WW Grainger (GWW) AI Stock Analysis

• Market Cap: $45.95B
• Dividend Yield: 0.88%
• Average Volume (3M): 346.92K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.89
• Revenue Growth: 4.35%
• EPS Growth: 7.84%
• Country: US
• Employees: 23,500
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Distribution
• EPS (TTM): 9.97
• Shares Outstanding: 47,832,245
• 10 Day Avg. Volume: 423,928
• 30 Day Avg. Volume: 346,922
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 3.01
• Enterprise Value/Gross Profit: 7.66
• Enterprise Value/Ebitda: 18.89
• 1Y Price Target: $1,052.00
• Price Target Upside: 7.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 62 Neutral
• Price Target: $986.00 ▲(0.40% Upside)

W.W. Grainger's overall stock score is driven by strong financial performance, which is offset by weak technical indicators and a cautious earnings outlook. While the company's financial health is robust, market sentiment and technical analysis suggest potential near-term challenges.

Positive Factors

Company Advantages

Grainger’s scale, service and technology advantages set the stock up for favorable performance over the long term.

Organic Growth

Endless Assortment has shown accelerating organic growth and improved margins, beating estimates in the first half of the year.

Negative Factors

Earnings Estimates

The updated guidance for the second half's earnings per share is significantly below consensus estimates, suggesting potential for further negative revisions.

Gross Margins

The company had a lower guide on gross margins due to price/cost headwinds and LIFO expenses.

Pricing Strategy

The company's pricing strategy is causing difficulties in the current environment due to customer price sensitivity.

WW Grainger Business Overview & Revenue Model

Company Description

W.W. Grainger, Inc. distributes maintenance, repair, and operating (MRO) products and services in the United States, Japan, Canada, the United Kingdom, and internationally. The company operates through two segments, High-Touch Solutions N.A. and Endless Assortment. It offers safety and security supplies, material handling and storage equipment, pumps and plumbing equipment, cleaning and maintenance supplies, and metalworking and hand tools. It also offers inventory management and technical support services. The company serves businesses, corporations, government entities, and other institutions through sales and service representatives, and electronic and ecommerce channels. W.W. Grainger, Inc. was founded in 1927 and is headquartered in Lake Forest, Illinois.

How the Company Makes Money

Grainger generates revenue primarily through the sale of MRO products to businesses and institutions. Its revenue model relies on a combination of direct sales, online sales through its e-commerce platform, and procurement services. Key revenue streams include product sales, subscription services for inventory management, and value-added services such as technical support and training. Additionally, Grainger has formed partnerships with various manufacturers and suppliers to enhance its product offerings and maintain competitive pricing. The company's strong focus on customer service and logistics efficiency also contributes significantly to its earnings, as it helps retain existing customers and attract new ones.

WW Grainger Financial Statement Overview

Summary

W.W. Grainger demonstrates a robust financial performance with strong revenue and profit growth, efficient operations, and effective capital management. The company has maintained healthy leverage and improved margins, although increased capital expenditures and declining cash reserves could present future challenges.

Income Statement

The income statement shows strong growth with a consistent revenue increase from $11.8B in 2020 to $17.5B in TTM (Trailing-Twelve-Months) 2025. Gross profit margin improved to 39.2% in TTM 2025 from 35.9% in 2020, indicating effective cost management. Net profit margin also improved to 11.0% in TTM 2025 from 5.9% in 2020. The EBIT margin rose from 8.6% in 2020 to 15.3% in TTM 2025, highlighting operational efficiency. However, the EBITDA margin saw a slight decline recently, indicating potential non-operational cost pressures.

Balance Sheet

The balance sheet is solid, with a debt-to-equity ratio of 0.31 in TTM 2025, which is healthy and suggests prudent financial leverage. Return on equity has been strong, climbing to 21.5% in TTM 2025 from 14.6% in 2020, reflecting efficient use of equity. The equity ratio improved to 100% in TTM 2025, indicating a well-capitalized position. However, the decrease in cash reserves over the years could be a point of concern for liquidity.

Cash Flow

Cash flow analysis shows robust growth in free cash flow, rising from $926M in 2020 to $1.42B in TTM 2025, a sign of strong cash generation. Operating cash flow to net income ratio remains favorable, indicating good cash conversion efficiency. However, capital expenditures have increased significantly, which could pressure future cash flows if not managed carefully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.48B	17.17B	16.48B	15.23B	13.02B	11.80B
Gross Profit	6.86B	6.76B	6.50B	5.85B	4.72B	4.24B
EBITDA	2.78B	2.90B	2.81B	2.40B	1.74B	1.22B
Net Income	1.92B	1.91B	1.83B	1.55B	1.04B	695.00M
Balance Sheet
Total Assets	8.94B	8.83B	8.15B	7.59B	6.59B	6.29B
Cash, Cash Equivalents and Short-Term Investments	597.00M	1.04B	660.00M	325.00M	241.00M	585.00M
Total Debt	2.73B	3.18B	2.75B	2.71B	2.76B	2.62B
Total Liabilities	4.85B	5.13B	4.71B	4.85B	4.43B	4.20B
Stockholders Equity	3.67B	3.36B	3.12B	2.44B	1.87B	1.83B
Cash Flow
Free Cash Flow	1.42B	1.57B	1.59B	1.08B	682.00M	926.00M
Operating Cash Flow	2.06B	2.11B	2.03B	1.33B	937.00M	1.12B
Investing Cash Flow	-626.00M	-520.00M	-422.00M	-263.00M	-226.00M	-179.00M
Financing Cash Flow	-1.62B	-1.18B	-1.28B	-972.00M	-1.04B	-726.00M

WW Grainger Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 982.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GWW, the sentiment is Negative. The current price of 982.07 is below the 20-day moving average (MA) of 997.28, below the 50-day MA of 1029.71, and below the 200-day MA of 1054.40, indicating a bearish trend. The MACD of -23.57 indicates Positive momentum. The RSI at 46.03 is Neutral, neither overbought nor oversold. The STOCH value of 49.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GWW.

WW Grainger Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WCC	80 Outperform	$10.28B	16.54	13.78%	0.82%	1.30%	-1.09%
FAST	79 Outperform	$55.60B	46.83	32.57%	1.75%	4.84%	2.98%
MSM	74 Outperform	$4.81B	24.37	14.34%	3.83%	-4.11%	-31.26%
AIT	73 Outperform	$10.31B	27.15	22.23%	0.60%	0.50%	4.48%
Sector *	71 Outperform	¥268.19B	15.08	8.32%	2.78%	6.19%	11.06%
GWW	62 Neutral	$45.95B	24.24	55.30%	0.88%	4.35%	7.84%
FERG	―	£33.07B	26.77	29.28%	1.26%	―	―

WW Grainger Corporate Events

WW Grainger Amends Articles, Alters Governance Structure

On April 30, 2025, W.W. Grainger, Inc. held its annual meeting of shareholders where a proposal to amend the company’s Restated Articles of Incorporation to eliminate cumulative voting was approved. This amendment, effective May 9, 2025, led to changes in the company’s by-laws to reflect the elimination of cumulative voting, impacting the company’s governance structure.

The most recent analyst rating on (GWW) stock is a Buy with a $1125.00 price target. To see the full list of analyst forecasts on WW Grainger stock, see the GWW Stock Forecast page.