Graco's Valuation Leaves Little Room For Error

Graco Inc. remains a Hold due to high valuation multiples despite strong business fundamentals and a wide economic moat. Recent GGG growth is largely acquisition-driven; organic revenue growth was flat for FY25, with management guiding for low single-digit organic growth in FY26. Risks have increased from volatile oil prices, supply chain disruptions, and a fragile construction market, which comprises 52% of GGG's sales.