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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)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
223.00p
▲(12.63% Upside)
Grainger's strong valuation and technical indicators contribute positively to its stock score. While financial performance shows solid growth and efficiency, high leverage and declining free cash flow are concerns. The absence of earnings call and corporate events data limits additional insights.

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 generates revenue primarily through the sale of MRO products to a diverse customer base, including small businesses, large corporations, and government entities. The company's revenue model is built on direct sales, online sales through its e-commerce platform, and a vast network of local branches. Key revenue streams include sales of industrial supplies, safety products, and maintenance equipment. Additionally, Grainger benefits from long-term contracts and partnerships with various organizations, providing tailored solutions that enhance customer loyalty and repeat purchases. The company's focus on supply chain efficiency and inventory management also contributes to its profitability, allowing it to maintain competitive pricing and respond effectively to market demands.

Grainger Financial Statement Overview

Summary
Grainger shows strong revenue growth and operational efficiency with solid gross and EBITDA margins. However, high leverage and declining free cash flow pose financial risks.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue310.70M284.60M271.70M285.20M256.10M219.20M
Gross Profit225.30M162.10M160.90M161.10M151.50M147.90M
EBITDA135.30M80.40M126.30M121.40M113.50M105.60M
Net Income108.60M31.20M25.60M229.40M109.50M82.80M
Balance Sheet
Total Assets3.74B3.74B3.72B3.58B3.27B2.97B
Cash, Cash Equivalents and Short-Term Investments74.90M93.20M121.00M110.20M317.60M369.10M
Total Debt1.57B1.60B1.54B1.36B1.35B1.39B
Total Liabilities1.82B1.85B1.79B1.61B1.53B1.53B
Stockholders Equity1.91B1.89B1.93B1.97B1.74B1.44B
Cash Flow
Free Cash Flow164.20M132.30M178.60M98.30M147.70M80.80M
Operating Cash Flow165.10M136.60M184.70M102.00M148.00M81.10M
Investing Cash Flow-89.80M-167.70M-274.10M-274.20M-315.90M-161.30M
Financing Cash Flow-66.20M3.30M114.50M-49.50M116.40M260.00M

Grainger Technical Analysis

Technical Analysis Sentiment
Positive
Last Price198.00
Price Trends
50DMA
191.63
Positive
100DMA
201.48
Negative
200DMA
204.78
Negative
Market Momentum
MACD
1.48
Negative
RSI
57.76
Neutral
STOCH
67.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GRI, the sentiment is Positive. The current price of 198 is above the 20-day moving average (MA) of 192.03, above the 50-day MA of 191.63, and below the 200-day MA of 204.78, indicating a neutral trend. The MACD of 1.48 indicates Negative momentum. The RSI at 57.76 is Neutral, neither overbought nor oversold. The STOCH value of 67.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:GRI.

Grainger Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
£1.46B13.445.75%3.32%13.86%
74
Outperform
£378.20M16.105.86%5.41%-9.24%-17.33%
74
Outperform
£1.56B10.0111.42%4.73%7.20%34.17%
69
Neutral
£255.04M14.783.75%20.46%
69
Neutral
£1.37B25.447.57%2.17%7.81%22.76%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
65
Neutral
£355.74M21.5910.87%3.41%97.27%25.80%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:GRI
Grainger
197.00
-30.72
-13.49%
GB:LSL
LSL Property Services
250.00
-40.58
-13.97%
GB:MTVW
Mountview Estates
9,825.00
1,455.92
17.40%
GB:TPFG
The Property Franchise
538.00
141.68
35.75%
GB:SRE
Sirius Real Estate
102.80
15.29
17.47%
GB:SVS
Savills
1,022.00
-40.67
-3.83%

Grainger Corporate Events

Financial Disclosures
Grainger plc to Announce Full-Year Financial Results
Neutral
Oct 21, 2025

Grainger plc has announced that it will release its full-year financial results for the period ending 30 September 2025 on 20 November 2025. The company will provide a live webcast and dial-in facilities for the results presentation, and a separate investor presentation will be hosted by the CEO and CFO on 25 November 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market position and investor relations.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £217.00 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-Linked Share Acquisition
Positive
Oct 16, 2025

Grainger plc announced a transaction involving the purchase of 89,129 ordinary shares by Caroline Keaveney, who is closely associated with Michael Keaveney, the Director of Land and Development. This transaction, conducted on the London Stock Exchange, reflects strategic share acquisition by individuals with managerial responsibilities, potentially indicating confidence in the company’s future performance and stability.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £217.00 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Grainger plc Reports Strong Performance and Strategic Growth Initiatives
Positive
Oct 9, 2025

