- Graco has executed well through the downturn; margin deleverage has been noticeable, but better than expected at the start of the pandemic.
- Strong demand in the Contractor segment seems unlikely to continue at this pace into 2021, but recoveries in Industrial and Process markets should offset that.
- M&A remains a significant potential delta; Graco's M&A activity has been below-trend for a while now, but the company could put $1 billion or more to work.
- Graco rarely trades at a valuation that looks cheap; Graco's quality and low rates support a premium, but I'd rather wait for a better entry price.
For further details see:
Graco Is A Top-Tier Industrial Name, But The Price Is Not So Compelling