WW GRAINGER INC (GWW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GWW - US3848021040 - Common Stock
1068.72 USD
+5.42 (+0.51%)
1068.72 USD
0 (0%)
Taking everything into account, GWW scores 6 out of 10 in our fundamental rating. GWW was compared to 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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
- Each year in the past 5 years GWW has been profitable.
- GWW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 19.55%, GWW belongs to the top of the industry, outperforming 98.00% of the companies in the same industry.
- With an excellent Return On Equity value of 48.58%, GWW belongs to the best of the industry, outperforming 94.00% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 27.94%, GWW belongs to the best of the industry, outperforming 98.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years 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
- GWW has a Profit Margin of 9.75%. This is in the better half of the industry: GWW outperforms 78.00% of its industry peers.
- In the last couple of years the Profit Margin of GWW has grown nicely.
- GWW has a Operating Margin of 14.05%. This is in the better half of the industry: GWW outperforms 76.00% of its industry peers.
- GWW's Operating Margin has improved in the last couple of years.
- GWW has a better Gross Margin (39.09%) than 74.00% 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 | 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
- 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.
- GWW has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, GWW has a worse debt to assets ratio.
2.2 Solvency
- GWW has an Altman-Z score of 11.48. This indicates that GWW is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of GWW (11.48) 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.
- GWW has a Debt/Equity ratio of 0.66. This is a neutral value indicating GWW is somewhat dependend on debt financing.
- The Debt to Equity ratio of GWW (0.66) 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 | 0.66 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 11.48 |
ROIC/WACC2.89
WACC9.68%
2.3 Liquidity
- A Current Ratio of 2.72 indicates that GWW has no problem at all paying its short term obligations.
- GWW's Current ratio of 2.72 is fine compared to the rest of the industry. GWW outperforms 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.
- Looking at the Quick ratio, with a value of 1.59, GWW is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
| 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.
- Measured over the past years, GWW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.64% on average per year.
- GWW shows a small growth in Revenue. In the last year, the Revenue has grown by 4.83%.
- The Revenue has been growing by 8.37% on average over the past years. This is quite good.
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 Year4.29%
Revenue Next 2Y4.7%
Revenue Next 3Y5.31%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 26.89 indicates a quite expensive valuation of GWW.
- GWW's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of GWW to the average of the S&P500 Index (27.38), we can say GWW is valued inline with the index average.
- The Price/Forward Earnings ratio is 24.16, which indicates a rather expensive current valuation of GWW.
- GWW's Price/Forward 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/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.89 | ||
| Fwd PE | 24.16 |
4.2 Price Multiples
- 60.00% of the companies in the same industry are cheaper than GWW, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GWW indicates a somewhat cheap valuation: GWW is cheaper than 62.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.25 | ||
| EV/EBITDA | 19.17 |
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)11.25
PEG (5Y)1.52
EPS Next 2Y6.56%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
- GWW has a yearly dividend return of 0.85%, which is pretty low.
- GWW's Dividend Yield is a higher than the industry average which is at 1.48.
- With a Dividend Yield of 0.85, GWW pays less dividend than the S&P500 average, which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
- On average, the dividend of GWW grows each year by 7.57%, 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)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.
- GWW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP26.47%
EPS Next 2Y6.56%
EPS Next 3Y8.03%
1068.72
+5.42 (+0.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)10-31 2025-10-31/bmo
Earnings (Next)02-03 2026-02-03/amc
Inst Owners73.69%
Inst Owner Change0.34%
Ins Owners6.15%
Ins Owner Change-0.05%
Market Cap50.82B
Revenue(TTM)17.75B
Net Income(TTM)1.73B
Analysts57.14
Price Target1065.93 (-0.26%)
Short Float %2.81%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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)0.92%
PT rev (3m)1.69%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-2.08%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-2.35%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.89 | ||
| Fwd PE | 24.16 | ||
| P/S | 2.86 | ||
| P/FCF | 41.25 | ||
| P/OCF | 24.81 | ||
| P/B | 14.27 | ||
| P/tB | 17.31 | ||
| EV/EBITDA | 19.17 |
EPS(TTM)39.75
EY3.72%
EPS(NY)44.24
Fwd EY4.14%
FCF(TTM)25.91
FCFY2.42%
OCF(TTM)43.07
OCFY4.03%
SpS373.29
BVpS74.89
TBVpS61.75
PEG (NY)11.25
PEG (5Y)1.52
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 | 11.48 |
F-Score6
WACC9.68%
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 Year4.29%
Revenue Next 2Y4.7%
Revenue Next 3Y5.31%
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.