Graco Inc. (GGG) AI Stock Analysis

Graco Inc. specializes in the design, manufacturing, and global distribution of systems and equipment for moving, measuring, controlling, dispensing, and spraying fluid and powder materials across various industries. The company operates through three segments: Industrial, Process, and Contractor. Its Industrial segment supplies proportioning systems, liquid finishing equipment, and powder coating products under brands like Gema and SAT. The Process segment provides pumps and pressure valves for moving chemicals, water, wastewater, petroleum, and food products. The Contractor segment manufactures paint sprayers used on walls, structures, roofs, roads, and athletic fields, distributing through distributors, OEMs, and home centers.

Between FY2021 and FY2025, Graco grew revenue from $1.99B to $2.24B, generating a 5-year revenue CAGR of 6.3%. Revenue grew 20.5% in FY2021, 7.8% in FY2022, and 2.4% in FY2023, before contracting 3.7% in FY2024 and recovering 5.8% in FY2025. Annual net income increased from $439.9M in FY2021 to $521.8M in FY2025, while gross margin remained resilient between 49.3% and 53.1%. Over the trailing twelve months, revenue reached $2.27B, supported by a profit margin of 23.5% and EPS of $3.18. In the latest quarter ending June 30, 2026, quarterly revenue grew 3.3% year-over-year while quarterly earnings expanded 14.5%.

As of June 30, 2026, Graco held $507.6M in cash and short-term investments against total debt of $45.2M, resulting in a net cash position of $462.3M. The company shows strong liquidity with a current ratio of 2.99 and a debt-to-equity ratio of 0.02 against shareholders' equity of $2.52B. In FY2025, Graco generated $683.6M in operating cash flow and $637.9M in free cash flow. Capital allocation in FY2025 included $45.7M in capital expenditures, $423.1M in share buybacks, and $183.4M in dividends paid.

Graco trades at a trailing P/E of 25.8x and a forward P/E of 22.1x, compared to medians of 24.8x and 17.2x for US-listed Industrials. Its enterprise value stands at $12.12B, translating to an EV-to-EBITDA multiple of 15.9x versus the peer median of 13.9x. The stock carries a price-to-sales multiple of 5.9x, above the peer group median of 1.5x. Over the past year, Graco's return of 1.9% trailed the S&P 500 return of 16.8%, while its 5-year return of 23.0% lagged the index return of 83.0%.

Graco pays an annualized forward dividend of $1.18 per share, representing a dividend yield of 1.44% with a payout ratio of 38.4%. The company has paid dividends for 42 consecutive years and achieved a 5-year annualized dividend growth rate of 9.5%. The last ex-dividend date was October 19, 2026.

Wall Street coverage consists of 1 Strong Buy, 2 Buy ratings, and 7 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target of $91.14 represents an upside of 11.2% from the last close of $81.99. For FY2026 ending December 31, 2026, analysts estimate revenue of $2.36B and EPS of $3.30, reflecting 12.0% EPS growth. Graco beat earnings estimates in 2 of the last 4 quarters, and its next earnings date is October 21, 2026.

This page is an AI-written research summary of Graco Inc. (GGG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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