WW GRAINGER INC (GWW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GWW - US3848021040 - Common Stock
1035.1 USD
+1.77 (+0.17%)
GWW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 50 industry peers in the Trading Companies & Distributors industry. GWW scores excellent points on both the profitability and health parts. This is a solid base for a good stock. GWW is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
GWW had positive earnings in the past year.
In the past year GWW had a positive cash flow from operations.
Each year in the past 5 years GWW has been profitable.
In the past 5 years GWW always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GWW (19.55%) is better than 98.00% of its industry peers.
GWW's Return On Equity of 48.58% is amongst the best of the industry. GWW outperforms 94.00% of its industry peers.
The Return On Invested Capital of GWW (27.94%) is better than 98.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GWW is significantly above the industry average of 9.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.55% | ||
| ROE | 48.58% | ||
| ROIC | 27.94% |
ROA(3y)21.49%
ROA(5y)18.26%
ROE(3y)59.66%
ROE(5y)54.53%
ROIC(3y)30.88%
ROIC(5y)27.39%
1.3 Margins
The Profit Margin of GWW (9.75%) is better than 78.00% of its industry peers.
In the last couple of years the Profit Margin of GWW has grown nicely.
The Operating Margin of GWW (14.05%) is better than 76.00% of its industry peers.
GWW's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 39.09%, GWW is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
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 | 14.05% | ||
| PM (TTM) | 9.75% | ||
| GM | 39.09% |
OM growth 3Y9.16%
OM growth 5Y5.04%
PM growth 3Y11.56%
PM growth 5Y8.51%
GM growth 3Y2.79%
GM growth 5Y0.56%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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 worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 11.29 indicates that GWW is not in any danger for bankruptcy at the moment.
The Altman-Z score of GWW (11.29) is better than 98.00% of its industry peers.
GWW has a debt to FCF ratio of 1.92. This is a very positive value and a sign of high solvency as it would only need 1.92 years to pay back of all of its debts.
GWW's Debt to FCF ratio of 1.92 is amongst the best of the industry. GWW outperforms 82.00% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that GWW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, GWW perfoms like the industry average, outperforming 50.00% of the companies in the same 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 | 0.66 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 11.29 |
ROIC/WACC2.89
WACC9.66%
2.3 Liquidity
A Current Ratio of 2.72 indicates that GWW has no problem at all paying its short term obligations.
The Current ratio of GWW (2.72) is better than 72.00% 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 has a better Quick ratio (1.59) than 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.77% over the past year.
The Earnings Per Share has been growing by 17.64% on average over the past years. This is quite good.
GWW shows a small growth in Revenue. In the last year, the Revenue has grown by 4.83%.
Measured over the past years, GWW shows a quite strong growth in Revenue. The Revenue has been growing by 8.37% on average per year.
EPS 1Y (TTM)5.77%
EPS 3Y25.23%
EPS 5Y17.64%
EPS Q2Q%3.44%
Revenue 1Y (TTM)4.83%
Revenue growth 3Y9.65%
Revenue growth 5Y8.37%
Sales Q2Q%6.13%
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 9.39% on average per year.
The Revenue is expected to grow by 6.65% on average over the next years.
EPS Next Y2.39%
EPS Next 2Y6.56%
EPS Next 3Y8.03%
EPS Next 5Y9.39%
Revenue Next Year4.32%
Revenue Next 2Y4.69%
Revenue Next 3Y5.3%
Revenue Next 5Y6.65%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.04, GWW can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of GWW is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.00. GWW is around the same levels.
The Price/Forward Earnings ratio is 23.40, which indicates a rather expensive current valuation of GWW.
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 23.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.04 | ||
| Fwd PE | 23.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GWW is valued a bit more expensive than the industry average as 64.00% of the companies are valued more cheaply.
62.00% 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 | 39.95 | ||
| EV/EBITDA | 18.56 |
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)10.9
PEG (5Y)1.48
EPS Next 2Y6.56%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, GWW is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.01, GWW pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.90, GWW pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
On average, the dividend of GWW grows each year by 7.57%, which is quite nice.
GWW has paid a dividend for at least 10 years, which is a reliable track record.
GWW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.57%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
26.47% of the earnings are spent on dividend by GWW. This is a low number and sustainable payout ratio.
