WW GRAINGER INC (GWW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GWW - US3848021040 - Common Stock
948.63 USD
+3.53 (+0.37%)
948.63 USD
0 (0%)
GWW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 49 industry peers in the Trading Companies & Distributors industry. GWW gets an excellent profitability rating and is at the same time showing great financial health properties. GWW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year GWW was profitable.
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
With an excellent Return On Assets value of 19.55%, GWW belongs to the best of the industry, outperforming 97.96% of the companies in the same industry.
GWW has a better Return On Equity (48.58%) than 93.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 27.94%, GWW belongs to the top of the industry, outperforming 97.96% 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 9.22%.
| 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 79.59% of its industry peers.
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 75.51% 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 73.47% of the companies in the same industry.
GWW's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for GWW has been reduced compared to 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 10.84. This indicates that GWW is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 10.84, GWW belongs to the best of the industry, outperforming 97.96% of the companies in the same industry.
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 has a Debt to FCF ratio of 1.92. This is amongst the best in the industry. GWW outperforms 83.67% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that GWW is somewhat dependend on debt financing.
GWW has a Debt to Equity ratio (0.66) which 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 | 10.84 |
ROIC/WACC2.8
WACC9.97%
2.3 Liquidity
GWW has a Current Ratio of 2.72. This indicates that GWW is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of GWW (2.72) is better than 73.47% of its industry peers.
A Quick Ratio of 1.59 indicates that GWW should not have too much problems paying 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 63.27% 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.
GWW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.64% yearly.
The Revenue has been growing slightly by 4.83% in the past year.
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
The Earnings Per Share is expected to grow by 9.39% on average over the next years. This is quite good.
Based on estimates for the next years, GWW will show a small growth in Revenue. The Revenue will grow by 6.65% on average per year.
EPS Next Y2.38%
EPS Next 2Y6.5%
EPS Next 3Y7.73%
EPS Next 5Y9.39%
Revenue Next Year4.7%
Revenue Next 2Y5.37%
Revenue Next 3Y5.64%
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 23.86, GWW is valued on the expensive side.
GWW's Price/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/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.47, the valuation of GWW can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GWW is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of GWW to the average of the S&P500 Index (36.56), we can say GWW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.86 | ||
| Fwd PE | 21.47 |
4.2 Price Multiples
GWW's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, GWW is valued a bit cheaper than 61.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.61 | ||
| EV/EBITDA | 17.09 |
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)10.05
PEG (5Y)1.35
EPS Next 2Y6.5%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
GWW has a yearly dividend return of 0.96%, which is pretty low.
GWW's Dividend Yield is a higher than the industry average which is at 1.95.
With a Dividend Yield of 0.96, GWW pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
The dividend of GWW is nicely growing with an annual growth rate of 7.57%!
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.
GWW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP26.47%
EPS Next 2Y6.5%
EPS Next 3Y7.73%
948.63
+3.53 (+0.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners74.36%
Inst Owner Change-2.89%
Ins Owners6.11%
Ins Owner Change-0.04%
Market Cap45.11B
Revenue(TTM)17.75B
Net Income(TTM)1.73B
Analysts57.14
Price Target1064.92 (12.26%)
Short Float %2.37%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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)1.59%
PT rev (3m)1.59%
EPS NQ rev (1m)-2.46%
EPS NQ rev (3m)-2.01%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-2.48%
Revenue NQ rev (3m)-2.29%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.86 | ||
| Fwd PE | 21.47 | ||
| P/S | 2.54 | ||
| P/FCF | 36.61 | ||
| P/OCF | 22.03 | ||
| P/B | 12.67 | ||
| P/tB | 15.36 | ||
| EV/EBITDA | 17.09 |
EPS(TTM)39.75
EY4.19%
EPS(NY)44.19
Fwd EY4.66%
FCF(TTM)25.91
FCFY2.73%
OCF(TTM)43.07
OCFY4.54%
SpS373.29
BVpS74.89
TBVpS61.75
PEG (NY)10.05
PEG (5Y)1.35
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 | 10.84 |
F-Score6
WACC9.97%
ROIC/WACC2.8
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 Y2.38%
EPS Next 2Y6.5%
EPS Next 3Y7.73%
EPS Next 5Y9.39%
Revenue 1Y (TTM)4.83%
Revenue growth 3Y9.65%
Revenue growth 5Y8.37%
Sales Q2Q%6.13%
Revenue Next Year4.7%
Revenue Next 2Y5.37%
Revenue Next 3Y5.64%
Revenue Next 5Y6.65%
EBIT growth 1Y-4.19%
EBIT growth 3Y19.7%
EBIT growth 5Y13.83%
EBIT Next Year11.06%
EBIT Next 3Y9.38%
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 4 / 10 to WW GRAINGER INC (GWW). This can be considered as Fairly Valued.
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 23.86 and the Price/Book (PB) ratio is 12.67.
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%.