ScoreWhy is W.W. Grainger, Inc. ?
1
High Management Efficiency with a high ROCE of 46.97%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.83 times
3
Healthy long term growth as Operating profit has grown by an annual rate 15.44%
4
Flat results in Jun 25
- ROCE(HY) Lowest at 55.3%
- OPERATING PROFIT MARGIN(Q) Lowest at 16.29 %
5
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 -10.65%, its profits have risen by 5.3% ; the PEG ratio of the company is 7.9
6
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -10.65% returns
Real-Time Research ReportHow 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.
8.5%
0.64
23.66%
S&P 500
13.68%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.75%
EBIT Growth (5y)
15.09%
EBIT to Interest (avg)
24.32
Debt to EBITDA (avg)
0.83
Net Debt to Equity (avg)
0.49
Sales to Capital Employed (avg)
2.90
Tax Ratio
22.97%
Dividend Payout Ratio
24.84%
Pledged Shares
0
Institutional Holding
75.27%
ROCE (avg)
46.97%
ROE (avg)
57.13%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
62
Industry P/E
Price to Book Value
29.95
EV to EBIT
42.47
EV to EBITDA
38.80
EV to Capital Employed
19.93
EV to Sales
6.35
PEG Ratio
NA
Dividend Yield
0.29%
ROCE (Latest)
46.94%
ROE (Latest)
48.39%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 7.87
INTEREST COVERAGE RATIO(Q)
Highest at 4,420
RAW MATERIAL COST(Y)
Fallen by 0.34% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 7.87 times
OPERATING PROFIT(Q)
Highest at USD 884 MM
OPERATING PROFIT MARGIN(Q)
Highest at 19.98 %
-4What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 2,015 MM
ROCE(HY)
Lowest at 48.1%
Here's what is working for W.W. Grainger, Inc.
Interest Coverage Ratio
Highest at 4,420
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at USD 7.87 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Profit
Highest at USD 884 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 19.98 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Debtors Turnover Ratio
Highest at 7.87 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by 0.34% (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
Here's what is not working for W.W. Grainger, Inc.
Operating Cash Flow
Lowest at USD 2,015 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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