WW GRAINGER INC (GWW) Stock Fundamental Analysis
NYSE:GWW • US3848021040
1131.42 USD
+14.82 (+1.33%)
At close: Feb 13, 2026
1131.42 USD
0 (0%)
After Hours: 2/13/2026, 10:15:24 PM
Taking everything into account, GWW scores 6 out of 10 in our fundamental rating. GWW was compared to 51 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. GWW is valied quite expensively at the moment, while it does show a decent growth rate. This makes GWW very considerable for quality investing!
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.
- 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
- GWW has a Return On Assets of 19.04%. This is amongst the best in the industry. GWW outperforms 98.04% of its industry peers.
- GWW's Return On Equity of 41.20% is amongst the best of the industry. GWW outperforms 94.12% of its industry peers.
- With an excellent Return On Invested Capital value of 26.89%, GWW belongs to the best of the industry, outperforming 98.04% 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 9.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.04% | ||
| ROE | 41.2% | ||
| ROIC | 26.89% |
ROA(3y)21.04%
ROA(5y)19.86%
ROE(3y)52.25%
ROE(5y)55.16%
ROIC(3y)29.57%
ROIC(5y)28.32%
1.3 Margins
- GWW has a better Profit Margin (9.51%) than 76.47% of its industry peers.
- In the last couple of years the Profit Margin of GWW has grown nicely.
- With a decent Operating Margin value of 13.91%, GWW is doing good in the industry, outperforming 76.47% of the companies in the same industry.
- In the last couple of years the Operating Margin of GWW has grown nicely.
- The Gross Margin of GWW (39.06%) is better than 74.51% of its industry peers.
- GWW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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.
- GWW has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for GWW has been reduced compared to a year ago.
2.2 Solvency
- 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.
- With an excellent Debt to FCF ratio value of 1.87, GWW belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
- GWW has a Debt/Equity ratio of 0.57. This is a neutral value indicating GWW is somewhat dependend on debt financing.
- The Debt to Equity ratio of GWW (0.57) 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 | 0.57 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | N/A |
ROIC/WACC2.81
WACC9.56%
2.3 Liquidity
- A Current Ratio of 2.83 indicates that GWW has no problem at all paying its short term obligations.
- GWW has a better Current ratio (2.83) than 74.51% 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 62.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 1.33% over the past year.
- Measured over the past years, GWW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.55% on average per year.
- Looking at the last year, GWW shows a small growth in Revenue. The Revenue has grown by 4.51% in the last year.
- 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
- The Earnings Per Share is expected to grow by 11.58% 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 7.54% on average per year.
EPS Next Y12.28%
EPS Next 2Y11.65%
EPS Next 3Y10.84%
EPS Next 5Y11.58%
Revenue Next Year5.08%
Revenue Next 2Y5.79%
Revenue Next 3Y6.12%
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.
4. Valuation
4.1 Price/Earnings Ratio
- GWW is valuated quite expensively with a Price/Earnings ratio of 28.66.
- The rest of the industry has a similar Price/Earnings ratio as GWW.
- GWW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.68.
- The Price/Forward Earnings ratio is 25.52, which means the current valuation is very expensive for GWW.
- GWW's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 28.06. GWW is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.66 | ||
| Fwd PE | 25.52 |
4.2 Price Multiples
- GWW's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, GWW is valued a bit cheaper than the industry average as 62.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.42 | ||
| EV/EBITDA | 20.26 |
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)2.33
PEG (5Y)1.47
EPS Next 2Y11.65%
EPS Next 3Y10.84%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.81%, GWW is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.43, GWW has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.84, GWW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
- The dividend of GWW is nicely growing with an annual growth rate of 8.88%!
- GWW has paid a dividend for at least 10 years, which is a reliable track record.
- GWW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.88%
Div Incr Years34
Div Non Decr Years34
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 2Y11.65%
EPS Next 3Y10.84%
1131.42
+14.82 (+1.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)02-03 2026-02-03/bmo
Earnings (Next)05-07 2026-05-07
Inst Owners73.69%
Inst Owner Change-87.79%
Ins Owners6.15%
Ins Owner Change-0.07%
Market Cap53.80B
Revenue(TTM)17.94B
Net Income(TTM)1.71B
Analysts66.4
Price Target1081.96 (-4.37%)
Short Float %3.07%
Short Ratio4.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend9.74
Dividend Growth(5Y)8.88%
DP27.37%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-09 2026-02-09 (2.26)
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)2.43%
PT rev (3m)3.02%
EPS NQ rev (1m)-2.37%
EPS NQ rev (3m)-1.97%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0.83%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.66 | ||
| Fwd PE | 25.52 | ||
| P/S | 3 | ||
| P/FCF | 40.42 | ||
| P/OCF | 26.7 | ||
| P/B | 12.99 | ||
| P/tB | 15.3 | ||
| EV/EBITDA | 20.26 |
EPS(TTM)39.48
EY3.49%
EPS(NY)44.33
Fwd EY3.92%
FCF(TTM)27.99
FCFY2.47%
OCF(TTM)42.38
OCFY3.75%
SpS377.33
BVpS87.09
TBVpS73.94
PEG (NY)2.33
PEG (5Y)1.47
Graham Number278.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.04% | ||
| ROE | 41.2% | ||
| 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)52.25%
ROE(5y)55.16%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 269.29% | ||
| Cap/Sales | 3.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.3% | ||
| Profit Quality | 78.02% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | N/A |
F-Score6
WACC9.56%
ROIC/WACC2.81
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 Y12.28%
EPS Next 2Y11.65%
EPS Next 3Y10.84%
EPS Next 5Y11.58%
Revenue 1Y (TTM)4.51%
Revenue growth 3Y5.62%
Revenue growth 5Y8.75%
Sales Q2Q%4.54%
Revenue Next Year5.08%
Revenue Next 2Y5.79%
Revenue Next 3Y6.12%
Revenue Next 5Y7.54%
EBIT growth 1Y-5.96%
EBIT growth 3Y4.38%
EBIT growth 5Y13.46%
EBIT Next Year18.72%
EBIT Next 3Y11.36%
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 6 / 10 to GWW.
What is the valuation status for GWW stock?
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.
How financially healthy is WW GRAINGER INC?
The financial health rating of WW GRAINGER INC (GWW) is 7 / 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 12.28% in the next year.