W.W. Grainger, Inc. (GWW) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fastenal Co.

Applied Industrial Technologies, Inc.

Pool Corp.

Core & Main, Inc.

MSC Industrial Direct Co., Inc.

Ferguson Plc

W.W. Grainger, Inc.

WESCO International, Inc.

Genuine Parts Co.

UGI Corp.

Beacon Roofing Supply, Inc.

Why is W.W. Grainger, Inc. ?

High Management Efficiency with a high ROCE of 46.97%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.83 times

Healthy long term growth as Operating profit has grown by an annual rate 15.44%

Flat results in Jun 25

ROCE(HY) Lowest at 55.3%
OPERATING PROFIT MARGIN(Q) Lowest at 16.29 %

With ROCE of 51.03%, it has a expensive valuation with a 22.79 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -18.61%, its profits have risen by 5.3% ; the PEG ratio of the company is 7.9

Below par performance in long term as well as near term

Along with generating -18.61% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to W.W. Grainger, Inc. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is W.W. Grainger, Inc. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

W.W. Grainger, Inc.

-18.76%

0.36

23.04%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.49%

EBIT Growth (5y)

15.44%

EBIT to Interest (avg)

24.32

Debt to EBITDA (avg)

0.83

Net Debt to Equity (avg)

0.49

Sales to Capital Employed (avg)

2.93

Tax Ratio

22.97%

Dividend Payout Ratio

20.56%

Pledged Shares

Institutional Holding

75.11%

ROCE (avg)

46.97%

ROE (avg)

57.13%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

33.39

EV to EBIT

44.66

EV to EBITDA

40.91

EV to Capital Employed

22.79

EV to Sales

6.84

PEG Ratio

7.91

Dividend Yield

0.36%

ROCE (Latest)

51.03%

ROE (Latest)

57.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 7.26

RAW MATERIAL COST(Y)

Fallen by 1.96% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 58.03 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.69 times

NET SALES(Q)

Highest at USD 4,554 MM

EPS(Q)

Highest at USD 10.02

-3What is not working for the Company

ROCE(HY)

Lowest at 55.3%

OPERATING PROFIT MARGIN(Q)

Lowest at 16.29 %

Here's what is working for W.W. Grainger, Inc.

Dividend per share

Highest at USD 7.26 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 4,554 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

EPS

Highest at USD 10.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Lowest at 58.03 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 4.69 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 1.96% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 64 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for W.W. Grainger, Inc.

Operating Profit Margin

Lowest at 16.29 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales