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GWW

W.W. GraingerNYSE:GWW Stock Report

Market Cap

US$21.1b

7D

0.7%

1Y

16.7%

Updated

26 Sep, 2021

Data

Company Financials +
GWW fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance4/6
Financial Health4/6
Dividends5/6

GWW Overview

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

Summary of all time highs, changes and price drops for W.W. Grainger
Historical stock prices
Current Share PriceUS$405.35
52 Week HighUS$345.00
52 Week LowUS$479.87
Beta1.22
1 Month Change-6.20%
3 Month Change-8.66%
1 Year Change16.68%
3 Year Change13.41%
5 Year Change80.28%
Change since IPO2,366.01%

Recent News & Updates

Shareholder Returns

GWWUS Trade DistributorsUS Market
7D0.7%3.2%0.1%
1Y16.7%55.5%35.3%

Return vs Industry: GWW underperformed the US Trade Distributors industry which returned 55.5% over the past year.

Return vs Market: GWW underperformed the US Market which returned 35.3% over the past year.

Price Volatility

Is GWW's price volatile compared to industry and market?
GWW volatility
GWW Beta1.22
Industry Beta1.58
Market Beta1

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

FoundedEmployeesCEOWebsite
192722,450DG Macphersonhttps://www.grainger.com

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

How do W.W. Grainger's earnings and revenue compare to its market cap?
GWW fundamental statistics
Market CapUS$21.11b
Earnings (TTM)US$871.00m
Revenue (TTM)US$12.25b

24.2x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GWW income statement (TTM)
RevenueUS$12.25b
Cost of RevenueUS$7.93b
Gross ProfitUS$4.32b
ExpensesUS$3.45b
EarningsUS$871.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 29, 2021

Earnings per share (EPS)16.73
Gross Margin35.25%
Net Profit Margin7.11%
Debt/Equity Ratio110.9%

How did GWW perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

38%

Payout Ratio

Valuation

Is W.W. Grainger undervalued compared to its fair value and its price relative to the market?

24.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GWW ($405.35) is trading above our estimate of fair value ($287.5)

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 (24.2x) compared to the US Trade Distributors industry average (22x).

PE vs Market: GWW is poor value based on its PE Ratio (24.2x) compared to the US market (17.9x).


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 (11.3x) compared to the US Trade Distributors industry average (2.4x).


Future Growth

How is W.W. Grainger forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

9.3%

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%).


Past Performance

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

5.7%

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.


Financial Health

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).


Balance Sheet


Dividend

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

1.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GWW's dividend (1.6%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: GWW's dividend (1.6%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

DG Macpherson (53 yo)

4.92yrs

Tenure

US$7,475,378

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

Compensation vs Market: DG's total compensation ($USD7.48M) is below average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: DG's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GWW's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: GWW's board of directors are considered experienced (6.3 years average tenure).


Ownership

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

Ownership Breakdown

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


Top Shareholders

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
  • Market Cap: US$21.108b
  • Shares outstanding: 52.07m
  • Website: https://www.grainger.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:10
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.