GGG Graco, Inc.
Graco, Inc. is a manufacturing company, which designs, manufactures and markets systems and equipment used to move, measure, control, dispense and spray fluid and powder materials. It operates through the following segments: Industrial, Contractor and Process. The Industrial segment includes the Applied Fluid Technologies, Industrial Products and Process divisions. It markets equipment and pre-engineered packages for moving and applying paints, coatings, sealants, adhesives and other fluids. The Process segment markets pumps, valves, meters and accessories to move and dispense chemicals, oil & natural gas, water, wastewater, petroleum, food, lubricants and other fluids. The Contractor segment equipment includes sprayers that apply texture to walls and ceilings, highly viscous coatings to roofs and markings on roads, parking lots, athletic fields and floors. Graco was founded by Russell Gray and Leil Gray in April 1926 and is headquartered in Minneapolis, MN.
Company profile
Ticker
GGG
Exchange
Website
CEO
Patrick J. McHale
Employees
Incorporated in
Location
Fiscal year end
Industry (SEC)
SEC CIK
Corporate docs
IRS number
410285640
GGG stock data
()
Investment data
Securities sold
Number of investors
Calendar
22 Apr 20
14 Jul 20
27 Dec 20
News
Company financial data Financial data
| Quarter (USD) | Mar 20 | Dec 19 | Sep 19 | Jun 19 | |
|---|---|---|---|---|---|
| Revenue | 373.57M | 412.29M | 400.56M | 428.33M | |
| Net income | 72.82M | 84.84M | 84.13M | 88.14M | |
| Diluted EPS | 0.42 | 0.49 | 0.49 | 0.51 | |
| Net profit margin | 19.49% | 20.58% | 21.00% | 20.58% | |
| Operating income | 89.81M | 104.17M | 103.4M | 112.36M | |
| Net change in cash | 235.68M | 43.67M | -3.58M | 61.17M | |
| Cash on hand | 456.66M | 220.97M | 177.31M | 180.88M | |
| Cost of revenue | 174.94M | 202.91M | 193.18M | 201.37M |
| Annual (USD) | Dec 19 | Dec 18 | Dec 17 | Dec 16 | |
|---|---|---|---|---|---|
| Revenue | 1.65B | 1.65B | 1.47B | 1.33B | |
| Net income | 343.85M | 341.05M | 252.41M | 40.67M | |
| Diluted EPS | 2 | 1.97 | 1.45 | 0.24 | |
| Net profit margin | 20.89% | 20.63% | 17.12% | 3.06% | |
| Operating income | 424.46M | 436.43M | 378.75M | 121.14M | |
| Net change in cash | 88.86M | 28.46M | 51.3M | 70K | |
| Cash on hand | 220.97M | 132.12M | 103.66M | 52.37M | |
| Cost of revenue | 786.29M | 770.75M | 679.54M | 618.42M |
Financial data from Graco earnings reports
Recent insider trades
| Date | Owner | Security | Transaction | Code | 10b5-1 | $Price | #Shares | $Value | #Remaining |
|---|---|---|---|---|---|---|---|---|---|
| 1 Jul 20 | Etchart Eric | Phantom Stock Units Common Stock | Grant | Aquire A | No | 47.99 | 465.37 | 22.33K | 9,649.654 |
| 1 Jul 20 | J Kevin Gilligan | Phantom Stock Units Common Stock | Grant | Aquire A | No | 47.99 | 499.24 | 23.96K | 83,752.59 |
| 1 Jul 20 | Lee R Mitau | Phantom Stock Units Common Stock | Grant | Aquire A | No | 47.99 | 642.49 | 30.83K | 178,318.844 |
| 1 Jul 20 | Sant R William Van | Phantom Stock Units Common Stock | Grant | Aquire A | No | 47.99 | 460.17 | 22.08K | 68,740.742 |
| 1 Jul 20 | Kevin J. Wheeler | Phantom Stock Units Common Stock | Grant | Aquire A | No | 47.99 | 465.37 | 22.33K | 612.877 |
Institutional ownership Q1 2020
84.0% owned by funds/institutions
13F holders |
Current |
|---|---|
| Total holders | 426 |
| Opened positions | 48 |
| Closed positions | 48 |
| Increased positions | 136 |
| Reduced positions | 150 |
13F shares |
Current |
|---|---|
| Total value | 64.12B |
| Total shares | 141.5M |
| Total puts | 24K |
| Total calls | 60K |
| Total put/call ratio | 0.4 |
Largest owners |
Shares | Value |
|---|---|---|
| Vanguard | 17.09M | $832.73M |
| BLK BlackRock | 14.74M | $718.05M |
| FSZ Fiera Capital | 11.49M | $559.96M |
| Kayne Anderson Rudnick Investment Management | 7.17M | $349.54M |
| N Price T Rowe Associates | 6.96M | $339.26M |
