W.W. Grainger
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W.W. Grainger, Inc. distributes maintenance, repair, and operating (MRO) supplies; and other related products and services that are used by businesses and institutions in the United States, Canada, Europe, Asia, and Latin America. The last earnings update was 20 days ago. More info.
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GWW Share Price and Events
7 Day Returns
1 Year Returns
GWW Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| W.W. Grainger (GWW) | 3.2% | 11.4% | 2.4% | 18.3% | 44.8% | 26.3% |
| US Trade Distributors | 2.1% | 8.3% | 3.8% | -3.4% | 52.6% | 22.6% |
| US Market | 0.5% | 6.3% | 1.9% | 2% | 45.1% | 40.5% |
1 Year Return vs Industry and Market
- GWW outperformed the Trade Distributors industry which returned -3.4% over the past year.
- GWW outperformed the Market in United States of America which returned 2% over the past year.
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for W.W. Grainger.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 23 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 10.3% |
| 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.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 7.3% |
| Trade Distributors Unlevered Beta | Simply Wall St/ S&P Global | 0.94 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.942 (1 + (1- 21%) (12.68%)) |
1.036 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.04 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.036 * 7.27%) |
10.26% |
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 use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Levered FCF (USD, Millions) | 889.38 | 1,005.26 | 1,063.00 | 1,040.00 | 1,108.00 |
| Source | Analyst x9 | Analyst x9 | Analyst x4 | Analyst x2 | Analyst x2 |
|
Present Value Discounted (@ 10.26%) |
806.61 | 826.85 | 792.97 | 703.61 | 679.85 |
| Present value of next 5 years cash flows | $3,809.90 |
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2023
× (1 + g) ÷ (Discount Rate – g)
= $1,108.00 × (1 + 2.73%) ÷ (10.26% – 2.73%) |
$15,112.76 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= $15,112.76 ÷ (1 + 10.26%)5 |
$9,273.00 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= $3,809.90 + $9,273.00 |
$13,082.90 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $13,082.90 / 55.86 |
$234.2 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $234.20 |
| Current discount | Discount to share price of
$313.31
= -1 x ($313.31 - $234.20) / $234.20 |
-33.8% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of W.W. Grainger is above its future cash flow value.
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?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $13.93 |
| NYSE:GWW Share Price ** | NYSE (2019-02-13) in USD | $313.31 |
| United States of America Trade Distributors Industry PE Ratio | Median Figure of 42 Publicly-Listed Trade Distributors Companies | 12.27x |
| United States of America Market PE Ratio | Median Figure of 3,046 Publicly-Listed Companies | 16.95x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of W.W. Grainger.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:GWW Share Price ÷ EPS (both in USD) = 313.31 ÷ 13.93 |
22.49x |
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?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 22.49x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts |
9.5%per year |
| United States of America Trade Distributors Industry PEG Ratio | Median Figure of 35 Publicly-Listed Trade Distributors Companies | 0.71x |
| United States of America Market PEG Ratio | Median Figure of 2,117 Publicly-Listed Companies | 1.36x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 22.49x ÷ 9.5% |
2.36x |
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?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $37.47 |
| NYSE:GWW Share Price * | NYSE (2019-02-13) in USD | $313.31 |
| United States of America Trade Distributors Industry PB Ratio | Median Figure of 52 Publicly-Listed Trade Distributors Companies | 1.49x |
| United States of America Market PB Ratio | Median Figure of 5,122 Publicly-Listed Companies | 1.81x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:GWW Share Price ÷ Book Value per Share (both in USD) = 313.31 ÷ 37.47 |
8.36x |
* 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.
Value checks
We assess W.W. Grainger's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check) 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
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!
