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Why Quality-Oriented Investors Should Consider NYSE:GWW.

By Mill Chart

Last update: Jan 15, 2024

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.

A Deep Dive into WW GRAINGER INC's Quality Metrics.

  • The 5-year revenue growth of WW GRAINGER INC has been remarkable, with 7.87% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • The ROIC excluding cash and goodwill of WW GRAINGER INC stands at 37.72%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • WW GRAINGER INC maintains a healthy Debt/Free Cash Flow Ratio of 1.61, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • WW GRAINGER INC exhibits impressive Profit Quality (5-year) with a 93.91% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • The 5-year EBIT growth of WW GRAINGER INC has been remarkable, with 13.77% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • 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.

How does the complete fundamental picture look for NYSE:GWW?

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

GWW gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 51 industry peers in the Trading Companies & Distributors industry. Both the health and profitability get an excellent rating, making GWW a very profitable company, without any liquidiy or solvency issues. GWW is quite expensive at the moment. It does show a decent growth rate. With these ratings, GWW could be worth investigating further for quality investing!.

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

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

Disclaimer

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.

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