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Is this Large Market Cap Stock target price reasonable for Graco Inc. (NYSE:GGG)?

The company in question is, Graco Inc. (NYSE:GGG) currently with a stock price of 71.6 (0.72% today). The market cap for Graco Inc. is 4117.53, and is in the sector Industrial Goods, and Diversified Machinery industry. The target price for Graco Inc. is 79.1. Currently Graco Inc. is trading with a P/E of 20.97, and a forward P/E of 19.24. Average volume for Graco Inc. is 299.4 and so far today it is 61984.

Performance in the last year for Graco Inc. has been 4.57%. For EPS growth, Graco Inc. has seen a growth of 60.40%, and is looking to grow in the next year to 9.81%. More long term stats show that EPS growth has been 28.20% over the last five years and could be 6.94% for the next five years. Graco Inc. has seen sales growth quarter over quarter at 3.80%, with EPS growth quarter over quarter at -69.20%. The 20-day simple moving average is -2.43%, with the 200-day simple moving average coming to -5.70%.

Since the IPO date for Graco Inc. on the 07/09/1986, Graco Inc. has seen performance year to date to be 0.41%. With Graco Inc. trading at 71.6, the dividend yield is 1.86%, and the EPS is 3.39.

So could Graco Inc., be undervalued? Well as said before P/E is 20.97. The PEG is 3.02, P/S is 3.17 and the P/B is at 5.85. The P/cash is *TBA, with P/free cash flow at 65.99.

Graco Inc. ability to deal with debt shows that the current ratio is 3.1, and the quick ratio is 1.8. This is with long term debt/equity at 0.64, and total debt/equity at 0.65.

In terms of margins, Graco Inc. has a gross margin of 53.10%, an operating margin of 22.50% and a profit margin of 15.00%.Payout ratio for Graco Inc. is 37.20%. Return on assets come to 13.80% with return on investment coming to 16.60%.

Insider ownership for Graco Inc., is at 0.40% and institutional ownership comes to 91.30%. Outstanding shares are at 57.92. While shares float is 55.19. The float short is currently 2.75%, and short ratio is 5.07.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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