Graco (GGG) designs, manufactures and markets specialty pumps, air and airless spray guns, regulators, meters and valves for moving and applying fluids and semi-solids for the vehicular, construction, food, chemical and plastic industries.
GGG has earned a 25-40% return on equity over the past 10 years. In addition, it has grown earnings and dividends 7-19% annually in that same time period. As with many industrial firms, the company suffered during the 2008/2009 economic downturn. However, it is returning to an above average growth rate as a result of:
(1). new product development--GGG spends 4-5% of revenue on research and development resulting in a rapidly growing pipeline of new products. Over one third of the company’s sales are generated from new products,
GGG has earned a 25-40% return on equity over the past 10 years. In addition, it has grown earnings and dividends 7-19% annually in that same time period. As with many industrial firms, the company suffered during the 2008/2009 economic downturn. However, it is returning to an above average growth rate as a result of:
(1). new product development--GGG spends 4-5% of revenue on research and development resulting in a rapidly growing pipeline of new products. Over one third of the company’s sales are generated from new products,
