W.W. Grainger (GWW)
NYSE:GWW
Top Page
WW Grainger
(NYSE:GWW)
Select Model
Select Model
Rating:77Outperform
Price Target:
$1,244.00
â–²(17.68% Upside)
Action:ReiteratedDate:02/03/26
The score is driven primarily by strong underlying financial quality (profitability, improving leverage) and positive technical momentum (price above key moving averages, positive MACD). It is tempered by a higher valuation (P/E ~30, low yield) and near-term profitability/cash-conversion pressures, though management’s 2026 guidance supports a constructive outlook despite tariff/LIFO, cost, and demand risks.
Positive Factors
Endless Assortment strong growth and margin expansion
Sustained double-digit growth and meaningful margin improvement in Endless Assortment reflect scalable e‑commerce and assortment advantages. This durable secular shift toward larger online catalogs can drive structural revenue mix gains, higher customer retention, and long-term margin expansion as fixed costs spread over higher volume.
Negative Factors
Tariff-driven cost and LIFO headwinds
Persistent tariff uncertainty and LIFO accounting effects can structurally compress margins and create uneven margin recovery. If tariff costs persist or widen, Grainger may face sustained input-cost passthrough limits, increasing price volatility and pressuring long-run operating profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Endless Assortment strong growth and margin expansion
Sustained double-digit growth and meaningful margin improvement in Endless Assortment reflect scalable e‑commerce and assortment advantages. This durable secular shift toward larger online catalogs can drive structural revenue mix gains, higher customer retention, and long-term margin expansion as fixed costs spread over higher volume.
Read all positive factors
WW Grainger (GWW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$50.08B
Dividend Yield0.86%
Average Volume (3M)241.26K
Price to Earnings (P/E)28.3
Beta (1Y)0.77
Revenue Growth4.83%
EPS Growth-3.60%
CountryUS
Employees23,500
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)9.44
Shares Outstanding47,373,024
10 Day Avg. Volume246,888
30 Day Avg. Volume241,259
Financial Highlights & Ratios
PEG Ratio-3.10
Price to Book (P/B)11.67
Price to Sales (P/S)2.69
P/FCF Ratio36.31
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue2.93
Enterprise Value/Gross Profit7.51
Enterprise Value/Ebitda19.04
Forecast
1Y Price Target
$1,161.29Price Target Upside9.86% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)43.58
Revenue Forecast (FY)$18.93B
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 E...
How the Company Makes Money
Grainger generates revenue primarily through the sale of its extensive catalog of industrial and maintenance products to businesses and institutions. The company operates on a transactional revenue model, where customers purchase products directly...
WW Grainger Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across various business segments, revealing which areas contribute most to overall revenue and indicating potential areas for expansion or risk.
Breaks down sales across various business segments, revealing which areas contribute most to overall revenue and indicating potential areas for expansion or risk.
Data provided by:
The Fly
The FlyWW Grainger Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call highlighted meaningful progress across strategic initiatives (assortment expansion, digital and AI capabilities, seller coverage, strong endless-assortment performance, cash generation and shareholder returns) and provided a constructive 2026 outlook with margin and EPS expansion. However, the business continues to navigate tangible near-term headwinds — tariff-driven cost and LIFO impacts, higher SG&A (notably healthcare), mixed market demand, and tax headwinds — and High-Touch outgrowth remains below long-term targets. On balance, management portrays confidence in execution and a path to improved margins and growth in 2026 while acknowledging risks and a cautious market view.Positive Updates
Full-Year Revenue and Organic Growth
Total company sales for 2025 were $79.9 billion, with reported sales growth of 4.5% and daily organic constant currency growth of 4.9% for the year.
Negative Updates
Tariff and LIFO Headwinds
Tariff-related cost inflation caused LIFO inventory valuation headwinds in 2025; price-cost on a LIFO basis remained negative though improved in Q4. Management notes the tariff situation remains fluid despite passing the majority of known costs.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue and Organic Growth
Total company sales for 2025 were $79.9 billion, with reported sales growth of 4.5% and daily organic constant currency growth of 4.9% for the year.
