GGGGraco Inc.
Is the business good?
The checks split: earnings fully cash-backed (1.3×) and elite returns on assets, but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 20% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GGG?
Graco Inc. earns 20% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 11 points above what the capital costs: growth creates value
- Operating margin
- 27%
Operating margin · Specialty Industrial Machinery median 14% · 12 months to Q3 2026
- Cash conversion
- 1.31×
Cash conversion · 1.38× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −3.3%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 24% |
| FY2021 | 27% |
| FY2022 | 27% |
| FY2023 | 29% |
| FY2024 | 27% |
| FY2025 | 28% |
Details›
- Gross margin12 months to Q3 2026
- 52%
- Operating margin12 months to Q3 2026
- 27%
- Net margin12 months to Q3 2026
- 22%
- Free cash flow margin
- 26%
- R&D as % of revenue
- 3.6%
- Revenue, trailing twelve months
- $2.31B
- Free cash flow, trailing twelve months
- $600M
- Net income, trailing twelve months
- $517M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 20%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from GGG and who it buys from, as the companies report it.
- Major customer10%
Share of revenue · FY2025 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; GGG’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.
Specialty Industrial Machinery
Ranks #2 of 34 by RyuScore