W.W. Grainger, Inc. distributes maintenance, repair, and operating (MRO) products and services in the United States, Canada, and internationally.
W.W. Grainger Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$408.22|
|52 Week High||US$345.00|
|52 Week Low||US$479.87|
|1 Month Change||-5.53%|
|3 Month Change||-8.94%|
|1 Year Change||15.42%|
|3 Year Change||14.67%|
|5 Year Change||80.39%|
|Change since IPO||2,383.47%|
Recent News & Updates
|GWW||US Trade Distributors||US Market|
Return vs Industry: GWW underperformed the US Trade Distributors industry which returned 52.6% over the past year.
Return vs Market: GWW underperformed the US Market which returned 32.8% over the past year.
Stable Share Price: GWW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: GWW's weekly volatility (3%) has been stable over the past year.
About the Company
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 and security supplies, lighting and electrical products, power and hand tools, pumps and plumbing supplies, cleaning and maintenance supplies, and metalworking tools. It also offers inventory management and technical support services.
W.W. Grainger Fundamentals Summary
|GWW fundamental statistics|
Is GWW overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|GWW income statement (TTM)|
|Cost of Revenue||US$7.93b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Oct 29, 2021
|Earnings per share (EPS)||16.73|
|Net Profit Margin||7.11%|
How did GWW perform over the long term?See historical performance and comparison
1.6%Current Dividend Yield
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 ($408.22) is trading above our estimate of fair value ($287.59)
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 (24.4x) compared to the US Trade Distributors industry average (22.2x).
PE vs Market: GWW is poor value based on its PE Ratio (24.4x) compared to the US market (18.1x).
Price to Earnings Growth Ratio
PEG Ratio: GWW is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: GWW is overvalued based on its PB Ratio (11.4x) compared to the US Trade Distributors industry average (2.4x).
How is W.W. Grainger forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GWW's forecast earnings growth (9.3% per year) is above the savings rate (2%).
Earnings vs Market: GWW's earnings (9.3% per year) are forecast to grow slower than the US market (15% per year).
High Growth Earnings: GWW's earnings are forecast to grow, but not significantly.
Revenue vs Market: GWW's revenue (6.8% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: GWW's revenue (6.8% 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 (55.9%).
How has W.W. Grainger performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GWW has high quality earnings.
Growing Profit Margin: GWW's current net profit margins (7.1%) are higher than last year (5.4%).
Past Earnings Growth Analysis
Earnings Trend: GWW's earnings have grown by 5.7% per year over the past 5 years.
Accelerating Growth: GWW's earnings growth over the past year (39.8%) exceeds its 5-year average (5.7% per year).
Earnings vs Industry: GWW earnings growth over the past year (39.8%) underperformed the Trade Distributors industry 48.9%.
Return on Equity
High ROE: Whilst GWW's Return on Equity (43.86%) is outstanding, 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 ($4.1B) exceed its short term liabilities ($1.6B).
Long Term Liabilities: GWW's short term assets ($4.1B) exceed its long term liabilities ($2.7B).
Debt to Equity History and Analysis
Debt Level: GWW's debt to equity ratio (110.9%) is considered high.
Reducing Debt: GWW's debt to equity ratio has increased from 101.3% to 110.9% over the past 5 years.
Debt Coverage: GWW's debt is well covered by operating cash flow (50.9%).
Interest Coverage: GWW's interest payments on its debt are well covered by EBIT (17.1x coverage).
What is W.W. Grainger current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GWW's dividend (1.59%) is higher than the bottom 25% of dividend payers in the US market (1.3%).
High Dividend: GWW's dividend (1.59%) is low compared to the top 25% of dividend payers in the US market (3.57%).
Stability and Growth of Payments
Stable Dividend: GWW's dividends per share have been stable in the past 10 years.
Growing Dividend: GWW's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (37.6%), GWW's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: GWW's dividends in 3 years are forecast to be well covered by earnings (30.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
DG Macpherson (53 yo)
Mr. Donald G. Macpherson, also known as DG, has been Independent Director at International Paper Company since March 1, 2021. He has been the Chief Executive Officer of W.W. Grainger, Inc. since October 01...
CEO Compensation Analysis
Compensation vs Market: DG's total compensation ($USD7.48M) is below average for companies of similar size in the US market ($USD11.29M).
Compensation vs Earnings: DG's compensation has been consistent with company performance over the past year.
Experienced Management: GWW's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Experienced Board: GWW's board of directors are considered experienced (6.3 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 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$21.258b
- Shares outstanding: 52.07m
- Website: https://www.grainger.com
Number of Employees
- W.W. Grainger, Inc.
- 100 Grainger Parkway
- Lake Forest
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/27 22:55|
|End of Day Share Price||2021/09/27 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.