WW GRAINGER INC (GWW) Fundamental Analysis & Valuation

NYSE:GWW • US3848021040

1098.1 USD
-12.39 (-1.12%)
Last: Mar 12, 2026, 02:11 PM
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This GWW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

7

Taking everything into account, GWW scores 7 out of 10 in our fundamental rating. GWW was compared to 46 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. While showing a medium growth rate, GWW is valued expensive at the moment. These ratings would make GWW suitable for quality investing!


Dividend Valuation Growth Profitability Health

9

1. GWW Profitability Analysis

1.1 Basic Checks

  • In the past year GWW was profitable.
  • GWW had a positive operating cash flow in the past year.
  • In the past 5 years GWW has always been profitable.
  • 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 has a Return On Assets of 19.04%. This is amongst the best in the industry. GWW outperforms 97.83% of its industry peers.
  • The Return On Equity of GWW (45.66%) is better than 100.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 26.89%, GWW belongs to the top of the industry, outperforming 97.83% 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 9.05%.
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

  • GWW's Profit Margin of 9.51% is amongst the best of the industry. GWW outperforms 82.61% of its industry peers.
  • In the last couple of years the Profit Margin of GWW has grown nicely.
  • GWW has a Operating Margin of 13.91%. This is amongst the best in the industry. GWW outperforms 80.43% of its industry peers.
  • In the last couple of years the Operating Margin of GWW has grown nicely.
  • GWW has a better Gross Margin (39.06%) than 78.26% of its industry peers.
  • GWW's Gross Margin has improved in the last couple of years.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

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
  • Compared to 5 years ago, GWW has less shares outstanding
  • The debt/assets ratio for GWW has been reduced compared to a year ago.
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

  • An Altman-Z score of 11.77 indicates that GWW is not in any danger for bankruptcy at the moment.
  • GWW has a better Altman-Z score (11.77) than 97.83% of its industry peers.
  • 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.
  • GWW has a better Debt to FCF ratio (1.87) than 84.78% of its industry peers.
  • A Debt/Equity ratio of 0.63 indicates that GWW is somewhat dependend on debt financing.
  • GWW has a Debt to Equity ratio (0.63) which is in line with its industry peers.
  • 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 11.77
ROIC/WACC2.72
WACC9.89%
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

  • 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.
  • With a decent Current ratio value of 2.83, GWW is doing good in the industry, outperforming 78.26% of the companies in the same industry.
  • A Quick Ratio of 1.59 indicates that GWW should not have too much problems paying its short term obligations.
  • With a decent Quick ratio value of 1.59, GWW is doing good in the industry, outperforming 69.57% 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.
  • GWW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.55% yearly.
  • GWW shows a small growth in Revenue. In the last year, the Revenue has grown by 4.51%.
  • GWW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.75% yearly.
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.
  • GWW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.54% yearly.
EPS Next Y11.46%
EPS Next 2Y11.17%
EPS Next 3Y10.32%
EPS Next 5Y11.58%
Revenue Next Year5.68%
Revenue Next 2Y6.18%
Revenue Next 3Y6.36%
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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Find the best growth stocksShow best growing peers

2

4. GWW Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 27.81, 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 (26.15), we can say GWW is valued inline with the index average.
  • With a Price/Forward Earnings ratio of 24.96, GWW is valued on the expensive side.
  • The rest of the industry has a similar Price/Forward Earnings ratio as GWW.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.27, GWW is valued at the same level.
Industry RankSector Rank
PE 27.81
Fwd PE 24.96
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

  • Based on the Enterprise Value to EBITDA ratio, GWW is valued a bit more expensive than 65.22% of the companies in the same industry.
  • GWW's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 39.08
EV/EBITDA 19.83
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 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)2.43
PEG (5Y)1.42
EPS Next 2Y11.17%
EPS Next 3Y10.32%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. GWW Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.79%, GWW is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.04, GWW pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, GWW's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.79%

5.2 History

  • On average, the dividend of GWW grows each year by 8.91%, 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)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

  • GWW pays out 27.37% of its income as dividend. This is a 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

Find the best dividend stocksShow peers with best dividend

GWW Fundamentals: All Metrics, Ratios and Statistics

WW GRAINGER INC

NYSE:GWW (3/12/2026, 2:11:01 PM)

1098.1

-12.39 (-1.12%)

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-0.07%
Market Cap52.02B
Revenue(TTM)17.94B
Net Income(TTM)1.71B
Analysts66.4
Price Target1134.62 (3.33%)
Short Float %3.25%
Short Ratio4.9
Dividend
Industry RankSector Rank
Dividend Yield 0.79%
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)-3.08%
EPS NQ rev (3m)-2.38%
EPS NY rev (1m)-0.73%
EPS NY rev (3m)-0.48%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)0.49%
Valuation
Industry RankSector Rank
PE 27.81
Fwd PE 24.96
P/S 2.9
P/FCF 39.08
P/OCF 25.81
P/B 13.92
P/tB 16.72
EV/EBITDA 19.83
EPS(TTM)39.48
EY3.6%
EPS(NY)44
Fwd EY4.01%
FCF(TTM)28.1
FCFY2.56%
OCF(TTM)42.54
OCFY3.87%
SpS378.76
BVpS78.87
TBVpS65.67
PEG (NY)2.43
PEG (5Y)1.42
Graham Number264.69
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 11.77
F-Score6
WACC9.89%
ROIC/WACC2.72
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 Year5.68%
Revenue Next 2Y6.18%
Revenue Next 3Y6.36%
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 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 2 / 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.