ScoreWhy is Graco, Inc. ?
1
High Management Efficiency with a high ROE of 23.89%
2
Company has a low Debt to Equity ratio (avg) at times
3
Poor long term growth as Operating profit has grown by an annual rate 8.89% of over the last 5 years
4
Flat results in Jun 25
- ROCE(HY) Lowest at 19.62%
- DEBTORS TURNOVER RATIO(HY) Lowest at 5.88 times
5
With ROE of 19.69%, it has a expensive valuation with a 5.74 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -7.12%, its profits have fallen by -2.2%
6
Below par performance in long term as well as near term
- Along with generating -7.12% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Graco, Inc. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Graco, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Graco, Inc.
-10.14%
0.25
21.59%
S&P 500
25.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.27%
EBIT Growth (5y)
7.42%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.20
Sales to Capital Employed (avg)
0.87
Tax Ratio
18.73%
Dividend Payout Ratio
36.32%
Pledged Shares
0
Institutional Holding
95.98%
ROCE (avg)
36.17%
ROE (avg)
23.89%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
27
Industry P/E
Price to Book Value
5.22
EV to EBIT
21.71
EV to EBITDA
18.46
EV to Capital Employed
6.43
EV to Sales
5.93
PEG Ratio
3.92
Dividend Yield
1.36%
ROCE (Latest)
29.60%
ROE (Latest)
19.23%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Sideways
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 2.62 times
DIVIDEND PER SHARE(HY)
Highest at USD 5.89
DIVIDEND PAYOUT RATIO(Y)
Highest at 41.9%
RAW MATERIAL COST(Y)
Fallen by 1.18% (YoY
CASH AND EQV(HY)
Highest at USD 1,336.25 MM
-7What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 19,901.56
OPERATING PROFIT(Q)
Lowest at USD 166.38 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 30.8 %
PRE-TAX PROFIT(Q)
Lowest at USD 140.09 MM
NET PROFIT(Q)
Lowest at USD 118.51 MM
EPS(Q)
Lowest at USD 0.7
Here's what is working for Graco, Inc.
Inventory Turnover Ratio
Highest at 2.62 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend per share
Highest at USD 5.89 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Cash and Eqv
Highest at USD 1,336.25 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Dividend Payout Ratio
Highest at 41.9%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by 1.18% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Graco, Inc.
Interest Coverage Ratio
Lowest at 19,901.56
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at USD 166.38 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 30.8 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD 140.09 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 118.51 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0.7
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
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