| STT State Street | 6.22M | $302.88M |
| Mairs & Power | 4.73M | $230.55M |
| Alecta Pensionsforsakring, Omsesidigt | 3.6M | $175.18M |
| WCM Investment Management | 3.33M | $162.27M |
| Atlanta Capital Management Co L L C | 2.68M | $130.55M |
Financial report summary
?Risks
- Growth Strategies and Acquisitions - Our growth strategies may not provide the return on investment desired if we are not successful in implementation of these strategies.
- Currency - Changes in currency translation rates could adversely impact our revenue, earnings and the valuation of assets denominated in foreign currencies.
- Economic Environment - Demand for our products depends on the level of commercial and industrial activity worldwide.
- Competition - Our success depends upon our ability to develop, market and sell new products that meet our customers’ needs, and anticipate industry changes.
- Global Sourcing - Risks associated with foreign sourcing, supply interruption, delays in raw material or component delivery, supply shortages and counterfeit components may adversely affect our production or profitability.
- Information Systems - Interruption of or intrusion into information systems may impact our business.
- Intellectual Property - Demand for our products may be affected by new entrants who copy our products or infringe on our intellectual property. Competitors may allege that our products infringe the intellectual property of others.
- Foreign Operations - Conducting business internationally exposes our Company to risks that could harm our business.
- Catastrophic Events - Our operations are at risk of damage, destruction or disruption by natural disasters and other unexpected events.
- Changes in Laws and Regulations - Changes may impact how we can do business and the cost of doing business around the world.
- Anti-Corruption and Trade Laws - We may incur costs and suffer damages if our employees, agents, distributors or suppliers violate anti-bribery, anti-corruption or trade laws and regulations.
- Tax Rates and New Tax Legislation - Changes in tax rates or the adoption of new tax legislation may affect our results of operations, cash flows and financial condition.
- Impairment - If acquired businesses do not meet performance expectations, assets acquired could be subject to impairment.
- Political Instability - Uncertainty surrounding political leadership may limit our growth opportunities.
- Legal Proceedings - Costs associated with claims, litigation, administrative proceedings and regulatory reviews, and potentially adverse outcomes, may affect our profitability.
- Personnel - Our success may be affected if we are not able to attract, develop and retain qualified personnel.
- Major Customers - Our Contractor segment depends on a few large customers for a significant portion of its sales. Significant declines in the level of purchases by these customers could reduce our sales and impact segment profitability.
- Variable Industries - Our success may be affected by variations in the construction, automotive, mining and oil and natural gas industries.
Management Discussion
- Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
- Graco designs, manufactures and markets systems and equipment used to move, measure, control, dispense and spray fluid and powder materials. The Company specializes in equipment for applications that involve difficult-to-handle materials with high viscosities, materials with abrasive or corrosive properties and multiple-component materials that require precise ratio control. Graco sells primarily through independent third-party distributors worldwide to industrial and contractor end users. Graco’s business is classified by management into three reportable segments: Industrial, Process and Contractor. Each segment is responsible for product development, manufacturing, marketing and sales of their products.
