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.
27.17%
0.64
23.66%
S&P 500
22.24%
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
78.55%
ROCE (avg)
46.97%
ROE (avg)
57.13%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
62
Industry P/E
Price to Book Value
29.85
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%
TechnicalsTechnical 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
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 7.36
RAW MATERIAL COST(Y)
Fallen by -0.7% (YoY
NET SALES(Q)
Highest at USD 4,742 MM
PRE-TAX PROFIT(Q)
Highest at USD 775 MM
NET PROFIT(Q)
Highest at USD 555 MM
EPS(Q)
Highest at USD 11.71
-2What is not working for the Company
ROCE(HY)
Lowest at 48.1%
Here's what is working for W.W. Grainger, Inc.
Dividend per share
Highest at USD 7.36 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 4,742 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Pre-Tax Profit
Highest at USD 775 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 555 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 11.71
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by -0.7% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
