WW GRAINGER INC (GWW.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GWW - US3848021040 - Common Stock
875.6 EUR
+2.2 (+0.25%)
Taking everything into account, GWW scores 6 out of 10 in our fundamental rating. GWW was compared to 20 industry peers in the Trading Companies & Distributors industry. GWW scores excellent points on both the profitability and health parts. This is a solid base for a good stock. GWW is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
GWW had positive earnings in the past year.
GWW had a positive operating cash flow in the past year.
Each year in the past 5 years GWW has been profitable.
Each year in the past 5 years GWW had a positive operating cash flow.
1.2 Ratios
GWW has a better Return On Assets (19.55%) than 95.00% of its industry peers.
The Return On Equity of GWW (48.58%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 27.94%, GWW belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
GWW had an Average Return On Invested Capital over the past 3 years of 30.88%. This is significantly above the industry average of 10.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.55% | ||
| ROE | 48.58% | ||
| ROIC | 27.94% |
ROA(3y)21.49%
ROA(5y)18.26%
ROE(3y)59.66%
ROE(5y)54.53%
ROIC(3y)30.88%
ROIC(5y)27.39%
1.3 Margins
Looking at the Profit Margin, with a value of 9.75%, GWW belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
In the last couple of years the Profit Margin of GWW has grown nicely.
Looking at the Operating Margin, with a value of 14.05%, GWW belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
GWW's Operating Margin has improved in the last couple of years.
GWW has a better Gross Margin (39.09%) than 75.00% of its industry peers.
GWW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.05% | ||
| PM (TTM) | 9.75% | ||
| GM | 39.09% |
OM growth 3Y9.16%
OM growth 5Y5.04%
PM growth 3Y11.56%
PM growth 5Y8.51%
GM growth 3Y2.79%
GM growth 5Y0.56%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GWW is creating value.
Compared to 1 year ago, GWW has less shares outstanding
Compared to 5 years ago, GWW has less shares outstanding
Compared to 1 year ago, GWW has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.29 indicates that GWW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.29, GWW belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
The Debt to FCF ratio of GWW is 1.92, which is an excellent value as it means it would take GWW, only 1.92 years of fcf income to pay off all of its debts.
GWW's Debt to FCF ratio of 1.92 is fine compared to the rest of the industry. GWW outperforms 80.00% of its industry peers.
GWW has a Debt/Equity ratio of 0.66. This is a neutral value indicating GWW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, GWW perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
Although GWW does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 11.29 |
ROIC/WACC2.9
WACC9.63%
2.3 Liquidity
A Current Ratio of 2.72 indicates that GWW has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.72, GWW is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
GWW has a Quick Ratio of 1.59. This is a normal value and indicates that GWW is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.59, GWW is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
GWW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.77%.
Measured over the past years, GWW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.64% on average per year.
GWW shows a small growth in Revenue. In the last year, the Revenue has grown by 4.83%.
GWW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.37% yearly.
EPS 1Y (TTM)5.77%
EPS 3Y25.23%
EPS 5Y17.64%
EPS Q2Q%3.44%
Revenue 1Y (TTM)4.83%
Revenue growth 3Y9.65%
Revenue growth 5Y8.37%
Sales Q2Q%6.13%
3.2 Future
The Earnings Per Share is expected to grow by 9.39% on average over the next years. This is quite good.
GWW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.65% yearly.
EPS Next Y2.33%
EPS Next 2Y6.53%
EPS Next 3Y8.03%
EPS Next 5Y9.39%
Revenue Next Year4.31%
Revenue Next 2Y4.74%
Revenue Next 3Y5.3%
Revenue Next 5Y6.65%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.97, the valuation of GWW can be described as expensive.
GWW's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.59. GWW is around the same levels.
The Price/Forward Earnings ratio is 23.34, which indicates a rather expensive current valuation of GWW.
Based on the Price/Forward Earnings ratio, GWW is valued a bit more expensive than the industry average as 65.00% of the companies are valued more cheaply.
GWW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.97 | ||
| Fwd PE | 23.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GWW indicates a slightly more expensive valuation: GWW is more expensive than 75.00% of the companies listed in the same industry.
GWW's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. GWW is more expensive than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.83 | ||
| EV/EBITDA | 18.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GWW does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of GWW may justify a higher PE ratio.
PEG (NY)11.15
PEG (5Y)1.47
EPS Next 2Y6.53%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
GWW has a yearly dividend return of 0.89%, which is pretty low.
With a Dividend Yield of 0.89, GWW pays less dividend than the industry average, which is at 2.04. 80.00% of the companies listed in the same industry pay a better dividend than GWW!
With a Dividend Yield of 0.89, GWW pays less dividend than the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
On average, the dividend of GWW grows each year by 7.57%, which is quite nice.
Dividend Growth(5Y)7.57%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
GWW pays out 26.47% of its income as dividend. This is a sustainable payout ratio.
