| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 38 | 24.0x | 17.8x | Bottom tier | |
Growth | 52 | 4.6% | 7.1% | Around median | |
Quality | 87 | 20.1% | 4.5% | Top tier | |
Safety | 95 | — | 2.6x | Top tier | |
Capital Return | 60 | 1.51% | 2.12% | Around median | |
Momentum | 30 | -3.7% | 2.9% | Bottom tier | |
Sentiment | 66 | 8 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Graco Inc. manufactures fluid and coatings handling systems and equipment and material dispensing systems, and generates revenue through three segments: Contractor, Industrial, and Expansion Markets. Contractor serves professional painting businesses, home improvement centers, protective coatings, and foam applications, while Industrial sells solutions for manufacturing, machinery, maintenance, and hot-melt material applications, and Expansion Markets benefits from semiconductor manufacturing equipment. The company is also expanding its offerings with products such as QuickShot and ProReach, autonomous and semi-autonomous road-marking solutions, and acquisitions targeting specialized markets.
In Q2 fiscal 2026, Graco reported record second-quarter revenue of $590.6 million, up 3% year over year, and gross profit of $316.9 million, equivalent to a gross margin of approximately 53.7%. Net income was $144.9 million, or $0.87 per diluted share, up 14% year over year, while adjusted earnings per share rose 17% to $0.91. Gross margin expanded by 130 basis points, and operating margin reached 30% versus 26% in the comparable quarter, with operating earnings increasing 11%.
Reported revenue growth included a 3% contribution from acquisitions and a positive 1% currency impact, while organic sales declined 1% due to the timing of finishing systems revenue in Industrial. Contractor sales grew 4%, Industrial sales grew 3%, and Expansion Markets sales grew 3%, reflecting growth across all three segments despite differing drivers. For the twelve months ended during fiscal 2026, revenue was $2.3 billion, net income was $533.5 million, and earnings per share were approximately $3.22, compared with revenue of $2.2 billion and net income of $521.8 million in fiscal 2025.
The analyst consensus on GGG is neutral, with an average price target of $95 and a very narrow range of $94 to $96. The average is only $0.69 below the 52-week range high of $95.69, versus a low of $72.51, indicating that the target reflects a return close to the top of the range more than substantial additional upside. A price-to-earnings multiple is not available in the data, so the expansion of operating margin to 30% and accelerating orders should be weighed against the 1% decline in organic sales and the dependence of part of the margin improvement on $9 million in tariff recoveries.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Graco's revenue in Q2 fiscal 2026 was approximately $590.6 million, up 3% year over year, while net income was $144.9 million and diluted earnings per share were $0.87. Acquisitions added 3% to growth and currency added 1%, but organic sales declined 1% due to the timing of finishing systems revenue in Industrial. Gross margin increased by 130 basis points, and operating margin reached 30% versus 26%, supported by pricing, improved manufacturing, expense control, and net tariff recoveries of $9 million.
Organic orders increased 5% in Q2 fiscal 2026, and average bookings for the six weeks ended July 17, 2026 accelerated by 14% year over year. Backlog, excluding acquisitions, also grew by $57 million, or 28%, since the beginning of fiscal 2026. Based on this visibility, management set a Q3 fiscal 2026 revenue range of between $580 million and $600 million, excluding VELCRO Meltan.
Bookings for the semiconductor business in Expansion Markets increased 58% in Q2 fiscal 2026 and 33% year to date. Average bookings during the six weeks ended July 17, 2026 also grew 36%, with backlog remaining strong. Demand is linked to semiconductor manufacturing investments, particularly in Asia Pacific, but management explained that this market is volatile and its periods of strength may move through cycles of three to five years before cooling.
Automated analysis for informational purposes only — not investment advice.
Graco announced the acquisition in May 2026 and expects to close it during Q3 fiscal 2026, describing VELCRO Meltan as one of its largest acquisitions in more than a decade. The target operates in packaging material dispensing and achieved compound annual organic growth of 9%, with a gross margin of at least approximately 50% and an initial EBITDA margin of approximately 20%. More than half of its revenue comes from replacement parts and accessories, and Graco sees cross-selling opportunities between its products, the Invisipak system, and corrugated packaging customers.
Contractor revenue increased 4% in Q2 fiscal 2026, and the professional paint and home improvement center channels in the Americas recorded simultaneous growth for the first time in nearly two years. The segment's organic bookings increased 4% during the quarter, and order growth for the six weeks ended July 17, 2026 accelerated to 14%. Results were supported by repainting and renovation work, protective coatings and foam, along with QuickShot and ProReach products and autonomous and semi-autonomous road-marking solutions.
The stock has a neutral consensus and an average target of $95, with a narrow target range of $94 to $96. This average is very close to the 52-week range high of $95.69, while the range low is $72.51. A price-to-earnings multiple is not available in the data, making it difficult to compare the target with a fixed earnings valuation, although earnings per share for the twelve months ended during fiscal 2026 were approximately $3.22.