- Graco’s key strategies include developing and marketing new products, leveraging products and technologies into additional, growing end-user markets, expanding distribution globally and completing strategic acquisitions that provide additional channel and technologies. Long-term financial growth targets accompany these strategies, including our expectation of 10 percent revenue growth and 12 percent consolidated net earnings growth. We continue to develop new products in each operating division that are expected to drive incremental sales growth, as well as continued refreshes and upgrades of existing product lines. Graco has made a number of strategic acquisitions that expand and complement organically developed products and provide new market and channel opportunities.
Content analysis
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| Uncertain | ||
| Constraining | ||
| Legalese | ||
| Litigous | ||
| Readability |
8th grade Avg
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New words:
acquisition, adequacy, agent, aging, air, altered, alternative, applicable, assumed, Bank, bearing, began, begun, behavior, buying, cancelled, chain, charged, cleaning, closing, collected, combined, confidence, confident, connection, consumer, contact, convert, corporate, county, coverage, critical, debtor, declared, delaying, depend, Disease, disinfecting, distancing, drop, duration, earlier, efficiency, eliminating, energy, engineering, environment, essential, evolving, exacerbate, exceed, experienced, expiring, exposure, extent, facility, floating, flow, focused, forecast, fulfill, fulfillment, globe, government, governmental, ground, group, health, healthcare, highly, history, home, hygiene, ill, individual, infrastructure, inventory, isolated, lead, lender, LLC, local, longer, loyal, maintain, maintaining, manufacture, manufacturing, master, mature, maximum, middle, mitigating, monitor, national, note, noted, NYL, occupancy, occur, occurred, outbreak, pace, Page, pandemic, party, pay, playbook, predict, predicted, preserve, previously, principal, procure, provincial, public, quarantined, recent, recession, reduced, reducing, reduction, relevant, reluctant, response, reviewing, revolving, running, school, scope, sea, season, sell, selling, senior, show, Similarly, social, solid, spread, stability, staffing, state, subsided, substantially, sufficient, support, team, temporarily, traditional, transport, transportation, travel, uncertain, uncertainty, uncollectible, unforeseen, utilizing, valuation, variety, warranted, withdrawing, work, workforce, working
Removed:
amortizing, analyze, AOCI, apply, arrangement, ASU, building, capacity, classification, classified, commencement, defer, delivery, determine, determining, direct, exercised, existing, expand, expedient, extend, generated, hindsight, historically, inception, incremental, initial, Internally, land, Lastly, lease, modified, noncancelable, office, package, permitted, policy, portfolio, practical, reclassification, reclassify, recognition, relief, Renewal, rental, reported, representing, resulting, retained, retrospective, revaluation, separate, stranded, terminate, termination, Topic, twelve, vehicle
Financial reports
10-Q
2020 Q1
Quarterly report
22 Apr 20
10-K
2019 FY
Annual report
18 Feb 20
10-Q
2019 Q3
Quarterly report
23 Oct 19
10-Q
2019 Q2
Quarterly report
24 Jul 19
10-Q
2019 Q1
Quarterly report
24 Apr 19
10-K
2018 FY
Annual report
19 Feb 19
10-Q
2018 Q3
Quarterly report
24 Oct 18
10-Q
2018 Q2
Quarterly report
25 Jul 18
10-Q
2018 Q1
Quarterly report
25 Apr 18
10-K/A
2017 FY
Annual report (amended)
23 Apr 18
Current reports
8-K
Departure of Directors or Certain Officers
27 Apr 20
8-K
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
24 Mar 20
8-K
Graco Appoints Kevin J. Wheeler to the Board of Directors
26 Feb 20
8-K
Entry into a Material Definitive Agreement
3 Feb 20
8-K
Graco Reports Fourth Quarter and Annual Results
27 Jan 20
8-K
Departure of Directors or Certain Officers
19 Sep 19
8-K
Termination of a Material Definitive Agreement
