Grainger (GRI) AI Stock Analysis

• Market Cap: £1.59B
• Dividend Yield: 2.65%
• Average Volume (3M): 1.90M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.26
• Revenue Growth: 13.86%
• EPS Growth: N/A
• Country: UK
• Employees: 367
• Sector: Real Estate
• Sector Strength: 69
• Industry: Real Estate - Services
• EPS (TTM): 0.05
• Shares Outstanding: 741,609,000
• 10 Day Avg. Volume: 1,373,695
• 30 Day Avg. Volume: 1,897,099
• PEG Ratio: 0.08
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.29
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £260.00
• Price Target Upside: 20.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: 252.00p ▲(17.21%Upside)

Grainger's strong valuation and positive technical indicators are key strengths driving the score. The firm's strategic corporate events bolster growth prospects, although financial risks from high leverage require attention.

Grainger Business Overview & Revenue Model

Company Description

Grainger 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 Money

Grainger 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

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

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

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.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
284.60M	271.70M	285.20M	256.10M	219.20M
	Gross Profit
162.10M	160.90M	161.10M	151.50M	147.90M
	EBIT
119.10M	125.20M	120.50M	112.30M	104.40M
	EBITDA
80.40M	126.30M	121.40M	113.50M	105.60M
	Net Income Common Stockholders
31.20M	25.60M	229.40M	109.50M	82.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
93.20M	121.00M	110.20M	317.60M	369.10M
	Total Assets
3.74B	3.72B	3.58B	3.27B	2.97B
	Total Debt
1.60B	1.54B	1.36B	1.35B	1.39B
	Net Debt
1.51B	1.41B	1.25B	1.03B	1.02B
	Total Liabilities
1.85B	1.79B	1.61B	1.53B	1.53B
	Stockholders Equity
1.89B	1.93B	1.97B	1.74B	1.44B
Cash Flow		Free Cash Flow
132.30M	178.60M	98.30M	147.70M	80.80M
	Operating Cash Flow
136.60M	184.70M	102.00M	148.00M	81.10M
	Investing Cash Flow
-167.70M	-274.10M	-274.20M	-315.90M	-161.30M
	Financing Cash Flow
3.30M	114.50M	-49.50M	116.40M	260.00M

Grainger Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 215.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GRI, the sentiment is Neutral. The current price of 215 is below the 20-day moving average (MA) of 218.06, above the 50-day MA of 210.91, and below the 200-day MA of 216.38, indicating a neutral trend. The MACD of 0.91 indicates Positive momentum. The RSI at 50.05 is Neutral, neither overbought nor oversold. The STOCH value of 40.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:GRI.

Grainger Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRE	81 Outperform	£1.43B	9.09	11.42%	4.55%	7.24%	178.76%
GRI	80 Outperform	£1.59B	14.67	5.75%	2.65%	13.86%	―
LSL	75 Outperform	£301.32M	17.49	22.40%	5.02%	20.46%	―
MTVW	74 Outperform	£376.25M	14.26	6.78%	5.05%	2.66%	1.62%
TPFG	71 Outperform	£341.07M	30.85	11.02%	2.19%	146.76%	-24.48%
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
SVLPF		$1.76B	25.77	7.45%	1.44%	―	―

Grainger Corporate Events

Grainger CEO Exercises LTIP Options, Sells Shares to Cover Tax Liabilities

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.

Grainger plc Announces Director Participation in Share Incentive Plan

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.

Grainger Achieves Rapid Lease-Up at Millwrights Place, Strengthening BTR Strategy

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.

Grainger plc Announces Director’s Share Transactions Under Deferred Bonus Plan

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.

Grainger CFO Executes Share Transactions and Transfers

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.

Grainger plc Reports Strong Half-Year Results and Accelerated Growth in BTR Sector

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.

Grainger plc Enhances Employee Engagement with Share Incentive Plan

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.

Grainger plc Announces Upcoming Half-Year Financial Results

Grainger plc is set to release its half-year financial results for the period ending 31 March 2025 on 15 May 2025. The company will provide a live webcast and dial-in facilities for the results presentation, and CEO Helen Gordon and CFO Robert Hudson will host a live presentation for shareholders on 20 May 2025. This announcement highlights Grainger’s commitment to transparency and engagement with its stakeholders.

Grainger’s Director Transfers Shares to Spouse

Grainger plc announced a transfer of 147,269 ordinary shares by Michael Keaveney, Director of Land and Development, to Caroline Keaveney, his wife and a person closely associated with him. This transaction, conducted off-market, is part of the company’s compliance with the EU Market Abuse Regulation, reflecting internal shareholding adjustments without financial exchange.

Grainger PLC Announces Director Transactions Under Share Incentive Plan

Grainger PLC has announced transactions involving its directors and persons discharging managerial responsibilities (PDMRs) under its Share Incentive Plan (SIP). This plan allows employees to purchase shares using salary deductions and receive matching shares at no cost. On April 1, 2025, Grainger’s SIP Trustees acquired 4,810 partnership shares and allocated 4,210 matching shares to participating employees, including key directors. This initiative emphasizes Grainger’s commitment to employee investment and aligns management interests with shareholder value, potentially enhancing company performance and stakeholder confidence.