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W.W. Grainger

NYSE:GWW
Snowflake Description

Established dividend payer with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GWW
NYSE
$15B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

W.W. Grainger, Inc. distributes maintenance, repair, and operating (MRO) products and services in the United States, Canada, Europe, Japan, Mexico, and internationally. The last earnings update was 85 days ago. More info.


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GWW Share Price and Events
7 Day Returns
2.3%
NYSE:GWW
-0%
US Trade Distributors
1.1%
US Market
1 Year Returns
-10.5%
NYSE:GWW
-8.1%
US Trade Distributors
4.7%
US Market
GWW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
W.W. Grainger (GWW) 2.3% 0.2% -11.5% -10.5% 25.3% 12.9%
US Trade Distributors -0% 2.1% -4% -8.1% 28.3% 10.2%
US Market 1.1% 4.3% 2.9% 4.7% 37.7% 43.6%
1 Year Return vs Industry and Market
  • GWW underperformed the Trade Distributors industry which returned -8.1% over the past year.
  • GWW underperformed the Market in United States of America which returned 4.7% over the past year.
Price Volatility
GWW
Industry
5yr Volatility vs Market

Value

 Is W.W. Grainger undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of W.W. Grainger to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for W.W. Grainger.

NYSE:GWW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:GWW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.923 (1 + (1- 21%) (15.9%))
1.026
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.026 * 5.96%)
8.84%

Discounted Cash Flow Calculation for NYSE:GWW using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for W.W. Grainger is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:GWW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.84%)
2020 988.03 Analyst x8 907.75
2021 1,035.00 Analyst x4 873.64
2022 1,006.50 Analyst x2 780.56
2023 1,073.50 Analyst x2 764.87
2024 1,099.00 Est @ 2.38% 719.42
2025 1,126.28 Est @ 2.48% 677.37
2026 1,155.07 Est @ 2.56% 638.24
2027 1,185.19 Est @ 2.61% 601.68
2028 1,216.54 Est @ 2.64% 567.41
2029 1,249.03 Est @ 2.67% 535.23
Present value of next 10 years cash flows $7,066.16
NYSE:GWW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,249.03 × (1 + 2.73%) ÷ (8.84% – 2.73%)
$20,987.79
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $20,987.79 ÷ (1 + 8.84%)10
$8,993.62
NYSE:GWW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $7,066.16 + $8,993.62
$16,059.78
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $16,059.78 / 55.44
$289.66
NYSE:GWW Discount to Share Price
Calculation Result
Value per share (USD) From above. $289.66
Current discount Discount to share price of $272.91
= -1 x ($272.91 - $289.66) / $289.66
5.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price W.W. Grainger is available for.
Intrinsic value
6%
Share price is $272.91 vs Future cash flow value of $289.66
Current Discount Checks
For W.W. Grainger to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • W.W. Grainger's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • W.W. Grainger's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for W.W. Grainger's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are W.W. Grainger's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:GWW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $14.20
NYSE:GWW Share Price ** NYSE (2019-07-16) in USD $272.91
United States of America Trade Distributors Industry PE Ratio Median Figure of 42 Publicly-Listed Trade Distributors Companies 17.31x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 17.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of W.W. Grainger.

NYSE:GWW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:GWW Share Price ÷ EPS (both in USD)

= 272.91 ÷ 14.20

19.21x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • W.W. Grainger is overvalued based on earnings compared to the US Trade Distributors industry average.
  • W.W. Grainger is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does W.W. Grainger's expected growth come at a high price?
Raw Data
NYSE:GWW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.21x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
7.8%per year
United States of America Trade Distributors Industry PEG Ratio Median Figure of 33 Publicly-Listed Trade Distributors Companies 1.14x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

NYSE:GWW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.21x ÷ 7.8%

2.45x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • W.W. Grainger is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on W.W. Grainger's assets?
Raw Data
NYSE:GWW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $35.55
NYSE:GWW Share Price * NYSE (2019-07-16) in USD $272.91
United States of America Trade Distributors Industry PB Ratio Median Figure of 53 Publicly-Listed Trade Distributors Companies 1.63x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NYSE:GWW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:GWW Share Price ÷ Book Value per Share (both in USD)

= 272.91 ÷ 35.55

7.68x

* Primary Listing of W.W. Grainger.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • W.W. Grainger is overvalued based on assets compared to the US Trade Distributors industry average.
X
Value checks
We assess W.W. Grainger's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. W.W. Grainger has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is W.W. Grainger expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is W.W. Grainger expected to grow at an attractive rate?
  • W.W. Grainger's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • W.W. Grainger's earnings growth is positive but not above the United States of America market average.
  • W.W. Grainger's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:GWW Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:GWW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 7.8%
NYSE:GWW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 5.1%
United States of America Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 15.2%
United States of America Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:GWW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:GWW Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 14,421 1,375 1,294 3
2022-12-31 13,726 1,297 1,208 3
2021-12-31 12,712 1,322 1,124 6
2020-12-31 12,277 1,298 1,066 20
2019-12-31 11,702 1,176 984 20
NYSE:GWW Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 11,254 1,037 796
2018-12-31 11,221 1,057 776
2018-09-30 11,090 1,079 719
2018-06-30 10,895 1,080 776
2018-03-31 10,650 1,023 638
2017-12-31 10,425 1,057 581
2017-09-30 10,263 1,056 491
2017-06-30 10,223 1,053 515
2017-03-31 10,172 1,044 589
2016-12-31 10,137 1,024 601
2016-09-30 10,145 943 684
2016-06-30 10,081 963 690

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • W.W. Grainger's earnings are expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).
  • W.W. Grainger's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:GWW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from W.W. Grainger Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GWW Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 26.80 29.32 24.27 2.00
2022-12-31 24.46 26.43 22.48 2.00
2021-12-31 21.74 23.76 20.50 3.00
2020-12-31 19.74 21.26 18.60 11.00
2019-12-31 17.93 19.03 17.13 10.00
NYSE:GWW Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 14.20
2018-12-31 13.82
2018-09-30 12.76
2018-06-30 13.72
2018-03-31 11.19
2017-12-31 10.07
2017-09-30 8.43
2017-06-30 8.73
2017-03-31 9.86
2016-12-31 9.95
2016-09-30 11.19
2016-06-30 11.08

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • W.W. Grainger is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess W.W. Grainger's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
W.W. Grainger has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare W.W. Grainger's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • W.W. Grainger's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • W.W. Grainger's 1-year earnings growth exceeds its 5-year average (24.8% vs -3.6%)
  • W.W. Grainger's earnings growth has exceeded the US Trade Distributors industry average in the past year (24.8% vs -8.2%).
Earnings and Revenue History
W.W. Grainger's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from W.W. Grainger Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GWW Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 11,254.00 796.00 2,875.00
2018-12-31 11,221.00 776.00 2,893.00
2018-09-30 11,090.24 718.53 2,901.50
2018-06-30 10,894.81 775.63 2,876.73
2018-03-31 10,649.87 637.73 2,875.07
2017-12-31 10,425.00 581.00 2,858.00
2017-09-30 10,263.11 491.30 2,931.92
2017-06-30 10,223.40 514.94 2,899.00
2017-03-31 10,171.80 588.80 2,898.12
2016-12-31 10,137.00 601.00 2,826.00
2016-09-30 10,144.75 684.21 2,795.11
2016-06-30 10,081.36 690.36 2,831.33
2016-03-31 10,040.26 737.62 2,797.57
2015-12-31 9,973.38 761.44 2,821.95
2015-09-30 10,006.09 764.83 2,873.85
2015-06-30 10,035.45 802.14 2,869.97
2015-03-31 10,018.99 787.29 2,893.19
2014-12-31 9,964.95 792.21 2,848.13
2014-09-30 9,831.23 799.75 2,876.79
2014-06-30 9,667.49 779.85 2,864.17
2014-03-31 9,542.95 790.89 2,821.15
2013-12-31 9,437.76 785.38 2,787.95
2013-09-30 9,286.65 784.11 2,762.08
2013-06-30 9,169.32 728.94 2,797.07
2013-03-31 9,037.04 701.57 2,764.50
2012-12-31 8,950.05 677.54 2,746.04
2012-09-30 8,800.83 669.74 2,720.24

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst W.W. Grainger has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • W.W. Grainger used its assets more efficiently than the US Trade Distributors industry average last year based on Return on Assets.
  • W.W. Grainger's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess W.W. Grainger's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
W.W. Grainger has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is W.W. Grainger's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up W.W. Grainger's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • W.W. Grainger is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • W.W. Grainger's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of W.W. Grainger's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from W.W. Grainger Company Filings, last reported 3 months ago.