Grainger plc reports strong performance for the year ending September 2025, with high occupancy rates of 98.1% and a like-for-like rental growth of 3.6%. The company has strategically recycled capital, generating approximately £169 million from disposals, which are being reinvested into higher-yielding BTR assets. This aligns with the company’s strategy to deliver 50% earnings growth from FY24 to FY29. The supportive regulatory environment and the company’s transition to a REIT position Grainger well for continued sustainable income growth and enhanced shareholder returns.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £229.00 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

Other
Grainger PLC Director Increases Stake with Share Purchase
Positive
Oct 8, 2025

Grainger PLC announced a transaction involving the purchase of 7,790 ordinary shares by Michael Keaveney, a Director of Land and Development, through his Stocks and Shares ISA. This transaction, conducted on the London Stock Exchange, reflects internal confidence in the company’s prospects and could influence stakeholder perceptions positively.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £229.00 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 Share Incentive Plan Transactions
Positive
Oct 6, 2025

Grainger plc announced the acquisition and allocation of shares under its Share Incentive Plan (SIP) for employees, including directors and persons discharging managerial responsibilities (PDMRs). The SIP, approved by HMRC, allows employees to purchase shares through salary deductions and receive matching shares at no additional cost. This initiative reflects Grainger’s commitment to employee investment and aligns with its strategy to enhance stakeholder engagement and incentivize its workforce.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £229.00 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 Oxford BTR Development
Positive
Sep 17, 2025

Grainger plc has successfully achieved full lease-up of The Kimmeridge, its flagship 150-home build-to-rent development in Oxford, within just seven months, surpassing the anticipated 12-month timeline. This milestone underscores the strong demand for Grainger’s high-quality rental homes and reinforces its strategic investment in Oxford, further solidifying its leadership in the build-to-rent sector. The success of The Kimmeridge, which offers extensive amenities and professional on-site services, strengthens Grainger’s confidence in its strategy to deliver long-term returns and dividends for shareholders while meeting the growing demand for rental housing in key UK cities.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £229.00 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 Seraphina Apartments
Positive
Sep 10, 2025

Grainger plc has achieved a rapid 50% lease-up rate for its Seraphina Apartments in less than a month, highlighting strong demand for its high-quality rental homes and the effectiveness of its cluster strategy. This performance underscores Grainger’s market-leading operational platform and its ability to build thriving communities, which is crucial for its long-term strategy of delivering compounding returns and progressive dividends to shareholders.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £229.00 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

Business Operations and StrategyDelistings and Listing Changes
Grainger Achieves REIT Status, Strengthening Leadership in Build to Rent Sector
Positive
Sep 8, 2025

Grainger plc has successfully converted to Real Estate Investment Trust (REIT) status, marking a significant milestone in its nine-year strategic transformation into a pure-play Build to Rent (BTR) business. This conversion enhances Grainger’s ability to deliver sustainable returns to shareholders and solidifies its position as a leader in the BTR sector, offering tax-efficient investment opportunities and eliminating effective double taxation. The move is expected to unlock shareholder value and support long-term growth, with a forecast of 50% EPRA earnings growth by FY29. Grainger’s fully funded pipeline of 4,565 new homes and its successful asset recycling program further position the company for continued success and growth in the UK housing market.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £229.00 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 Investment with Share Incentive Plan
Positive
Sep 3, 2025

Grainger plc announced the acquisition and allocation of shares under its Share Incentive Plan (SIP), which allows employees to purchase shares and receive matching shares at no cost. The transaction involved the purchase of 5,166 partnership shares and the allocation of 4,566 matching shares, impacting key company directors and employees. This initiative aims to align employee interests with company performance, potentially enhancing stakeholder value and reinforcing Grainger’s commitment to employee investment.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £229.00 price target. To see the full list of analyst forecasts on Grainger stock, see the GB:GRI Stock Forecast page.

Business Operations and StrategyShareholder Meetings
Grainger plc Adopts New Articles to Enter REIT Regime
Positive
Sep 2, 2025

Grainger plc, a company involved in real estate investment and management, held a General Meeting on September 1, 2025, where a special resolution was passed to adopt new articles of association. This change is aimed at facilitating the company’s entry into the Real Estate Investment Trust (REIT) regime. The resolution received overwhelming support, with 98.89% of votes in favor, indicating strong shareholder backing for this strategic move. The adoption of the new articles is expected to enhance Grainger’s operational framework and align it with REIT standards, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (GB:GRI) stock is a Buy with a £229.00 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 Share Incentive Plan Transactions
Positive
Aug 5, 2025

Grainger plc announced transactions involving its Share Incentive Plan (SIP), where employees, including directors and persons discharging managerial responsibilities, acquired partnership shares and received matching shares. The SIP, 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.

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 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.

Business Operations and StrategyDividends
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.

Business Operations and StrategyShareholder Meetings
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.

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: Oct 24, 2025