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W.W. Grainger, Inc.

  • Market Cap: Large Cap
  • Industry: Trading & Distributors
  • ISIN: US3848021040
  • NYSE: GWW
USD
1,270.67
2.05 (0.16%)

Sep 23

NYS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
MSC Industrial Direct Co., Inc.
Applied Industrial Technologies, Inc.
Fastenal Co.
W.W. Grainger, Inc.
Core & Main, Inc.
UGI Corp.
Genuine Parts Co.
Ferguson Plc
WESCO International, Inc.
Pool Corp.
Beacon Roofing Supply, Inc.

Why 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
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to W.W. Grainger, Inc. should be less than 10%
  2. 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.
30.22%
0.64
23.66%
S&P 500
15.76%
0.70
20.15%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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
78.55%
ROCE (avg)
46.97%
ROE (avg)
57.13%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
62
Industry P/E
Price to Book Value
29.85
EV to EBIT
42.34
EV to EBITDA
38.67
EV to Capital Employed
19.87
EV to Sales
6.33
PEG Ratio
NA
Dividend Yield
0.29%
ROCE (Latest)
46.94%
ROE (Latest)
48.39%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bullish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

9What is working for the Company
DIVIDEND PER SHARE(HY)

Highest at USD 7.12

RAW MATERIAL COST(Y)

Fallen by -2.58% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 53.45 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.83 times

NET SALES(Q)

Highest at USD 5,021 MM

PRE-TAX PROFIT(Q)

Highest at USD 798 MM

NET PROFIT(Q)

Highest at USD 570 MM

EPS(Q)

Highest at USD 12.08

-2What is not working for the Company
ROCE(HY)

Lowest at 47.92%

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

Dividend per share
Highest at USD 7.12 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 5,021 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit
Highest at USD 798 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit
Highest at USD 570 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (USD MM)

EPS
Highest at USD 12.08
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio
Lowest at 53.45 %
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 4.83 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 -2.58% (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 66 MM
in the last five periods
MOJO Watch
The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

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