GWW W.W. Grainger, Inc. - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
While GWW’s P/E is below the sector average of 31.89, its premium PB ratio and lack of EV/EBITDA data obscure true valuation; it appears richly valued on profitability-adjusted metrics despite growth deceleration.
- Forward P/E of 22.00 is below current P/E of 25.97, suggesting expected earnings recovery
- P/S of 2.50 is reasonable for a high-margin industrial distributor
- P/E of 25.97 is high relative to peers like PCAR (18.74) and NSC (21.64)
- Price/Book of 12.39 is extremely elevated, signaling potential overvaluation relative to book value
Despite stable top-line growth, the sharp earnings decline and negative short-term price momentum (-3.1% last month) suggest headwinds persist, with recovery dependent on margin stabilization and industrial capex rebound.
- Revenue growth of 6.10% remains stable and in line with sector trends
- Analyst target implies 14% upside, suggesting confidence in forward recovery
- YoY earnings growth of -38.00% and Q/Q decline of -39.50% signal deteriorating profitability
- Lack of Q/Q revenue data limits visibility into near-term trajectory
GWW has a strong historical track record of earnings delivery and margin performance, but recent underperformance in both EPS growth and stock price (-20.5% over 1Y) indicates a shift in momentum.
- Consistent quarterly earnings beats over the last 25 quarters, including strong +12.7% and +15.5% surprises in 2023
- Long-term profitability metrics (ROA 18.96%, Gross Margin 39.09%) show operational discipline
- Recent quarters show declining beat rates—only 2 of last 4 beats—with shrinking surprises
- 1Y return of -20.5% lags sector leaders like NSC (+9.6%)
GWW’s leverage and liquidity ratios are superior to peers like CARR and NSC, indicating conservative financial management, though incomplete cash flow data prevents full confidence in operational cash strength.
- Debt/Equity of 0.69 is well below sector average of 1.44, reducing refinancing and interest rate risk
- Current Ratio of 2.72 and Quick Ratio of 1.46 reflect strong short-term liquidity
- Missing Total Debt and Cash figures limit full liquidity and solvency assessment
- No Free Cash Flow or Operating Cash Flow data obscures cash conversion quality
The dividend is well-covered and sustainably funded, but the low yield and absence of growth trend data make it less compelling as a primary investment thesis.
- Low payout ratio of 24.16% ensures high sustainability and room for future increases
- Dividend yield of 0.98% provides modest income with strong coverage
- Yield is below sector average, limiting appeal to income-focused investors
- Lack of 5-year yield history and ex-dividend date reduces transparency
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for GWW and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
GWW
W.W. Grainger, Inc.
Primary
|
+136.1% | +63.6% | -20.5% | -15.5% | -3.1% | -2.8% |
|
CARR
Carrier Global Corporation
Peer
|
+43.0% | +27.2% | -26.9% | -28.0% | -5.1% | -5.9% |
|
FAST
Fastenal Company
Peer
|
+89.3% | +68.9% | +0.6% | -1.6% | -3.7% | -1.0% |
|
CPRT
Copart, Inc.
Peer
|
+41.6% | +32.4% | -28.4% | -35.6% | -7.8% | +1.4% |
|
PCAR
PACCAR Inc
Peer
|
+91.2% | +58.3% | -13.4% | -0.5% | +0.7% | -2.8% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Industrials Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
GWW
W.W. Grainger, Inc.
|
NEUTRAL | $44.46B | 25.97 | 46.7% | 9.7% | $926.21 | |
|
CARR
Carrier Global Corporation
|
NEUTRAL | $46.46B | 33.81 | 10.0% | 18.1% | $54.1 | |
|
FAST
Fastenal Company
|
NEUTRAL | $46.78B | 38.16 | 32.7% | 15.3% | $40.45 | |
|
CPRT
Copart, Inc.
|
BULLISH | $40.28B | 25.84 | 18.5% | 33.4% | $41.08 | |
|
PCAR
PACCAR Inc
|
BEARISH | $50.2B | 18.74 | 14.2% | 9.1% | $95.59 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-09-09 | LEROY JONNY M | Chief Technology Officer | Sale | 500 | $496,430 |
| 2025-05-23 | BERARDINELLI KRANTZ NANCY L | Officer | Sale | 280 | $301,056 |
| 2025-05-23 | ROBBINS PAIGE K | Officer | Gift | 2,935 | - |
Wall Street Analysts
Professional analyst ratings and price targets