NYSE:GWW Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,152.00 2,211.00 392.00
2018-12-31 2,093.00 2,220.00 538.00
2018-09-30 2,100.05 2,234.80 516.85
2018-06-30 2,050.27 2,294.75 312.46
2018-03-31 1,925.91 2,412.33 302.02
2017-12-31 1,828.00 2,343.00 327.00
2017-09-30 1,901.09 2,323.19 284.58
2017-06-30 1,848.20 2,426.17 275.07
2017-03-31 1,916.52 2,289.34 238.80
2016-12-31 1,905.77 2,247.05 274.15
2016-09-30 2,161.04 2,278.30 285.98
2016-06-30 2,242.57 2,271.58 316.00
2016-03-31 2,364.20 2,093.33 279.91
2015-12-31 2,352.71 1,988.83 290.14
2015-09-30 2,446.05 1,813.21 258.15
2015-06-30 3,099.44 1,406.41 819.79
2015-03-31 3,210.27 630.02 243.43
2014-12-31 3,284.10 485.63 226.64
2014-09-30 3,476.41 460.19 319.73
2014-06-30 3,448.02 570.45 331.71
2014-03-31 3,328.59 577.70 375.56
2013-12-31 3,326.84 545.80 430.64
2013-09-30 3,369.14 551.67 540.00
2013-06-30 3,242.20 550.84 488.74
2013-03-31 3,218.19 553.44 485.52
2012-12-31 3,117.37 568.64 452.06
2012-09-30 2,968.36 565.97 420.80
  • W.W. Grainger's level of debt (102.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (17.3% vs 102.7% today).
  • Debt is well covered by operating cash flow (46.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 18.2x coverage).
X
Financial health checks
We assess W.W. Grainger's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. W.W. Grainger has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.11%
Current annual income from W.W. Grainger dividends. Estimated to be 2.28% next year.
If you bought $2,000 of W.W. Grainger shares you are expected to receive $42 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • W.W. Grainger's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.42%).
  • W.W. Grainger's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:GWW Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
United States of America Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:GWW Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 8.40 2.00
2022-12-31 7.66 2.00
2021-12-31 6.50 3.00
2020-12-31 6.01 10.00
2019-12-31 5.64 10.00
NYSE:GWW Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-24 5.760 2.129
2019-01-30 5.440 1.795
2018-10-31 5.440 1.873
2018-07-25 5.440 1.624
2018-04-25 5.440 1.775
2017-10-25 5.120 2.104
2017-07-26 5.120 2.971
2017-04-26 5.120 2.885
2017-01-25 4.880 2.051
2016-10-26 4.880 2.133
2016-07-27 4.880 2.203
2016-04-27 4.880 2.161
2016-01-27 4.680 2.125
2015-10-28 4.680 2.363
2015-07-29 4.680 2.137
2015-04-29 4.680 1.951
2015-01-28 4.320 1.820
2014-10-29 4.320 1.747
2014-07-30 4.320 1.772
2014-04-30 4.320 1.708
2014-01-29 3.720 1.497
2013-10-30 3.720 1.445
2013-07-31 3.720 1.425
2013-04-24 3.720 1.455
2013-01-30 3.200 1.416
2012-10-31 3.200 1.607
2012-07-25 3.200 1.553
2012-04-25 3.200 1.665
2012-01-25 2.640 1.264
2011-10-26 2.640 1.438
2011-07-27 2.640 1.771
2011-04-27 2.640 1.756
2011-01-26 2.160 1.574
2010-10-26 2.160 1.648
2010-04-28 2.160 1.967
2010-01-27 1.840 1.734
2009-10-28 1.840 1.875
2009-07-29 1.840 2.045
2009-04-29 1.840 2.248
2009-01-28 1.600 2.240
2008-10-29 1.600 2.227
2008-07-30 1.600 1.897

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of W.W. Grainger's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).
X
Income/ dividend checks
We assess W.W. Grainger's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can W.W. Grainger afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. W.W. Grainger has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of W.W. Grainger's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
DG Macpherson
COMPENSATION $10,455,844
AGE 51
TENURE AS CEO 2.8 years
CEO Bio

