WW GRAINGER INC (GWW)
US3848021040 - Common Stock
Taking everything into account, GWW scores 6 out of 10 in our fundamental rating. GWW was compared to 51 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
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.
Each year in the past 5 years GWW had a positive operating cash flow.
1.2 Ratios
GWW has a better Return On Assets (20.07%) than 98.04% of its industry peers.
GWW has a better Return On Equity (52.21%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 29.07%, GWW belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GWW is significantly above the industry average of 9.29%.
The last Return On Invested Capital (29.07%) for GWW is above the 3 year average (27.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.07% | ||
| ROE | 52.21% | ||
| ROIC | 29.07% |
ROA(3y)19.55%
ROA(5y)16.77%
ROE(3y)59.26%
ROE(5y)52.31%
ROIC(3y)27.96%
ROIC(5y)25.71%
1.3 Margins
Looking at the Profit Margin, with a value of 10.80%, GWW belongs to the top of the industry, outperforming 84.31% of the companies in the same industry.
In the last couple of years the Profit Margin of GWW has grown nicely.
With an excellent Operating Margin value of 15.28%, GWW belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
In the last couple of years the Operating Margin of GWW has grown nicely.
GWW's Gross Margin of 39.25% is fine compared to the rest of the industry. GWW outperforms 68.63% of its industry peers.
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 | 15.28% | ||
| PM (TTM) | 10.8% | ||
| GM | 39.25% |
OM growth 3Y11.81%
OM growth 5Y5.59%
PM growth 3Y23.51%
PM growth 5Y9.76%
GM growth 3Y3.15%
GM growth 5Y0.35%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GWW is creating value.
Compared to 1 year ago, GWW has less shares outstanding
Compared to 5 years ago, GWW has less shares outstanding
GWW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 11.48 indicates that GWW is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 11.48, GWW belongs to the best of the industry, outperforming 96.08% of the companies in the same industry.
The Debt to FCF ratio of GWW is 1.48, which is an excellent value as it means it would take GWW, only 1.48 years of fcf income to pay off all of its debts.
GWW's Debt to FCF ratio of 1.48 is fine compared to the rest of the industry. GWW outperforms 74.51% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that GWW is somewhat dependend on debt financing.
GWW has a Debt to Equity ratio (0.65) which is in line with its industry peers.
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 | 0.65 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 11.48 |
ROIC/WACC2.53
WACC11.49%
2.3 Liquidity
A Current Ratio of 2.59 indicates that GWW has no problem at all paying its short term obligations.
GWW has a Current ratio of 2.59. This is in the better half of the industry: GWW outperforms 64.71% of its industry peers.
A Quick Ratio of 1.68 indicates that GWW should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.68, GWW is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.98% 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.
GWW shows a small growth in Revenue. In the last year, the Revenue has grown by 3.99%.
The Revenue has been growing slightly by 7.99% on average over the past years.
EPS 1Y (TTM)5.98%
EPS 3Y31.36%
EPS 5Y17.02%
EPS Q2Q%4.67%
Revenue 1Y (TTM)3.99%
Revenue growth 3Y11.78%
Revenue growth 5Y7.99%
Sales Q2Q%4.28%
3.2 Future
The Earnings Per Share is expected to grow by 5.13% on average over the next years.
The Revenue is expected to grow by 5.97% on average over the next years.
EPS Next Y7.36%
EPS Next 2Y7.73%
EPS Next 3Y8.47%
EPS Next 5Y5.13%
Revenue Next Year3.97%
Revenue Next 2Y4.99%
Revenue Next 3Y5.69%
Revenue Next 5Y5.97%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 31.36 indicates a quite expensive valuation of GWW.
62.75% of the companies in the same industry are cheaper than GWW, based on the Price/Earnings ratio.
GWW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 27.71 indicates a quite expensive valuation of GWW.
GWW's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. GWW is more expensive than 60.78% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.56. GWW is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.36 | ||
| Fwd PE | 27.71 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than GWW, based on the Enterprise Value to EBITDA ratio.
62.75% of the companies in the same industry are more expensive than GWW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.58 | ||
| EV/EBITDA | 20.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GWW does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of GWW may justify a higher PE ratio.
PEG (NY)4.26
PEG (5Y)1.84
EPS Next 2Y7.73%
EPS Next 3Y8.47%
5. Dividend
5.1 Amount
GWW has a yearly dividend return of 0.70%, which is pretty low.
GWW's Dividend Yield is comparable with the industry average which is at 1.73.
Compared to an average S&P500 Dividend Yield of 2.23, GWW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
On average, the dividend of GWW grows each year by 6.92%, 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)6.92%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
22.58% of the earnings are spent on dividend by GWW. This is a low number and sustainable payout ratio.
GWW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.58%
EPS Next 2Y7.73%
EPS Next 3Y8.47%
WW GRAINGER INC
NYSE:GWW (11/20/2024, 8:04:00 PM)
After market: 1178.45 0 (0%)1178.45
+6.38 (+0.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap57.39B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.36 | ||
| Fwd PE | 27.71 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.26
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.07% | ||
| ROE | 52.21% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.28% | ||
| PM (TTM) | 10.8% | ||
| GM | 39.25% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)5.98%
EPS 3Y31.36%
EPS 5Y
EPS Q2Q%
EPS Next Y7.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.99%
Revenue growth 3Y11.78%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y