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WW Grainger
(NYSE:GWW)
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Rating:81Outperform
Price Target:
$1,584.00
â–²(36.21% Upside)
Action:Reiterated
Date:05/09/26
Overall score reflects strong fundamentals and an upbeat earnings outlook (raised full-year guidance on robust growth and profitability). Technicals are supportive with clear trend strength, while valuation is the main constraint due to a premium P/E and low dividend yield.
Positive Factors
High margins and durable profitability
Sustained gross and operating margins around historical mid- to high-teens provide durable earnings power and a cushion versus cost shocks. This margin profile supports reinvestment, consistent cash generation and the ability to fund returns to shareholders over multiple cycles.
Negative Factors
Slowing revenue growth trajectory
A clear deceleration to low single‑digit TTM growth reduces optionality from organic expansion and raises reliance on price or share gains to sustain earnings growth. If structural demand softens, current margin levels and return targets will be harder to maintain.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins and durable profitability
Sustained gross and operating margins around historical mid- to high-teens provide durable earnings power and a cushion versus cost shocks. This margin profile supports reinvestment, consistent cash generation and the ability to fund returns to shareholders over multiple cycles.
Read all positive factors
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 (GWW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$64.73B
Dividend Yield0.86%
Average Volume (3M)319.90K
Price to Earnings (P/E)36.7
Beta (1Y)0.74
Revenue Growth6.61%
EPS Growth-4.69%
CountryUS
Employees25,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)37.32
Shares Outstanding47,213,120
10 Day Avg. Volume221,245
30 Day Avg. Volume319,905
Financial Highlights & Ratios
PEG Ratio-3.11
Price to Book (P/B)12.94
Price to Sales (P/S)2.69
P/FCF Ratio36.31
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$1,317.09Price Target Upside13.26% Upside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)45.65
Revenue Forecast (FY)$19.47B
WW Grainger Business Overview & Revenue Model
Company Description
W.W. Grainger, Inc. stands as a significant global supplier of maintenance, repair, and operating (MRO) supplies and related services. Its market presence spans several international regions, including the United States, Japan, Canada, and the Uni...
How the Company Makes Money
Grainger primarily makes money by selling MRO products sourced from manufacturers and other suppliers and reselling them to end customers at a markup, generating revenue from product sales (its main revenue stream). Sales are fulfilled through mul...
WW Grainger Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based revenue and profit growth, healthy cash generation, and raised full-year guidance driven by solid price realization, share gains, and strength in both High-Touch and Endless Assortment segments. Counterbalancing these positives are near-term margin headwinds from fuel costs, private-label cost timing, LIFO accounting effects, and geopolitical/tariff uncertainty that are expected to pressure margins in Q2. Overall, management projects these headwinds as transitory while emphasizing continued execution and confidence in long-term strategy.Positive Updates
Strong Top-Line Growth
Total company reported sales increased 10.1% year-over-year and 12.2% on a daily organic constant currency basis; preliminary April sales were up north of 13% on a daily organic constant currency basis.
Negative Updates
Near-Term Margin Pressure from Fuel and Private Label Timing
Management expects Q2 operating margins to step down to the low-15% range due to fuel cost leakage and the timing of higher-cost private label inventory hitting in Q2 (private-label cost impact ~20 bps Q1→Q2).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total company reported sales increased 10.1% year-over-year and 12.2% on a daily organic constant currency basis; preliminary April sales were up north of 13% on a daily organic constant currency basis.
