WW GRAINGER INC (GWW) Fundamental Analysis & Valuation
NYSE:GWW • US3848021040
Current stock price
1147.99 USD
-16.92 (-1.45%)
At close:
1147.99 USD
0 (0%)
After Hours:
This GWW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. GWW Profitability Analysis
1.1 Basic Checks
- GWW had positive earnings in the past year.
- GWW had a positive operating cash flow in the past year.
- GWW had positive earnings in each of the past 5 years.
- GWW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of GWW (19.04%) is better than 97.83% of its industry peers.
- Looking at the Return On Equity, with a value of 45.66%, GWW belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- GWW's Return On Invested Capital of 26.89% is amongst the best of the industry. GWW outperforms 97.83% of its industry peers.
- GWW had an Average Return On Invested Capital over the past 3 years of 29.57%. This is significantly above the industry average of 9.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.04% | ||
| ROE | 45.66% | ||
| ROIC | 26.89% |
ROA(3y)21.04%
ROA(5y)19.86%
ROE(3y)53.74%
ROE(5y)56.06%
ROIC(3y)29.57%
ROIC(5y)28.32%
1.3 Margins
- GWW has a better Profit Margin (9.51%) than 82.61% of its industry peers.
- GWW's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 13.91%, GWW belongs to the best of the industry, outperforming 80.43% of the companies in the same industry.
- In the last couple of years the Operating Margin of GWW has grown nicely.
- With a decent Gross Margin value of 39.06%, GWW is doing good in the industry, outperforming 76.09% of the companies in the same industry.
- In the last couple of years the Gross Margin of GWW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.91% | ||
| PM (TTM) | 9.51% | ||
| GM | 39.06% |
OM growth 3Y-1.17%
OM growth 5Y4.33%
PM growth 3Y-2.18%
PM growth 5Y10.05%
GM growth 3Y0.57%
GM growth 5Y1.69%
2. GWW Health Analysis
2.1 Basic Checks
- GWW has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- GWW has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, GWW has less shares outstanding
- Compared to 1 year ago, GWW has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 12.06 indicates that GWW is not in any danger for bankruptcy at the moment.
- The Altman-Z score of GWW (12.06) is better than 97.83% of its industry peers.
- GWW has a debt to FCF ratio of 1.87. This is a very positive value and a sign of high solvency as it would only need 1.87 years to pay back of all of its debts.
- GWW has a Debt to FCF ratio of 1.87. This is amongst the best in the industry. GWW outperforms 86.96% of its industry peers.
- GWW has a Debt/Equity ratio of 0.63. This is a neutral value indicating GWW is somewhat dependend on debt financing.
- GWW has a Debt to Equity ratio (0.63) 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 | 0.63 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 12.06 |
ROIC/WACC2.91
WACC9.24%
2.3 Liquidity
- A Current Ratio of 2.83 indicates that GWW has no problem at all paying its short term obligations.
- GWW has a Current ratio of 2.83. This is in the better half of the industry: GWW outperforms 76.09% of its industry peers.
- A Quick Ratio of 1.59 indicates that GWW should not have too much problems paying its short term obligations.
- GWW has a better Quick ratio (1.59) than 71.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.59 |
3. GWW Growth Analysis
3.1 Past
- GWW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.33%.
- Measured over the past years, GWW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.55% on average per year.
- GWW shows a small growth in Revenue. In the last year, the Revenue has grown by 4.51%.
- GWW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.75% yearly.
EPS 1Y (TTM)1.33%
EPS 3Y9.99%
EPS 5Y19.55%
EPS Q2Q%-2.78%
Revenue 1Y (TTM)4.51%
Revenue growth 3Y5.62%
Revenue growth 5Y8.75%
Sales Q2Q%4.54%
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 11.58% on average per year.
- GWW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.54% yearly.
EPS Next Y11.71%
EPS Next 2Y11.41%
EPS Next 3Y10.68%
EPS Next 5Y11.58%
Revenue Next Year5.81%
Revenue Next 2Y6.35%
Revenue Next 3Y6.48%
Revenue Next 5Y7.54%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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. GWW Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 29.08, GWW can be considered very expensive at the moment.
- 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 27.42, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 26.03 indicates a quite expensive valuation of GWW.
- GWW's Price/Forward Earnings ratio is in line with the industry average.
- GWW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.08 | ||
| Fwd PE | 26.03 |
4.2 Price Multiples
- 67.39% of the companies in the same industry are cheaper than GWW, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, GWW is valued a bit cheaper than 63.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.82 | ||
| EV/EBITDA | 20.75 |
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)2.48
PEG (5Y)1.49
EPS Next 2Y11.41%
EPS Next 3Y10.68%
5. GWW Dividend Analysis
5.1 Amount
- GWW has a yearly dividend return of 0.78%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.78, GWW pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.78, GWW pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
- On average, the dividend of GWW grows each year by 8.91%, which is quite nice.
- GWW has been paying a dividend for at least 10 years, so it has a reliable track record.
- GWW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.91%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- GWW pays out 27.37% of its income as dividend. This is a sustainable payout ratio.