29 Apr 19
8-K
Graco Reports Record Sales and Operating Earnings
28 Jan 19
8-K
Graco Names Mark W. Sheahan CFO and Treasurer
18 Jun 18
8-K
Entry into a Material Definitive Agreement
1 May 18
Registration and prospectus
S-8
Registration of securities for employees
10 May 19
S-8
Registration of securities for employees
8 May 15
25-NSE
Exchange delisting
25 Mar 13
8-A12B/A
Registration of securities on exchange (amended)
15 Feb 13
S-8
Registration of securities for employees
26 Apr 12
D
$300M in debt, sold $150M, 7 investors
25 Mar 11
S-8
Registration of securities for employees
17 Jun 10
8-A12B
Registration of securities on exchange
16 Feb 10
S-8
Registration of securities for employees
23 Feb 07
S-8
Registration of securities for employees
16 May 06
Proxies
DEFA14A
Additional proxy soliciting materials
11 Mar 20
DEF 14A
Definitive proxy
11 Mar 20
DEFA14A
Additional proxy soliciting materials
13 Mar 19
DEF 14A
Definitive proxy
13 Mar 19
DEF 14A
Definitive proxy
14 Mar 18
DEFA14A
Additional proxy soliciting materials
14 Mar 18
DEF 14A
Definitive proxy
15 Mar 17
DEFA14A
Additional proxy soliciting materials
15 Mar 17
DEF 14A
Definitive proxy
9 Mar 16
DEFA14A
Additional proxy soliciting materials
9 Mar 16
Other
SD
Conflict minerals disclosure
1 Jun 20
SD
Conflict minerals disclosure
31 May 19
SD
Conflict minerals disclosure
31 May 18
UPLOAD
Letter from SEC
24 Apr 18
CORRESP
Correspondence with SEC
23 Apr 18
UPLOAD
Letter from SEC
13 Apr 18
SD
Conflict minerals disclosure
31 May 17
SD
Conflict minerals disclosure
31 May 16
SD
Conflict minerals disclosure
1 Jun 15
CT ORDER
Confidential treatment order
18 Mar 15
Ownership
4
GRACO / JODY H FERAGEN ownership change
1 Jul 20
4
GRACO / JACK W EUGSTER ownership change
1 Jul 20
4
GRACO / MARTHA A M MORFITT ownership change
1 Jul 20
4
GRACO / Emily White ownership change
1 Jul 20
4
GRACO / Kevin J. Wheeler ownership change
1 Jul 20
4
GRACO / SANT R WILLIAM VAN ownership change
1 Jul 20
4
GRACO / LEE R MITAU ownership change
1 Jul 20
4
GRACO / J KEVIN GILLIGAN ownership change
1 Jul 20
4
GRACO / Eric Etchart ownership change
1 Jul 20
4
GRACO / MARTHA A M MORFITT ownership change
27 May 20
Patents
GRANT
Utility
Diaphragm seal injector
14 Jul 20
A lubricant injector includes a housing and a metering section attached to the housing.
APP
Utility
Integrated Pump Guard and Control Interlock
9 Jul 20
A paint sprayer includes an end bell, a motor connected to the end bell, a pump drive connected to the end bell, a pair of protrusions attached to an extending from the end bell such that each protrusion is cantilevered from the end bell, and a pump assembly comprising a pair of mounting holes and containing a piston.
GRANT
Utility
Pump transmission carriage assembly
7 Jul 20
A metering pump includes a motor having a motor shaft extending through a drive housing, a carriage assembly disposed around the motor shaft and within the drive housing, a plunger return block mounted to the carriage assembly, a piston disposed along an axis, and a carriage bearing disposed on the motor shaft and within the carriage assembly, slidably coupled to the carriage assembly, and configured to provide a second contact point for maintaining the alignment of the carriage assembly with the axis of the piston.
GRANT
Utility
Solenoid valve for a portable hydraulic power unit
7 Jul 20
A portable hydraulic power unit includes a fluid tank supported on a frame, a first pump configured to draw hydraulic fluid from the tank and a second pump configured to draw hydraulic fluid from the tank.
GRANT
Utility
Spray system pressure differential monitoring
23 Jun 20
A control method for a two-component spray system having first and second pumps for separate fluid components includes registering a target spray pressure, registering a material-specific pressure factor margin, sensing an output pressure of the second pump, and identifying a failure condition in the event that the sensed output pressure remains further than the pressure factor margin from the target spray pressure for at least a threshold time.