GWW W.W. Grainger, Inc. - Fundamental Analysis
NEUTRAL
GWW Stock | Fundamental Analysis & Investment Insights
NYSE
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Industrials
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Industrial Distribution
Current Price
$926.21
Analyst Target
$1054.6
+13.9% Upside
52W High
$1227.44
52W Low
$893.99
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
75%
Analysis Accuracy
W.W. Grainger (GWW) trades at a premium valuation with solid long-term profitability and financial health, but faces near-term headwinds reflected in declining earnings growth and negative price momentum over the past year. Despite a robust ROE of 46.72% and strong liquidity, YoY earnings have contracted sharply (-38%), and insider selling adds caution. The stock is down 20.5% over the past year, underperforming peers like NSC, though it maintains a disciplined capital structure and sustainable dividend. Analysts are tepid with a 'hold' consensus and a 14.2% upside to the $1,054.60 target, suggesting limited near-term catalysts despite attractive relative metrics in some areas.
Key Strengths
Exceptional ROE of 46.72% significantly outpaces sector average of 31.90%, indicating superior capital efficiency
Strong financial health with Debt/Equity of 0.69 well below sector average of 1.44 and Current Ratio of 2.72
Attractive dividend profile with a low 24.16% payout ratio supporting long-term sustainability
Gross margin of 39.09% reflects pricing power and operational efficiency in industrial distribution
Revenue growth of 6.10% aligns with sector average of 6.05%, showing resilience amid macro pressures
Key Risks
Earnings contraction of -38.00% YoY raises concerns about margin pressures or cyclical exposure
High Price/Book of 12.39 and P/E of 25.97 exceed sector averages (P/E 31.89 but PB typically lower), increasing vulnerability to multiple compression
Insider selling activity in the last six months signals lack of confidence from executives
Forward P/E of 22.00 implies earnings recovery not yet priced in, creating earnings risk if growth disappoints
Underperformance over 1Y (-20.5%) and 6M (-15.5%) suggests weakening investor sentiment despite solid fundamentals
AI Fair Value Estimate
Based on comprehensive analysis
$1054.6
+13.9% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare GWW against industry averages and similar companies
Insider Trading & Analyst Ratings
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