Graco (GA8) AI Stock Analysis

Graco

(XETRA:GA8)

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Positive Factors

Strong profitability and cost controlGraco’s high gross, EBIT, and net margins indicate differentiated products, pricing power, and effective cost control. This profitability provides resilience across industrial cycles and supports continued investment, acquisitions, dividends, and repurchases without requiring aggressive financial leverage.

Negative Factors

Uneven revenue growth and cyclical demandRevenue growth has not been consistently strong, indicating sensitivity to manufacturing, construction, and process-industry spending. Uneven demand can make capacity planning and earnings progression less predictable, limiting the pace at which Graco’s otherwise strong margins translate into sustained growth.

Graco (GA8) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 10.82B
Dividend Yield: 1.74%
Average Volume (3M): 30
Price to Earnings (P/E): 21.4
Beta (1Y): 0.49
Revenue Growth: 0.16%
EPS Growth: 0.93%
Country: Germany
Employees: 4,400
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

Graco Business Overview & Revenue Model

Company Description

Graco Inc., a Minneapolis, Minnesota-based company established in 1926, specializes globally in the engineering, production, and distribution of sophisticated systems and apparatus. These solutions are designed for the precise handling, measurement,...

Graco Earnings Call Summary

Earnings Call Date:Oct 20, 2026(Q3-2026)|% Change Since:-16.43%|Next Earnings Date:Jan 31, 2027

Earnings Call SentimentPositive

The call was broadly positive, supported by record sales, broad-based segment growth, improving orders and backlog, strong cash generation, strategic acquisition and technology opportunities, and continued capital allocation flexibility. The main challenges were lower operating margin, delayed Industrial capital projects, a cautious and somewhat softer fourth-quarter outlook, modest weakness in the Home Center channel, and expected increases in interest expense.

Positive Updates

Record Quarterly Sales and Broad-Based Growth

Third-quarter sales reached a record $586 million, up 8% year over year, including 4% organic growth. All three segments and all reportable regions contributed to growth.

Negative Updates

Third-Quarter Revenue Was Slightly Below Guidance Excluding Valco Melton

On a comparable basis excluding Valco Melton, third-quarter revenue finished slightly below the $580 million to $600 million guidance range, primarily within Industrial, due to the timing of larger capital projects, longer decision cycles and projects being delayed or pushed out.

Company Guidance

Graco expects fourth quarter revenue of $610 million to $640 million based on current order trends and backlog, with the outlook assuming continuation of order trends and not assuming an acceleration in demand during the fourth quarter; price cost is expected to be flat for Q4 and for the rest of the year, given there are only 13 weeks left, Industrial volume is expected to be “flattish and up maybe a little bit” for the rest of the year, and Valco Melton’s EBITDA margin is targeted to expand “from the high teens to the mid-20% range within 3 years of closing”; the first data center installations under the ABB agreement are targeted by the end of 2029.

Graco Risk Analysis

Graco disclosed 24 risk factors in its most recent earnings report. Graco reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

0 New Risks

Graco Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:GA8 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IR	85Outperform	$31.06B	22.42	13.53%	0.10%	7.96%	161.68%
IEX	79Outperform	$17.18B	32.39	13.31%	1.24%	6.93%	14.08%
DOV	77Outperform	$27.63B	24.07	15.43%	1.00%	8.24%	-47.25%
NDSN	73Outperform	$17.97B	32.49	17.59%	1.05%	7.02%	24.24%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FLS	63Neutral	$10.02B	39.51	11.35%	1.10%	0.21%	-42.26%

* Industrials Sector Average

Performance Comparison

DE:GA8 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:GA8	Graco Inc	60.80	-8.73	-12.56%
DOV	Dover Corporation	207.74	31.39	17.80%
FLS	Flowserve	79.01	8.00	11.27%
IEX	Idex Corporation	233.84	67.87	40.89%
NDSN	Nordson Corporation	322.67	95.84	42.25%
IR	Ingersoll Rand Inc.	80.05	4.13	5.43%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Graco AI Stock Analysis