GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Graco Inc (NYSE:GGG) » Definitions » ROE %

Graco (GGG) ROE % : 21.44% (As of Mar. 2024)


View and export this data going back to 1986. Start your Free Trial

What is Graco ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Graco's annualized net income for the quarter that ended in Mar. 2024 was $489 Mil. Graco's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was $2,280 Mil. Therefore, Graco's annualized ROE % for the quarter that ended in Mar. 2024 was 21.44%.

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

GGG' s ROE % Range Over the Past 10 Years
Min: 6.73   Med: 33.03   Max: 56.14
Current: 23.02

During the past 13 years, Graco's highest ROE % was 56.14%. The lowest was 6.73%. And the median was 33.03%.

GGG's ROE % is ranked better than
91.54% of 2955 companies
in the Industrial Products industry
Industry Median: 6.8 vs GGG: 23.02

Graco ROE % Historical Data

The historical data trend for Graco's ROE % 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 ROE % Chart

Graco Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.70 28.63 29.39 25.81 24.81

Graco Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROE % 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 26.87 26.18 24.74 19.93 21.44

Competitive Comparison of Graco's ROE %

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

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

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



Graco ROE % Calculation

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

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=506.511/( (1859.652+2224.225)/ 2 )
=506.511/2041.9385
=24.81 %

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

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=488.796/( (2224.225+2335.649)/ 2 )
=488.796/2279.937
=21.44 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2024) net income data. ROE % is displayed in the 30-year financial page.


Graco  (NYSE:GGG) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=488.796/2279.937
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(488.796 / 1968.756)*(1968.756 / 2754.416)*(2754.416 / 2279.937)
=Net Margin %*Asset Turnover*Equity Multiplier
=24.83 %*0.7148*1.2081
=ROA %*Equity Multiplier
=17.75 %*1.2081
=21.44 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=488.796/2279.937
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (488.796 / 561.32) * (561.32 / 531.984) * (531.984 / 1968.756) * (1968.756 / 2754.416) * (2754.416 / 2279.937)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8708 * 1.0551 * 27.02 % * 0.7148 * 1.2081
=21.44 %

Note: The net income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.


Graco ROE % Related Terms

Thank you for viewing the detailed overview of Graco's ROE % 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 Announces Regular Quarterly Dividend

By Business Wire 09-15-2023

Graco Announces Regular Quarterly Dividend

By Business Wire Business Wire 02-17-2023

Graco Names Claudio Merengo an Executive Officer

By Business Wire Business Wire 12-06-2022

Graco Finalizes Purchase of Land in Anoka, Minnesota

By Business Wire Business Wire 08-25-2022

Graco Inc. Announces Fourth Quarter 2022 Earnings Conference Call

By Business Wire Business Wire 01-11-2023

Graco Increases Quarterly Dividend 11.9 Percent

By Business Wire Business Wire 12-02-2022

Graco Launches QUANTM Pump

By Business Wire Business Wire 12-16-2022

Graco Develops Electric Variable Ratio Metering for 2K Material

By Business Wire Business Wire 06-15-2023