US3848021040 - Common Stock

We assign a fundamental rating of **6** out of 10 to **GWW**. **GWW** was compared to 51 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.

In the past year **GWW** had a positive cash flow from operations.

Looking at the **Return On Assets**, with a value of **21.65%**, **GWW** belongs to the top of the industry, outperforming **98.04%** of the companies in the same industry.

Looking at the **Return On Equity**, with a value of **56.86%**, **GWW** belongs to the top of the industry, outperforming **90.20%** of the companies in the same industry.

Looking at the **Return On Invested Capital**, with a value of **33.23%**, **GWW** belongs to the top of the industry, outperforming **100.00%** of the companies in the same industry.

The 3 year average ROIC (**27.96%**) for **GWW** is below the current ROIC(**33.23%**), indicating increased profibility in the last year.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 21.65% | ||

ROE | 56.86% | ||

ROIC | 33.23% |

ROA(3y)19.55%

ROA(5y)16.77%

ROE(3y)59.26%

ROE(5y)52.31%

ROIC(3y)27.96%

ROIC(5y)25.71%

With a decent **Profit Margin** value of **10.94%**, **GWW** is doing good in the industry, outperforming **72.55%** of the companies in the same industry.

In the last couple of years the **Profit Margin** of **GWW** has grown nicely.

In the last couple of years the **Operating Margin** of **GWW** has grown nicely.

Industry Rank | Sector Rank | ||
---|---|---|---|

OM | 15.52% | ||

PM (TTM) | 10.94% | ||

GM | 39.29% |

OM growth 3Y11.81%

OM growth 5Y5.59%

PM growth 3Y23.51%

PM growth 5Y9.76%

GM growth 3Y3.15%

GM growth 5Y0.35%

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so **GWW** is creating value.

The debt/assets ratio for **GWW** has been reduced compared to a year ago.

The **Altman-Z score** of **GWW** (**10.65**) is better than **96.08%** of its industry peers.

The Debt to FCF ratio of **GWW** is **1.29**, which is an excellent value as it means it would take **GWW**, only **1.29** years of fcf income to pay off all of its debts.

A Debt/Equity ratio of **0.56** indicates that **GWW** is somewhat dependend on debt financing.

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 | 0.56 | ||

Debt/FCF | 1.29 | ||

Altman-Z | 10.65 |

ROIC/WACC3.86

WACC8.62%

A Current Ratio of **2.19** indicates that **GWW** has no problem at all paying its short term obligations.

The **Quick ratio** of **GWW** (**1.33**) is comparable to the rest of the industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 2.19 | ||

Quick Ratio | 1.33 |

The **Earnings Per Share** has grown by an nice **13.82%** over the past year.

Measured over the past years, **GWW** shows a quite strong growth in **Earnings Per Share**. The EPS has been growing by **17.02%** on average per year.

The **Revenue** has been growing slightly by **6.06%** in the past year.

EPS 1Y (TTM)13.82%

EPS 3Y31.36%

EPS 5Y17.02%

EPS Q2Q%0.1%

Revenue 1Y (TTM)6.06%

Revenue growth 3Y11.78%

Revenue growth 5Y7.99%

Sales Q2Q%3.52%

EPS Next Y8.27%

EPS Next 2Y8.84%

EPS Next 3Y7.82%

EPS Next 5Y5.12%

Revenue Next Year5.44%

Revenue Next 2Y6.16%

Revenue Next 3Y6.65%

Revenue Next 5Y5.97%

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.

A **Price/Earnings** ratio of **24.74** indicates a rather expensive valuation of **GWW**.

Based on the **Price/Earnings** ratio, **GWW** is valued a bit more expensive than 60.78% of the companies in the same industry.

The **Price/Forward Earnings** ratio is **20.89**, which indicates a rather expensive current valuation of **GWW**.

Based on the **Price/Forward Earnings** ratio, **GWW** is valued a bit more expensive than 66.67% of the companies in the same industry.

Compared to an average S&P500 **Price/Forward Earnings** ratio of **19.91**, **GWW** is valued at the same level.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 24.74 | ||

Fwd PE | 20.89 |

Based on the **Enterprise Value to EBITDA** ratio, **GWW** is valued a bit more expensive than the industry average as 68.63% of the companies are valued more cheaply.

Compared to the rest of the industry, the **Price/Free Cash Flow** ratio of **GWW** is on the same level as its industry peers.

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | 25.11 | ||

EV/EBITDA | 16.43 |

The high **PEG Ratio(NY)**, which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.

The excellent profitability rating of **GWW** may justify a higher PE ratio.

PEG (NY)2.99

PEG (5Y)1.45

EPS Next 2Y8.84%

EPS Next 3Y7.82%

With a yearly dividend of 0.89%, **GWW** is not a good candidate for dividend investing.

With a **Dividend Yield** of **0.89**, **GWW** pays less dividend than the S&P500 average, which is at **2.39**.

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 0.89% |

The dividend of **GWW** is nicely growing with an annual growth rate of **6.92%**!

Dividend Growth(5Y)6.92%

Div Incr Years33

Div Non Decr Years33

The dividend of **GWW** is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.

DP22.54%

EPS Next 2Y8.84%

EPS Next 3Y7.82%

**WW GRAINGER INC**

NYSE:GWW (6/14/2024, 7:13:16 PM)

After market: 906.79 0 (0%)**906.79**

**-14.28 (-1.55%) **

Chartmill FA Rating

GICS SectorIndustrials

GICS IndustryGroupCapital Goods

GICS IndustryTrading Companies & Distributors

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

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Market Cap44.50B

Analysts

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Dividend

Industry Rank | Sector Rank | ||
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Dividend Yield | 0.89% |

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Valuation

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 24.74 | ||

Fwd PE | 20.89 | ||

P/S | |||

P/FCF | |||

P/OCF | |||

P/B | |||

P/tB | |||

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EPS(TTM)

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PEG (NY)2.99

PEG (5Y)1.45

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 21.65% | ||

ROE | 56.86% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 15.52% | ||

PM (TTM) | 10.94% | ||

GM | 39.29% | ||

FCFM |

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

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F-Score

Asset Turnover1.98

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 0.56 | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 2.19 | ||

Quick Ratio | 1.33 | ||

Altman-Z |

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

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High Growth Momentum

Growth

EPS 1Y (TTM)13.82%

EPS 3Y31.36%

EPS 5Y

EPS Q2Q%

EPS Next Y8.27%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)6.06%

Revenue growth 3Y11.78%

Revenue growth 5Y

Sales Q2Q%

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Revenue Next 5Y

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