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GWW

W.W. Grainger NYSE:GWW Stock Report

Last Price

US$486.90

Market Cap

US$24.8b

7D

-3.4%

1Y

23.9%

Updated

29 Sep, 2022

Data

Company Financials +
GWW fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance5/6
Financial Health5/6
Dividends4/6

GWW Stock Overview

W.W. Grainger, Inc. distributes maintenance, repair, and operating (MRO) products and services in the United States, Japan, Canada, the United Kingdom, and internationally.

W.W. Grainger Competitors

Price History & Performance

Summary of all time highs, changes and price drops for W.W. Grainger
Historical stock prices
Current Share PriceUS$486.90
52 Week HighUS$588.62
52 Week LowUS$391.16
Beta1.21
1 Month Change-12.49%
3 Month Change5.55%
1 Year Change23.87%
3 Year Change68.66%
5 Year Change167.16%
Change since IPO2,862.13%

Recent News & Updates

Sep 21

Grainger provides strategic update, outlook 2025

Grainger (NYSE:GWW) expects total company FY 2025 performance targets of net sales between $19B-20B, representing 8% to 10% compounded annual growth compared to the mid-point of 2022 guidance of $15.1B (consensus $17.98B) Adjusted operating margin of ~14.5%, representing approximately 70 basis points of improvement compared to the mid-point of 2022 guidance of 13.8%. Adjusted EPS of ~$40, a 43% increase compared to the mid-point of 2022 guidance of $28 (consensus $27.96). Operating cash flow of ~$2B, a 54% increase compared to the mid-point of 2022 guidance at $1.3B. Expected annual capital expenditures between $500M and $600M per year for 2023 through 2025. Company also reaffirms its prior full year 2022 guidance, previously provided on July 29, 2022, including 14.5% to 16.5% total company daily sales growth, and adjusted EPS between $27.25 to $28.75, up 37% to 45% compared to 2021.

Sep 15
Is W.W. Grainger (NYSE:GWW) A Risky Investment?

Is W.W. Grainger (NYSE:GWW) A Risky Investment?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Sep 04
Is W.W. Grainger, Inc. (NYSE:GWW) Trading At A 24% Discount?

Is W.W. Grainger, Inc. (NYSE:GWW) Trading At A 24% Discount?

How far off is W.W. Grainger, Inc. ( NYSE:GWW ) from its intrinsic value? Using the most recent financial data, we'll...

Aug 13
Should You Think About Buying W.W. Grainger, Inc. (NYSE:GWW) Now?

Should You Think About Buying W.W. Grainger, Inc. (NYSE:GWW) Now?

Today we're going to take a look at the well-established W.W. Grainger, Inc. ( NYSE:GWW ). The company's stock saw a...

Shareholder Returns

GWWUS Trade DistributorsUS Market
7D-3.4%-1.6%-3.1%
1Y23.9%-10.2%-21.5%

Return vs Industry: GWW exceeded the US Trade Distributors industry which returned -10.3% over the past year.

Return vs Market: GWW exceeded the US Market which returned -20.3% over the past year.

Price Volatility

Is GWW's price volatile compared to industry and market?
GWW volatility
GWW Average Weekly Movement4.1%
Trade Distributors Industry Average Movement5.8%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: GWW is not significantly more volatile than the rest 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.

About the Company

FoundedEmployeesCEOWebsite
192723,450DG Macphersonhttps://www.grainger.com

W.W. Grainger, Inc. distributes maintenance, repair, and operating (MRO) products and services in the United States, Japan, Canada, the United Kingdom, and internationally. The company operates through two segments, High-Touch Solutions N.A. and Endless Assortment. It offers safety and security supplies, material handling and storage equipment, pumps and plumbing equipment, cleaning and maintenance supplies, and metalworking and hand tools.

W.W. Grainger Fundamentals Summary

How do W.W. Grainger's earnings and revenue compare to its market cap?
GWW fundamental statistics
Market CapUS$24.77b
Earnings (TTM)US$1.32b
Revenue (TTM)US$14.22b

18.8x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GWW income statement (TTM)
RevenueUS$14.22b
Cost of RevenueUS$8.89b
Gross ProfitUS$5.33b
Other ExpensesUS$4.01b
EarningsUS$1.32b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 28, 2022

Earnings per share (EPS)25.89
Gross Margin37.47%
Net Profit Margin9.26%
Debt/Equity Ratio95.3%

How did GWW perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

26%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is GWW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GWW?

