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Graco (GGG) Operating Margin % : 27.02% (As of Mar. 2024)


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What is Graco Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Graco's Operating Income for the three months ended in Mar. 2024 was $133 Mil. Graco's Revenue for the three months ended in Mar. 2024 was $492 Mil. Therefore, Graco's Operating Margin % for the quarter that ended in Mar. 2024 was 27.02%.

Good Sign:

Graco Inc operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Graco's Operating Margin % or its related term are showing as below:

GGG' s Operating Margin % Range Over the Past 10 Years
Min: 23.48   Med: 25.83   Max: 29.42
Current: 28.84


GGG's Operating Margin % is ranked better than
97.85% of 2972 companies
in the Industrial Products industry
Industry Median: 7 vs GGG: 28.84

Graco's 5-Year Average Operating Margin % Growth Rate was 2.00% per year.

Graco's Operating Income for the three months ended in Mar. 2024 was $133 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $622 Mil.


Graco Operating Margin % Historical Data

The historical data trend for Graco's Operating Margin % 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 Operating Margin % Chart

Graco Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.79 25.87 26.73 26.72 29.42

Graco Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Operating Margin % Get a 7-Day Free Trial 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 29.58 28.06 30.09 29.99 27.02

Competitive Comparison of Graco's Operating Margin %

For the Specialty Industrial Machinery subindustry, Graco's Operating Margin %, along with its competitors' market caps and Operating Margin % 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's Operating Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Graco's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Graco's Operating Margin % falls into.



Graco Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Graco's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=646.043 / 2195.606
=29.42 %

Graco's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=132.996 / 492.189
=27.02 %

* 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.


Graco  (NYSE:GGG) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Graco Operating Margin % Related Terms

Thank you for viewing the detailed overview of Graco's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Graco (GGG) Business Description

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 $2.1 billion in sales and $573 million in operating income in 2022.
Executives
Mark W Sheahan officer: VICE PRESIDENT AND TREASURER P.O. BOX 1441, MINNEAPOLIS MN 55440-1441
Angela F Wordell officer: Executive VP, Operations 88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Kathryn L Schoenrock officer: Executive Vice President 88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Caroline M Chambers officer: Vice President and Controller PO BOX 1441, MINNEAPOLIS MN 55440-1441
Eric Etchart director ROOM F, 22F CROSS REGION PLAZA, 899 LINGLING ROAD, SHANGHAI F4 200030
Van Sant R William director PO BOX 1441, MINNEAPOLIS MN 55440-1441
Timothy R White officer: President, EMEA 88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Ronita Banerjee officer: EVP, Chief HR Officer 88 11TH AVENUE NE, MINNEAPOLIS MN 55105
Jeffrey P. Johnson officer: Vice President 88 - 11TH AVENUE N.E., MINNEAPOLIS MN 55413
Heather L Anfang director 88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Dale D Johnson officer: VICE PRESIDENT P.O. BOX 1441, MINNEAPOLIS MN 5440-1441
Christopher D. Knutson officer: EVP, Corporate Controller 88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Claudio Merengo officer: President, Worldwide Gema 88 11TH AVENUE NE, MINNEAPOLIS MN 55413
J Kevin Gilligan director P O BOX 1441, MINNEAPOLIS MN 55440-1441
Archie C. Black director 333 SOUTH SEVENTH STREET, SUITE 1000, MINNEAPOLIS MN 55402

Graco (GGG) Headlines

From GuruFocus

Graco Launches QUANTM Pump

By Business Wire Business Wire 12-16-2022

Graco Announces Regular Quarterly Dividend

By Business Wire Business Wire 06-16-2023

Graco Increases Quarterly Dividend 11.9 Percent

By Business Wire Business Wire 12-02-2022

Graco Names Claudio Merengo an Executive Officer

By Business Wire Business Wire 12-06-2022

Graco Inc. Appoints Heather L. Anfang to the Board of Directors

By Business Wire Business Wire 05-12-2023

Graco Increases Quarterly Dividend 8.5 Percent

By Business Wire 12-01-2023

Graco Inc. Announces Fourth Quarter 2022 Earnings Conference Call

By Business Wire Business Wire 01-11-2023