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WW GRAINGER INC (NYSE:GWW) can be considered a quality stock. Here's why.

By Mill Chart

Last update: Aug 31, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if WW GRAINGER INC (NYSE:GWW) is suited for quality investing. Investors should of couse do their own research, but we spotted WW GRAINGER INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of WW GRAINGER INC

  • WW GRAINGER INC has shown strong performance in revenue growth over the past 5 years, with a 7.87% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • WW GRAINGER INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 37.12% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • WW GRAINGER INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.7, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • WW GRAINGER INC demonstrates consistent Profit Quality over the past 5 years, with a strong 93.91%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • WW GRAINGER INC has consistently achieved strong EBIT growth over the past 5 years, with a 13.77% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, WW GRAINGER INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Zooming in on the fundamentals.

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to GWW. GWW was compared to 52 industry peers in the Trading Companies & Distributors industry. GWW has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GWW has a decent growth rate and is not valued too expensively. These ratings would make GWW suitable for quality investing!

For an up to date full fundamental analysis you can check the fundamental report of GWW

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.