GWW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP26.47%
EPS Next 2Y6.53%
EPS Next 3Y8.03%
FRA:GWW (12/23/2025, 7:00:00 PM)
875.6
+2.2 (+0.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners73.66%
Inst Owner ChangeN/A
Ins Owners6.15%
Ins Owner ChangeN/A
Market Cap41.63B
Revenue(TTM)17.75B
Net Income(TTM)1.73B
Analysts57.14
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend7.36
Dividend Growth(5Y)7.57%
DP26.47%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.15%
Min EPS beat(2)-1.9%
Max EPS beat(2)1.6%
EPS beat(4)2
Avg EPS beat(4)0.31%
Min EPS beat(4)-1.9%
Max EPS beat(4)2.89%
EPS beat(8)4
Avg EPS beat(8)0.19%
EPS beat(12)8
Avg EPS beat(12)1.61%
EPS beat(16)12
Avg EPS beat(16)3.53%
Revenue beat(2)0
Avg Revenue beat(2)-0.55%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)-0.42%
Revenue beat(4)0
Avg Revenue beat(4)-0.89%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)-0.42%
Revenue beat(8)0
Avg Revenue beat(8)-1.27%
Revenue beat(12)0
Avg Revenue beat(12)-1.14%
Revenue beat(16)4
Avg Revenue beat(16)-0.33%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.97 | ||
| Fwd PE | 23.34 | ||
| P/S | 2.76 | ||
| P/FCF | 39.83 | ||
| P/OCF | 23.96 | ||
| P/B | 13.78 | ||
| P/tB | 16.71 | ||
| EV/EBITDA | 18.54 |
EPS(TTM)33.72
EY3.85%
EPS(NY)37.51
Fwd EY4.28%
FCF(TTM)21.98
FCFY2.51%
OCF(TTM)36.54
OCFY4.17%
SpS316.7
BVpS63.54
TBVpS52.38
PEG (NY)11.15
PEG (5Y)1.47
Graham Number219.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.55% | ||
| ROE | 48.58% | ||
| ROCE | 36.5% | ||
| ROIC | 27.94% | ||
| ROICexc | 30.31% | ||
| ROICexgc | 33.65% | ||
| OM | 14.05% | ||
| PM (TTM) | 9.75% | ||
| GM | 39.09% | ||
| FCFM | 6.94% |
ROA(3y)21.49%
ROA(5y)18.26%
ROE(3y)59.66%
ROE(5y)54.53%
ROIC(3y)30.88%
ROIC(5y)27.39%
ROICexc(3y)34.68%
ROICexc(5y)30.48%
ROICexgc(3y)38.97%
ROICexgc(5y)34.58%
ROCE(3y)40.34%
ROCE(5y)35.78%
ROICexgc growth 3Y13.79%
ROICexgc growth 5Y5.15%
ROICexc growth 3Y14.65%
ROICexc growth 5Y6.97%
OM growth 3Y9.16%
OM growth 5Y5.04%
PM growth 3Y11.56%
PM growth 5Y8.51%
GM growth 3Y2.79%
GM growth 5Y0.56%
F-Score6
Asset Turnover2.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 1.92 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 323.81% | ||
| Cap/Sales | 4.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.58% | ||
| Profit Quality | 71.21% | ||
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 11.29 |
F-Score6
WACC9.63%
ROIC/WACC2.9
Cap/Depr(3y)184.73%
Cap/Depr(5y)160.05%
Cap/Sales(3y)2.51%
Cap/Sales(5y)2.23%
Profit Quality(3y)79.52%
Profit Quality(5y)87.44%
High Growth Momentum
Growth
EPS 1Y (TTM)5.77%
EPS 3Y25.23%
EPS 5Y17.64%
EPS Q2Q%3.44%
EPS Next Y2.33%
EPS Next 2Y6.53%
EPS Next 3Y8.03%
EPS Next 5Y9.39%
Revenue 1Y (TTM)4.83%
Revenue growth 3Y9.65%
Revenue growth 5Y8.37%
Sales Q2Q%6.13%
Revenue Next Year4.31%
Revenue Next 2Y4.74%
Revenue Next 3Y5.3%
Revenue Next 5Y6.65%
EBIT growth 1Y-4.19%
EBIT growth 3Y19.7%
EBIT growth 5Y13.83%
EBIT Next Year11.28%
EBIT Next 3Y9.02%
EBIT Next 5Y8.46%
FCF growth 1Y-13.3%
FCF growth 3Y32.04%
FCF growth 5Y13.84%
OCF growth 1Y14.61%
OCF growth 3Y31.09%
OCF growth 5Y15.17%
WW GRAINGER INC / GWW.DE FAQ
Can you provide the ChartMill fundamental rating for WW GRAINGER INC?
ChartMill assigns a fundamental rating of 6 / 10 to GWW.DE.
Can you provide the valuation status for WW GRAINGER INC?
ChartMill assigns a valuation rating of 2 / 10 to WW GRAINGER INC (GWW.DE). This can be considered as Overvalued.
What is the profitability of GWW stock?
WW GRAINGER INC (GWW.DE) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for GWW stock?
The Price/Earnings (PE) ratio for WW GRAINGER INC (GWW.DE) is 25.97 and the Price/Book (PB) ratio is 13.78.
Is the dividend of WW GRAINGER INC sustainable?
The dividend rating of WW GRAINGER INC (GWW.DE) is 4 / 10 and the dividend payout ratio is 26.47%.