<div id="readability-page-1"><div><p>Graco (GGG) just doubled down on shareholder returns, rolling out authorization to repurchase up to 15 million shares alongside a 7% hike to its quarterly dividend, which signals management confidence.</p> <p>See our latest analysis for Graco.</p> <p>Those capital return moves land just as Graco’s share price, recently at $83.47, has cooled slightly with a negative 90 day share price return, even though the three year total shareholder return remains solidly positive. This suggests longer term momentum is still intact.</p> <p>If this steady cash generator has caught your eye, it is also worth exploring other industrial names and seeing which ones screen well as fast growing stocks with high insider ownership.</p> <p>Yet with shares trading slightly below analyst targets but not screamingly cheap on traditional metrics, the key question becomes: is Graco quietly undervalued today, or is the market already baking in its next leg of growth?</p> <h2>Most Popular Narrative: 9.7% Undervalued</h2> <p>With Graco closing at $83.47 versus a narrative fair value in the low $90s, the story leans toward upside if the growth path plays out.</p> <blockquote> <p><em>The strategic decision to maintain a strong U.S. manufacturing footprint may give Graco an advantage over competitors who manufacture offshore, especially in light of ongoing trade tensions and tariffs, potentially improving net margins due to cost control and pricing power. The company is expecting benefits from the integration of the COROB acquisition, aiming to capture more revenue and expand its presence in North America, which should contribute to earnings growth.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Want to see why steady growth assumptions still support a premium earnings multiple here? The narrative quietly leans on rising margins, shrinking share count, and a surprisingly punchy profit trajectory. Curious which numbers need to fall into place for that to hold?</p> <p><strong>Result: Fair Value of $92.44 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, if tariffs bite harder than expected or contractor segment margins stay under pressure, today’s seemingly modest discount could disappear quickly.</p> <p>Find out about the key risks to this Graco narrative.</p> <h2>Another Angle on Valuation</h2> <p>Look past that 9.7% upside narrative and the story shifts. On earnings, Graco trades at about 27.8 times profit, versus a fair ratio near 22.3 times and below peer and industry levels around 25 times, which hints at downside risk if sentiment cools.</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9beccd56-5df2-490a-8331-c4fb75c89487/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9beccd56-5df2-490a-8331-c4fb75c89487/chart/pe-multiple-vs-industry"/><figcaption>NYSE:GGG PE Ratio as at Dec 2025</figcaption></figure><h2> Build Your Own Graco Narrative</h2> <p>If you see the story differently or want to dig into the numbers yourself, you can craft a personalized view in minutes using Do it your way.</p> <p>A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Graco.</p> <h2>Looking for more investment ideas?</h2> <p>Before you move on, lock in your next opportunities by putting the Simply Wall St Screener to work for you and lining up potential ideas for tomorrow.</p> <ul> <li>Explore mispriced quality by checking out these 906 undervalued stocks based on cash flows where strong cash flows suggest the market may not fully reflect the available information.</li> <li>Focus on the next wave of innovation by targeting these 26 AI penny stocks that are involved in real world AI adoption.</li> <li>Consider your income potential through these 15 dividend stocks with yields &gt; 3% that can help turn volatility into a more regular stream of portfolio cash flows.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p></div></div>

<p>Graco (GGG) has announced a 15 million share buyback and a 7% increase in its quarterly dividend, indicating management's confidence. Despite a recent dip in share price, the long-term shareholder return remains positive. The company is seen as potentially undervalued, with a fair value estimate of $92.44, compared to its current price of $83.47. Graco's strategic focus on U.S. manufacturing and the integration of the COROB acquisition are expected to drive future growth. However, risks include potential tariff impacts and pressure on contractor segment margins.</p>

Graco (GGG): Valuation Check After New 15 Million Share Buyback and Dividend Increase