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Grainger PLC (GB:GRI)
LSE:GRI
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Grainger (GRI) AI Stock Analysis

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GB:GRI

Grainger

(LSE:GRI)

Rating:75Outperform
Price Target:
232.00p
▲(12.90%Upside)
Grainger benefits from a strong valuation and positive corporate actions that indicate management confidence and strategic growth potential. However, financial risks due to high leverage and technical indicators signaling a bearish trend temper the outlook.

Grainger (GRI) vs. iShares MSCI United Kingdom ETF (EWC)

Grainger Business Overview & Revenue Model

Company DescriptionGrainger plc, together with its subsidiaries, designs, owns, operates, manages, and rents residential properties in the United Kingdom. It also provides property and asset management services. The company was incorporated in 1912 and is headquartered in Newcastle upon Tyne, the United Kingdom.
How the Company Makes MoneyGrainger makes money through a diverse revenue model centered around the sale of MRO products. The company operates through both online and offline channels, offering customers a wide selection of products through its website, catalogs, and physical branches. Key revenue streams include direct sales to businesses and government entities, as well as through its e-commerce platform, which has become increasingly significant. Grainger also generates income from value-added services such as inventory management solutions and technical support. Partnerships with suppliers and strategic sourcing initiatives help Grainger maintain competitive pricing and product availability, contributing to its earnings.

Grainger Financial Statement Overview

Summary
Grainger shows strong financial performance with steady revenue growth and solid operational margins. However, high leverage and declining free cash flow present risks. The balanced equity structure provides some stability.
Income Statement
77
Positive
Grainger exhibited steady revenue growth with a 4.7% increase over the past year. The Gross Profit Margin was solid at approximately 57%, indicating strong cost management. However, the Net Profit Margin decreased slightly to 10.96%, reflecting a decline in net income relative to revenue. EBIT and EBITDA margins remained robust at 41.84% and 28.25%, respectively, demonstrating effective operational efficiency.
Balance Sheet
70
Positive
The debt-to-equity ratio is relatively high at 0.84, indicating significant leverage, which could pose financial risks. Return on Equity (ROE) stands at a moderate 1.65%, suggesting efficient use of equity. The equity ratio of 50.60% showcases a balanced capital structure, providing some financial stability.
Cash Flow
68
Positive
The Free Cash Flow decreased by 25.9% year-over-year, potentially impacting investment capacity. The Operating Cash Flow to Net Income ratio is strong, reflecting good cash generation relative to net income. However, the Free Cash Flow to Net Income ratio shows a slight weakening, indicating less free cash flow available relative to net income.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue284.60M271.70M285.20M256.10M219.20M
Gross Profit162.10M160.90M161.10M151.50M147.90M
EBITDA80.40M126.30M121.40M113.50M105.60M
Net Income31.20M25.60M229.40M109.50M82.80M
Balance Sheet
Total Assets3.74B3.72B3.58B3.27B2.97B
Cash, Cash Equivalents and Short-Term Investments93.20M121.00M110.20M317.60M369.10M
Total Debt1.60B1.54B1.36B1.35B1.39B
Total Liabilities1.85B1.79B1.61B1.53B1.53B
Stockholders Equity1.89B1.93B1.97B1.74B1.44B
Cash Flow
Free Cash Flow132.30M178.60M98.30M147.70M80.80M
Operating Cash Flow136.60M184.70M102.00M148.00M81.10M
Investing Cash Flow-167.70M-274.10M-274.20M-315.90M-161.30M
Financing Cash Flow3.30M114.50M-49.50M116.40M260.00M

Grainger Technical Analysis

Technical Analysis Sentiment
Negative
Last Price205.50
Price Trends
50DMA
213.44
Negative
100DMA
209.76
Negative
200DMA
212.87
Negative
Market Momentum
MACD
-1.82
Negative
RSI
41.43
Neutral
STOCH
25.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GRI, the sentiment is Negative. The current price of 205.5 is below the 20-day moving average (MA) of 207.45, below the 50-day MA of 213.44, and below the 200-day MA of 212.87, indicating a bearish trend. The MACD of -1.82 indicates Negative momentum. The RSI at 41.43 is Neutral, neither overbought nor oversold. The STOCH value of 25.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GRI.