Earnings growth vs Low Risk Savings
- 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
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:GWW Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts | 9.5% |
| NYSE:GWW Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 23 Analysts | 4.9% |
| United States of America Trade Distributors Industry Earnings Growth Rate | Market Cap Weighted Average | 12% |
| United States of America Trade Distributors Industry Revenue Growth Rate | Market Cap Weighted Average | 6.3% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.4% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*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
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 23 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 14,420 | 1,441 | 1,291 | 2 |
| 2022-12-31 | 13,938 | 1,362 | 1,210 | 3 |
| 2021-12-31 | 12,948 | 1,367 | 1,101 | 7 |
| 2020-12-31 | 12,518 | 1,316 | 1,079 | 23 |
| 2019-12-31 | 11,899 | 1,200 | 993 | 23 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 11,221 | 1,057 | 782 |
| 2018-09-30 | 11,091 | 1,079 | 718 |
| 2018-06-30 | 10,895 | 1,079 | 775 |
| 2018-03-31 | 10,650 | 1,022 | 637 |
| 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 |
| 2016-03-31 | 10,040 | 994 | 738 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 23 Analyst Estimates (S&P Global) | See Below |
All data from W.W. Grainger Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 26.36 | 28.38 | 24.34 | 2.00 |
| 2022-12-31 | 24.22 | 25.80 | 22.63 | 2.00 |
| 2021-12-31 | 20.76 | 23.51 | 17.94 | 4.00 |
| 2020-12-31 | 19.88 | 21.41 | 17.93 | 13.00 |
| 2019-12-31 | 17.96 | 19.39 | 16.86 | 13.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 13.93 |
| 2018-09-30 | 12.76 |
| 2018-06-30 | 13.71 |
| 2018-03-31 | 11.18 |
| 2017-12-31 | 10.07 |
| 2017-09-30 | 8.43 |
| 2017-06-30 | 8.73 |
| 2017-03-31 | 9.86 |
| 2016-12-31 | 9.94 |
| 2016-09-30 | 11.19 |
| 2016-06-30 | 11.08 |
| 2016-03-31 | 11.57 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess W.W. Grainger's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- 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 (34.6% vs -4.9%)
- W.W. Grainger's earnings growth has not exceeded the US Trade Distributors industry average in the past year (34.6% vs 39.5%).
Earnings and Revenue History
All data from W.W. Grainger Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 11,221.00 | 782.00 | 3,004.00 | |
| 2018-09-30 | 11,090.50 | 718.11 | 2,890.56 | |
| 2018-06-30 | 10,895.07 | 775.21 | 2,875.52 | |
| 2018-03-31 | 10,650.13 | 637.32 | 2,873.86 | |
| 2017-12-31 | 10,424.86 | 581.05 | 2,857.29 | |
| 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 | 10,137.20 | 600.50 | 2,878.15 | |
| 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 | |
| 2012-06-30 | 8,634.27 | 695.88 | 2,590.57 | |
| 2012-03-31 | 8,388.02 | 675.28 | 2,523.33 |
*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).
Past performance checks
We assess W.W. Grainger's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
W.W. Grainger has a total score of 2/6, 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.
- 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
Assets
Liabilities and shares
- 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.
All data from W.W. Grainger Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 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 | 1,827.73 | 2,342.35 | 326.88 |
| 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 |
| 2012-06-30 | 2,894.15 | 551.72 | 249.75 |
| 2012-03-31 | 2,873.55 | 526.10 | 338.76 |
- W.W. Grainger's level of debt (106.1%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (16.4% vs 106.1% today).
- Debt is well covered by operating cash flow (47.6%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 16.4x coverage).
Financial health checks
We assess W.W. Grainger's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) W.W. Grainger has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
If you bought
$2,000 of
W.W. Grainger
shares you are expected to receive
$35
in your first year as a dividend.
Dividend Amount
- W.W. Grainger's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
- W.W. Grainger's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
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.
| 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 23 Analyst Estimates (S&P Global) | See Below |
| United States of America Trade Distributors Industry Average Dividend Yield | Market Cap Weighted Average of 15 Stocks | 3.1% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 1997 Stocks | 2.5% |
| 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 | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | 8.20 | 2.00 |
| 2022-12-31 | 7.53 | 2.00 |
| 2021-12-31 | 6.31 | 4.00 |
| 2020-12-31 | 5.95 | 9.00 |
| 2019-12-31 | 5.72 | 11.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-01-30 | 5.440 | 1.809 |
| 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 |
| 2009-02-17 | 1.600 | 2.257 |
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).
- Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
Income/ dividend checks
We assess W.W. Grainger's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| COMPENSATION | $6,966,359 |
| AGE | 50 |
| TENURE AS CEO | 2.3 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 increased by more than 20% in the past year.
- DG's remuneration is lower than 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:
- The average tenure for the W.W. Grainger management team is less than 2 years, this suggests a new team.
