WW GRAINGER INC (GWW) Stock Fundamental Analysis
USA - NYSE:GWW - US3848021040 - Common Stock
955.04 USD
+2.38 (+0.25%)
955.04 USD
0 (0%)
GWW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 industry peers in the Trading Companies & Distributors industry. GWW has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
Each year in the past 5 years GWW has been profitable.
In the past 5 years GWW always reported a positive cash flow from operatings.
1.2 Ratios
GWW's Return On Assets of 19.55% is amongst the best of the industry. GWW outperforms 98.04% of its industry peers.
GWW's Return On Equity of 43.68% is amongst the best of the industry. GWW outperforms 92.16% of its industry peers.
GWW has a better Return On Invested Capital (27.94%) than 96.08% 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 10.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.55% | ||
| ROE | 43.68% | ||
| 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
With an excellent Profit Margin value of 9.75%, GWW belongs to the best of the industry, outperforming 80.39% of the companies in the same industry.
GWW's Profit Margin has improved in the last couple of years.
GWW has a Operating Margin of 14.05%. This is in the better half of the industry: GWW outperforms 76.47% of its industry peers.
In the last couple of years the Operating Margin of GWW has grown nicely.
The Gross Margin of GWW (39.09%) is better than 72.55% 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
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.
The number of shares outstanding for GWW has been reduced compared to 5 years ago.
Compared to 1 year ago, GWW has a worse debt to assets ratio.
2.2 Solvency
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 80.39% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that GWW is somewhat dependend on debt financing.
GWW has a Debt to Equity ratio (0.60) 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 | 0.6 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | N/A |
ROIC/WACC3.02
WACC9.26%
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's Current ratio of 2.72 is fine compared to the rest of the industry. GWW outperforms 70.59% 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.
GWW has a Quick ratio of 1.59. This is in the better half of the industry: GWW outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
GWW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.77%.
Measured over the past years, GWW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.64% on average per year.
GWW shows a small growth in Revenue. In the last year, the Revenue has grown by 4.83%.
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.
GWW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.65% yearly.
EPS Next Y2.38%
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
A Price/Earnings ratio of 24.03 indicates a rather expensive valuation of GWW.
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 26.06, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.61, GWW is valued on the expensive side.
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 32.73. GWW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.03 | ||
| Fwd PE | 21.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GWW is valued a bit more expensive than the industry average as 62.75% of the companies are valued more cheaply.
GWW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GWW is cheaper than 60.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.08 | ||
| EV/EBITDA | 17.3 |
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.
GWW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)10.11
PEG (5Y)1.36
EPS Next 2Y6.5%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
GWW has a yearly dividend return of 0.95%, which is pretty low.
GWW's Dividend Yield is a higher than the industry average which is at 2.20.
With a Dividend Yield of 0.95, GWW pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
The dividend of GWW is nicely growing with an annual growth rate of 7.57%!
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)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 2Y6.5%
EPS Next 3Y7.73%
955.04
+2.38 (+0.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners74.36%
Inst Owner Change-0.22%
Ins Owners6.11%
Ins Owner Change-0.29%
Market Cap45.68B
Revenue(TTM)17.75B
Net Income(TTM)1.73B
Analysts57.14
Price Target1050.23 (9.97%)
Short Float %2.33%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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)-2.25%
EPS NQ rev (3m)-5.39%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-2.45%
Revenue NQ rev (1m)-2.44%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.03 | ||
| Fwd PE | 21.61 | ||
| P/S | 2.57 | ||
| P/FCF | 37.08 | ||
| P/OCF | 22.3 | ||
| P/B | 11.53 | ||
| P/tB | 13.69 | ||
| EV/EBITDA | 17.3 |
EPS(TTM)39.75
EY4.16%
EPS(NY)44.19
Fwd EY4.63%
FCF(TTM)25.76
FCFY2.7%
OCF(TTM)42.82
OCFY4.48%
SpS371.11
BVpS82.81
TBVpS69.75
PEG (NY)10.11
PEG (5Y)1.36
Graham Number272.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.55% | ||
| ROE | 43.68% | ||
| 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 | 0.6 | ||
| 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 | N/A |
F-Score6
WACC9.26%
ROIC/WACC3.02
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 24.03 and the Price/Book (PB) ratio is 11.53.
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%.