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GGG vs GNRC

GGG
Graco Inc.
BEARISH
Price
$80.54
Market Cap
$13.37B
Sector
Industrials
AI Confidence
85%
GNRC
Generac Holdings Inc.
BEARISH
Price
$220.30
Market Cap
$12.93B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
GGG
26.32
GNRC
81.9
Forward P/E
GGG
23.83
GNRC
21.1
P/B Ratio
GGG
4.87
GNRC
4.91
P/S Ratio
GGG
5.94
GNRC
3.07
EV/EBITDA
GGG
17.63
GNRC
28.88

Profitability

Gross Margin
GGG
52.31%
GNRC
38.29%
Operating Margin
GGG
25.51%
GNRC
-0.85%
Profit Margin
GGG
22.96%
GNRC
3.79%
ROE
GGG
19.78%
GNRC
6.28%
ROA
GGG
12.01%
GNRC
3.38%

Growth

Revenue Growth
GGG
2.2%
GNRC
-11.6%
Earnings Growth
GGG
-2.8%
GNRC
--

Financial Health

Debt/Equity
GGG
0.02
GNRC
0.52
Current Ratio
GGG
3.56
GNRC
2.03
Quick Ratio
GGG
2.5
GNRC
0.78

Dividends

Dividend Yield
GGG
1.47%
GNRC
--
Payout Ratio
GGG
36.6%
GNRC
0.0%

AI Verdict

GGG BEARISH

Graco Inc. (GGG) exhibits a stable financial health profile with a Piotroski F-Score of 4/9 and an exceptionally clean balance sheet (Debt/Equity 0.02). However, the stock is severely overvalued, trading at $80.54 despite a Graham Number of $33.74 and an Intrinsic Value of $21.42. Growth has stalled with negative YoY earnings growth (-2.80%) and a high PEG ratio of 2.52, indicating the price is not supported by current fundamentals. Bearish insider activity and a 0/100 technical trend further signal a lack of confidence in near-term upside.

Strengths
Exceptional balance sheet with near-zero debt (Debt/Equity 0.02)
Strong profitability margins (Gross Margin 52.31%, Operating Margin 25.51%)
High liquidity with a Current Ratio of 3.56
Risks
Severe valuation gap between current price and deterministic fair value models
Negative earnings growth trend (YoY -2.80%, Q/Q -4.50%)
Consistent earnings misses (only 1 of last 4 quarters beat estimates)
GNRC BEARISH

GNRC exhibits a severe disconnect between its current market price ($220.30) and its deterministic value markers, with a Piotroski F-Score of 4/9 indicating only stable health and a Graham Number of $52.11 suggesting massive overvaluation. While the balance sheet remains healthy with low debt and a strong current ratio, the company is facing significant headwinds including negative revenue growth (-11.60%) and a plummeting YoY EPS (-42.5%). The bearish sentiment is further reinforced by aggressive insider selling from the CEO and CFO and a very weak technical trend (10/100). Despite bullish analyst targets, the fundamental data suggests the stock is trading on speculative recovery rather than current performance.

Strengths
Strong liquidity with a Current Ratio of 2.03
Manageable leverage with Debt/Equity at 0.52
Healthy Gross Margin of 38.29%
Risks
Extreme valuation gap compared to Graham Number ($52.11) and Intrinsic Value ($18.83)
Negative revenue growth (-11.60% YoY) and severe EPS contraction (-42.5% YoY)
Negative operating margin (-0.85%) indicating inefficiency in core operations

Compare Another Pair

GGG vs GNRC: Head-to-Head Comparison

This page compares Graco Inc. (GGG) and Generac Holdings Inc. (GNRC) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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