WW GRAINGER INC (GWW) Stock Fundamental Analysis
NYSE:GWW - New York Stock Exchange, Inc. - US3848021040 - Common Stock - Currency: USD
GWW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 industry peers in the Trading Companies & Distributors industry. GWW gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, GWW is valued expensive at the moment. These ratings would make GWW suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year GWW was profitable.
GWW had a positive operating cash flow in the past year.
In the past 5 years GWW has always been profitable.
In the past 5 years GWW always reported a positive cash flow from operatings.
1.2 Ratios
GWW has a Return On Assets of 22.06%. This is amongst the best in the industry. GWW outperforms 97.92% of its industry peers.
GWW has a better Return On Equity (54.89%) than 93.75% of its industry peers.
GWW's Return On Invested Capital of 30.61% is amongst the best of the industry. GWW outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GWW is significantly above the industry average of 9.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.06% | ||
| ROE | 54.89% | ||
| ROIC | 30.61% |
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
GWW's Profit Margin of 11.08% is amongst the best of the industry. GWW outperforms 83.33% of its industry peers.
In the last couple of years the Profit Margin of GWW has grown nicely.
With a decent Operating Margin value of 15.41%, GWW is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of GWW has grown nicely.
Looking at the Gross Margin, with a value of 39.45%, GWW is in the better half of the industry, outperforming 72.92% of the companies in the same industry.
GWW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.41% | ||
| PM (TTM) | 11.08% | ||
| GM | 39.45% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GWW is creating value.
Compared to 1 year ago, GWW has less shares outstanding
Compared to 5 years ago, GWW has less shares outstanding
GWW has a worse debt/assets ratio than last year.
2.2 Solvency
GWW has an Altman-Z score of 11.60. This indicates that GWW is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.60, GWW belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
The Debt to FCF ratio of GWW is 1.47, which is an excellent value as it means it would take GWW, only 1.47 years of fcf income to pay off all of its debts.
GWW's Debt to FCF ratio of 1.47 is fine compared to the rest of the industry. GWW outperforms 79.17% of its industry peers.
GWW has a Debt/Equity ratio of 0.65. This is a neutral value indicating GWW is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, GWW is in line with its industry, outperforming 50.00% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for GWW, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 1.47 | ||
| Altman-Z | 11.6 |
ROIC/WACC3
WACC10.19%
2.3 Liquidity
A Current Ratio of 2.74 indicates that GWW has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.74, GWW is doing good in the industry, outperforming 72.92% of the companies in the same industry.
GWW has a Quick Ratio of 1.60. This is a normal value and indicates that GWW is financially healthy and should not expect problems in meeting its short term obligations.
GWW has a better Quick ratio (1.60) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
GWW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.93%.
The Earnings Per Share has been growing by 17.64% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.71% in the past year.
The Revenue has been growing by 8.37% on average over the past years. This is quite good.
EPS 1Y (TTM)6.93%
EPS 3Y25.23%
EPS 5Y17.64%
EPS Q2Q%2.49%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y9.65%
Revenue growth 5Y8.37%
Sales Q2Q%1.68%
3.2 Future
The Earnings Per Share is expected to grow by 9.65% 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 7.02% yearly.
EPS Next Y4.95%
EPS Next 2Y7.53%
EPS Next 3Y8.39%
EPS Next 5Y9.65%
Revenue Next Year4.32%
Revenue Next 2Y5.48%
Revenue Next 3Y6%
Revenue Next 5Y7.02%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.79, GWW can be considered very expensive at the moment.
GWW's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of GWW to the average of the S&P500 Index (27.93), we can say GWW is valued inline with the index average.
The Price/Forward Earnings ratio is 23.31, which indicates a rather expensive current valuation of GWW.
GWW's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. GWW is more expensive than 62.50% of the companies in the same industry.
GWW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 37.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.79 | ||
| Fwd PE | 23.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GWW is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as GWW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.57 | ||
| EV/EBITDA | 17.94 |
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)5.42
PEG (5Y)1.52
EPS Next 2Y7.53%
EPS Next 3Y8.39%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, GWW is not a good candidate for dividend investing.
