W.W. Grainger
- Home ›
- US ›
- Capital Goods
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 1 day ago. More info.
Add to Portfolio Compare Print
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) | -4.2% | 0.2% | -1.3% | 4.9% | 25.1% | 18.1% |
| US Trade Distributors | 0.3% | 8.9% | 8.1% | -1.2% | 32.4% | 18% |
| US Market | -0.1% | 3.7% | 10.2% | 7.6% | 38.1% | 46.4% |
1 Year Return vs Industry and Market
- GWW outperformed the Trade Distributors industry which returned -1.2% over the past year.
- GWW underperformed the Market in United States of America which returned 7.6% 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 | 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.
| 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 | 0.94 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.937 (1 + (1- 21%) (13.6%)) |
1.025 |
| 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% + (1.025 * 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.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 8.84%) |
|
|---|---|---|---|
| 2019 | 852.33 | Analyst x9 | 783.10 |
| 2020 | 993.56 | Analyst x9 | 838.71 |
| 2021 | 1,058.00 | Analyst x5 | 820.57 |
| 2022 | 1,028.50 | Analyst x2 | 732.90 |
| 2023 | 1,098.50 | Analyst x2 | 719.20 |
| 2024 | 1,128.51 | Est @ 2.73% | 678.83 |
| 2025 | 1,159.34 | Est @ 2.73% | 640.73 |
| 2026 | 1,191.00 | Est @ 2.73% | 604.77 |
| 2027 | 1,223.53 | Est @ 2.73% | 570.82 |
| 2028 | 1,256.94 | Est @ 2.73% | 538.77 |
| Present value of next 10 years cash flows | $6,928.39 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $1,256.94 × (1 + 2.73%) ÷ (8.84% – 2.73%) |
$21,131.60 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $21,131.60 ÷ (1 + 8.84%)10 |
$9,057.88 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $6,928.39 + $9,057.88 |
$15,986.27 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $15,986.27 / 55.44 |
$288.33 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $288.33 |
| Current discount | Discount to share price of
$293.19
= -1 x ($293.19 - $288.33) / $288.33 |
-1.7% |
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 (2019-03-31) in USD | $14.23 |
| NYSE:GWW Share Price ** | NYSE (2019-04-23) in USD | $293.19 |
| United States of America Trade Distributors Industry PE Ratio | Median Figure of 41 Publicly-Listed Trade Distributors Companies | 15.47x |
| United States of America Market PE Ratio | Median Figure of 3,080 Publicly-Listed Companies | 18.03x |
* 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) = 293.19 ÷ 14.23 |
20.61x |
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 | 20.61x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts |
7.3%per year |
| United States of America Trade Distributors Industry PEG Ratio | Median Figure of 33 Publicly-Listed Trade Distributors Companies | 1.26x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.55x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 20.61x ÷ 7.3% |
2.82x |
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 (2019-03-31) in USD | $38.71 |
| NYSE:GWW Share Price * | NYSE (2019-04-23) in USD | $293.19 |
| United States of America Trade Distributors Industry PB Ratio | Median Figure of 53 Publicly-Listed Trade Distributors Companies | 1.52x |
| United States of America Market PB Ratio | Median Figure of 5,185 Publicly-Listed Companies | 1.92x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:GWW Share Price ÷ Book Value per Share (both in USD) = 293.19 ÷ 38.71 |
7.57x |
* 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 | 7.3% |
| NYSE:GWW Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 23 Analysts | 5% |
| United States of America Trade Distributors Industry Earnings Growth Rate | Market Cap Weighted Average | 13.1% |
| United States of America Trade Distributors Industry Revenue Growth Rate | Market Cap Weighted Average | 5.8% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.5% |
| 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 (3 weeks 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 | 14,364 | 1,402 | 1,294 | 2 |
| 2022-12-31 | 13,894 | 1,320 | 1,208 | 3 |
| 2021-12-31 | 12,916 | 1,332 | 1,106 | 9 |
| 2020-12-31 | 12,396 | 1,290 | 1,067 | 23 |
| 2019-12-31 | 11,789 | 1,148 | 993 | 23 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 11,254 | 1,037 | 797 |
| 2018-12-31 | 11,221 | 1,057 | 776 |
| 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 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 weeks 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 3 weeks 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 | 26.19 | 28.11 | 24.27 | 2.00 |
| 2022-12-31 | 24.09 | 25.69 | 22.48 | 2.00 |
| 2021-12-31 | 20.81 | 23.46 | 18.32 | 4.00 |
| 2020-12-31 | 19.71 | 21.41 | 18.23 | 13.00 |
| 2019-12-31 | 17.95 | 19.38 | 17.34 | 13.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-31 | 14.23 |
| 2018-12-31 | 13.82 |
| 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 | 9.95 |
| 2016-09-30 | 11.19 |
| 2016-06-30 | 11.08 |
*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 (25.1% vs -3.6%)
- W.W. Grainger's earnings growth has exceeded the US Trade Distributors industry average in the past year (25.1% vs 15.7%).
