1.37%
1.90%
-2.42%
7.06%
-5.44%
27.55%
69.65%

Company Description

Graco Inc.designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide.The company's Industrial segment offers proportioning systems to spray polyurethane foam and polyurea coatings; equipment that pumps, meters, mixes and dispenses sealant, adhesive, and composite materials; and gel-coat equipment, chop and wet-out systems, resin transfer molding systems and applicators, and precision dispensing solutions.


It also provides liquid finishing equipment; paint circulating and supply pumps; paint circulating advanced control systems; plural component coating proportioners; spare parts and accessories; and powder finishing products to coat powder finishing on metals under the Gema and SAT brands.The company's Process segment offers pumps to move and dispense chemicals, water, wastewater, petroleum, food, lubricants, and other fluids; pressure valves used in the oil and natural gas industry, other industrial processes, and research facilities; and chemical injection pumping solutions for injection of chemicals into producing oil wells and pipelines.It also supplies pumps, hose reels, meters, valves, and accessories for fast oil change facilities, service garages, fleet service centers, automobile dealerships, auto parts stores, truck builders, and heavy equipment service centers; and systems, components, and accessories for the automatic lubrication of bearings, gears, and generators in industrial and commercial equipment, compressors, turbines, and on- and off-road vehicles.


The company's Contractor segment offers sprayers to apply paint to walls and other structures; and viscous coatings to roofs, as well as markings on roads, parking lots, athletic fields, and floors.It sells its products through distributors, original equipment manufacturers, and home center channels; and directly to end-users.The company was incorporated in 1926 and is headquartered in Minneapolis, Minnesota.

Market Data

Last Price 87.54
Change Percentage 1.37%
Open 85.63
Previous Close 86.36
Market Cap ( Millions) 14838
Volume 859730
Year High 94.77
Year Low 77.49
M A 50 84.83
M A 200 83.85

Financial Ratios

FCF Yield 3.47%
Dividend Yield 1.19%
ROE 19.74%
Debt / Equity 1.58%
Net Debt / EBIDTA -100.44%
Price To Book 5.85
Price Earnings Ratio 31.08
Price To FCF 28.81
Price To sales 7.02
EV / EBITDA 22.48

Business Breakdown

Expected Mid-Term Growth

Segment n°1 -> Contractor

Expected Growth : 4.5 %

What the company do ?

Graco Inc.'s Contractor series is a line of professional-grade paint sprayers designed for heavy-duty use, offering high-performance and durability for contractors and professionals.

Why we expect these perspectives ?

Graco Inc.'s contractor segment growth of 4.5% is driven by increasing demand for painting and coating equipment, expansion into emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, such as the introduction of new products and technologies, has contributed to its growth. Furthermore, Graco's strong brand reputation and customer relationships have enabled the company to maintain its market share and capitalize on industry trends.

Segment n°2 -> Industrial

Expected Growth : 4.8 %

What the company do ?

Graco Inc.'s Industrial segment provides fluid handling equipment and systems for manufacturing, processing, and other industrial applications.

Why we expect these perspectives ?

Graco Inc.'s Industrial segment growth of 4.8% is driven by increasing demand for industrial coatings and adhesives, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, operational efficiency, and customer relationships has contributed to its growth momentum.

Segment n°3 -> Process

Expected Growth : 5.2 %

What the company do ?

Graco Inc.'s process involves designing, manufacturing, and marketing fluid handling systems, including pumps, valves, and meters for industrial and commercial applications.

Why we expect these perspectives ?

Graco Inc.'s 5.2% growth is driven by increasing demand for industrial coatings and adhesives, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, operational efficiency, and cost savings initiatives have contributed to its growth momentum.

Graco Inc. Products

Product Range What is it ?
Industrial Products Graco's Industrial Products segment provides fluid handling equipment and systems for various industries, including manufacturing, processing, and construction.
Process Pumps Graco's Process Pumps are designed for transferring and metering fluids in various industrial processes, including chemical processing, oil and gas, and water treatment.
Lubrication Systems Graco's Lubrication Systems provide automated lubrication solutions for industrial equipment, vehicles, and machinery.
Dispense Equipment Graco's Dispense Equipment is used for applying adhesives, sealants, and other materials in various industries, including automotive, aerospace, and construction.
Paint and Coatings Equipment Graco's Paint and Coatings Equipment is designed for applying paints, coatings, and other finishes in various industries, including automotive, aerospace, and construction.
Oil and Natural Gas Equipment Graco's Oil and Natural Gas Equipment is used for drilling, extraction, and production of oil and natural gas.
Contractor Equipment Graco's Contractor Equipment is designed for professional contractors, including sprayers, pumps, and accessories for painting, coating, and texture applications.

Graco Inc.'s Porter Forces

Graco Inc. faces moderate threat from substitutes due to the presence of alternative products in the market, such as manual painting tools and DIY painting kits.

Graco Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are specialized, making it difficult for customers to switch to alternative suppliers.

Graco Inc. relies on a few large suppliers for raw materials, which gives them some bargaining power. However, the company's large scale of operations and diversified supply chain mitigate this risk.

The capital-intensive nature of the painting equipment industry and the need for specialized technology and manufacturing expertise create barriers to entry, reducing the threat of new entrants.

The painting equipment industry is highly competitive, with several established players competing for market share. Graco Inc. faces intense rivalry from companies such as Titan Tool and 3M.

Capital Structure

Value
Debt Weight 2.20%
Debt Cost 8.15%
Equity Weight 97.80%
Equity Cost 8.15%
WACC 8.15%
Leverage 2.25%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
KAI Kadant Inc. supplies technologies and engineered systems worldwide. It operates through three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling systems …
NDSN Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide. It operates through two segments, Industrial Precision …
IEX IDEX Corporation, together with its subsidiaries, provides applied solutions worldwide. The company operates through three segments: Fluid & Metering Technologies (FMT), Health & Science Technologies (HST), and Fire & Safety/Diversified …
FLS Flowserve Corporation designs, develops, manufactures, distributes, and services industrial flow management equipment in the United States, Europe, the Middle East, Africa, Asia, and internationally. It operates in two segments, Flowserve …
FELE Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. It operates through three segments: Water Systems, Fueling Systems, and Distribution. The …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
87.54$
Current Price
87.54$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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