Grainger Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
£1.55B9.9911.42%4.16%7.20%34.17%
75
Outperform
£1.53B14.125.75%3.18%13.86%
74
Outperform
£381.13M16.225.86%537.08%2.66%1.62%
72
Outperform
£341.71M30.2311.02%3.36%146.76%-24.48%
68
Neutral
£302.86M17.5522.40%3.17%20.46%
63
Neutral
$6.78B14.59-1.87%7.22%3.95%-36.33%
$1.75B25.757.45%2.11%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:GRI
Grainger
205.50
-28.98
-12.36%
GB:LSL
LSL Property Services
297.00
-34.45
-10.39%
GB:MTVW
Mountview Estates
9,800.00
698.04
7.67%
GB:TPFG
The Property Franchise
536.00
106.16
24.70%
GB:SRE
Sirius Real Estate
104.10
13.99
15.53%
SVLPF
Savills
12.97
-2.73
-17.39%

Grainger Corporate Events

Executive/Board Changes
Grainger Appoints Simon Fraser as Chair Designate
Positive
Jul 31, 2025

Grainger plc has announced the appointment of Simon Fraser as Non-Executive Director and Chair Designate, succeeding Mark Clare in February 2026. Simon Fraser brings extensive real estate and investment experience, having served on the boards of prominent REITs and in investment banking, which is expected to support Grainger’s growth plans as it enters its first financial year as a REIT.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £280.00 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

DividendsBusiness Operations and Strategy
Grainger CEO Increases Stake Through Dividend Reinvestment
Positive
Jul 30, 2025

Grainger PLC, a company involved in property management and investment, announced a transaction involving its CEO, Helen Gordon. She purchased 281 ordinary shares through the company’s Dividend Reinvestment Plan, increasing her total shareholding to 811,792 shares. This transaction highlights the CEO’s continued investment in the company, potentially signaling confidence in its future performance.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £2.80 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Grainger plc Prepares for REIT Transition with Updated Articles
Neutral
Jul 30, 2025

Grainger plc has announced the publication of a Circular and Notice of a General Meeting to be held on 1 September 2025. The meeting will address a resolution to amend the company’s articles of association in preparation for its transition into a Real Estate Investment Trust (REIT). This strategic move aims to update the company’s governance framework, which has not been revised since 2010, and is expected to align with the requirements of the REIT regime, potentially impacting the company’s operational structure and market positioning.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

Business Operations and Strategy
Grainger plc to Present Growth Strategy at Mello Retail Investor Conference
Positive
Jul 11, 2025

Grainger plc announced its participation in the MelloMonday virtual retail investor event on July 14, 2025, where Kurt Mueller, Director of Corporate Affairs, will present the company’s growth strategy. This event highlights Grainger’s commitment to engaging with investors and stakeholders, potentially enhancing its market positioning as it continues to expand its build-to-rent portfolio across the UK.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £2.75 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

Business Operations and Strategy
Grainger PLC Announces SAYE Scheme Option Grants
Positive
Jul 9, 2025

Grainger PLC has announced the grant of options under its Employee Save As You Earn (SAYE) Scheme, allowing employees to participate in the company’s growth by acquiring shares at a predetermined price. This initiative, involving 335,556 ordinary shares, reflects Grainger’s strategy to align employee interests with corporate performance, potentially enhancing employee retention and motivation.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

Business Operations and Strategy
Grainger’s Oxford BTR Scheme Achieves Rapid Lease-Up Success
Positive
Jul 9, 2025

Grainger plc has achieved a significant milestone with its first build-to-rent scheme in Oxford, The Kimmeridge, reaching approximately 60% lease-up within three months of its launch. This rapid uptake underscores the strong demand for Grainger’s high-quality rental homes and highlights its market-leading operational platform. The success of The Kimmeridge, which offers extensive amenities and professional on-site services, reinforces Grainger’s strategic investment in Oxford and its confidence in continuing to invest in key UK cities to meet growing rental housing needs. This development strengthens Grainger’s position in the build-to-rent sector and supports its strategy to deliver long-term returns and dividends to shareholders.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Norges Bank Adjusts Stake in Grainger PLC
Neutral
Jul 7, 2025

Grainger PLC has announced a change in its major holdings, with Norges Bank adjusting its voting rights in the company. As of July 4, 2025, Norges Bank’s voting rights in Grainger have decreased slightly from 9.082780% to 8.995840%, reflecting a minor disposal of shares. This adjustment in holdings could influence Grainger’s shareholder dynamics and potentially impact its strategic decisions, given Norges Bank’s significant stake in the company.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

Business Operations and Strategy
Grainger PLC Enhances Employee Engagement with Share Incentive Plan
Positive
Jul 3, 2025

Grainger PLC announced transactions related to its Share Incentive Plan (SIP), which allows employees to purchase shares through salary deductions and receive matching shares at no cost. On July 2, 2025, the SIP Trustees acquired 4,564 partnership shares and allocated 4,030 matching shares to participating employees, including key directors. This initiative underscores Grainger’s commitment to employee engagement and aligns with its strategic focus on incentivizing staff, potentially enhancing stakeholder value.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Grainger Completes Seraphina Apartments in Fortunes Dock
Positive
Jun 25, 2025

Grainger plc has announced the completion of the Seraphina Apartments, the final phase of its Fortunes Dock cluster in Canning Town, East London. This development, comprising 132 high-quality BTR homes, marks a significant milestone in Grainger’s strategy of creating residential clusters that enhance operational efficiencies and brand visibility. The Seraphina Apartments, which will launch later this summer, reflect the area’s heritage and offer modern amenities, further establishing Fortunes Dock as a vibrant community. This project underscores Grainger’s successful cluster strategy and its investment of approximately £152 million in East London, reinforcing its position in the BTR sector.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

