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Graco Piotroski F-Score

: 4 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Graco has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Graco's Piotroski F-Score or its related term are showing as below:

GGG' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 6   Max: 9
Current: 4

During the past 13 years, the highest Piotroski F-Score of Graco was 9. The lowest was 1. And the median was 6.


Graco Piotroski F-Score Historical Data

The historical data trend for Graco's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Graco Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 6.00 5.00 5.00 7.00

Graco Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 6.00 7.00 5.00 4.00

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Graco's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Graco Piotroski F-Score Distribution

For the Industrial Products industry and Industrials sector, Graco's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Graco's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 103.829 + 120.232 + 100.843 + 117.378 = $442 Mil.
Cash Flow from Operations was 137.184 + 99.665 + 31.325 + 103.66 = $372 Mil.
Revenue was 486.696 + 539.619 + 494.285 + 548.547 = $2,069 Mil.
Gross Profit was 248.234 + 274.557 + 254.475 + 269.06 = $1,046 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(2229.205 + 2377.328 + 2443.198 + 2319.445 + 2404.278) / 5 = $2354.6908 Mil.
Total Assets at the begining of this year (Jun21) was $2,229 Mil.
Long-Term Debt & Capital Lease Obligation was $98 Mil.
Total Current Assets was $1,276 Mil.
Total Current Liabilities was $424 Mil.
Net Income was 114.115 + 114.691 + 105.687 + 110.118 = $445 Mil.

Revenue was 439.316 + 470.34 + 454.129 + 507.164 = $1,871 Mil.
Gross Profit was 228.953 + 244.824 + 247.334 + 263.824 = $985 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(1962.459 + 1993.995 + 1988.128 + 2087.72 + 2229.205) / 5 = $2052.3014 Mil.
Total Assets at the begining of last year (Jun20) was $1,962 Mil.
Long-Term Debt & Capital Lease Obligation was $182 Mil.
Total Current Assets was $1,204 Mil.
Total Current Liabilities was $359 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Graco's current Net Income (TTM) was 442. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Graco's current Cash Flow from Operations (TTM) was 372. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=442.282/2229.205
=0.19840347

ROA (Last Year)=Net Income/Total Assets (Jun20)
=444.611/1962.459
=0.22655811

Graco's return on assets of this year was 0.19840347. Graco's return on assets of last year was 0.22655811. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Graco's current Net Income (TTM) was 442. Graco's current Cash Flow from Operations (TTM) was 372. ==> 372 <= 442 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=98.112/2354.6908
=0.04166662

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=181.639/2052.3014
=0.08850503

Graco's gearing of this year was 0.04166662. Graco's gearing of last year was 0.08850503. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=1276.476/424.058
=3.01014484

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=1203.952/358.724
=3.356207

Graco's current ratio of this year was 3.01014484. Graco's current ratio of last year was 3.356207. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Graco's number of shares in issue this year was 172.698. Graco's number of shares in issue last year was 174.572. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=1046.326/2069.147
=0.50567988

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=984.935/1870.949
=0.52643605

Graco's gross margin of this year was 0.50567988. Graco's gross margin of last year was 0.52643605. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=2069.147/2229.205
=0.92819952

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=1870.949/1962.459
=0.95336973

Graco's asset turnover of this year was 0.92819952. Graco's asset turnover of last year was 0.95336973. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+0+1+0+1+0+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Graco has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Graco  (NYSE:GGG) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Graco Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Graco's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Graco Business Description

Graco logo
Traded in Other Exchanges
Address
88-11th Avenue Northeast, Minneapolis, MN, USA, 55413
Graco manufactures equipment used for managing fluids, coatings, and adhesives, specializing in difficult-to-handle materials. Graco's business is organized into three segments: industrial, process, and contractor. The Minnesota-based firm serves a wide range of end markets, including industrial, automotive, and construction, and its broad array of products include pumps, valves, meters, sprayers, and equipment used to apply coatings, sealants, and adhesives. The firm generated roughly $2 billion in sales and $531 million in operating income in 2021.
Executives
Grasdal Inge officer: EVP, Corporate Development 88 11TH AVENUE NE MINNEAPOLIS MN 55413
Gargano Anthony J officer: President, Asia Pacific 88 11TH AVENUE NE MINNEAPOLIS MN 55413
Humke Joseph J officer: Executive Vice President 88 11TH AVENUE NE MINNEAPOLIS MN 55413
Carter Brett C director 414 NICOLLET MALL, 401-9 MINNEAPOLIS MN 55401
Schoenrock Kathryn L officer: Executive Vice President 88 11TH AVENUE NE MINNEAPOLIS MN 55413
Wheeler Kevin J. director A. O. SMITH CORPORATION 500 TENNESSEE WALTZ PARKWAY ASHLAND CITY TN 37015
Wordell Angela F officer: Executive VP, Operations 88 11TH AVENUE NE MINNEAPOLIS MN 55413
White Timothy R officer: President, EMEA 88 11TH AVENUE NE MINNEAPOLIS MN 55413
White Emily director C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Feragen Jody H director 1 HORMEL PLACE AUSTIN TX 55912
O'shea Peter J officer: Vice President 88 - 11TH AVENUE N.E. MINNEAPOLIS MN 55413
Eberlein Mark D officer: Vice President 88 - 11TH AVENUE N.E. MINNEAPOLIS MN 55413
Moreau Bernard J officer: Vice President 88 - 11TH AVENUE N.E. MINNEAPOLIS MN 55413
Rothe Christian E officer: Vice President and Treasurer 88 - 11TH AVENUE N.E. MINNEAPOLIS MN 55413
Etchart Eric director ROOM F, 22F CROSS REGION PLAZA 899 LINGLING ROAD SHANGHAI F4 200030

Graco Headlines

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