Is NYSE:GWW suited for quality investing?

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.

Looking into the quality metrics of WW GRAINGER INC

• Over the past 5 years, WW GRAINGER INC has experienced impressive revenue growth, with 7.99% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• The ROIC excluding cash and goodwill of WW GRAINGER INC stands at 41.9%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a favorable Debt/Free Cash Flow Ratio of 1.48, 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 90.33% 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.
• The 5-year EBIT growth of WW GRAINGER INC has been remarkable, with 14.03% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• The EBIT 5-year growth of WW GRAINGER INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental Analysis Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall GWW gets a fundamental rating of 6 out of 10. We evaluated GWW against 48 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 valued expensive and it does not seem to be growing.

Our latest full fundamental report of GWW contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice. 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.