Graco Story

GGG -- USA Stock

USD 69.60 0.33 0.47%

Macroaxis Story

As many rational traders are trying to avoid industrials space, it makes sense to digest Graco Inc a little further and understand how it stands against Barnes and other similar entities. We are going to discuss some of the competitive aspects of both Graco and Barnes.

Published over a month ago

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Is Graco riskier than Barnes Group (NYSE:B)?

By analyzing existing basic indicators between Graco and Barnes, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Barnes with a short position in Graco. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Graco has an asset utilization ratio of 114.28 percent. This indicates that the company is making $1.14 for each dollar of assets. An increasing asset utilization means that Graco Inc is more efficient with each dollar of assets it utilizes for everyday operations.

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Graco or Franklin is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Graco dividends

A dividend is the distribution of a portion of Graco earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Graco dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Graco one year expected dividend income is about $0.34 per share.

The current year Dividends per Basic Common Share is expected to grow to 0.39, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (51.9 M).

	Last Reported	Projected for 2021
Payment of Dividends and Other Cash Distributions	-48.1 M	-51.9 M
Dividend Yield	0.02	0.0168
Dividends per Basic Common Share	0.27	0.39

Investing in dividend-paying stocks, such as Graco Inc is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Graco must own a stock before its ex-dividend date to receive its next dividend.

This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Graco. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Graco's Liquidity

Graco financial leverage refers to using borrowed capital as a funding source to finance Graco Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Graco financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Graco's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for Graco, but it might be worth checking our own buy vs. sell analysis

Correlation Between Graco and Franklin Electric

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Graco together with similar or unrelated positions with a negative correlation. For example, you can also add Franklin Electric to your portfolio. If Franklin Electric is not perfectly correlated to Graco it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Graco for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between GGG and FELE for more information.

A Deeper look at Graco

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Graco revenue. Based on the latest financial disclosure, Graco Inc reported 1.59 B of revenue. This is 54.55% lower than that of the Industrials sector and significantly higher than that of the Specialty Industrial Machinery industry. The revenue for all United States stocks is 83.15% higher than that of Graco Inc. As for Barnes we see revenue of 1.21 B, which is much higher than that of the Specialty Industrial Machinery

	Graco	1.59 Billion
	Sector	0.0
	Barnes	1.21 Billion

1.6 B

Graco

Sector

1.2 B

Barnes

Graco has a small chance to finish above $77 in 2 months

Latest semi deviation is at 1.01. Graco Inc has relatively low volatility with skewness of 0.06 and kurtosis of 0.76. However, we advise all investors to independently investigate Graco Inc to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Although some other entities under the specialty industrial machinery industry are still a bit expensive, Graco may offer a potential longer-term growth to shareholders. In closing, as of the 24th of January 2021, we see that Graco barely shadows the market. The firm is fairly valued with very small chance of financial distress within the next 24 months. Our present 30 days buy vs. sell advice on the firm is Strong Buy.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Graco Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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