Read all positive updates
Company Guidance
Grainger guided 2026 revenue of $18.7–$19.1B (daily organic constant currency sales +6.5% to +9%; reported +4.2% to +6.7%), with total company operating margin of 15.4%–15.9% (up 40–90 bps) and EPS of $42.25–$44.75 (midpoint >10% growth). By segment, High Touch Solutions is expected to grow daily constant currency sales +5.0% to +7.5% (market assumed down 1.5% to flat) with HTS operating margin 16.9%–17.4% (≈+35 bps), and Endless Assortment daily organic constant currency sales +12.5% to +15.0% (Zoro and MonotaRO each expected to grow in the low teens locally) with EA operating margin 10.0%–10.5% (+20–70 bps); segment growth is ~230 bps lower on a reported basis after FX and the Zoro UK exit. Key assumptions include price contribution north of 3% (≈2.5–3% carryover from 2025 actions), LIFO headwinds that subside in H2, a ~45 bp margin tailwind from the U.K. exit, an effective tax rate of about 25% (≈130 bps unfavorable), operating cash flow ~$2.1–$2.3B (≈100% conversion), CapEx $550–$650M, ~$1B of share repurchases, and a dividend to be set in Q2 with an expected high-single to low-double-digit increase. For Q1, Grainger expects sales of roughly $4.5–$4.6B (up north of 7.5% daily organic constant currency; January prelim +10%+), Q1 gross margin to decline sequentially, and Q1 operating margin to be just north of 15%.WW Grainger Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 17.94B | 17.17B | 16.48B | 15.23B | 13.02B |
| Gross Profit | 7.01B | 6.69B | 6.50B | 5.85B | 4.72B |
| EBITDA | 2.77B | 2.90B | 2.81B | 2.40B | 1.74B |
| Net Income | 1.71B | 1.91B | 1.83B | 1.55B | 1.04B |
Balance Sheet | |||||
| Total Assets | 8.96B | 8.83B | 8.15B | 7.59B | 6.59B |
| Cash, Cash Equivalents and Short-Term Investments | 585.00M | 1.04B | 660.00M | 325.00M | 241.00M |
| Total Debt | 3.16B | 3.18B | 2.75B | 2.71B | 2.76B |
| Total Liabilities | 4.82B | 5.13B | 4.71B | 4.85B | 4.43B |
| Stockholders Equity | 4.14B | 3.36B | 3.12B | 2.44B | 1.87B |
Cash Flow | |||||
| Free Cash Flow | 1.33B | 1.57B | 1.59B | 1.08B | 682.00M |
| Operating Cash Flow | 2.02B | 2.11B | 2.03B | 1.33B | 937.00M |
| Investing Cash Flow | -645.00M | -520.00M | -422.00M | -263.00M | -226.00M |
| Financing Cash Flow | -1.82B | -1.18B | -1.28B | -972.00M | -1.04B |
WW Grainger Technical Analysis
Negative
1057.07
Price Trends
1104.35
Negative
1043.34
Positive
1018.92
Positive
Market Momentum
-15.45
Positive
40.27
Neutral
60.20
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 1057.07 is below the 20-day moving average (MA) of 1088.70, below the 50-day MA of 1104.35, and above the 200-day MA of 1018.92, indicating a neutral trend. The MACD of -15.45 indicates Positive momentum. The RSI at 40.27 is Neutral, neither overbought nor oversold. The STOCH value of 60.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GWW.
WW Grainger Risk Analysis
WW Grainger disclosed 24 risk factors in its most recent earnings report. WW Grainger reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
WW Grainger Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $50.08B | 28.33 | 45.93% | 0.86% | 4.83% | -3.60% | |
77 Outperform | $14.15B | 25.70 | 18.04% | 3.38% | -0.71% | -0.17% | |
75 Outperform | $51.62B | 36.60 | 32.83% | 2.10% | 6.92% | 5.98% | |
66 Neutral | $12.76B | 18.89 | 13.02% | 0.72% | 5.28% | 1.97% | |
66 Neutral | $43.72B | 28.00 | 35.56% | 1.35% | 4.92% | 18.72% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $5.04B | 23.96 | 14.89% | 3.96% | -1.35% | -22.24% |
* Industrials Sector Average
GWW
WW Grainger
1,057.07
77.92
7.96%
FAST
Fastenal Company
44.95
6.97
18.36%
MSM
MSC Industrial
90.30
15.81
21.22%
WSO
Watsco
347.20
-146.81
-29.72%
WCC
Wesco International
262.13
108.10
70.18%
FERG
Ferguson PLC
224.76
66.96
42.44%
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.