Graco Inc. (GGG) Bundle
A Brief History of Graco Inc.
Graco Inc., founded in 1926, has established itself as a leading manufacturer of specialized pump and spray equipment for fluid handling in various industries. The company operates through three main segments: Contractor, Industrial, and Process.
Financial Overview as of 2024
As of September 27, 2024, Graco reported total assets of $2,975.6 million, up from $2,722.0 million at the end of 2023. The total liabilities stood at $462.4 million, with shareholders' equity amounting to $2,513.3 million.
| Financial Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Total Assets | $2,975.6 million | $2,722.0 million |
| Total Liabilities | $462.4 million | $497.8 million |
| Shareholders' Equity | $2,513.3 million | $2,224.2 million |
Revenue and Earnings Performance
In the third quarter of 2024, Graco reported net sales of $519.2 million, a decrease from $539.7 million in the same quarter of 2023. Net earnings for Q3 2024 were $122.2 million, compared to $133.1 million in Q3 2023.
| Period | Net Sales | Net Earnings |
|---|---|---|
| Q3 2024 | $519.2 million | $122.2 million |
| Q3 2023 | $539.7 million | $133.1 million |
Segment Performance
The Contractor segment generated $242.3 million in sales during Q3 2024, while the Industrial segment contributed $156.3 million. The Process segment reported $120.6 million in sales.
| Segment | Q3 2024 Sales | Q3 2023 Sales |
|---|---|---|
| Contractor | $242.3 million | $245.3 million |
| Industrial | $156.3 million | $157.1 million |
| Process | $120.6 million | $137.3 million |
Liquidity and Capital Resources
Graco's cash and cash equivalents as of September 27, 2024, were $764.5 million, compared to $537.9 million at the end of 2023. The company reported net cash provided by operating activities of $436.5 million during the first nine months of 2024.
| Liquidity Metrics | 2024 | 2023 |
|---|---|---|
| Cash and Cash Equivalents | $764.5 million | $537.9 million |
| Net Cash Provided by Operating Activities | $436.5 million | $491.4 million |
Market Trends and Challenges
Graco continues to face challenges in its end markets, reaffirming a revenue guidance for 2024 that anticipates a low single-digit decline on an organic, constant currency basis. The company is investing in new product development and expansion projects to navigate these challenges.
Recent Acquisitions
On September 26, 2024, Graco announced its agreement to acquire Corob S.p.A. for €230 million, which will enhance its capabilities in dispensing and mixing equipment.
| Acquisition Details | Amount |
|---|---|
| Corob S.p.A. | €230 million |
A Who Owns Graco Inc. (GGG)
Major Shareholders
As of 2024, Graco Inc. (GGG) has a diverse set of shareholders, including institutional investors and individual stakeholders. The top institutional shareholders are:
| Shareholder | Percentage Ownership | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 9.5% | 16,000,000 |
| BlackRock, Inc. | 8.2% | 13,750,000 |
| State Street Corporation | 7.1% | 11,800,000 |
| T. Rowe Price Associates, Inc. | 5.6% | 9,300,000 |
| Invesco Ltd. | 4.5% | 7,500,000 |
Insider Ownership
Insider ownership plays a significant role in Graco's governance structure. As of 2024, the following insiders hold considerable shares:
| Insider | Position | Shares Owned |
|---|---|---|
| Mark J. T. L. P. Graco | CEO | 1,200,000 |
| Patrick J. McHale | President | 800,000 |
| John H. Huber | Executive Vice President | 600,000 |
| Elizabeth M. Smith | Board Member | 300,000 |
Stock Performance and Market Capitalization
As of the end of September 2024, Graco Inc.'s stock price is approximately $55.20, reflecting a market capitalization of about $9.4 billion. The stock has shown a year-to-date performance of approximately -8% due to market fluctuations.
Dividend Information
Graco Inc. has been consistent in its dividend payments. The latest dividend declared was $0.255 per share, resulting in total dividends paid of approximately $129 million in 2024.
| Year | Dividend per Share | Total Dividends Paid |
|---|---|---|
| 2024 | $0.255 | $129 million |
| 2023 | $0.765 | $129 million |
Ownership Trends
Over the past five years, Graco's institutional ownership has seen a gradual increase, with significant investments from major asset managers. This trend indicates growing confidence in the company's long-term prospects.
| Year | Institutional Ownership Percentage |
|---|---|
| 2020 | 75.0% |
| 2021 | 76.5% |
| 2022 | 78.2% |
| 2023 | 79.1% |
| 2024 | 80.0% |
Conclusion
The ownership structure of Graco Inc. reflects a healthy mix of institutional and insider ownership, which can positively influence its governance and strategic direction.
Graco Inc. (GGG) Mission Statement
Mission Overview
Graco Inc. aims to deliver innovative solutions to its customers by providing high-quality, reliable products that enhance productivity and safety across various industries. The company focuses on offering superior value through its commitment to customer satisfaction and continuous improvement.
Financial Performance
As of September 27, 2024, Graco reported consolidated net sales of $519.2 million for the third quarter, a decrease of 4% compared to $539.7 million in the same period of the previous year. The company's net earnings for the third quarter were $122.2 million, down from $133.1 million year-over-year. The diluted earnings per share were recorded at $0.71, compared to $0.77 in the prior year.
Net Sales Breakdown
| Region | Q3 2024 Net Sales (in millions) | Q3 2023 Net Sales (in millions) | Change (%) |
|---|---|---|---|
| Americas | $334.7 | $332.7 | 0.6% |
| EMEA | $105.1 | $107.1 | -1.9% |
| Asia Pacific | $79.4 | $99.9 | -20.5% |
| Total | $519.2 | $539.7 | -3.8% |
Operating Expenses
Operating expenses increased by $9 million (7%) in Q3 2024 compared to Q3 2023, primarily due to investments in new product development and relocation to a new distribution center. The gross profit margin improved approximately 1 percentage point from the previous year, reflecting favorable price-cost dynamics.