Mr. Donald G. Macpherson, also known as DG, has been the Chief Executive Officer of W.W. Grainger, Inc. since October 01, 2016 and has been its Chairman since October 2017. Mr. Macpherson served as the Chief Operating Officer of W.W. Grainger, Inc. since August 1, 2015 until September 2016. Mr. Macpherson served as the Senior Vice President and Group President of Global Supply Chain & International at W.W. Grainger, Inc. since August 28, 2013 until August 1, 2015. He served as the Senior Vice President and President of Global Supply Chain and Corporate Strategy at W.W. Grainger, Inc. since 2012. He served as an Senior Vice President of Global Supply Chain at W.W. Grainger, Inc. from 2008 to 2012. He served as Senior Vice President and Head of Global Supply Chain Function at W.W. Grainger, Inc. Mr. Macpherson joined Grainger after 12 years with Boston Consulting Group where he was a Partner and Managing Director. He has been a Director of W.W. Grainger, Inc. since October 01, 2016. He holds Bachelor's Degree in Engineering from Standford University and Master's Degree in Business Administration from Northwestern University's Kellogg School of Management.

CEO Compensation
  • DG's compensation has been consistent with company performance over the past year, both up more than 20%.
  • DG's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the W.W. Grainger management team in years:

2.8
Average Tenure
50.5
Average Age
  • The tenure for the W.W. Grainger management team is about average.
Management Team

DG Macpherson

TITLE
Chairman & CEO
COMPENSATION
$10M
AGE
51
TENURE
2.8 yrs

Tom Okray

TITLE
Senior VP & CFO
COMPENSATION
$4M
AGE
56
TENURE
1.2 yrs

John Howard

TITLE
Senior VP & General Counsel
COMPENSATION
$3M
AGE
61
TENURE
19.5 yrs

Paige Robbins

TITLE
Senior VP & Chief Digital Officer
COMPENSATION
$2M
AGE
50
TENURE
3.6 yrs

Deidra Merriwether

TITLE
Senior VP & President of U.S. Direct Sales and Strategic Initiatives
COMPENSATION
$1M
AGE
50

Irene Holman

TITLE
Vice President of Investor Relations
TENURE
1 yrs

Kathleen Carroll

TITLE
Senior VP & Chief Human Resources Officer
AGE
50
TENURE
0.6 yrs

Deb Oler

TITLE
Senior VP and President North America Sales & Service
AGE
64

David Rawlinson

TITLE
President of Online Business
AGE
43
TENURE
3.9 yrs

Hugo Dubovoy

TITLE
VP & Corporate Secretary
Board of Directors Tenure

Average tenure and age of the W.W. Grainger board of directors in years:

11.2
Average Tenure
65
Average Age
  • The average tenure for the W.W. Grainger board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

DG Macpherson

TITLE
Chairman & CEO
COMPENSATION
$10M
AGE
51
TENURE
1.8 yrs

Stu Levenick

TITLE
Lead Director
COMPENSATION
$346K
AGE
66
TENURE
3.3 yrs

Mike Roberts

TITLE
Independent Director
COMPENSATION
$334K
AGE
68
TENURE
13.4 yrs

V. Hailey

TITLE
Independent Director
COMPENSATION
$331K
AGE
68
TENURE
13.2 yrs

Brian Anderson

TITLE
Independent Director
COMPENSATION
$319K
AGE
68
TENURE
20.5 yrs

Neil Novich

TITLE
Independent Director
COMPENSATION
$319K
AGE
64
TENURE
20.5 yrs

jim Slavik

TITLE
Independent Director
COMPENSATION
$319K
AGE
66
TENURE
32.5 yrs

E. Santi

TITLE
Independent Director
COMPENSATION
$319K
AGE
57
TENURE
9.3 yrs

Rod Adkins

TITLE
Independent Director
COMPENSATION
$319K
AGE
60
TENURE
5 yrs

Beatriz Perez

TITLE
Independent Director
COMPENSATION
$319K
AGE
49
TENURE
2 yrs
Who owns this company?
Recent Insider Trading
  • W.W. Grainger individual insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. Jun 19 Sell Eric Tapia Individual 14. Jun 19 14. Jun 19 -180 $272.58 $-49,064
16. Aug 18 Sell Brian Anderson Individual 16. Aug 18 16. Aug 18 -1,000 $360.45 $-360,177
31. Jul 18 Sell Eric Tapia Individual 30. Jul 18 30. Jul 18 -1,534 $338.19 $-518,784
X
Management checks
We assess W.W. Grainger's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. W.W. Grainger has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is W.W. Grainger, Inc.'s (NYSE:GWW) CEO Being Overpaid?