Read all positive updates
Company Guidance
The company raised its full‑year 2026 guide after a strong Q1 (total sales +10.1% reported, +12.2% daily organic constant currency; gross margin 40% up 30 bps; operating margin 16.7%; diluted EPS $11.65, +18.2%; operating cash flow $739M; returned $345M to shareholders), now expecting daily organic constant currency sales growth of 9.5%–12%, operating margin ticked up slightly at the midpoint, and EPS of $44.25–$46.25 (≈15% y/y at the midpoint and a $1.75 midpoint raise versus prior guide); supplemental guidance shows higher operating cash flow versus prior. Management flagged Q2 sales north of $4.9B (approaching 12% daily organic) with Q2 operating margins in the low‑15% range (Q2 gross margin roughly 39%, about a 1‑point sequential decline driven ~60 bps normal seasonality, ~20 bps private‑label costs and the remainder from fuel leakage), and noted April prelim sales north of 13% daily organic. Assumptions baked into the guide include modest market volume growth (~0–1%), price contribution moderating from ~5 points in Q1 to ~4% for the year, SG&A growth of ~5.5–6%, LIFO normalization (~70 bps Q4→Q1), and the potential for incremental headwinds (incentive comp, fuel, private‑label timing) that make added revenue dollars less profitable in the near term.WW Grainger Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.38B | 17.94B | 17.17B | 16.48B | 15.23B | 13.02B |
| Gross Profit | 7.20B | 7.01B | 6.69B | 6.50B | 5.85B | 4.72B |
| EBITDA | 2.88B | 2.77B | 2.90B | 2.81B | 2.40B | 1.74B |
| Net Income | 1.78B | 1.71B | 1.91B | 1.83B | 1.55B | 1.04B |
Balance Sheet | ||||||
| Total Assets | 9.47B | 8.96B | 8.83B | 8.15B | 7.59B | 6.59B |
| Cash, Cash Equivalents and Short-Term Investments | 695.00M | 585.00M | 1.04B | 660.00M | 325.00M | 241.00M |
| Total Debt | 2.78B | 3.16B | 3.18B | 2.75B | 2.71B | 2.76B |
| Total Liabilities | 5.13B | 4.82B | 5.13B | 4.71B | 4.85B | 4.43B |
| Stockholders Equity | 3.93B | 3.74B | 3.36B | 3.12B | 2.44B | 1.87B |
Cash Flow | ||||||
| Free Cash Flow | 1.38B | 1.33B | 1.57B | 1.59B | 1.08B | 682.00M |
| Operating Cash Flow | 2.11B | 2.02B | 2.11B | 2.03B | 1.33B | 937.00M |
| Investing Cash Flow | -698.00M | -645.00M | -520.00M | -422.00M | -263.00M | -226.00M |
| Financing Cash Flow | -1.37B | -1.82B | -1.18B | -1.28B | -972.00M | -1.04B |
WW Grainger Technical Analysis
Positive
1162.94
Price Trends
1295.00
Positive
1205.69
Positive
1105.20
Positive
Market Momentum
23.33
Positive
59.29
Neutral
66.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GWW, the sentiment is Positive. The current price of 1162.94 is below the 20-day moving average (MA) of 1353.76, below the 50-day MA of 1295.00, and above the 200-day MA of 1105.20, indicating a bullish trend. The MACD of 23.33 indicates Positive momentum. The RSI at 59.29 is Neutral, neither overbought nor oversold. The STOCH value of 66.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $64.73B | 36.75 | 47.84% | 0.86% | 6.61% | -4.69% | |
75 Outperform | $52.51B | 38.44 | 33.25% | 2.10% | 12.54% | 13.58% | |
72 Outperform | $6.93B | 29.88 | 15.00% | 3.96% | 4.41% | 16.62% | |
70 Outperform | $16.11B | 32.11 | 17.84% | 3.38% | -4.53% | -7.76% | |
69 Neutral | $16.57B | 23.64 | 13.70% | 0.72% | 11.16% | 6.33% | |
65 Neutral | $45.51B | 21.81 | 35.56% | 1.35% | 2.57% | 9.40% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
GWW
WW Grainger
1,402.03
388.67
38.36%
FAST
Fastenal Company
46.67
1.73
3.85%
MSM
MSC Industrial
125.63
41.63
49.57%
WSO
Watsco
385.16
-72.01
-15.75%
WCC
Wesco International
326.71
122.82
60.24%
FERG
Ferguson PLC
234.10
18.57
8.62%
WW Grainger Corporate Events
Executive/Board ChangesShareholder Meetings
WW Grainger Shareholders Approve Directors, Auditor and Pay
Positive
May 1, 2026
W.W. Grainger shareholders held their annual meeting on April 29, 2026, with 41,240,433 of 47,329,985 eligible shares present in person or by proxy as of the March 2, 2026 record date. Management’s slate of directors, including Chairman and ...
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.