Is GRACO INC (GGG) Halal?

NYSE Industrials United States $13.9B
✓ HALAL
Confidence: 95/100
GRACO INC (GGG) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 0.4% against the AAOIFI threshold of 30%, GRACO INC comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Specialty Industrial Machinery), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.4%
/ 30%
4.3%
/ 30%
2.7%
/ 30%
1.49%
/ 5%
✓ HALAL
DJIM 0.4%
/ 33%
4.3%
/ 33%
2.7%
/ 33%
1.49%
/ 5%
✓ HALAL
MSCI 1.6%
/ 33%
19.1%
/ 33%
12.0%
/ 33%
1.49%
/ 5%
✓ HALAL
S&P 0.4%
/ 33%
4.3%
/ 33%
2.7%
/ 33%
1.49%
/ 5%
✓ HALAL
FTSE 1.6%
/ 33%
19.1%
/ 33%
12.0%
/ 50%
1.49%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
27.2
Forward: 24.2
EPS
$3.08
Dividend Yield
141.0%
Payout: 35.7%
P/B Ratio
5.2
EV/EBITDA
18.4
EV: $13.3B
Revenue
$2.2B
Growth: 8.1%
Beta
1.1
Average volatility
Current Ratio
3.1

Profitability

Gross Margin 52.5%
Operating Margin 27.5%
Net Margin 23.3%
Return on Equity (ROE) 19.9%
Return on Assets (ROA) 12.0%

Cash Flow & Balance Sheet

Operating Cash Flow$684M
Free Cash Flow$638M
Total Debt$52M
Debt-to-Equity1.9
Current Ratio3.1
Total Assets$3.3B

Price & Trading

Last Close$84.66
50-Day MA$89.43
200-Day MA$85.41
Avg Volume990K
Beta1.1
52-Week Range
$72.06
$95.69

About GRACO INC (GGG)

CEO
Mr. Mark W. Sheahan J.D.
Employees
4,400
Sector
Industrials
Industry
Specialty Industrial Machinery
Country
United States
Exchange
NYSE
Market Cap
$13.9B
Currency
USD

Graco Inc. designs, manufactures, and markets systems and equipment used to move, measure, mix, control, dispense, and spray fluid and powder materials in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through three segments: Contractor, Industrial and Expansion Markets. The Contractor segment provides sprayers to apply paint to walls and other structures; two-component proportioning systems to spray polyurethane foam and polyurea coatings; viscous coatings to roofs, markings on roads, parking lots, athletic fields, and floors; and high-performance volumetric and gravimetric dispense, mixing, and shaking equipment. The Industrial segment designs and manufactures liquid finishing and advanced fluid dispensing equipment; pumps to move chemicals, petroleum, food, and other fluids; and systems, components, and accessories for the automatic lubrication of bearings, gears, and generators; supplies equipment for equipment maintenance and vehicle servicing applications, as well as make powder finishing products and complete powder finishing systems. The Expansion Markets segment manufactures pumps for use in the semiconductor industry; high pressure and ultra-high-pressure valves used in the oil and natural gas industry; and environmental monitoring and remediation equipment that is used to conduct ground water sampling, ground water remediation, and for landfill liquid and gas management. Graco Inc. was incorporated in 1926 and is headquartered in Minneapolis, Minnesota.

Purification Calculator

As a halal stock with 1.49% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is GRACO INC (GGG) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), GRACO INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is GRACO INC's debt ratio?

GRACO INC's debt ratio is 0.4% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 1.6%.

Does GRACO INC require dividend purification?

Yes, GRACO INC has an impermissible income ratio of 1.49%, which means 1.49% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are GRACO INC's key financial metrics?

GRACO INC has a market capitalization of $13.9B, trailing P/E ratio of 27.2, and revenue of $2.2B. The company maintains a gross margin of 52.5% and a net margin of 23.3%. Return on equity stands at 19.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.