Operational efficiency is highlighted by a high-quality cash conversion profile, where the ratio of operating cash flow to net income frequently exceeds 1.30, alongside a disciplined capital expenditure strategy that has trended down to 2.0% of revenue.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 678.42M | 683.59M | 621.7M | 651.02M | 377.39M | 456.9M | 394.04M | 418.73M | 367.99M | 337.86M | 269.09M | 189.64M | 241.25M | 243.06M | 189.68M | 162.04M | 101.12M | 146.53M | 162.48M | 177.1M | 155.63M | 153.22M | 122.91M | 109.81M | 95.67M | 89.18M | 79.61M | 75.8M | 77.1M | 36.3M | 48.6M |
| Operating CF Margin % | - | 30.56% | 29.42% | 29.65% | 17.61% | 22.99% | 23.88% | 25.44% | 22.26% | 22.91% | 20.24% | 14.74% | 19.76% | 22.02% | 18.73% | 18.1% | 13.59% | 25.3% | 19.88% | 21.05% | 19.06% | 20.94% | 20.31% | 20.52% | 19.64% | 18.86% | 16.1% | 17.13% | 17.84% | 8.77% | 12.4% |
| Operating CF Growth % | 33.64% | 9.96% | -4.5% | 72.5% | -17.4% | 15.95% | -5.9% | 13.79% | 8.92% | 25.56% | 41.9% | -21.39% | -0.74% | 28.14% | 17.06% | 60.24% | -30.99% | -9.81% | -8.25% | 13.79% | 1.57% | 24.67% | 11.93% | 14.77% | 7.28% | 12.02% | 5.03% | -1.69% | 112.4% | -25.31% | -6% |
| Net Income | 516.24M | 521.84M | 486.08M | 506.51M | 460.64M | 439.87M | 330.46M | 343.85M | 341.05M | 252.41M | 40.67M | 345.71M | 225.57M | 210.82M | 149.13M | 142.33M | 102.84M | 48.97M | 120.88M | 152.84M | 149.77M | 125.85M | 108.68M | 86.71M | 75.63M | 65.27M | 70.11M | 59.3M | 47.3M | 44.7M | 36.2M |
| Depreciation & Amortization | 111.33M | 107.43M | 86.75M | 74.32M | 66M | 59.33M | 55.33M | 48.91M | 47.75M | 45.58M | 48.29M | 44.61M | 35.52M | 37.32M | 38.76M | 32.48M | 33.97M | 35.14M | 35.49M | 28.66M | 26.05M | 23.5M | 17.81M | 18.75M | 18.08M | 18.49M | 15.45M | 14.7M | 13.7M | 13.5M | 12.7M |
| Stock-Based Compensation | 34.53M | 34.33M | 31.89M | 30.23M | 24.7M | 24.93M | 25.15M | 26.67M | 25.57M | 23.65M | 21.13M | 19.22M | 17.25M | 16.55M | 12.41M | 10.99M | 10.02M | 9.37M | 9.05M | 8.58M | 8.39M | 396K | -1.07M | -17.39M | -566K | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -3.55M | -8.67M | 6.06M | -8.5M | -10M | -46.57M | 10.75M | -6.41M | 15.4M | 34.45M | -35.56M | -11.59M | 329K | -1.72M | -10.79M | -1.81M | -4.25M | -69K | -160K | -1.59M | -6.6M | 1.26M | 1.4M | 4.72M | 274K | 762K | 1.64M | 1.2M | -600K | -400K | 800K |
| Other Non-Cash Items | -14.06M | -18.8M | 0 | 41.33M | 0 | 12.02M | 35.23M | 0 | 0 | 0 | 192.02M | -151.67M | -6.63M | -8.35M | -4.22M | -2.19M | -1.99M | -375K | -6.67M | -4.51M | -2.86M | 2.11M | 7.85M | 21.07M | 5.16M | 3.79M | -1.56M | -2.1M | 100K | 0 | -100K |
| Working Capital Changes | 33.93M | 47.46M | 10.91M | 7.13M | -163.95M | -32.67M | -62.88M | 5.71M | -61.79M | -18.23M | 9.45M | -56.65M | -30.78M | -11.57M | 4.39M | -19.75M | -39.48M | 53.5M | 3.88M | -6.89M | -19.12M | 104K | -11.77M | -4.05M | -2.9M | 870K | -6.03M | 2.7M | 16.6M | -21.5M | -1M |
| Change in Receivables | -529K | -7.38M | 10.25M | -3.25M | -29.94M | -13.8M | -43.12M | 8.93M | -12.4M | -28.01M | 4.51M | -18.28M | -26.56M | -11.88M | -2.75M | -26.77M | -23.29M | 28.42M | 14.96M | -1.84M | -3.58M | -9.1M | -7.29M | 563K | -5.05M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 50.61M | 55.21M | 55.84M | 42.72M | -95.69M | -97.78M | -13.09M | 12.44M | -30.72M | -32.01M | -693K | -34.11M | -15.08M | -10.19M | 5.94M | -13.44M | -33M | 32.66M | -9.94M | 2.04M | -15.59M | 4.52M | -11.03M | 4.69M | 452K | 5.33M | 4.16M | 3.3M | 10.5M | -3.9M | -400K |
| Change in Payables | -5.57M | 7.71M | -13.3M | -12.35M | 4.2M | 12.4M | 6.82M | -539K | -1.98M | 4.59M | 553K | 4.3M | 450K | 2.44M | -952K | 5.97M | 1.67M | -701K | -6.81M | -2.31M | -74K | 701K | 2.79M | 1.23M | 2.21M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -174.37M | -172.8M | -342.81M | -185.27M | -226.82M | -153.3M | -99.04M | -155.47M | -66.25M | -68.46M | -90.94M | 369.94M | -216.73M | -31.24M | -694.52M | -28M | -18.77M | -12.79M | -85.35M | -38.16M | -64.4M | -131.47M | -19.16M | -28.77M | -11.96M | -45.88M | -9.68M | -17.8M | -9.8M | -18.1M | -29M |
| Capital Expenditures | -47.21M | -45.67M | -106.74M | -184.78M | -201.16M | -133.57M | -71.34M | -127.95M | -53.85M | -40.19M | -42.11M | -41.75M | -30.64M | -23.32M | -18.23M | -24.79M | -17.53M | -12.06M | -29.1M | -36.95M | -33.85M | -19.9M | -16.89M | -15.52M | -12.25M | -30.2M | -14.52M | -27.5M | -12M | -20.1M | -30M |
| CapEx % of Revenue | 2.1% | 2.04% | 5.05% | 8.42% | 9.38% | 6.72% | 4.32% | 7.77% | 3.26% | 2.73% | 3.17% | 3.25% | 2.51% | 2.11% | 1.8% | 2.77% | 2.36% | 2.08% | 3.56% | 4.39% | 4.15% | 2.72% | 2.79% | 2.9% | 2.52% | 6.39% | 2.94% | 6.21% | 2.78% | 4.86% | 7.66% |
| Acquisitions | -124.81M | -135.26M | -241.77M | 0 | -25.3M | -19.39M | -27.56M | -26.58M | -10.77M | -27.91M | -48.95M | -189.02M | -184.93M | -7.04M | -666.88M | -2.14M | 0 | 0 | -55.19M | 0 | -30.68M | -111M | 0 | -13.51M | 0 | -15.95M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -2.35M | 8.13M | 5.69M | -499K | -362K | -347K | -143K | -939K | -1.62M | -360K | 124K | 600.71M | -1.16M | -875K | -9.4M | -505K | 257K | 770K | -2.83M | -1.2M | 128K | -563K | -2.27M | 257K | 295K | 267K | 4.84M | 9.7M | 2.2M | 2M | 1M |
| Cash from Financing | -336.32M | -576.05M | -139.86M | -268.01M | -434.4M | -57.14M | -139.47M | -174.05M | -282.71M | -217.08M | -185.16M | -534.41M | -23.57M | -225.89M | 232.67M | 159.64M | -76.79M | -138.81M | -71.35M | -138.29M | -102.54M | -65.12M | -153.83M | -69.84M | -5.66M | -28.64M | -67.06M | -56.3M | -77.5M | -15.2M | -16.4M |
| Debt Issued (Net) | -3.17M | -6.56M | -766K | -65.28M | -93.25M | 20.43M | -1.99M | -105.11M | 42.47M | -82.68M | -93.86M | -211.09M | 202.17M | -146.94M | 255.86M | 230.24M | -19.21M | -100.13M | 71.61M | 106.74M | 9.59M | 2.5M | 1.75M | -9.61M | 2.45M | -24.47M | -46.14M | -49M | 119.3M | -2M | -2.4M |
| Equity Issued (Net) | -137.97M | -380.08M | 39.31M | -42.16M | -197.81M | 50.96M | -103.94M | 38.77M | -260.96M | -29.48M | -14.7M | -275.83M | -195.33M | -26.16M | 28.82M | -21.02M | -11.42M | 6.38M | -101.14M | -206.36M | -75.56M | -31.82M | -25.68M | -44.98M | 5.78M | 8.17M | -9.55M | 1.7M | -186M | -3.7M | -5.6M |
| Dividends Paid | -185.53M | -183.35M | -172.09M | -158.32M | -142.13M | -127.11M | -116.98M | -106.44M | -88.84M | -80.48M | -73.43M | -69.43M | -66.36M | -61.14M | -54.3M | -50.65M | -48.15M | -45.44M | -44.7M | -43.19M | -39.43M | -35.8M | -129.91M | -15.25M | -13.89M | -12.34M | -11.36M | -8.9M | -10.7M | -9.6M | -8.3M |
| Share Repurchases | -196.77M | -423.11M | -31.35M | -102.34M | -233.43M | 0 | -102.14M | -9.48M | -244.81M | -90.16M | -50.5M | -274.5M | -195.33M | -67.83M | -1.38M | -43.25M | -24.22M | -187K | -114.84M | -230.41M | -87.57M | -42.3M | -40.79M | -55.5M | -7.09M | -3.76M | -19.18M | -5.1M | -190.9M | -7M | -8.1M |
| Other Financing | -9.64M | -6.05M | -6.32M | -2.25M | -1.22M | -1.42M | 83.44M | -1.27M | 24.63M | -24.45M | -3.17M | 21.94M | 35.94M | 8.35M | 2.3M | 1.06M | 1.99M | 373K | 2.87M | 4.51M | 2.86M | 0 | 0 | 0 | 0 | 0 | 0 | -100K | -100K | 100K | -100K |
| Net Change in Cash | 176.03M | -51.25M | 137.38M | 198.75M | -285.11M | 245.39M | 157.94M | 88.86M | 19.21M | 51.3M | 70K | 28.64M | 3.9M | -11.36M | -272.03M | 293.56M | 4.18M | -6.71M | 7.2M | -949K | -12.79M | -41.89M | -51.56M | 8.79M | 76.8M | 15.46M | 4.48M | 3M | -10M | 7M | 4.8M |
| Free Cash Flow | 631.21M | 637.92M | 514.96M | 466.24M | 176.23M | 323.33M | 322.7M | 290.78M | 314.13M | 297.67M | 226.98M | 147.89M | 210.62M | 219.74M | 171.45M | 137.26M | 83.6M | 134.47M | 133.38M | 140.14M | 121.78M | 133.32M | 106.02M | 94.29M | 83.42M | 58.98M | 65.09M | 48.3M | 65.1M | 16.2M | 18.6M |
| FCF Margin % | 28.07% | 28.52% | 24.37% | 21.24% | 8.22% | 16.27% | 19.56% | 17.67% | 19% | 20.18% | 17.08% | 11.5% | 17.25% | 19.9% | 16.93% | 15.33% | 11.24% | 23.22% | 16.32% | 16.66% | 14.91% | 18.22% | 17.52% | 17.62% | 17.13% | 12.47% | 13.17% | 10.92% | 15.06% | 3.91% | 4.75% |
| FCF Growth % | 15.17% | 23.88% | 10.45% | 164.56% | -45.49% | 0.2% | 10.98% | -7.43% | 5.53% | 31.14% | 53.48% | -29.78% | -4.15% | 28.16% | 24.91% | 64.19% | -37.83% | 0.82% | -4.83% | 15.08% | -8.66% | 25.76% | 12.43% | 13.03% | 41.44% | -9.38% | 34.75% | -25.81% | 301.85% | -12.9% | -41.69% |
| FCF per Share | 3.75 | 3.77 | 2.99 | 2.71 | 1.02 | 1.85 | 1.88 | 1.69 | 1.81 | 1.71 | 1.33 | 0.84 | 1.14 | 1.17 | 0.93 | 0.75 | 0.46 | 0.74 | 0.73 | 0.71 | 0.59 | 0.64 | 0.50 | 0.45 | 0.38 | 0.28 | 0.31 | 0.23 | 0.27 | 0.06 | 0.07 |
| FCF Conversion (FCF/Net Income) | 1.22x | 1.31x | 1.28x | 1.29x | 0.82x | 1.04x | 1.19x | 1.22x | 1.08x | 1.34x | 6.62x | 0.55x | 1.07x | 1.15x | 1.27x | 1.14x | 0.98x | 2.99x | 1.34x | 1.16x | 1.04x | 1.22x | 1.13x | 1.27x | 1.27x | 1.37x | 1.14x | 1.28x | 1.63x | 0.81x | 1.34x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical industrial demand volatility
As reported in recent financial filings, Graco consistently demonstrates high-quality earnings, with the ratio of operating cash flow to net income frequently exceeding 1.30, suggesting that the company's reported profits are well-supported by actual cash generation rather than aggressive accounting accruals or non-cash revenue recognition.
The consistent alignment between net income and operating cash flow indicates that Graco's earnings are of high quality and not overly reliant on accounting estimates. Investors should monitor the occasional dips in this ratio, which appear to correlate with seasonal working capital requirements rather than fundamental deterioration in the underlying business model.
Based on the provided cash flow data, Graco maintains robust free cash flow margins that have reached as high as 32.3% in 2025Q3, highlighting the company's ability to convert a significant portion of its revenue into discretionary cash despite the inherent cyclicality of its industrial end-markets.
The trajectory of free cash flow suggests that Graco's business model is highly cash-generative, even during periods of fluctuating revenue growth. This capacity to generate substantial cash flow provides the company with significant flexibility to fund dividends and strategic acquisitions without relying on external financing.
According to quarterly cash flow statements, Graco's capital expenditure as a percentage of revenue has trended downward from 7.6% in 2024Q1 to approximately 2.0% in 2025Q4, reflecting a highly efficient manufacturing footprint that requires minimal ongoing investment to maintain its competitive technical moat.
The low capital intensity suggests that Graco's primary assets are highly productive and do not require frequent, massive reinvestment to sustain current output levels. This efficiency allows for a greater portion of operating cash flow to be returned to shareholders or deployed toward value-accretive growth opportunities.
As evidenced by recent financial disclosures, Graco utilizes its robust cash flow to fund consistent dividend payments and opportunistic share repurchases, with buybacks totaling over $238 million in 2025Q1, demonstrating a management philosophy that prioritizes shareholder returns while maintaining a fortress-like balance sheet.
The company's capital deployment strategy appears highly disciplined, balancing steady dividend growth with opportunistic share repurchases and bolt-on acquisitions. This approach suggests that management is focused on long-term value compounding rather than aggressive, high-risk capital expansion that could jeopardize the company's financial stability.
Quick answers to the most common questions about buying GGG stock.
Graco Inc. (GGG) generated $683.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Graco Inc. (GGG) generated $637.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Graco Inc. (GGG) spent $45.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Graco Inc. (GGG) returned $183.4M to shareholders via cash dividends and spent $423.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.