The dividend of GWW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP26.47%
EPS Next 2Y6.56%
EPS Next 3Y8.03%
NYSE:GWW (1/9/2026, 2:47:45 PM)
1035.1
+1.77 (+0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners73.69%
Inst Owner Change0%
Ins Owners6.15%
Ins Owner Change-0.05%
Market Cap49.22B
Revenue(TTM)17.75B
Net Income(TTM)1.73B
Analysts57.14
Price Target1056.24 (2.04%)
Short Float %2.81%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend8.62
Dividend Growth(5Y)7.57%
DP26.47%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.15%
Min EPS beat(2)-1.9%
Max EPS beat(2)1.6%
EPS beat(4)2
Avg EPS beat(4)0.31%
Min EPS beat(4)-1.9%
Max EPS beat(4)2.89%
EPS beat(8)4
Avg EPS beat(8)0.19%
EPS beat(12)8
Avg EPS beat(12)1.61%
EPS beat(16)12
Avg EPS beat(16)3.53%
Revenue beat(2)0
Avg Revenue beat(2)-0.55%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)-0.42%
Revenue beat(4)0
Avg Revenue beat(4)-0.89%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)-0.42%
Revenue beat(8)0
Avg Revenue beat(8)-1.27%
Revenue beat(12)0
Avg Revenue beat(12)-1.14%
Revenue beat(16)4
Avg Revenue beat(16)-0.33%
PT rev (1m)-0.81%
PT rev (3m)0.77%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-1.78%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-2.33%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.04 | ||
| Fwd PE | 23.4 | ||
| P/S | 2.77 | ||
| P/FCF | 39.95 | ||
| P/OCF | 24.03 | ||
| P/B | 13.82 | ||
| P/tB | 16.76 | ||
| EV/EBITDA | 18.56 |
EPS(TTM)39.75
EY3.84%
EPS(NY)44.24
Fwd EY4.27%
FCF(TTM)25.91
FCFY2.5%
OCF(TTM)43.07
OCFY4.16%
SpS373.29
BVpS74.89
TBVpS61.75
PEG (NY)10.9
PEG (5Y)1.48
Graham Number258.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.55% | ||
| ROE | 48.58% | ||
| ROCE | 36.5% | ||
| ROIC | 27.94% | ||
| ROICexc | 30.31% | ||
| ROICexgc | 33.65% | ||
| OM | 14.05% | ||
| PM (TTM) | 9.75% | ||
| GM | 39.09% | ||
| FCFM | 6.94% |
ROA(3y)21.49%
ROA(5y)18.26%
ROE(3y)59.66%
ROE(5y)54.53%
ROIC(3y)30.88%
ROIC(5y)27.39%
ROICexc(3y)34.68%
ROICexc(5y)30.48%
ROICexgc(3y)38.97%
ROICexgc(5y)34.58%
ROCE(3y)40.34%
ROCE(5y)35.78%
ROICexgc growth 3Y13.79%
ROICexgc growth 5Y5.15%
ROICexc growth 3Y14.65%
ROICexc growth 5Y6.97%
OM growth 3Y9.16%
OM growth 5Y5.04%
PM growth 3Y11.56%
PM growth 5Y8.51%
GM growth 3Y2.79%
GM growth 5Y0.56%
F-Score6
Asset Turnover2.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 1.92 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 323.81% | ||
| Cap/Sales | 4.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.58% | ||
| Profit Quality | 71.21% | ||
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 11.29 |
F-Score6
WACC9.66%
ROIC/WACC2.89
Cap/Depr(3y)184.73%
Cap/Depr(5y)160.05%
Cap/Sales(3y)2.51%
Cap/Sales(5y)2.23%
Profit Quality(3y)79.52%
Profit Quality(5y)87.44%
High Growth Momentum
Growth
EPS 1Y (TTM)5.77%
EPS 3Y25.23%
EPS 5Y17.64%
EPS Q2Q%3.44%
EPS Next Y2.39%
EPS Next 2Y6.56%
EPS Next 3Y8.03%
EPS Next 5Y9.39%
Revenue 1Y (TTM)4.83%
Revenue growth 3Y9.65%
Revenue growth 5Y8.37%
Sales Q2Q%6.13%
Revenue Next Year4.32%
Revenue Next 2Y4.69%
Revenue Next 3Y5.3%
Revenue Next 5Y6.65%
EBIT growth 1Y-4.19%
EBIT growth 3Y19.7%
EBIT growth 5Y13.83%
EBIT Next Year11.28%
EBIT Next 3Y9.02%
EBIT Next 5Y8.46%
FCF growth 1Y-13.3%
FCF growth 3Y32.04%
FCF growth 5Y13.84%
OCF growth 1Y14.61%
OCF growth 3Y31.09%
OCF growth 5Y15.17%
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 8 / 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 2.39% in the next year.