Graco Inc. Common Stock (GGG)

FairStock Score: 61/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Graco is the kind of industrial business I admire: it sells necessary, repeatable equipment for moving and spraying fluids, and its filed results show quality. In fiscal Q2 2026, the quarter ended 2026-06-26, revenue was $590.6M, net income $144.9M, and diluted EPS $0.87. Against fiscal Q2 2025, the quarter ended 2025-06-27, revenue rose from $571.8M and net income from $127.6M, while diluted EPS increased from $0.76. For FY2025, period ended 2025-12-26, revenue was $2.2B, net income $521.8M, and diluted EPS $3.08, up from FY2024 period ended 2024-12-27 net income of $486.1M and diluted EPS of $2.82. Profit is growing faster than sales, which suggests pricing power and cost discipline. FairStock's figures show a fortress-like balance sheet: D/E of 0.02, Altman Z-Score 14.08, Piotroski F-Score 7/9. Its return metrics include ROE 21.24% and ROCE 12.71%. TTM free cash flow is $629.5M, a 4.9% FCF yield. FairStock calls it a Stalwart, with 9.6% annual profit growth and 6.3% revenue growth over five years. The steady margins and high returns hint at a durable competitive advantage, though I cannot quantify the moat from these figures alone. But price matters. At the 2026-10-13 close of $79.82, FairStock shows P/E 25.10, P/B 5.12, PEG 1.85, EV/EBITDA 16.34, and a Graham Number of $33.39—a -139.05% margin of safety. This is a fine company, but the quote already assumes continued steady compounding. I would want a wider discount before calling it a bargain.

In plain English: Graco makes equipment that moves, measures, mixes and sprays fluids and powders, such as paint sprayers and industrial fluid systems. The business looks strong: it earns good profits, carries almost no debt, and generates plenty of cash. But at $79.82, the stock price looks expensive compared with the profits it makes and the value of its assets.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-26) · fiscal Q1 2026 10-Q (period ended 2026-03-27) · fiscal Q3 2025 10-Q (period ended 2025-09-26) · fiscal Q2 2025 10-Q (period ended 2025-06-27) · FY2025 10-K (period ended 2025-12-26) · FY2024 10-K (period ended 2024-12-27) · FY2023 10-K (period ended 2023-12-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer