GGG Stock Analysis — Graco Inc.
Sector: Industrials
AI Verdict
GGG trades at 24.6x next year's earnings for just 3.7% expected growth—you're paying a premium the numbers don't yet support, and the moat's value hinges on that customer stickiness translating into higher growth.
Competitive Moat
Graco specializes in fluid handling systems for industrial and commercial applications, with a moat built on proprietary pump technology and deep customer integration in manufacturing lines. Its entrenched relationships and high switching costs make it difficult for competitors to displace existing installations.
Summary
GGG stands out for its sticky installed base in industrial fluid handling, which supports recurring aftermarket sales.
Where It Stands
GGG delivered a 4.6% revenue growth year-over-year, trades at 24.6x forward earnings versus the industrials median of 20x, and offers just 3.7% forward EPS growth.
Key Metrics
- Trailing P/E: 25.6x
- Forward P/E: 24.6x
- PEG Ratio: 6.85
- Earnings Growth: +0.0%
- Revenue Growth: +0.0%
- Dividend Yield: 0.01%
- 52-Week High: $95.69
- 52-Week Low: $77.70
Analyst Consensus
8 Buy · 7 Hold · 1 Sell (16 analysts)
Bull Case
The 25.6x trailing P/E reflects a premium for Graco's durable business model and 4.6% revenue growth, suggesting investors value its stability over high growth.
Bear Case
With a PEG ratio of 6.85 and forward P/E of 24.6x for only 3.7% EPS growth, a re-rating to the sector median would mean a 19% valuation drop if growth doesn't accelerate.
Catalyst to Watch
Watch for new product launches or major customer wins that could boost EPS growth above the current 3.7% consensus.