W.W. Grainger, Inc. distributes maintenance, repair, and operating (MRO) products and services in the United States, Canada, and internationally. More Details
Established dividend payer with adequate balance sheet.
Share Price & News
How has W.W. Grainger's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GWW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: GWW's weekly volatility (4%) has been stable over the past year.
7 Day Return
US Trade Distributors
1 Year Return
US Trade Distributors
Return vs Industry: GWW underperformed the US Trade Distributors industry which returned 56.6% over the past year.
Return vs Market: GWW exceeded the US Market which returned 36.2% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is W.W. Grainger's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall StDo Institutions Own W.W. Grainger, Inc. (NYSE:GWW) Shares?
2 months ago | Simply Wall StHow Should Investors Feel About W.W. Grainger's (NYSE:GWW) CEO Remuneration?
2 months ago | Simply Wall StNeed To Know: W.W. Grainger, Inc. (NYSE:GWW) Insiders Have Been Selling Shares
Is W.W. Grainger undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: GWW ($399.11) is trading above our estimate of fair value ($357.67)
Significantly Below Fair Value: GWW is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: GWW is poor value based on its PE Ratio (30.7x) compared to the US Trade Distributors industry average (23.6x).
PE vs Market: GWW is poor value based on its PE Ratio (30.7x) compared to the US market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: GWW is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: GWW is overvalued based on its PB Ratio (11.5x) compared to the US Trade Distributors industry average (2.2x).
How is W.W. Grainger forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GWW's forecast earnings growth (15.5% per year) is above the savings rate (2%).
Earnings vs Market: GWW's earnings (15.5% per year) are forecast to grow slower than the US market (19.2% per year).
High Growth Earnings: GWW's earnings are forecast to grow, but not significantly.
Revenue vs Market: GWW's revenue (5.4% per year) is forecast to grow slower than the US market (10% per year).
High Growth Revenue: GWW's revenue (5.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GWW's Return on Equity is forecast to be very high in 3 years time (54.3%).
How has W.W. Grainger performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GWW has a large one-off loss of $308.0M impacting its December 31 2020 financial results.
Growing Profit Margin: GWW's current net profit margins (5.9%) are lower than last year (7.4%).
Past Earnings Growth Analysis
Earnings Trend: GWW's earnings have grown by 3.3% per year over the past 5 years.
Accelerating Growth: GWW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GWW had negative earnings growth (-18.1%) over the past year, making it difficult to compare to the Trade Distributors industry average (-13.5%).
Return on Equity
High ROE: Whilst GWW's Return on Equity (36.07%) is high, this metric is skewed due to their high level of debt.
How is W.W. Grainger's financial position?
Financial Position Analysis
Short Term Liabilities: GWW's short term assets ($3.9B) exceed its short term liabilities ($1.4B).
Long Term Liabilities: GWW's short term assets ($3.9B) exceed its long term liabilities ($2.8B).
Debt to Equity History and Analysis
Debt Level: GWW's debt to equity ratio (114.5%) is considered high.
Reducing Debt: GWW's debt to equity ratio has increased from 84.6% to 114.5% over the past 5 years.
Debt Coverage: GWW's debt is well covered by operating cash flow (46.9%).
Interest Coverage: GWW's interest payments on its debt are well covered by EBIT (14.5x coverage).
What is W.W. Grainger current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GWW's dividend (1.53%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: GWW's dividend (1.53%) is low compared to the top 25% of dividend payers in the US market (3.64%).
Stability and Growth of Payments
Stable Dividend: GWW's dividends per share have been stable in the past 10 years.
Growing Dividend: GWW's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (45.7%), GWW's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: GWW's dividends in 3 years are forecast to be well covered by earnings (31% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
DG Macpherson (52 yo)
Mr. Donald G. Macpherson, also known as DG, is Independent Director at International Paper Company since March 1, 2021. He has been the Chief Executive Officer of W.W. Grainger, Inc. since October 01, 2016...
CEO Compensation Analysis
Compensation vs Market: DG's total compensation ($USD7.67M) is about average for companies of similar size in the US market ($USD10.58M).
Compensation vs Earnings: DG's compensation has been consistent with company performance over the past year.
|Chairman & CEO||4.42yrs||US$7.67m||0.069% |
|CFO & Senior VP||0.17yr||US$1.13m||0.0098% |
|Senior VP & General Counsel||21.17yrs||US$2.51m||0.037% |
|Senior VP & President of Grainger Business Unit||0.17yr||US$1.45m||0.016% |
|Chief Technology Officer||0.92yr||no data||no data|
|Vice President of Investor Relations||2.67yrs||no data||no data|
|Senior VP & Chief Human Resources Officer||2.25yrs||no data||0.0022% |
|Managing Director of Endless Assortment Business||1.08yrs||no data||no data|
|Senior VP & President of Global Supply Chain and Customer Experience||1.33yrs||no data||no data|
|VP & Corporate Secretary||no data||no data||no data|
|VP & Controller||4.42yrs||no data||0.0051% |
|Vice President and Treasurer||no data||no data||no data|
Experienced Management: GWW's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
|Chairman & CEO||4.42yrs||US$7.67m||0.069% |
|Independent Director||22.17yrs||US$247.48k||0.0064% |
|Independent Lead Director||4.92yrs||US$282.48k||0.00076% |
|Independent Director||22.17yrs||US$254.98k||0.0088% |
|Independent Director||14.83yrs||US$267.48k||0.00038% |
|Independent Director||15.08yrs||US$269.98k||0.0019% |
|Independent Director||10.92yrs||US$247.48k||0.00058% |
|Independent Director||6.67yrs||US$254.98k||0.00076% |
|Independent Director||3.67yrs||US$254.98k||no data|
|Director||0.42yr||no data||no data|
|Independent Director||4.17yrs||US$254.98k||0.00030% |
|Independent Director||0.92yr||no data||10.29% |
Experienced Board: GWW's board of directors are considered experienced (5.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
W.W. Grainger, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: W.W. Grainger, Inc.
- Ticker: GWW
- Exchange: NYSE
- Founded: 1927
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: US$20.904b
- Shares outstanding: 52.38m
- Website: https://www.grainger.com
Number of Employees
- W.W. Grainger, Inc.
- 100 Grainger Parkway
- Lake Forest
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|GWW||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jul 1971|
|GWW||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jul 1971|
|GWW||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||Jul 1971|
|0IZI||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jul 1971|
|G1WW34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 40 REP 1 COM||BR||BRL||Jan 2020|
W.W. Grainger, Inc. distributes maintenance, repair, and operating (MRO) products and services in the United States, Canada, and internationally. The company provides material handling equipment, safety an...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/03/07 23:04|
|End of Day Share Price||2021/03/05 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.