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Graco GGG

Graco scores excellent on business quality (7.7 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$78.21Oct 10, 2026
Business qualityExcellent
Next earningsOct 21, 2026
Insiders, 90 daysSelling

Why it matters

  1. What Graco does

    Graco designs and manufactures fluid management systems and equipment, selling pumps, valves, and sprayers to industrial, commercial, and contractor clients who depend on precise material application. The company is preparing its third-quarter 2026 earnings conference call while benchmarking performance across gas and liquid handling markets.

  2. What it does best

    Graco converts revenue into cash better than peers, boasting a free cash flow margin of 27.7% compared to peer IEX at 17.9%. This advantage stems from proprietary pump designs and entrenched distributor networks that make switching costs prohibitive.

  3. The main risk

    Demand slowdowns in industrial and contractor end-markets directly threaten organic volume growth. With revenue inching up just 5.9% to $2.3B, any macroeconomic softening quickly compresses high-margin equipment sales.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityStrong

Operating margin reaches an elite 28.4%, landing in the 96th percentile of its sector. This top-tier profitability means the business extracts structurally higher returns as revenue scales.

MoatStrong

Graco commands a wide economic moat rooted in high switching costs for industrial customers who rely on its fluid handling systems. Its gross margin sits in the sector's top quartile at the 85th percentile, preventing rivals from easily undercutting pricing.

GrowthSlow

Revenue grew 5.9% to $2.3B, showing modest gains compared to historical years where growth stalled around $2.1B to $2.2B. The top line expands slowly, sitting right in the middle of its sector at the 57th percentile.

Financial healthStrong

Debt is practically non-existent with a debt-to-equity ratio of 0.01 and interest coverage at 201.5x, meaning debt costs are a rounding error. Free cash flow reached $629M, making the balance sheet exceptionally strong.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 sold $257K outside pre-planned sales.

Our sealed record on GGG

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is GGG a good business?

Graco scores excellent on the Cluenex quality check (7.7 of 10), measured against its own industry. Profitability is strong, moat strong, growth slow and financial health strong.

Are insiders buying GGG?

In the last 90 days of SEC Form 4 filings: 1 sold $257K outside pre-planned sales.

When does GGG report earnings?

Oct 21, 2026.

For members

See GGG today

  • Today's verdict on GGG, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Graco (GGG)”, https://cluenex.com/stocks/ggg/, data as of Oct 10, 2026.