Business Operations and Strategy
Grainger PLC Leverages Unique Position in Build-to-Rent Expansion
Positive
Jun 24, 2025

Grainger PLC has commissioned Progressive Equity Research to provide ongoing research coverage, highlighting the company’s strategic advantage in expanding its build-to-rent portfolio. The research notes that Grainger’s stock of reversionary properties positions it favorably compared to competitors who rely on expensive debt and a challenging forward-funding market. This positions Grainger to capitalize on current market opportunities, enhancing its industry standing and offering potential benefits to stakeholders.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

Executive/Board ChangesRegulatory Filings and Compliance
Grainger CEO Exercises LTIP Options, Sells Shares to Cover Tax Liabilities
Neutral
Jun 5, 2025

Grainger PLC announced that its Group CEO, Helen Gordon, has exercised nil-cost options under the company’s 2017 Long Term Incentive Plan, resulting in the sale of 159,599 ordinary shares at £2.15 each. This transaction was conducted to cover income tax and national insurance liabilities, reflecting the company’s ongoing commitment to transparent financial practices and regulatory compliance.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

Business Operations and Strategy
Grainger plc Announces Director Participation in Share Incentive Plan
Positive
Jun 4, 2025

Grainger plc announced transactions involving its Share Incentive Plan (SIP), where directors and persons discharging managerial responsibilities (PDMRs) participated in acquiring partnership and matching shares. The SIP, approved by HMRC, allows employees to purchase shares through salary deductions and receive matching shares at no cost. This initiative reflects Grainger’s commitment to employee investment and aligns management interests with shareholder value, potentially enhancing stakeholder confidence.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

Business Operations and Strategy
Grainger Achieves Rapid Lease-Up at Millwrights Place, Strengthening BTR Strategy
Positive
Jun 3, 2025

Grainger plc announced the successful lease-up of 231 BTR homes at Millwrights Place in Bristol, achieving stabilization in under a year and exceeding rental expectations. This milestone underscores strong demand for Grainger’s rental homes and highlights the efficiency of its operating platform. The rapid stabilization and strong rental performance reinforce Grainger’s investment strategy in Bristol, with further developments like Glasshouse Square on the horizon. This success validates Grainger’s BTR strategy and its focus on creating thriving communities, contributing to its target of 50% earnings growth by 2029.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Grainger plc Announces Director’s Share Transactions Under Deferred Bonus Plan
Positive
May 23, 2025

Grainger plc announced the completion of nil-cost options exercises by Eliza Pattinson, Director of Operations and Asset Management, under the company’s Deferred Bonus Plan. Pattinson sold a portion of her shares to cover tax liabilities, with the transactions reflecting her vested interests from the 2017 and 2019 DBP awards. The sale of shares, conducted at an average price of £2.26, underscores the company’s ongoing commitment to transparent financial practices and regulatory compliance, potentially impacting stakeholder perceptions positively.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £2.75 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

Other
Grainger CFO Executes Share Transactions and Transfers
Neutral
May 21, 2025

Grainger plc announced a series of transactions involving its Group CFO, Rob Hudson, who exercised nil-cost options and subsequently sold 77,856 ordinary shares to cover tax liabilities. Additionally, Hudson transferred 89,958 shares to his civil partner, Robert Driscoll, impacting his total shareholding, which now stands at 262,437 shares. These transactions reflect internal financial adjustments and shareholding management within the company, potentially influencing stakeholder perceptions of executive financial strategies.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

DividendsBusiness Operations and StrategyFinancial Disclosures
Grainger plc Reports Strong Half-Year Results and Accelerated Growth in BTR Sector
Positive
May 15, 2025

Grainger plc announced strong financial results for the first half of 2025, with a 23% increase in EPRA earnings and a 15% rise in net rental income. The company achieved high occupancy rates of 96% and reported a 4.4% growth in like-for-like rental income. The expansion of its BTR portfolio is driving earnings growth, and the company plans to continue delivering shareholder value through a progressive dividend policy and strategic investments. The BTR sector is experiencing buoyant investment activity, with property valuations increasing and a forecast of £6bn in investment activity for 2025. Grainger’s robust operational platform and significant non-core assets provide the financial strength to support future growth.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £2.98 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

Business Operations and Strategy
Grainger plc Enhances Employee Engagement with Share Incentive Plan
Positive
May 6, 2025

Grainger plc has announced transactions involving its Share Incentive Plan (SIP), where directors and key management personnel acquired partnership and matching shares. This initiative, approved by HMRC, allows employees to purchase shares through salary deductions and receive additional shares at no cost, enhancing employee engagement and aligning interests with company performance.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 31, 2025