Earnings and Revenue History
All data from W.W. Grainger Company Filings, last reported 3 weeks 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 |
|---|---|---|---|---|
| 2019-03-31 | 11,254.00 | 797.00 | 2,868.00 | |
| 2018-12-31 | 11,221.00 | 776.00 | 2,893.00 | |
| 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 | 10,425.00 | 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 | |
| 2012-06-30 | 8,634.27 | 695.88 | 2,590.57 |
*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 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.
- 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 3 weeks ago.
| 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 |
| 2012-06-30 | 2,894.15 | 551.72 | 249.75 |
- 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 18.3x 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
$37
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 (1.4%).
- W.W. Grainger's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
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 | 2.7% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2008 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 | 3.6% |
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 | 8.14 | 2.00 |
| 2022-12-31 | 7.48 | 2.00 |
| 2021-12-31 | 6.11 | 5.00 |
| 2020-12-31 | 5.92 | 11.00 |
| 2019-12-31 | 5.65 | 12.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 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 |
| 2009-04-24 | 1.600 | 1.954 |
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 (3.5x 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 | $10,455,844 |
| AGE | 50 |
| TENURE AS CEO | 2.5 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 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:
- The tenure for the W.W. Grainger management team is about average.
Management Team
DG Macpherson
Chairman & CEO
$10M
50
2.5 yrs
Tom Okray
Senior VP & CFO
$4M
55
0.9 yrs
John Howard
Senior VP & General Counsel
$3M
60
19.3 yrs
Paige Robbins
Senior VP & Chief Digital Officer
$2M
49
3.3 yrs
Deidra Merriwether
Senior VP & President of U.S. Direct Sales and Strategic Initiatives
$1M
49
Irene Holman
Vice President of Investor Relations
0.8 yrs
Kathleen Carroll
Senior VP & Chief Human Resources Officer
49
0.3 yrs
Deb Oler
Senior VP and President North America Sales & Service
63
David Rawlinson
President of Online Business
42
3.7 yrs
Hugo Dubovoy
VP & Corporate Secretary
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
$10M
50
1.5 yrs
Stu Levenick
Lead Director
$346K
65
3 yrs
Mike Roberts
Independent Director
$334K
67
13.2 yrs
V. Hailey
Independent Director
$331K
67
12.9 yrs
Brian Anderson
Independent Director
$319K
67
20.3 yrs
Neil Novich
Independent Director
$319K
63
20.3 yrs
jim Slavik
Independent Director
$319K
65
32.3 yrs
E. Santi
Independent Director
$319K
56
9 yrs
Rod Adkins
Independent Director
$319K
59
4.8 yrs
Beatriz Perez
Independent Director
$319K
48
1.8 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | 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
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 - – Full articleHow Much Are W.W. Grainger, Inc. (NYSE:GWW) Insiders Taking Off The Table?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … Grainger Insider Transactions Over The Last Year. … Grainger insiders didn't buy any shares over the last year
Simply Wall St - – Full articleHow Do Analysts See W.W. Grainger, Inc. (NYSE:GWW) Performing In The Year Ahead?
(NYSE:GWW) announced its earnings update. … with profits predicted to increase by 28% next year … the past 5-year average growth rate of -4.9%.
Simply Wall St - – Full articleW.W. Grainger (NYSE:GWW) Shareholders Have Enjoyed A 32% Share Price Gain
One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During three years of share price growth, W.W. … It's not unusual to see the market 're-rate' a stock, after a few years of growth.
Simply Wall St - – Full articleW.W. Grainger, Inc. (NYSE:GWW): Immense Growth Potential?
The latest earnings update W.W. … Grainger, Inc. … (NYSE:GWW) released in December 2018a
Simply Wall St - – Full articleHow Financially Strong Is W.W. Grainger, Inc. (NYSE:GWW)?
Risk-averse investors who are attracted to diversified streams of revenue and strong capital returns tend to seek out these large companies. … Grainger’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.
Simply Wall St - – Full articleShould We Be Delighted With W.W. Grainger, Inc.'s (NYSE:GWW) ROE Of 39%?
This article is for those who would like to learn about Return On Equity (ROE). … That means that for every $1 worth of shareholders' equity, it generated $0.39 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleWhy 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 articleCompany 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 |
| $16,255,506,445 | |
| 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
Industry
| Trading Companies and Distributors | |
| Capital Goods |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/23 23:37 |
| End of day share price update: | 2019/04/23 00:00 |
| Last estimates confirmation: | 2019/04/23 |
| 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.