Other financial metrics that can be useful for relative valuation.

GWW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.9x
Enterprise Value/EBITDA12.8x
PEG Ratio3x

Price to Earnings Ratio vs Peers

How does GWW's PE Ratio compare to its peers?

GWW PE Ratio vs Peers
The above table shows the PE ratio for GWW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17x
FAST Fastenal
25.9x8.2%US$26.8b
URI United Rentals
10.8x7.4%US$18.9b
WSO Watsco
19x0.05%US$9.2b
CNM Core & Main
12.3x-0.6%US$5.6b
GWW W.W. Grainger
18.8x6.2%US$24.8b

Price-To-Earnings vs Peers: GWW is expensive based on its Price-To-Earnings Ratio (18.8x) compared to the peer average (17x).


Price to Earnings Ratio vs Industry

How does GWW's PE Ratio compare vs other companies in the US Trade Distributors Industry?

Price-To-Earnings vs Industry: GWW is expensive based on its Price-To-Earnings Ratio (18.8x) compared to the US Trade Distributors industry average (11.2x)


Price to Earnings Ratio vs Fair Ratio

What is GWW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GWW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.8x
Fair PE Ratio20.9x

Price-To-Earnings vs Fair Ratio: GWW is good value based on its Price-To-Earnings Ratio (18.8x) compared to the estimated Fair Price-To-Earnings Ratio (20.9x).


Share Price vs Fair Value

What is the Fair Price of GWW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GWW ($486.9) is trading below our estimate of fair value ($643.99)

Significantly Below Fair Value: GWW is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is W.W. Grainger forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GWW's forecast earnings growth (6.2% per year) is above the savings rate (1.9%).

Earnings vs Market: GWW's earnings (6.2% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: GWW's earnings are forecast to grow, but not significantly.

Revenue vs Market: GWW's revenue (6.3% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: GWW's revenue (6.3% 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 (48.2%).


Discover growth companies

Past Performance

How has W.W. Grainger performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


12.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GWW has high quality earnings.

Growing Profit Margin: GWW's current net profit margins (9.3%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: GWW's earnings have grown by 12.4% per year over the past 5 years.

Accelerating Growth: GWW's earnings growth over the past year (51.2%) exceeds its 5-year average (12.4% per year).

Earnings vs Industry: GWW earnings growth over the past year (51.2%) underperformed the Trade Distributors industry 58.7%.


Return on Equity

High ROE: GWW's Return on Equity (56.4%) is considered outstanding.


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Financial Health

How is W.W. Grainger's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GWW's short term assets ($4.5B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: GWW's short term assets ($4.5B) exceed its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: GWW's net debt to equity ratio (84.7%) is considered high.

Reducing Debt: GWW's debt to equity ratio has reduced from 131.2% to 95.3% over the past 5 years.

Debt Coverage: GWW's debt is well covered by operating cash flow (41.2%).

Interest Coverage: GWW's interest payments on its debt are well covered by EBIT (21.9x coverage).


Balance Sheet


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Dividend

What is W.W. Grainger current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.41%

Current Dividend Yield

Dividend Yield vs Market

W.W. Grainger Dividend Yield vs Market
How does W.W. Grainger dividend yield compare to the market?
SegmentDividend Yield
Company (W.W. Grainger)1.4%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Trade Distributors)2.7%
Analyst forecast in 3 Years (W.W. Grainger)1.6%

Notable Dividend: GWW's dividend (1.41%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: GWW's dividend (1.41%) is low compared to the top 25% of dividend payers in the US market (4.61%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.7%), GWW's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (50.3%), GWW's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

DG Macpherson (54 yo)

5.92yrs

Tenure

US$9,015,594

Compensation

Mr. Donald G. Macpherson, also known as DG, has been 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...


CEO Compensation Analysis

DG Macpherson's Compensation vs W.W. Grainger Earnings
How has DG Macpherson's remuneration changed compared to W.W. Grainger's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$1b

