WW GRAINGER INC (GWW) Stock Fundamental Analysis
USA - NYSE:GWW - US3848021040 - Common Stock
966.76 USD
-0.43 (-0.04%)
GWW gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 49 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. 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!.
1. Profitability
1.1 Basic Checks
GWW had positive earnings in the past year.
In the past year GWW had a positive cash flow from operations.
In the past 5 years GWW has always been profitable.
GWW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GWW's Return On Assets of 21.51% is amongst the best of the industry. GWW outperforms 97.96% of its industry peers.
GWW has a better Return On Equity (52.31%) than 91.84% of its industry peers.
GWW has a Return On Invested Capital of 29.46%. This is amongst the best in the industry. GWW outperforms 97.96% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GWW is significantly above the industry average of 10.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.51% | ||
| ROE | 52.31% | ||
| ROIC | 29.46% |
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 has a better Profit Margin (10.99%) than 79.59% of its industry peers.
GWW's Profit Margin has improved in the last couple of years.
GWW has a Operating Margin of 15.27%. This is in the better half of the industry: GWW outperforms 75.51% of its industry peers.
GWW's Operating Margin has improved in the last couple of years.
GWW's Gross Margin of 39.25% is fine compared to the rest of the industry. GWW outperforms 75.51% of its industry peers.
In the last couple of years the Gross Margin of GWW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.27% | ||
| PM (TTM) | 10.99% | ||
| GM | 39.25% |
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.
Compared to 5 years ago, GWW has less shares outstanding
The debt/assets ratio for GWW is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.97 indicates that GWW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.97, GWW belongs to the top of the industry, outperforming 97.96% of the companies in the same industry.
GWW has a debt to FCF ratio of 1.65. This is a very positive value and a sign of high solvency as it would only need 1.65 years to pay back of all of its debts.
GWW has a better Debt to FCF ratio (1.65) than 83.67% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that GWW is somewhat dependend on debt financing.
GWW has a Debt to Equity ratio of 0.64. This is comparable to the rest of the industry: GWW outperforms 51.02% of its industry peers.
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 | 0.64 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 10.97 |
ROIC/WACC3.13
WACC9.4%
2.3 Liquidity
GWW has a Current Ratio of 2.82. This indicates that GWW is financially healthy and has no problem in meeting its short term obligations.
GWW has a Current ratio of 2.82. This is in the better half of the industry: GWW outperforms 73.47% of its industry peers.
A Quick Ratio of 1.64 indicates that GWW should not have too much problems paying its short term obligations.
The Quick ratio of GWW (1.64) is better than 69.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.82 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.11% over the past year.
The Earnings Per Share has been growing by 17.64% on average over the past years. This is quite good.
GWW shows a small growth in Revenue. In the last year, the Revenue has grown by 4.35%.
The Revenue has been growing by 8.37% on average over the past years. This is quite good.
EPS 1Y (TTM)6.11%
EPS 3Y25.23%
EPS 5Y17.64%
EPS Q2Q%2.15%
Revenue 1Y (TTM)4.35%
Revenue growth 3Y9.65%
Revenue growth 5Y8.37%
Sales Q2Q%5.61%
3.2 Future
Based on estimates for the next years, GWW will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.78% on average per year.
The Revenue is expected to grow by 7.02% on average over the next years.
EPS Next Y2.39%
EPS Next 2Y6.93%
EPS Next 3Y8.03%
EPS Next 5Y9.78%
Revenue Next Year4.9%
Revenue Next 2Y5.66%
Revenue Next 3Y5.99%
Revenue Next 5Y7.02%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.53, which indicates a rather expensive current valuation of GWW.
GWW's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.91, GWW is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.70, the valuation of GWW can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as GWW.
GWW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.53 | ||
| Fwd PE | 21.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GWW is on the same level as its industry peers.
61.22% of the companies in the same industry are more expensive than GWW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.66 | ||
| EV/EBITDA | 16.47 |
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)10.26
PEG (5Y)1.39
EPS Next 2Y6.93%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
GWW has a yearly dividend return of 0.95%, which is pretty low.
