Significant insider selling at Graco Inc., particularly by Independent Director Eric Etchart, may raise concerns for investors. Despite some insider buying, the long-term outlook lacks confidence. High insider ownership indicates alignment with shareholders, but insider selling warrants caution.

Graco has been growing earnings at a rapid rate and has a conservatively low payout ratio, implying that it is reinvesting heavily in its business. This combination is seen as attractive and worthy of further research.

Despite Graco's reinvestment, diminishing returns might spell trouble. The falling ROCE trajectory could hinder its future multi-bagger prospects despite past performance.

Graco's profuse net cash and surplus liquid assets over liabilities depict a robust financial stance, manifesting its efficient debt management capacity. The company, aided by its strong balance sheet and robust cash flow, seems well-equipped for debt payoffs, while a 12% EBIT growth over the past year enhances its debt management posture. It doesn't seem to pose substantial debt-associated risks.

Sentiment towards Graco is stable as share price has tracked EPS growth. Recent returns outperforming five-year TSR indicate increasing optimism. Now may be a good time to examine Graco closely.