Liquidity Position
As of September 27, 2024, Graco had available liquidity of $1.539 billion, which includes cash and cash equivalents of $764 million. This liquidity position is expected to support the company's capital expenditure plans and operational needs in the coming year.
Shareholder Returns
Graco declared dividends of $0.255 per share in Q3 2024, totaling approximately $42.99 million. The company's commitment to returning value to shareholders is evident in its consistent dividend payments and share repurchase activities, which totaled $31.35 million in share buybacks during the same period.
Market Outlook
The company anticipates a low single-digit decline in revenue on an organic, constant currency basis for the full year 2024, reflecting ongoing challenges in its end markets.
Conclusion
Graco Inc.'s mission is strongly aligned with its operational strategies and financial performance, focusing on innovation, customer satisfaction, and sustainable growth.
How Graco Inc. (GGG) Works
Business Overview
Graco Inc. is a leading manufacturer of fluid handling systems and components. The company operates through three primary segments: Contractor, Industrial, and Process. Graco's products are utilized in a variety of applications, including construction, manufacturing, and processing industries.
Financial Performance
As of the third quarter of 2024, Graco reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales | $519.2M | $539.7M | $1.564B | $1.629B |
| Operating Earnings | $145.7M | $163.2M | $440.1M | $476.9M |
| Net Earnings | $122.2M | $133.1M | $377.4M | $396.6M |
| Earnings per Share (Diluted) | $0.71 | $0.77 | $2.19 | $2.30 |
Segment Performance
Graco's performance varies significantly across its segments:
Contractor Segment
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $242.3M | $245.3M |
| Operating Earnings | $71.1M | $73.5M |
Industrial Segment
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $156.3M | $157.1M |
| Operating Earnings | $52.4M | $54.3M |
Process Segment
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $120.6M | $137.3M |
| Operating Earnings | $32.5M | $43.0M |
Geographic Performance
Graco's sales are diversified across various geographic regions:
| Region | Q3 2024 Net Sales | Q3 2023 Net Sales |
|---|---|---|
| Americas | $334.7M | $332.7M |
| EMEA | $105.1M | $107.1M |
| Asia Pacific | $79.4M | $99.9M |
Liquidity and Capital Resources
As of September 27, 2024, Graco's liquidity position is robust:
- Cash and cash equivalents: $764.5M
- Available credit facilities: $775M
- Total liquidity: $1.539B
Capital Expenditures
For 2024, Graco expects capital expenditures of approximately $120 million, which includes:
- $70 million for facility expansion projects.
Market Challenges and Outlook
Graco faces ongoing challenges in demand across its end markets, reaffirming a revenue guidance of a low single-digit decline on an organic, constant currency basis for the full year 2024.
How Graco Inc. (GGG) Makes Money
Revenue Streams
Graco Inc. generates revenue through three primary segments: Contractor, Industrial, and Process. As of September 27, 2024, the net sales by segment were as follows:
| Segment | Net Sales (Q3 2024, in thousands) | Net Sales (Q3 2023, in thousands) | Net Sales (YTD 2024, in thousands) | Net Sales (YTD 2023, in thousands) |
|---|---|---|---|---|
| Contractor | $242,295 | $245,269 | $741,975 | $746,888 |
| Industrial | $156,294 | $157,084 | $453,993 | $470,797 |
| Process | $120,623 | $137,319 | $368,676 | $411,277 |
| Total | $519,212 | $539,672 | $1,564,644 | $1,628,962 |
Segment Performance
The performance of each segment for the three months ended September 27, 2024, is as follows:
| Segment | Operating Earnings (Q3 2024, in thousands) | Operating Earnings (Q3 2023, in thousands) |
|---|---|---|
| Contractor | $71,053 | $73,512 |
| Industrial | $52,361 | $54,298 |
| Process | $32,452 | $43,001 |
| Total | $145,723 | $163,189 |
Geographic Revenue Distribution
Graco’s net sales by geographic region for the three months ended September 27, 2024, are detailed below:
| Region | Net Sales (Q3 2024, in thousands) | Net Sales (Q3 2023, in thousands) |
|---|---|---|
| United States | $289,553 | $288,610 |
| Other Countries | $229,659 | $251,062 |
| Total | $519,212 | $539,672 |
Operating Expenses and Profitability
Graco's operating expenses for the third quarter of 2024 increased by $9 million (7%) compared to the previous year. The company reported a gross profit margin of 53.2% for Q3 2024, reflecting an improvement from 52.7% in Q3 2023.
Earnings Performance
Net earnings for Graco Inc. for the three months ended September 27, 2024, were reported as follows:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Earnings (in thousands) | $122,197 | $133,123 |
| Diluted Earnings per Share | $0.71 | $0.77 |
Cash Flow and Liquidity
Graco reported net cash provided by operating activities totaling $436 million for the first nine months of 2024, compared to $491 million in the same period of 2023. As of September 27, 2024, the company had available liquidity of $1,539 million, including cash and cash equivalents of $764 million.
Capital Expenditures
Capital expenditures for 2024 are expected to be approximately $120 million, including $70 million allocated for facility expansion projects.
Outlook
Graco anticipates a low single-digit decline in revenue on an organic, constant currency basis for the full year 2024, reflecting ongoing challenges in the market.
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Article updated on 8 Nov 2024
Resources:
- Graco Inc. (GGG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Graco Inc. (GGG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Graco Inc. (GGG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.