Mar 31 2022n/an/a

US$1b

Dec 31 2021US$9mUS$1m

US$1b

Sep 30 2021n/an/a

US$928m

Jun 30 2021n/an/a

US$871m

Mar 31 2021n/an/a

US$760m

Dec 31 2020US$7mUS$969k

US$695m

Sep 30 2020n/an/a

US$630m

Jun 30 2020n/an/a

US$623m

Mar 31 2020n/an/a

US$769m

Dec 31 2019US$8mUS$1m

US$849m

Sep 30 2019n/an/a

US$955m

Jun 30 2019n/an/a

US$826m

Mar 31 2019n/an/a

US$803m

Dec 31 2018US$10mUS$1m

US$782m

Sep 30 2018n/an/a

US$723m

Jun 30 2018n/an/a

US$779m

Mar 31 2018n/an/a

US$640m

Dec 31 2017US$7mUS$1m

US$586m

Sep 30 2017n/an/a

US$491m

Jun 30 2017n/an/a

US$515m

Mar 31 2017n/an/a

US$589m

Dec 31 2016US$6mUS$875k

US$601m

Sep 30 2016n/an/a

US$684m

Jun 30 2016n/an/a

US$690m

Mar 31 2016n/an/a

US$738m

Dec 31 2015US$4mUS$726k

US$761m

Compensation vs Market: DG's total compensation ($USD9.02M) is below average for companies of similar size in the US market ($USD13.03M).

Compensation vs Earnings: DG's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: GWW's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: GWW's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GWW insiders have only sold shares in the past 3 months.


Recent Insider Transactions

NYSE:GWW Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
03 Aug 22SellUS$29,238Laurie ThomsonIndividual54US$541.44
04 May 22SellUS$112,558Laurie ThomsonIndividual225US$500.26

Ownership Breakdown

What is the ownership structure of GWW?
Owner TypeNumber of SharesOwnership Percentage
State or Government22,3290.04%
Individual Insiders5,511,01210.8%
General Public8,206,44516.1%
Institutions37,131,40973.0%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 57.3% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10.7%
The Vanguard Group, Inc.
5,442,221$2.6b5.04%0.06%
10.6%
Susan Williams
5,389,802$2.6b0%no data
7.92%
BlackRock, Inc.
4,026,534$2.0b2.85%0.05%
4.15%
State Street Global Advisors, Inc.
2,112,304$1.0b-3.45%0.06%
3.53%
ClearBridge Investments, LLC
1,797,381$875.1m-3.07%0.83%
2.52%
Longview Partners (Guernsey) Ltd
1,281,802$624.1m-16%4.72%
1.67%
Geode Capital Management, LLC
850,663$414.2m1.79%0.06%
1.62%
Northern Trust Global Investments
824,274$401.3m-4.09%0.08%
1.39%
Franklin Resources, Inc.
709,356$345.4m0.98%0.15%
1.29%
Bank of America Corporation, Asset Management Arm
658,056$320.4m25.98%0.13%
1.12%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
570,146$277.6m-15.23%0.1%
1.08%
Fidelity International Ltd
547,052$266.4m0.41%0.14%
0.94%
Legal & General Investment Management Limited
476,896$232.2m1.7%0.07%
0.93%
Wells Fargo & Company, Securities and Brokerage Investments
474,880$231.2m8.75%0.1%
0.89%
UBS Asset Management
455,019$221.5m-3.36%0.04%
0.87%
Coho Partners, Ltd.
444,022$216.2m-4.64%4.15%
0.82%
Norges Bank Investment Management
414,753$201.9m0%0.03%
0.8%
Deutsche Asset & Wealth Management
406,408$197.9m-3.57%0.09%
0.74%
Dimensional Fund Advisors LP
374,358$182.3m1.99%0.05%
0.71%
BNY Mellon Asset Management
359,910$175.2m4.17%0.04%
0.67%
ProShare Advisors LLC
338,475$164.8m5.13%0.56%
0.65%
Eaton Vance Management
331,541$161.4m0.29%0.06%
0.62%
Eagle Asset Management, Inc.
316,132$153.9m3.17%1%
0.54%
Nikko Asset Management Co., Ltd.
275,047$133.9m88.26%0.06%
0.54%
Boston Partners Global Investors, Inc.
273,391$133.1m159.87%0.11%

Company Information

W.W. Grainger, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: W.W. Grainger, Inc.
  • Ticker: GWW
  • Exchange: NYSE
  • Founded: 1927
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Implied Market Cap: US$24.769b
  • Shares outstanding: 50.87m
  • Website: https://www.grainger.com

Number of Employees


Location

  • W.W. Grainger, Inc.
  • 100 Grainger Parkway
  • Lake Forest
  • Illinois
  • 60045-5201
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GWWNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1971
GWWDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1971
GWWXTRA (XETRA Trading Platform)YesCommon StockDEEURJul 1971
0IZILSE (London Stock Exchange)YesCommon StockGBUSDJul 1971
GWW *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1971
G1WW34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 40 REP 1 COMBRBRLJan 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.