WW GRAINGER INC (GWW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GWW - US3848021040 - Common Stock
1023.94 USD
-5.62 (-0.55%)
GWW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 50 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.
1. Profitability
1.1 Basic Checks
In the past year GWW was profitable.
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
With an excellent Return On Assets value of 19.55%, GWW belongs to the best of the industry, outperforming 98.00% of the companies in the same industry.
GWW's Return On Equity of 48.58% is amongst the best of the industry. GWW outperforms 94.00% of its industry peers.
With an excellent Return On Invested Capital value of 27.94%, GWW belongs to the best of the industry, outperforming 98.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GWW is significantly above the industry average of 9.63%.
| 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
The Profit Margin of GWW (9.75%) is better than 78.00% of its industry peers.
GWW's Profit Margin has improved in the last couple of years.
GWW has a Operating Margin of 14.05%. This is in the better half of the industry: GWW outperforms 76.00% of its industry peers.
In the last couple of years the Operating Margin of GWW has grown nicely.
The Gross Margin of GWW (39.09%) is better than 74.00% 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.
GWW has less shares outstanding than it did 1 year ago.
GWW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GWW is higher compared to a year ago.
2.2 Solvency
GWW has an Altman-Z score of 11.27. This indicates that GWW is financially healthy and has little risk of bankruptcy at the moment.
GWW's Altman-Z score of 11.27 is amongst the best of the industry. GWW outperforms 98.00% of its industry peers.
GWW has a debt to FCF ratio of 1.92. This is a very positive value and a sign of high solvency as it would only need 1.92 years to pay back of all of its debts.
The Debt to FCF ratio of GWW (1.92) is better than 82.00% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that GWW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, GWW perfoms like the industry average, outperforming 46.00% 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 | 0.66 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 11.27 |
ROIC/WACC2.86
WACC9.78%
2.3 Liquidity
A Current Ratio of 2.72 indicates that GWW has no problem at all paying its short term obligations.
GWW has a better Current ratio (2.72) than 72.00% of its industry peers.
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.
GWW has a better Quick ratio (1.59) than 62.00% of its industry peers.
| 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%.
GWW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.64% yearly.
GWW shows a small growth in Revenue. In the last year, the Revenue has grown by 4.83%.
The Revenue has been growing by 8.37% on average over the past years. This is quite good.
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
GWW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.39% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
GWW is valuated quite expensively with a Price/Earnings ratio of 25.76.
GWW's Price/Earnings ratio is in line with the industry average.
GWW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.55.
Based on the Price/Forward Earnings ratio of 23.16, the valuation of GWW can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GWW is on the same level as its industry peers.
GWW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.76 | ||
| Fwd PE | 23.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GWW is valued a bit more expensive than 66.00% of the companies in the same industry.
GWW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.52 | ||
| EV/EBITDA | 18.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GWW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)11.06
PEG (5Y)1.46
EPS Next 2Y6.53%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, GWW is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.97, GWW pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.88, GWW pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
On average, the dividend of GWW grows each year by 7.57%, which is quite nice.
GWW has paid a dividend for at least 10 years, which is a reliable track record.
GWW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.57%
Div Incr Years34
Div Non Decr Years34
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%
NYSE:GWW (12/16/2025, 10:28:54 AM)
1023.94
-5.62 (-0.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners73.66%
Inst Owner Change-2.85%
Ins Owners6.15%
Ins Owner Change-0.04%
Market Cap48.69B
Revenue(TTM)17.75B
Net Income(TTM)1.73B
Analysts57.14
Price Target1056.24 (3.15%)
Short Float %2.47%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend8.62
Dividend Growth(5Y)7.57%
DP26.47%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)0.57%
PT rev (3m)0.77%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-2.01%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-2.37%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.76 | ||
| Fwd PE | 23.16 | ||
| P/S | 2.74 | ||
| P/FCF | 39.52 | ||
| P/OCF | 23.77 | ||
| P/B | 13.67 | ||
| P/tB | 16.58 | ||
| EV/EBITDA | 18.5 |
EPS(TTM)39.75
EY3.88%
EPS(NY)44.22
Fwd EY4.32%
FCF(TTM)25.91
FCFY2.53%
OCF(TTM)43.07
OCFY4.21%
SpS373.29
BVpS74.89
TBVpS61.75
PEG (NY)11.06
PEG (5Y)1.46
Graham Number258.8
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 | 11.27 |
F-Score6
WACC9.78%
ROIC/WACC2.86
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 FAQ
Can you provide the ChartMill fundamental rating for WW GRAINGER INC?
ChartMill assigns a fundamental rating of 6 / 10 to GWW.
Can you provide the valuation status for WW GRAINGER INC?
ChartMill assigns a valuation rating of 2 / 10 to WW GRAINGER INC (GWW). This can be considered as Overvalued.
What is the profitability of GWW stock?
WW GRAINGER INC (GWW) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for GWW stock?
The Price/Earnings (PE) ratio for WW GRAINGER INC (GWW) is 25.76 and the Price/Book (PB) ratio is 13.67.
Is the dividend of WW GRAINGER INC sustainable?
The dividend rating of WW GRAINGER INC (GWW) is 6 / 10 and the dividend payout ratio is 26.47%.