WW GRAINGER INC (GWW) Stock Fundamental Analysis
USA - NYSE:GWW - US3848021040 - Common Stock
968.41 USD
+4.34 (+0.45%)
968.41 USD
0 (0%)
Taking everything into account, GWW scores 7 out of 10 in our fundamental rating. GWW was compared to 50 industry peers in the Trading Companies & Distributors industry. GWW has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GWW is quite expensive at the moment. It does show a decent growth rate. This makes GWW very considerable 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.
GWW had positive earnings in each of the past 5 years.
Each year in the past 5 years GWW had a positive operating cash flow.
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.
Looking at the Return On Invested Capital, with a value of 29.46%, GWW belongs to the top of the industry, outperforming 97.96% 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 10.20%.
| 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.
In the last couple of years the Profit Margin of GWW has grown nicely.
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.
With a decent Gross Margin value of 39.25%, GWW is doing good in the industry, outperforming 75.51% of the companies in the same industry.
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.
The number of shares outstanding for GWW has been reduced compared to 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 10.97. This indicates that GWW is financially healthy and has little risk of bankruptcy at the moment.
GWW has a better Altman-Z score (10.97) than 97.96% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 1.65, GWW belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
GWW has a Debt/Equity ratio of 0.64. This is a neutral value indicating GWW is somewhat dependend on debt financing.
GWW has a Debt to Equity ratio (0.64) which is comparable to the rest of the 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 | 0.64 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 10.97 |
ROIC/WACC3.2
WACC9.22%
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.
Looking at the Current ratio, with a value of 2.82, GWW is in the better half of the industry, outperforming 73.47% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that GWW should not have too much problems paying its short term obligations.
GWW has a Quick ratio of 1.64. This is in the better half of the industry: GWW outperforms 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.
Looking at the last year, GWW shows a small growth in Revenue. The Revenue has grown by 4.35% in the last year.
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
GWW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.78% yearly.
The Revenue is expected to grow by 7.02% on average over the next years.
EPS Next Y2.46%
EPS Next 2Y6.79%
EPS Next 3Y7.82%
EPS Next 5Y9.78%
Revenue Next Year4.91%
Revenue Next 2Y5.59%
Revenue Next 3Y5.83%
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.
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
A Price/Earnings ratio of 24.57 indicates a rather expensive valuation of GWW.
GWW's Price/Earnings ratio is in line with the industry average.
GWW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.80, the valuation of GWW can be described as rather expensive.
GWW's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of GWW to the average of the S&P500 Index (22.99), we can say GWW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.57 | ||
| Fwd PE | 21.8 |
4.2 Price Multiples
GWW's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GWW indicates a somewhat cheap valuation: GWW is cheaper than 61.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.71 | ||
| EV/EBITDA | 16.49 |
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)9.98
PEG (5Y)1.39
EPS Next 2Y6.79%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, GWW is not a good candidate for dividend investing.
GWW's Dividend Yield is a higher than the industry average which is at 1.85.
With a Dividend Yield of 0.94, GWW pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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 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
22.89% of the earnings are spent on dividend by GWW. This is a low number and sustainable payout ratio.
GWW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.89%
EPS Next 2Y6.79%
EPS Next 3Y7.82%
968.41
+4.34 (+0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners74.36%
Inst Owner Change2.11%
Ins Owners6.11%
Ins Owner Change-0.1%
Market Cap46.32B
Revenue(TTM)17.48B
Net Income(TTM)1.92B
Analysts66.67
Price Target1048.22 (8.24%)
Short Float %2.4%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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)-4.37%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-5.67%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-2.37%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.57 | ||
| Fwd PE | 21.8 | ||
| P/S | 2.65 | ||
| P/FCF | 32.71 | ||
| P/OCF | 22.46 | ||
| P/B | 12.61 | ||
| P/tB | 15.23 | ||
| EV/EBITDA | 16.49 |
EPS(TTM)39.41
EY4.07%
EPS(NY)44.43
Fwd EY4.59%
FCF(TTM)29.6
FCFY3.06%
OCF(TTM)43.11
OCFY4.45%
SpS365.48
BVpS76.81
TBVpS63.6
PEG (NY)9.98
PEG (5Y)1.39
Graham Number260.98
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%
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-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
WACC9.22%
ROIC/WACC3.2
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 Y2.46%
EPS Next 2Y6.79%
EPS Next 3Y7.82%
EPS Next 5Y9.78%
Revenue 1Y (TTM)4.35%
Revenue growth 3Y9.65%
Revenue growth 5Y8.37%
Sales Q2Q%5.61%
Revenue Next Year4.91%
Revenue Next 2Y5.59%
Revenue Next 3Y5.83%
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%
WW GRAINGER INC / GWW FAQ
Can you provide the ChartMill fundamental rating for WW GRAINGER INC?
ChartMill assigns a fundamental rating of 7 / 10 to GWW.
Can you provide the valuation status for WW GRAINGER INC?
ChartMill assigns a valuation rating of 3 / 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 24.57 and the Price/Book (PB) ratio is 12.61.
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 22.89%.