GWW's Dividend Yield is a higher than the industry average which is at 1.77.
Compared to an average S&P500 Dividend Yield of 2.44, GWW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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 22.89% 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.
DP22.89%
EPS Next 2Y6.93%
EPS Next 3Y8.03%
NYSE:GWW (10/9/2025, 9:50:34 AM)
966.76
-0.43 (-0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners74.36%
Inst Owner Change0%
Ins Owners6.11%
Ins Owner Change-0.1%
Market Cap46.24B
Analysts66.67
Price Target1048.22 (8.43%)
Short Float %2.32%
Short Ratio3.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend8.62
Dividend Growth(5Y)7.57%
DP22.89%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.49%
Min EPS beat(2)-1.9%
Max EPS beat(2)2.89%
EPS beat(4)1
Avg EPS beat(4)-0.59%
Min EPS beat(4)-1.99%
Max EPS beat(4)2.89%
EPS beat(8)4
Avg EPS beat(8)0.56%
EPS beat(12)8
Avg EPS beat(12)2.56%
EPS beat(16)12
Avg EPS beat(16)3.78%
Revenue beat(2)0
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)-0.42%
Revenue beat(4)0
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-1.28%
Max Revenue beat(4)-0.42%
Revenue beat(8)0
Avg Revenue beat(8)-1.34%
Revenue beat(12)1
Avg Revenue beat(12)-1.04%
Revenue beat(16)5
Avg Revenue beat(16)-0.25%
PT rev (1m)0%
PT rev (3m)-4.89%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-5.66%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-2.49%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.53 | ||
| Fwd PE | 21.7 | ||
| P/S | 2.65 | ||
| P/FCF | 32.66 | ||
| P/OCF | 22.42 | ||
| P/B | 12.59 | ||
| P/tB | 15.2 | ||
| EV/EBITDA | 16.47 |
EPS(TTM)39.41
EY4.08%
EPS(NY)44.55
Fwd EY4.61%
FCF(TTM)29.6
FCFY3.06%
OCF(TTM)43.11
OCFY4.46%
SpS365.48
BVpS76.81
TBVpS63.6
PEG (NY)10.26
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.51% | ||
| ROE | 52.31% | ||
| ROCE | 38.49% | ||
| ROIC | 29.46% | ||
| ROICexc | 32.23% | ||
| ROICexgc | 35.81% | ||
| OM | 15.27% | ||
| PM (TTM) | 10.99% | ||
| GM | 39.25% | ||
| FCFM | 8.1% |
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-Score5
Asset Turnover1.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 1.65 | ||
| Debt/EBITDA | 0.8 | ||
| Cap/Depr | 262.6% | ||
| Cap/Sales | 3.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.74% | ||
| Profit Quality | 73.67% | ||
| Current Ratio | 2.82 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 10.97 |
F-Score5
WACC9.4%
ROIC/WACC3.13
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)6.11%
EPS 3Y25.23%
EPS 5Y17.64%
EPS Q2Q%2.15%
EPS Next Y2.39%
EPS Next 2Y6.93%
EPS Next 3Y8.03%
EPS Next 5Y9.78%
Revenue 1Y (TTM)4.35%
Revenue growth 3Y9.65%
Revenue growth 5Y8.37%
Sales Q2Q%5.61%
Revenue Next Year4.9%
Revenue Next 2Y5.66%
Revenue Next 3Y5.99%
Revenue Next 5Y7.02%
EBIT growth 1Y3.29%
EBIT growth 3Y19.7%
EBIT growth 5Y13.83%
EBIT Next Year11.06%
EBIT Next 3Y9.38%
EBIT Next 5Y8.84%
FCF growth 1Y4.27%
FCF growth 3Y32.04%
FCF growth 5Y13.84%
OCF growth 1Y25.43%
OCF growth 3Y31.09%
OCF growth 5Y15.17%