- GWW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27.37%
EPS Next 2Y11.41%
EPS Next 3Y10.68%
GWW Fundamentals: All Metrics, Ratios and Statistics
1147.99
-16.92 (-1.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)02-03 2026-02-03/bmo
Earnings (Next)05-07 2026-05-07
Inst Owners76.74%
Inst Owner Change-0.11%
Ins Owners6.2%
Ins Owner Change0.69%
Market Cap54.33B
Revenue(TTM)17.94B
Net Income(TTM)1.71B
Analysts66.67
Price Target1152.62 (0.4%)
Short Float %2.34%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
Yearly Dividend9.75
Dividend Growth(5Y)8.91%
DP27.37%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-09 2026-02-09 (2.26)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.18%
Min EPS beat(2)-1.23%
Max EPS beat(2)1.6%
EPS beat(4)2
Avg EPS beat(4)0.34%
Min EPS beat(4)-1.9%
Max EPS beat(4)2.89%
EPS beat(8)3
Avg EPS beat(8)-0.27%
EPS beat(12)7
Avg EPS beat(12)1.44%
EPS beat(16)11
Avg EPS beat(16)3.28%
Revenue beat(2)0
Avg Revenue beat(2)-0.59%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)-0.49%
Revenue beat(4)0
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)-0.42%
Revenue beat(8)0
Avg Revenue beat(8)-1.09%
Revenue beat(12)0
Avg Revenue beat(12)-1.17%
Revenue beat(16)3
Avg Revenue beat(16)-0.48%
PT rev (1m)1.59%
PT rev (3m)8.13%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)-2.08%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.08 | ||
| Fwd PE | 26.03 | ||
| P/S | 3.03 | ||
| P/FCF | 40.82 | ||
| P/OCF | 26.96 | ||
| P/B | 14.54 | ||
| P/tB | 17.47 | ||
| EV/EBITDA | 20.75 |
EPS(TTM)39.48
EY3.44%
EPS(NY)44.1
Fwd EY3.84%
FCF(TTM)28.12
FCFY2.45%
OCF(TTM)42.57
OCFY3.71%
SpS379.08
BVpS78.94
TBVpS65.73
PEG (NY)2.48
PEG (5Y)1.49
Graham Number264.798 (-76.93%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.04% | ||
| ROE | 45.66% | ||
| ROCE | 35.53% | ||
| ROIC | 26.89% | ||
| ROICexc | 29.34% | ||
| ROICexgc | 32.49% | ||
| OM | 13.91% | ||
| PM (TTM) | 9.51% | ||
| GM | 39.06% | ||
| FCFM | 7.42% |
ROA(3y)21.04%
ROA(5y)19.86%
ROE(3y)53.74%
ROE(5y)56.06%
ROIC(3y)29.57%
ROIC(5y)28.32%
ROICexc(3y)33.53%
ROICexc(5y)31.3%
ROICexgc(3y)37.46%
ROICexgc(5y)35.19%
ROCE(3y)39.07%
ROCE(5y)37.42%
ROICexgc growth 3Y-3.1%
ROICexgc growth 5Y3.38%
ROICexc growth 3Y-2.46%
ROICexc growth 5Y4.51%
OM growth 3Y-1.17%
OM growth 5Y4.33%
PM growth 3Y-2.18%
PM growth 5Y10.05%
GM growth 3Y0.57%
GM growth 5Y1.69%
F-Score6
Asset Turnover2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 269.29% | ||
| Cap/Sales | 3.81% | ||
| Interest Coverage | 23.54 | ||
| Cash Conversion | 73.3% | ||
| Profit Quality | 78.02% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 12.06 |
F-Score6
WACC9.24%
ROIC/WACC2.91
Cap/Depr(3y)235.17%
Cap/Depr(5y)192.26%
Cap/Sales(3y)3.22%
Cap/Sales(5y)2.66%
Profit Quality(3y)82.32%
Profit Quality(5y)76.4%
High Growth Momentum
Growth
EPS 1Y (TTM)1.33%
EPS 3Y9.99%
EPS 5Y19.55%
EPS Q2Q%-2.78%
EPS Next Y11.71%
EPS Next 2Y11.41%
EPS Next 3Y10.68%
EPS Next 5Y11.58%
Revenue 1Y (TTM)4.51%
Revenue growth 3Y5.62%
Revenue growth 5Y8.75%
Sales Q2Q%4.54%
Revenue Next Year5.81%
Revenue Next 2Y6.35%
Revenue Next 3Y6.48%
Revenue Next 5Y7.54%
EBIT growth 1Y-5.96%
EBIT growth 3Y4.38%
EBIT growth 5Y13.46%
EBIT Next Year19.98%
EBIT Next 3Y11.72%
EBIT Next 5Y10.55%
FCF growth 1Y-15.22%
FCF growth 3Y7.31%
FCF growth 5Y7.53%
OCF growth 1Y-4.55%
OCF growth 3Y14.77%
OCF growth 5Y12.4%
WW GRAINGER INC / GWW Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for WW GRAINGER INC?
ChartMill assigns a fundamental rating of 7 / 10 to GWW.
What is the valuation status for GWW stock?
ChartMill assigns a valuation rating of 3 / 10 to WW GRAINGER INC (GWW). This can be considered as Overvalued.
How profitable is WW GRAINGER INC (GWW) stock?
WW GRAINGER INC (GWW) has a profitability rating of 9 / 10.
What are the PE and PB ratios of WW GRAINGER INC (GWW) stock?
The Price/Earnings (PE) ratio for WW GRAINGER INC (GWW) is 29.08 and the Price/Book (PB) ratio is 14.54.
What is the expected EPS growth for WW GRAINGER INC (GWW) stock?
The Earnings per Share (EPS) of WW GRAINGER INC (GWW) is expected to grow by 11.71% in the next year.