WW GRAINGER INC (GWW) Stock Fundamental Analysis
NYSE:GWW • US3848021040
1131.42 USD
+14.82 (+1.33%)
At close: Feb 13, 2026
1131.42 USD
0 (0%)
After Hours: 2/13/2026, 8:14:26 PM
Overall GWW gets a fundamental rating of 6 out of 10. We evaluated GWW against 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 is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make GWW suitable for quality investing!
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.
- In the past 5 years GWW always reported a positive cash flow from operatings.
1.2 Ratios
- GWW has a better Return On Assets (19.04%) than 98.04% of its industry peers.
- The Return On Equity of GWW (41.20%) is better than 94.12% of its industry peers.
- With an excellent Return On Invested Capital value of 26.89%, GWW belongs to the best of the industry, outperforming 98.04% of the companies in the same industry.
- GWW had an Average Return On Invested Capital over the past 3 years of 29.57%. This is significantly above the industry average of 9.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.04% | ||
| ROE | 41.2% | ||
| ROIC | 26.89% |
ROA(3y)21.04%
ROA(5y)19.86%
ROE(3y)52.25%
ROE(5y)55.16%
ROIC(3y)29.57%
ROIC(5y)28.32%
1.3 Margins
- GWW has a better Profit Margin (9.51%) than 76.47% of its industry peers.
- In the last couple of years the Profit Margin of GWW has grown nicely.
- With a decent Operating Margin value of 13.91%, GWW is doing good in the industry, outperforming 76.47% of the companies in the same industry.
- GWW's Operating Margin has improved in the last couple of years.
- GWW has a Gross Margin of 39.06%. This is in the better half of the industry: GWW outperforms 74.51% of its industry peers.
- 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. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GWW is creating value.
- GWW has less shares outstanding than it did 1 year ago.
- GWW has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for GWW has been reduced compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of GWW is 1.87, which is an excellent value as it means it would take GWW, only 1.87 years of fcf income to pay off all of its debts.
- GWW's Debt to FCF ratio of 1.87 is amongst the best of the industry. GWW outperforms 82.35% of its industry peers.
- A Debt/Equity ratio of 0.57 indicates that GWW is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.57, GWW is in line with its industry, outperforming 54.90% of the companies in the same industry.
- Although GWW does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | N/A |
ROIC/WACC2.79
WACC9.63%
2.3 Liquidity
- GWW has a Current Ratio of 2.83. This indicates that GWW is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of GWW (2.83) is better than 74.51% of its industry peers.
- GWW has a Quick Ratio of 1.59. This is a normal value and indicates that GWW is financially healthy and should not expect problems in meeting its short term obligations.
- GWW's Quick ratio of 1.59 is fine compared to the rest of the industry. GWW outperforms 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.59 |
3. Growth
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.
- The Revenue has been growing slightly by 4.51% in the past year.
- Measured over the past years, GWW shows a quite strong growth in Revenue. The Revenue has been growing by 8.75% on average per year.
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
- GWW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.58% yearly.
- The Revenue is expected to grow by 7.54% on average over the next years.
EPS Next Y12.28%
EPS Next 2Y11.65%
EPS Next 3Y10.84%
EPS Next 5Y11.58%
Revenue Next Year5.08%
Revenue Next 2Y5.79%
Revenue Next 3Y6.12%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 28.66, which means the current valuation is very expensive for GWW.
- GWW's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.97. GWW is around the same levels.
- With a Price/Forward Earnings ratio of 25.52, GWW can be considered very expensive at the moment.
- GWW's Price/Forward Earnings is on the same level as the industry average.
- GWW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.66 | ||
| Fwd PE | 25.52 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GWW is on the same level as its industry peers.
- 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 | 40.42 | ||
| EV/EBITDA | 20.01 |
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)2.33
PEG (5Y)1.47
EPS Next 2Y11.65%
EPS Next 3Y10.84%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.75%, GWW is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.82, GWW pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.79, GWW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
- The dividend of GWW is nicely growing with an annual growth rate of 8.88%!
- 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)8.88%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- 27.37% 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.
DP27.37%
EPS Next 2Y11.65%
EPS Next 3Y10.84%
1131.42
+14.82 (+1.33%)
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 Owners73.69%
Inst Owner Change-1.43%
Ins Owners6.15%
Ins Owner Change-0.07%
Market Cap53.80B
Revenue(TTM)17.94B
Net Income(TTM)1.71B
Analysts66.4
Price Target1081.96 (-4.37%)
Short Float %3.07%
Short Ratio4.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend9.74
Dividend Growth(5Y)8.88%
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)2.43%
PT rev (3m)3.02%
EPS NQ rev (1m)0.73%
EPS NQ rev (3m)0.91%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.66 | ||
| Fwd PE | 25.52 | ||
| P/S | 3 | ||
| P/FCF | 40.42 | ||
| P/OCF | 26.7 | ||
| P/B | 12.99 | ||
| P/tB | 15.3 | ||
| EV/EBITDA | 20.01 |
EPS(TTM)39.48
EY3.49%
EPS(NY)44.33
Fwd EY3.92%
FCF(TTM)27.99
FCFY2.47%
OCF(TTM)42.38
OCFY3.75%
SpS377.33
BVpS87.09
TBVpS73.94
PEG (NY)2.33
PEG (5Y)1.47
Graham Number278.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.04% | ||
| ROE | 41.2% | ||
| 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)52.25%
ROE(5y)55.16%
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 | 0.57 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 269.29% | ||
| Cap/Sales | 3.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.3% | ||
| Profit Quality | 78.02% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | N/A |
F-Score6
WACC9.63%
ROIC/WACC2.79
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 Y12.28%
EPS Next 2Y11.65%
EPS Next 3Y10.84%
EPS Next 5Y11.58%
Revenue 1Y (TTM)4.51%
Revenue growth 3Y5.62%
Revenue growth 5Y8.75%
Sales Q2Q%4.54%
Revenue Next Year5.08%
Revenue Next 2Y5.79%
Revenue Next 3Y6.12%
Revenue Next 5Y7.54%
EBIT growth 1Y-5.96%
EBIT growth 3Y4.38%
EBIT growth 5Y13.46%
EBIT Next Year18.72%
EBIT Next 3Y11.36%
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 FAQ
Can you provide the ChartMill fundamental rating for WW GRAINGER INC?
ChartMill assigns a fundamental rating of 6 / 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.
What is the profitability of GWW stock?
WW GRAINGER INC (GWW) has a profitability rating of 8 / 10.
How financially healthy is WW GRAINGER INC?
The financial health rating of WW GRAINGER INC (GWW) is 7 / 10.
Can you provide the expected EPS growth for GWW stock?
The Earnings per Share (EPS) of WW GRAINGER INC (GWW) is expected to grow by 12.28% in the next year.