WW GRAINGER INC (GWW) Stock Fundamental Analysis
USA - NYSE:GWW - US3848021040 - Common Stock
925.15 USD
+2.59 (+0.28%)
925.15 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. Both the health and profitability get an excellent rating, making GWW a very profitable company, without any liquidiy or solvency issues. 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.
GWW had a positive operating cash flow in the past year.
In the past 5 years GWW has always been profitable.
In the past 5 years GWW always reported a positive cash flow from operatings.
1.2 Ratios
GWW has a better Return On Assets (19.55%) than 98.00% of its industry peers.
The Return On Equity of GWW (48.58%) is better than 94.00% of its industry peers.
The Return On Invested Capital of GWW (27.94%) is better than 98.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GWW is significantly above the industry average of 9.31%.
| 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 better Profit Margin (9.75%) than 80.00% 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 76.00% of the companies in the same industry.
GWW's Operating Margin has improved in the last couple of years.
GWW's Gross Margin of 39.09% is fine compared to the rest of the industry. GWW outperforms 72.00% of its industry peers.
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
GWW has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for GWW has been reduced compared to 1 year ago.
Compared to 5 years ago, GWW has less shares outstanding
The debt/assets ratio for GWW is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.73 indicates that GWW is not in any danger for bankruptcy at the moment.
The Altman-Z score of GWW (10.73) is better than 96.00% 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.
The Debt to FCF ratio of GWW (1.92) is better than 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.
Looking at the Debt to Equity ratio, with a value of 0.66, GWW is in line with its industry, outperforming 48.00% of the companies in the same 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 | 10.73 |
ROIC/WACC3.29
WACC8.48%
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.
GWW has a Current ratio of 2.72. This is in the better half 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.
Looking at the Quick ratio, with a value of 1.59, GWW is in the better half of the industry, outperforming 64.00% 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.
The Earnings Per Share has been growing by 17.64% on average over the past years. This is quite good.
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
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.
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
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.
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
Based on the Price/Earnings ratio of 23.27, the valuation of GWW can be described as rather expensive.
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 (25.07), we can say GWW is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 20.94, the valuation of GWW can be described as rather expensive.
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 (34.08), we can say GWW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.27 | ||
| Fwd PE | 20.94 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as GWW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.92 | ||
| EV/EBITDA | 16.74 |
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)9.8
PEG (5Y)1.32
EPS Next 2Y6.5%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
GWW has a yearly dividend return of 0.97%, which is pretty low.
GWW's Dividend Yield is a higher than the industry average which is at 2.04.
With a Dividend Yield of 0.97, GWW pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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.
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%
925.15
+2.59 (+0.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners74.36%
Inst Owner Change-2.94%
Ins Owners6.11%
Ins Owner Change-2.19%
Market Cap44.25B
Revenue(TTM)17.75B
Net Income(TTM)1.73B
Analysts57.14
Price Target1050.23 (13.52%)
Short Float %2.37%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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)0.19%
PT rev (3m)-0.3%
EPS NQ rev (1m)-2.81%
EPS NQ rev (3m)-2.14%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-2.45%
Revenue NQ rev (1m)-2.44%
Revenue NQ rev (3m)-2.33%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.27 | ||
| Fwd PE | 20.94 | ||
| P/S | 2.49 | ||
| P/FCF | 35.92 | ||
| P/OCF | 21.61 | ||
| P/B | 12.43 | ||
| P/tB | 15.07 | ||
| EV/EBITDA | 16.74 |
EPS(TTM)39.75
EY4.3%
EPS(NY)44.19
Fwd EY4.78%
FCF(TTM)25.76
FCFY2.78%
OCF(TTM)42.82
OCFY4.63%
SpS371.11
BVpS74.45
TBVpS61.38
PEG (NY)9.8
PEG (5Y)1.32
Graham Number258.05
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 | 10.73 |
F-Score6
WACC8.48%
ROIC/WACC3.29
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 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.
Can you provide the PE and PB ratios for GWW stock?
The Price/Earnings (PE) ratio for WW GRAINGER INC (GWW) is 23.27 and the Price/Book (PB) ratio is 12.43.
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%.