This analysis aims first to contrast CEO compensation with other large companies. … When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. … It achieved revenue growth of 5.7% over the last year.

Simply Wall St -

How Do Analysts See W.W. Grainger, Inc. (NYSE:GWW) Performing In The Next 12 Months?

Grainger, Inc.'s (NYSE:GWW) earnings update in March 2019, it seems that analyst forecasts are fairly optimistic, with profits predicted to increase by 26% next year relative to the past 5-year average growth rate of -3.6%. … I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of GWW's earnings growth over these next few years. … NYSE:GWW Past and Future Earnings, July 2nd 2019 This results in an annual growth rate of 7.8% based on the most recent earnings level of US$776m to the final forecast of US$1.1b by 2022.

Simply Wall St -

Update: W.W. Grainger (NYSE:GWW) Stock Gained 26% In The Last Three Years

During three years of share price growth, W.W. … We note that the 8.0% yearly (average) share price gain isn't too far from the EPS growth rate. … When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return.

Simply Wall St -

Should We Be Delighted With W.W. Grainger, Inc.'s (NYSE:GWW) ROE Of 39%?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for W.W. … Grainger Have A Good Return On Equity? … One simple way to determine if a company has a good return on equity is to compare it to the average for its industry.

Simply Wall St -

Does W.W. Grainger (NYSE:GWW) Deserve A Spot On Your Watchlist?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. … One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. … You can take a look at the company's revenue and earnings growth trend, in the chart below.

Simply Wall St -

What Investors Should Know About W.W. Grainger, Inc.'s (NYSE:GWW) Financial Strength

At this current level of debt, GWW currently has US$392m remaining in cash and short-term investments , ready to be used for running the business. … Moreover, GWW has generated cash from operations of US$1.0b in the last twelve months, leading to an operating cash to total debt ratio of 43%, signalling that GWW’s operating cash is sufficient to cover its debt. … With current liabilities at US$1.5b, the company has been able to meet these commitments with a current assets level of US$3.5b, leading to a 2.4x current account ratio.

Simply Wall St -

Does W.W. Grainger, Inc.'s (NYSE:GWW) 25% Earnings Growth Make It An Outperformer?

Grainger is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its trade distributors industry peers. … Grainger How GWW fared against its long-term earnings performance and its industry GWW's trailing twelve-month earnings (from 31 March 2019) of US$796m has jumped 25% compared to the previous year. … Grainger to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for GWW’s future growth?

Simply Wall St -

2 Days Left To Cash In On W.W. Grainger, Inc. (NYSE:GWW) Dividend

Grainger, Inc.'s (NYSE:GWW) upcoming dividend of US$1.44 per share, you only have 2 days left to buy the shares before its ex-dividend date, 10 May 2019, in time for dividends payable on the 01 June 2019. … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:? … Will the company be able to keep paying dividend based on the future earnings growth

Simply Wall St -

Should You Be Tempted To Sell W.W. Grainger, Inc. (NYSE:GWW) Because Of Its P/E Ratio?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Grainger's Price To Earnings Ratio. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

W.W. Grainger, Inc. (NYSE:GWW) Earns Among The Best Returns In Its Industry

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Company Info

Description

W.W. Grainger, Inc. distributes maintenance, repair, and operating (MRO) products and services in the United States, Canada, Europe, Japan, Mexico, 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, as well as gloves, ladders, motors, and janitorial supplies. It also offers inventory management and technical support services. The company provides its products through branches, sales and service representatives, contact centers, distribution centers, and catalogs, as well as through e-commerce platform. It serves small and mid-sized businesses, large corporations, government entities, and other institutions. W.W. Grainger, Inc. was founded in 1927 and is based in Lake Forest, Illinois.

Details
Name: W.W. Grainger, Inc.
GWW
Exchange: NYSE
Founded: 1927
$15,131,110,419
55,443,591
Website: http://www.grainger.com
Address: W.W. Grainger, Inc.
100 Grainger Parkway,
Lake Forest,
Illinois, 60045,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE GWW Common Stock New York Stock Exchange US USD 09. Jul 1971
DB GWW Common Stock Deutsche Boerse AG DE EUR 09. Jul 1971
LSE 0IZI Common Stock London Stock Exchange GB USD 09. Jul 1971
Number of employees
Current staff
Staff numbers
23,850
W.W. Grainger employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 23:36
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/16
Last earnings filing: 2019/04/22
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.