WW GRAINGER INC (GWW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GWW - US3848021040 - Common Stock
1034.87 USD
+9.85 (+0.96%)
1034.87 USD
0 (0%)
Overall GWW gets a fundamental rating of 6 out of 10. We evaluated GWW 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. While showing a medium growth rate, GWW is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year GWW was profitable.
In the past year GWW had a positive cash flow from operations.
In the past 5 years GWW has always been profitable.
Each year in the past 5 years GWW had a positive operating cash flow.
1.2 Ratios
GWW's Return On Assets of 19.55% is amongst the best of the industry. GWW outperforms 98.00% of its industry peers.
The Return On Equity of GWW (48.58%) is better than 94.00% of its industry peers.
GWW has a Return On Invested Capital of 27.94%. This is amongst the best in the industry. GWW outperforms 98.00% of its industry peers.
GWW had an Average Return On Invested Capital over the past 3 years of 30.88%. This 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
Looking at the Profit Margin, with a value of 9.75%, GWW is in the better half of the industry, outperforming 78.00% of the companies in the same industry.
GWW's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 14.05%, GWW is doing good in the industry, outperforming 76.00% of the companies in the same industry.
GWW's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 39.09%, GWW is doing good in 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GWW is creating value.
The number of shares outstanding for GWW has been reduced compared to 1 year ago.
The number of shares outstanding for GWW has been reduced compared to 5 years ago.
The debt/assets ratio for GWW is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 11.25 indicates that GWW is not in any danger for bankruptcy at the moment.
GWW has a better Altman-Z score (11.25) than 98.00% of its industry peers.
The Debt to FCF ratio of GWW is 1.92, which is an excellent value as it means it would take GWW, only 1.92 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.92, GWW belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
GWW has a Debt/Equity ratio of 0.66. This is a neutral value indicating GWW is somewhat dependend on debt financing.
GWW has a Debt to Equity ratio (0.66) which is in line with its industry peers.
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 | 0.66 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 11.25 |
ROIC/WACC2.89
WACC9.67%
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.
A Quick Ratio of 1.59 indicates that GWW should not have too much problems paying its short term obligations.
GWW's Quick ratio of 1.59 is fine compared to the rest of the industry. GWW outperforms 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.
GWW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.64% yearly.
GWW shows a small growth in Revenue. In the last year, the Revenue has grown by 4.83%.
GWW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.37% yearly.
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
The Earnings Per Share is expected to grow by 9.39% on average over the next years. This is quite good.
GWW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.65% yearly.
EPS Next Y2.33%
EPS Next 2Y6.53%
EPS Next 3Y8.03%
EPS Next 5Y9.39%
Revenue Next Year4.31%
Revenue Next 2Y4.74%
Revenue Next 3Y5.3%
Revenue Next 5Y6.65%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 26.03 indicates a quite expensive valuation of GWW.
The rest of the industry has a similar Price/Earnings ratio as GWW.
GWW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
GWW is valuated rather expensively with a Price/Forward Earnings ratio of 23.40.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GWW is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.84. GWW is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.03 | ||
| Fwd PE | 23.4 |
4.2 Price Multiples
64.00% of the companies in the same industry are cheaper than GWW, based on the Enterprise Value to EBITDA ratio.
GWW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.94 | ||
| EV/EBITDA | 18.42 |
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)11.18
PEG (5Y)1.48
EPS Next 2Y6.53%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
GWW has a yearly dividend return of 0.89%, which is pretty low.
GWW's Dividend Yield is a higher than the industry average which is at 0.98.
Compared to an average S&P500 Dividend Yield of 1.87, GWW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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 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.
The dividend of GWW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP26.47%
EPS Next 2Y6.53%
EPS Next 3Y8.03%
1034.87
+9.85 (+0.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners73.66%
Inst Owner Change-2.85%
Ins Owners6.15%
Ins Owner Change-0.05%
Market Cap49.21B
Revenue(TTM)17.75B
Net Income(TTM)1.73B
Analysts57.14
Price Target1056.24 (2.06%)
Short Float %2.47%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend8.62
Dividend Growth(5Y)7.57%
DP26.47%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)0.57%
PT rev (3m)0.77%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)-1.75%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.03 | ||
| Fwd PE | 23.4 | ||
| P/S | 2.77 | ||
| P/FCF | 39.94 | ||
| P/OCF | 24.03 | ||
| P/B | 13.82 | ||
| P/tB | 16.76 | ||
| EV/EBITDA | 18.42 |
EPS(TTM)39.75
EY3.84%
EPS(NY)44.22
Fwd EY4.27%
FCF(TTM)25.91
FCFY2.5%
OCF(TTM)43.07
OCFY4.16%
SpS373.29
BVpS74.89
TBVpS61.75
PEG (NY)11.18
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 | 11.25 |
F-Score6
WACC9.67%
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 Y2.33%
EPS Next 2Y6.53%
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 Year4.31%
Revenue Next 2Y4.74%
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.
Can you provide the valuation status for WW GRAINGER INC?
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 8 / 10.
Can you provide the PE and PB ratios for GWW stock?
The Price/Earnings (PE) ratio for WW GRAINGER INC (GWW) is 26.03 and the Price/Book (PB) ratio is 13.82.
Is the dividend of WW GRAINGER INC sustainable?
The dividend rating of WW GRAINGER INC (GWW) is 6 / 10 and the dividend payout ratio is 26.47%.