WW GRAINGER INC (GWW) Fundamental Analysis & Valuation

NYSE:GWW • US3848021040

Current stock price

1057.07 USD
-8.41 (-0.79%)
At close:
1057.07 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.

9

1. GWW Profitability Analysis

1.1 Basic Checks

  • GWW had positive earnings in the past year.
  • In the past year GWW had a positive cash flow from operations.
  • 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.
GWW Yearly Net Income VS EBIT VS OCF VS FCFGWW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • GWW's Return On Assets of 19.04% is amongst the best of the industry. GWW outperforms 97.92% of its industry peers.
  • The Return On Equity of GWW (45.66%) is better than 100.00% of its industry peers.
  • GWW has a better Return On Invested Capital (26.89%) than 97.92% 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 9.17%.
Industry RankSector 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%
GWW Yearly ROA, ROE, ROICGWW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

1.3 Margins

  • The Profit Margin of GWW (9.51%) is better than 83.33% of its industry peers.
  • In the last couple of years the Profit Margin of GWW has grown nicely.
  • GWW's Operating Margin of 13.91% is amongst the best of the industry. GWW outperforms 81.25% of its industry peers.
  • GWW's Operating Margin has improved in the last couple of years.
  • The Gross Margin of GWW (39.06%) is better than 79.17% of its industry peers.
  • In the last couple of years the Gross Margin of GWW has grown nicely.
Industry RankSector 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%
GWW Yearly Profit, Operating, Gross MarginsGWW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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9

2. GWW Health Analysis

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
  • GWW has less shares outstanding than it did 5 years ago.
  • GWW has a better debt/assets ratio than last year.
GWW Yearly Shares OutstandingGWW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
GWW Yearly Total Debt VS Total AssetsGWW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.2 Solvency

  • GWW has an Altman-Z score of 11.52. This indicates that GWW is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 11.52, GWW belongs to the best of the industry, outperforming 97.92% of the companies in the same industry.
  • 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.
  • With an excellent Debt to FCF ratio value of 1.87, GWW belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
  • A Debt/Equity ratio of 0.63 indicates that GWW is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.63, GWW perfoms like the industry average, outperforming 47.92% of the companies in the same industry.
  • Although GWW's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.63
Debt/FCF 1.87
Altman-Z 11.52
ROIC/WACC3.06
WACC8.78%
GWW Yearly LT Debt VS Equity VS FCFGWW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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 77.08% 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.
  • With a decent Quick ratio value of 1.59, GWW is doing good in the industry, outperforming 70.83% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.83
Quick Ratio 1.59
GWW Yearly Current Assets VS Current LiabilitesGWW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. GWW Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 1.33% 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 19.55% on average per year.
  • Looking at the last year, GWW shows a small growth in Revenue. The Revenue has grown by 4.51% in the last year.
  • The Revenue has been growing by 8.75% on average over the past years. This is quite good.
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.
  • The Revenue is expected to grow by 7.54% on average over the next years.
EPS Next Y11.46%
EPS Next 2Y11.17%
EPS Next 3Y10.32%
EPS Next 5Y11.58%
Revenue Next Year5.69%
Revenue Next 2Y6.24%
Revenue Next 3Y6.28%
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.
GWW Yearly Revenue VS EstimatesGWW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B 25B
GWW Yearly EPS VS EstimatesGWW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20 40 60

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3

4. GWW Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 26.77, which means the current valuation is very expensive for GWW.
  • Compared to the rest of the industry, the Price/Earnings ratio of GWW is on the same level as its industry peers.
  • When comparing the Price/Earnings ratio of GWW to the average of the S&P500 Index (24.88), we can say GWW is valued inline with the index average.
  • A Price/Forward Earnings ratio of 24.02 indicates a rather expensive valuation of GWW.
  • GWW's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of GWW to the average of the S&P500 Index (22.19), we can say GWW is valued inline with the index average.
Industry RankSector Rank
PE 26.77
Fwd PE 24.02
GWW Price Earnings VS Forward Price EarningsGWW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GWW indicates a slightly more expensive valuation: GWW is more expensive than 64.58% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, GWW is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 37.59
EV/EBITDA 19.04
GWW Per share dataGWW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300

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)2.34
PEG (5Y)1.37
EPS Next 2Y11.17%
EPS Next 3Y10.32%

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6

5. GWW Dividend Analysis

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 0.90.
  • Compared to an average S&P500 Dividend Yield of 1.90, GWW's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.85%

5.2 History

  • On average, the dividend of GWW grows each year by 8.91%, 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)8.91%
Div Incr Years34
Div Non Decr Years34
GWW Yearly Dividends per shareGWW Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8

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 2Y11.17%
EPS Next 3Y10.32%
GWW Yearly Income VS Free CF VS DividendGWW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
GWW Dividend Payout.GWW Dividend Payout, showing the Payout Ratio.GWW Dividend Payout.PayoutRetained Earnings

More info and screens

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GWW Fundamentals: All Metrics, Ratios and Statistics

WW GRAINGER INC

NYSE:GWW (3/27/2026, 8:23:04 PM)

After market: 1057.07 0 (0%)

1057.07

-8.41 (-0.79%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)02-03
Earnings (Next)05-07
Inst Owners76.52%
Inst Owner Change3.17%
Ins Owners6.17%
Ins Owner Change-0.03%
Market Cap50.03B
Revenue(TTM)17.94B
Net Income(TTM)1.71B
Analysts66.4
Price Target1155.52 (9.31%)
Short Float %2.93%
Short Ratio4.58
Dividend
Industry RankSector Rank
Dividend Yield 0.85%
Yearly Dividend9.75
Dividend Growth(5Y)8.91%
DP27.37%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-09
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)4.87%
PT rev (3m)7.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.15%
EPS NY rev (1m)-0.73%
EPS NY rev (3m)-0.48%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.5%
Valuation
Industry RankSector Rank
PE 26.77
Fwd PE 24.02
P/S 2.79
P/FCF 37.59
P/OCF 24.83
P/B 13.39
P/tB 16.08
EV/EBITDA 19.04
EPS(TTM)39.48
EY3.73%
EPS(NY)44
Fwd EY4.16%
FCF(TTM)28.12
FCFY2.66%
OCF(TTM)42.57
OCFY4.03%
SpS379.08
BVpS78.94
TBVpS65.73
PEG (NY)2.34
PEG (5Y)1.37
Graham Number264.8
Profitability
Industry RankSector 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 RankSector 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 11.52
F-Score6
WACC8.78%
ROIC/WACC3.06
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 Y11.46%
EPS Next 2Y11.17%
EPS Next 3Y10.32%
EPS Next 5Y11.58%
Revenue 1Y (TTM)4.51%
Revenue growth 3Y5.62%
Revenue growth 5Y8.75%
Sales Q2Q%4.54%
Revenue Next Year5.69%
Revenue Next 2Y6.24%
Revenue Next 3Y6.28%
Revenue Next 5Y7.54%
EBIT growth 1Y-5.96%
EBIT growth 3Y4.38%
EBIT growth 5Y13.46%
EBIT Next Year19.87%
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.


What is the profitability of GWW stock?

WW GRAINGER INC (GWW) has a profitability rating of 9 / 10.


How financially healthy is WW GRAINGER INC?

The financial health rating of WW GRAINGER INC (GWW) is 9 / 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 11.46% in the next year.