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Why the quality investor may take a look at WW GRAINGER INC (NYSE:GWW).

By Mill Chart

Last update: Dec 25, 2023

In this article we will dive into WW GRAINGER INC (NYSE:GWW) as a possible candidate for quality investing. Investors should always do their own research, but we noticed WW GRAINGER INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

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.
  • With a notable ROIC excluding cash and goodwill at 37.72%, WW GRAINGER INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a favorable Debt/Free Cash Flow Ratio of 1.61, WW GRAINGER INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • With a robust Profit Quality (5-year) ratio of 93.91%, WW GRAINGER INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • 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.
  • WW GRAINGER INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Zooming in on the fundamentals.

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous 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 is not valued too expensively and it also shows a decent growth rate. These ratings could make GWW a good candidate for quality investing.

Our latest full fundamental report of GWW contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill 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.



NYSE:GWW (4/19/2024, 7:04:00 PM)

After market: 942.65 0 (0%)


+5.11 (+0.55%)

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