GWW's Dividend Yield is a higher than the industry average which is at 2.04.
Compared to an average S&P500 Dividend Yield of 2.32, GWW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
The dividend of GWW is nicely growing with an annual growth rate of 7.57%!
GWW has been paying a dividend for at least 10 years, so it has a reliable track record.
GWW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.57%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
GWW pays out 22.57% of its income as dividend. This is a sustainable payout ratio.
The dividend of GWW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.57%
EPS Next 2Y7.53%
EPS Next 3Y8.39%
NYSE:GWW (7/29/2025, 10:30:53 AM)
1050.18
+1.81 (+0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners73.83%
Inst Owner Change-2.05%
Ins Owners6.08%
Ins Owner Change0.58%
Market Cap50.45B
Analysts66.96
Price Target1096.09 (4.37%)
Short Float %2.68%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend8.62
Dividend Growth(5Y)7.57%
DP22.57%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.77%
Min EPS beat(2)-1.35%
Max EPS beat(2)2.89%
EPS beat(4)2
Avg EPS beat(4)0.1%
Min EPS beat(4)-1.99%
Max EPS beat(4)2.89%
EPS beat(8)5
Avg EPS beat(8)0.88%
EPS beat(12)9
Avg EPS beat(12)3.3%
EPS beat(16)12
Avg EPS beat(16)3.38%
Revenue beat(2)0
Avg Revenue beat(2)-1.24%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)-1.24%
Revenue beat(4)0
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-1.8%
Max Revenue beat(4)-1.24%
Revenue beat(8)0
Avg Revenue beat(8)-1.48%
Revenue beat(12)2
Avg Revenue beat(12)-0.77%
Revenue beat(16)5
Avg Revenue beat(16)-0.32%
PT rev (1m)-0.55%
PT rev (3m)3.15%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-0.94%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.79 | ||
| Fwd PE | 23.31 | ||
| P/S | 2.93 | ||
| P/FCF | 32.57 | ||
| P/OCF | 24.07 | ||
| P/B | 14.5 | ||
| P/tB | 17.55 | ||
| EV/EBITDA | 17.94 |
EPS(TTM)39.2
EY3.73%
EPS(NY)45.04
Fwd EY4.29%
FCF(TTM)32.24
FCFY3.07%
OCF(TTM)43.63
OCFY4.15%
SpS358.85
BVpS72.44
TBVpS59.85
PEG (NY)5.42
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.06% | ||
| ROE | 54.89% | ||
| ROCE | 39.99% | ||
| ROIC | 30.61% | ||
| ROICexc | 34.03% | ||
| ROICexgc | 37.86% | ||
| OM | 15.41% | ||
| PM (TTM) | 11.08% | ||
| GM | 39.45% | ||
| FCFM | 8.99% |
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%
ROICexcg growth 3Y13.79%
ROICexcg 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-Score8
Asset Turnover1.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 1.47 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 226.03% | ||
| Cap/Sales | 3.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.33% | ||
| Profit Quality | 81.1% | ||
| Current Ratio | 2.74 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 11.6 |
F-Score8
WACC10.19%
ROIC/WACC3
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)6.93%
EPS 3Y25.23%
EPS 5Y17.64%
EPS Q2Q%2.49%
EPS Next Y4.95%
EPS Next 2Y7.53%
EPS Next 3Y8.39%
EPS Next 5Y9.65%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y9.65%
Revenue growth 5Y8.37%
Sales Q2Q%1.68%
Revenue Next Year4.32%
Revenue Next 2Y5.48%
Revenue Next 3Y6%
Revenue Next 5Y7.02%
EBIT growth 1Y2.95%
EBIT growth 3Y19.7%
EBIT growth 5Y13.83%
EBIT Next Year11.91%
EBIT Next 3Y9.6%
EBIT Next 5Y8.54%
FCF growth 1Y35.05%
FCF growth 3Y32.04%
FCF growth 5Y13.84%
OCF growth 1Y45.15%
OCF growth 3Y31.09%
OCF growth 5Y15.17%