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GracoSTU:GA8 86 Return-on-Tangible-Equity is 26.28% as of Mar. 2026, which is 44% below its 10-year median of 47.24. GuruFocus rates STU:GA8 with a GF Score™ of 86/100 and a GF Value™ of €78.63 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,972 Industrial Products companies, Graco ranks better than 90.75% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Graco's annualized net income for the quarter that ended in Mar. 2026 was €410 Mil. Graco's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €1,560 Mil. Therefore, Graco's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 26.28%.
The historical rank and industry rank for Graco's Return-on-Tangible-Equity or its related term are showing as below:
STU:GA8'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 27.11 Med: 47.24 Max: 128.37
Current: 29
During the past 13 years, Graco's highest Return-on-Tangible-Equity was 128.37%. The lowest was 27.11%. And the median was 47.24%.
STU:GA8's Return-on-Tangible-Equity is ranked better than 90.75% of 2972
companies
in the Industrial Products industry
Industry Median: 6.72
vs STU:GA8: 29.00
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Graco Return-on-Tangible-Equity Related Terms
Graco Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Graco's Return-on-Tangible-Equity 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.
STU:GA8 vs CR, PNR, WTS: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Graco's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Graco's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Graco's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 26.28% mean?
Graco (STU:GA8) has a Return-on-Tangible-Equity of 26.28% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Graco and its competitors. This is 44% below median its historical median of 47.24. Over the past decade, Graco's Return-on-Tangible-Equity has ranged from 27.11 to 128.37. According to the industry distribution chart, Graco ranks #275 out of 2972 companies in the Industrial Products industry, placing it in the top 9.3%.
Is Graco's Return-on-Tangible-Equity too high?
Graco's current Return-on-Tangible-Equity of 26.28% is 44% below median its 10-year median of 47.24. Over the past 10 years, this metric has ranged from a low of 27.11 to a high of 128.37. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Graco's value of 26.28% is 291.1% above this industry median. Based on the distribution chart, Graco ranks #275 out of 2972 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Graco has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Graco's Return-on-Tangible-Equity compare to CR and PNR?
According to the Industrial Products industry distribution chart, Graco ranks #275 out of 2972 companies for Return-on-Tangible-Equity. This places Graco in the top 9% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.72. Graco's value of 26.28% is 291.1% above this benchmark. Historically, Graco's own Return-on-Tangible-Equity has ranged from 27.11 to 128.37 over the past decade. While the company's 10-year median is 47.24 vs. the industry median of 6.72, Graco has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,972 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Graco's current Return-on-Tangible-Equity of 26.28% is 291.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Graco and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Graco's current Return-on-Tangible-Equity is 26.28%, which is 44% below median its own 10-year median of 47.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Graco stock overvalued right now?
Based on GuruFocus' analysis, Graco (STU:GA8) is currently considered Modestly Undervalued. The stock's GF Value™ is €78.63, compared to a current price of €64.85 — trading 17.5% below its estimated fair value. The current Return-on-Tangible-Equity is 26.28%, which is 44% below median its 10-year median of 47.24 and 291.1% above the Industrial Products industry median of 6.72. Graco's overall GF Score™ is 86/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Graco (STU:GA8), the current Return-on-Tangible-Equity is 26.28% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Graco (STU:GA8) Overvalued in 2026?
Based on GuruFocus' analysis, Graco stock appears to be undervalued.
The current stock price of €64.85 is trading 17.5% below its estimated GF Value™ of €78.63.
GuruFocus considers Graco to be Modestly Undervalued.
Key valuation signals for STU:GA8:
Return-on-Tangible-Equity: 26.28% (44% below median its 10-year median of 47.24)
GF Value™: €78.63 vs. price of €64.85 (17.5% below fair value)
Industry Position: 291.1% above the Industrial Products median (#275 of 2972)
No single metric tells the full story. See the STU:GA8 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 $2.2 billion in sales in 2025.
86GF Score
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