Graco, Inc. (NYSE:GGG)

CAPS Rating: 5 out of 5

The Company provide fluid handling solutions to organizations involved in manufacturing, processing, construction and maintenance throughout the world. Its three reportable segments are: sales, engineering and marketing.


Player Avatar Nittany95 (97.64) Submitted: 4/18/2013 7:36:00 AM : Outperform Start Price: $27.58 GGG Score: +119.19

For some reason I always keep coming back to Graco. That reason is quite simply management. They have managed to keep the balance sheet pristine through a horrific recession - particularly in homebuilding where their sprayers and paint products find a home. Through the global downturn they continuied to grow and now have just about enough cash on-hand (12/31/12) to wipe out their LT Debt.

Now that we are seeing renewed demand and increases in aggregate economic activity, they should see an acceleration in growth and fcf. I am looking for annual dividend increases or a share buyback program that continues to expand over time.

Buy this one and retire on it!

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