Fundamental Analysis
Since 1926, Graco Inc. has been a leading provider of premium pumps and spray equipment for fluid handling in the construction, manufacturing, processing and maintenance industries. Headquartered in Minneapolis, Minnesota, Graco works closely with distributors around the world to offer innovative products that set the quality standard for spray finishing, paint circulation, lubrication, sealant and adhesives dispensing, process application, and contractor power equipment. These best-in-class products are manufactured in the U.S. and China and supplied through our distribution centers in Minnesota, Belgium, Japan, Korea, China and Australia.
http://www.graco.com/us/en/about-graco.html
Reasons to buy – Graco
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see Graco makes a margin of 27% on Operating Level and about 21% on Net level. This means that out of $1 that it makes $0.21 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see net revenue growth of 19% in the revenue and the net profit figures grew by 40%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see Graco makes a Return on Assets of 22% and Return of Equity of 47% which is pretty good.
Graco is the company that sells the spades when it comes to painting. The make premium pumps and spray equipment for fluid handling in the construction, manufacturing, processing and maintenance industries. This company is a good and efficient way to play the infrastructure/construction industry.
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by Graco to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
