Category | Score |
|---|---|
| Financial health | 9.0 |
| Quality / Moat | 8.1 |
| Valuation | 4.9 |
| Growth | 5.9 |
| Dividend | 6.1 |
| Momentum | 2.9 |
| Risk & Context | 6.8 |
OVERALL SCORE: 6.5/10
Context and risks
The macro context (rates, oil, tariffs) does not materially affect Graco: its fluid equipment business is not energy-intensive, its net debt is negative, and its P/E of 24.48 is not of extreme duration. Tariff exposure is limited and there are no signs of a direct impact on its numbers.
News considered in the analysis
- Graco Acquires Valco Melton, Strengthens Product Offerings — Adquisición estratégica que amplía la oferta de adhesivos, pero de tamaño moderado; el mercado aún está asimilando el impacto.
- Why Graco (GGG) Was a Q2 Detractor for Gabelli Small Cap Growth Fund — Comentario de un gestor sobre resultados pasados, ya reflejado en el precio y en el momentum negativo.
- Graco (GGG) Bets Big On Adhesives While Wall Street Trims Positions — Ruido de mercado: la apuesta por adhesivos ya es conocida y el recorte de posiciones es una opinión de analistas.
- 1 Mid-Cap Stock with Exciting Potential and 2 We Turn Down — Listículo sin información nueva sobre la empresa.
- Graco (GGG) Could Find a Support Soon, Here's Why You Should Buy the Stock Now — Artículo promocional de Zacks, sin datos concretos que no estén ya en el precio.
Verdict: Hold: business quality and balance sheet justify the premium, but valuation and negative momentum limit near-term upside potential.
Main risk: The main risk is the slowdown in revenue growth (3.30%) in a high-rate environment that could further compress its multiple (P/E 24.48) if the market continues to penalize moderate-growth industrials.
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