Management Team
DG Macpherson
Chairman & CEO
$7M
50
2.3 yrs
John Howard
Senior VP & General Counsel
$2M
60
19.1 yrs
Paige Robbins
Senior VP & Chief Digital Officer
$1M
49
3.2 yrs
Joseph High
Executive Officer
$2M
63
0.8 yrs
Tom Okray
Senior VP & CFO
55
0.8 yrs
Eric Tapia
VP, Controller & Principal Accounting Officer
41
Irene Holman
Vice President of Investor Relations
0.6 yrs
Kathleen Carroll
Senior VP & Chief Human Resources Officer
49
0.2 yrs
Deidra Merriwether
Senior VP & President of U.S. Direct Sales and Strategic Initiatives
Deb Oler
Senior VP and President North America Sales & Service
63
Board of Directors Tenure
Average tenure and age of the W.W. Grainger board of directors in years:
- 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
Chairman & CEO
$7M
50
1.3 yrs
Stu Levenick
Lead Director
$244K
65
2.8 yrs
Mike Roberts
Independent Director
$224K
67
13 yrs
V. Hailey
Independent Director
$209K
67
12.8 yrs
Brian Anderson
Independent Director
$210K
67
20.1 yrs
Neil Novich
Independent Director
$216K
63
20.1 yrs
jim Slavik
Independent Director
$216K
65
32.1 yrs
E. Santi
Independent Director
$236K
56
8.8 yrs
Rod Adkins
Independent Director
$216K
59
4.6 yrs
Beatriz Perez
Independent Director
$144K
48
1.6 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 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 | ||
| 04. May 18 | Sell | Eric Tapia | Individual | 03. May 18 | 03. May 18 | -216 | $279.20 | $-60,207 | ||
Management checks
We assess W.W. Grainger's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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
Why W.W. Grainger, Inc.’s (NYSE:GWW) Cash Is A Factor You Need To Consider
(NYSE:GWW), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … Grainger’s cash flow, which will help you understand the stock from a cash standpoint. … Grainger generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating
Simply Wall St - – Full articleHow Does W.W. Grainger, Inc.'s (NYSE:GWW) Earnings Growth Stack Up Against Industry Performance?
(NYSE:GWW) released its most recent earnings update (31 December 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … GWW's trailing twelve-month earnings (from 31 December 2018) of US$782m has. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -4.9%, indicating the rate at which GWW is growing has accelerated
Simply Wall St - – Full articleHow Should You Value W.W. Grainger, Inc.'s (NYSE:GWW)?
Deciding if you should use a relative valuation model over an intrinsic valuation model can be a difficult choice for many investors. … For example, my discounted cash flow (DCF) model tells me that W.W. … Grainger, Inc.'s (NYSE:GWW) is overvalued by 30.33%, but my relative valuation tells me it’s overvalued by 66.16%.
Simply Wall St - – Full articleWhy W.W. Grainger, Inc.'s (NYSE:GWW) High P/E Ratio Isn't Necessarily A Bad Thing
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Grainger has a price to earnings ratio of 22.3, based on the last twelve months. … Grainger's Price To Earnings Ratio.
Simply Wall St - – Full articleW.W. Grainger, Inc. (NYSE:GWW) Is Employing Capital Very Effectively
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Simply Wall St - – Full articleRead This Before Buying W.W. Grainger, Inc. (NYSE:GWW) Shares
In the last twelve months, the biggest single sale by an insider was when VP, Controller & Principal Accounting Officer Eric Tapia sold US$519k worth of shares at a price of US$338 per share. … That means that an insider was selling shares at around the current price of US$272. … We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price.
Simply Wall St - – Full articleIs It Time To Consider Buying W.W. Grainger, Inc. (NYSE:GWW)?
received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $359.38 at one point, and dropping to the lows of $271.23. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. … Grainger's current trading price of $287.8 reflective of the actual value of the?
Simply Wall St - – Full articleIs WW Grainger Inc (NYSE:GWW) Undervalued After Accounting For Its Future Growth?
WW Grainger Inc (NYSE:GWW) is considered a high-growth stock, but its last closing price of $314.04 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … Let’s look into this by assessing GWW's expected growth over the next few years. … Grainger in the future.
Simply Wall St - – Full articleWhat Should Investors Know About WW Grainger Inc's (NYSE:GWW) Future?
On 30 September 2018, WW Grainger Inc (NYSE:GWW) announced its earnings update. … analyst consensus outlook appear cautiously optimistic, … as a 32% increase in profits is expected in the upcoming year,
Simply Wall St - – Full articleIntrinsic Calculation For WW Grainger Inc (NYSE:GWW) Shows Investors Are Overpaying
by taking the foreast future cash flows of the company and discounting them back to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model
Simply Wall St - – Full articleCompany Info
Map
Description
W.W. Grainger, Inc. distributes maintenance, repair, and operating (MRO) supplies; and other related products and services that are used by businesses and institutions in the United States, Canada, Europe, Asia, and Latin America. The company offers material handling equipment, safety and security supplies, lighting and electrical products, power and hand tools, pumps and plumbing supplies, cleaning and maintenance supplies, metalworking tools, and various other products. It also offers inventory management solutions; and distributes fasteners, gloves, ladders, motors, and janitorial supplies. The company serves small and mid-sized businesses, large corporations, government entities, and other institutions. It offers its products through various branches, sales and service representatives, contact centers, distribution centers, and catalogs, as well as through Websites. 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 |
| $17,502,236,011 | |
| 55,862,360 | |
| 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
Industry
| Trading Companies and Distributors | |
| Capital Goods |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/02/13 23:41 |
| End of day share price update: | 2019/02/13 00:00 |
| Last estimates confirmation: | 2019/02/13 |
| Last earnings filing: | 2019/01/24 |
| Last earnings reported: | 2018/12/31 |
| 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.
