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Why Quality Investors Should Delve into WW GRAINGER INC (NYSE:GWW) for Investment Opportunities.

By Mill Chart

Last update: Oct 31, 2023

In this article we will dive into WW GRAINGER INC (NYSE:GWW) as a possible candidate for quality investing. Investors should always do their own research, but we noticed WW GRAINGER INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NYSE:GWW may be interesting for quality investors.

  • The 5-year revenue growth of WW GRAINGER INC has been remarkable, with 7.87% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • With a robust ROIC excluding cash and goodwill at 37.72%, WW GRAINGER INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • With a favorable Debt/Free Cash Flow Ratio of 1.61, WW GRAINGER INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • WW GRAINGER INC exhibits impressive Profit Quality (5-year) with a 93.91% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • WW GRAINGER INC has consistently achieved strong EBIT growth over the past 5 years, with a 13.77% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • WW GRAINGER INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What is the full fundamental picture of NYSE:GWW telling us.

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Overall GWW gets a fundamental rating of 7 out of 10. We evaluated GWW against 53 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 has a correct valuation and a medium growth rate. With these ratings, GWW could be worth investigating further for quality investing!.

For an up to date full fundamental analysis you can check the fundamental report of GWW

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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