AI Spotlight on GWW
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.
Market Data
Last Price | 1062.67 |
Change Percentage | -5.63% |
Open | 1062.2 |
Previous Close | 1126.07 |
Market Cap ( Millions) | 51752 |
Volume | 700306 |
Year High | 1227.66 |
Year Low | 874.98 |
M A 50 | 1129.72 |
M A 200 | 1019.94 |
Financial Ratios
FCF Yield | 3.03% |
Dividend Yield | 0.75% |
ROE | 40.60% |
Debt / Equity | 30.40% |
Net Debt / EBIDTA | 58.23% |
Price To Book | 5.85 |
Price Earnings Ratio | 27.05 |
Price To FCF | 32.96 |
Price To sales | 3.01 |
EV / EBITDA | 18.87 |
News
- Jan -31 - W.W. Grainger, Inc. (GWW) Q4 2024 Earnings Call Transcript
- Jan -31 - Grainger Earnings & Sales Miss Estimates in Q4, Increase Y/Y
- Jan -31 - W.W. Grainger (GWW) Q4 Earnings and Revenues Lag Estimates
- Jan -31 - GRAINGER REPORTS RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2024
- Jan -30 - 5 Large-Cap Stocks Likely to Gain Post Earnings Release Tomorrow
- Jan -29 - GRAINGER DECLARES QUARTERLY DIVIDEND
- Jan -29 - Can Grainger Q4 Earnings Beat on Solid Organic Growth Across Segments?
- Jan -28 - Industrial Stocks Reporting Q4 Earnings This Week: CAT, GWW & More
- Jan -24 - What Can The Dividend Kings Deliver In 2025?
- Jan -23 - Zacks Industry Outlook W.W. Grainger, Eos Energy, ScanSource and ClearSign
- Jan -22 - 4 Industrial Services Stocks to Watch Despite Industry Headwinds
- Jan -21 - Here's Why You Should Retain Grainger Stock in Your Portfolio
- Jan -03 - All 12 Dividend Aristocrats That Raised Their Dividends 10% or More in 2024
- Jan -01 - 3 Dividend Growth Stocks That Can Deliver a Lifetime of Passive Income
- Dec -30 - Highest Quality Dividend Kings For 2025
- Dec -13 - SCSC or GWW: Which Is the Better Value Stock Right Now?
- Dec -04 - These 3 Outstanding Dividend-Growth Stocks Could Fund Your Retirement
- Nov -11 - SCSC vs. GWW: Which Stock Is the Better Value Option?
- Nov -06 - W.W. Grainger: Boring Industry But Tech Like Returns
- Nov -01 - W.W. Grainger (GWW) Reports Q3 Earnings: What Key Metrics Have to Say
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> High-Touch Solutions N.A.
Expected Growth : 6.5 %
What the company do ?
Why we expect these perspectives ?
High-Touch Solutions N.A. from W.W. Grainger, Inc. achieves 6.5% growth driven by increasing demand for MRO (Maintenance, Repair, and Operations) products, strategic acquisitions, and investments in digital capabilities, enhancing customer experience and supply chain efficiency.
Segment nΒ°2 -> Endless Assortment
Expected Growth : 7.5 %
What the company do ?
Why we expect these perspectives ?
Grainger's Endless Assortment growth is driven by increasing adoption of e-commerce platforms, rising demand for MRO products, and strategic investments in digital capabilities. Additionally, the company's focus on providing a seamless customer experience, expanding product offerings, and improving supply chain efficiency are contributing to the 7.5% growth rate.
Segment nΒ°3 -> Other
Expected Growth : 6.0 %
What the company do ?
Why we expect these perspectives ?
Grainger's 'Other' segment, with 6.0% growth, is driven by increasing demand for its single-source provider model, expansion of its e-commerce platform, and strategic acquisitions. Additionally, the company's focus on digital marketing and customer experience enhancements contribute to its growth. Furthermore, Grainger's ability to provide a broad range of products and services to its customers also supports its growth momentum.
W.W. Grainger, Inc. Products
Product Range | What is it ? |
---|---|
Material Handling | Equipment and supplies for moving, storing, and managing materials, including pallet jacks, forklifts, and shelving units. |
Facility Maintenance | Products for maintaining and repairing facilities, including lighting, plumbing, and HVAC supplies. |
Safety and Security | Personal protective equipment, safety gear, and security products, including hard hats, gloves, and access control systems. |
Metalworking | Tools and supplies for metal fabrication, including cutting tools, abrasives, and welding equipment. |
Electrical and Electronics | Electrical and electronic components, including circuit breakers, fuses, and connectors. |
Janitorial and Sanitation | Cleaning supplies, paper products, and waste management solutions for maintaining a clean and healthy environment. |
Lab and Scientific | Laboratory equipment, supplies, and chemicals for scientific research, testing, and analysis. |
Pumps and Plumbing | Pumps, valves, and plumbing supplies for industrial, commercial, and residential applications. |
Power Transmission | Belts, chains, gears, and bearings for transmitting power and motion in industrial machinery. |
W.W. Grainger, Inc.'s Porter Forces
Threat Of Substitutes
W.W. Grainger, Inc. faces moderate threat from substitutes due to the availability of alternative products and services from competitors. However, the company's strong brand reputation and customer loyalty mitigate this threat to some extent.
Bargaining Power Of Customers
W.W. Grainger, Inc. has a large and diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often critical to customers' operations, making it difficult for them to switch to alternative suppliers.
Bargaining Power Of Suppliers
W.W. Grainger, Inc. has a large and diverse supplier base, which reduces the bargaining power of individual suppliers. However, the company's reliance on a few key suppliers for certain products increases its vulnerability to supplier power.
Threat Of New Entrants
W.W. Grainger, Inc. operates in a highly competitive industry, but the barriers to entry are relatively high due to the need for significant investments in inventory, logistics, and technology. This makes it difficult for new entrants to gain a foothold in the market.
Intensity Of Rivalry
W.W. Grainger, Inc. operates in a highly competitive industry with many established players. The company faces intense competition from rivals such as Fastenal, MSC Industrial Direct, and Applied Industrial Technologies, which puts pressure on prices, margins, and market share.
Capital Structure
Value | |
---|---|
Debt Weight | 40.79% |
Debt Cost | 4.44% |
Equity Weight | 59.21% |
Equity Cost | 9.88% |
WACC | 7.66% |
Leverage | 68.90% |
W.W. Grainger, Inc. : Quality Control
W.W. Grainger, Inc. passed 7 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
Company | Rational |
---|---|
PCAR | PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, β¦ |
PAYX | Paychex, Inc. provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small to medium-sized businesses in the United States, Europe, and India. It β¦ |
MSM | MSC Industrial Direct Co., Inc., together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products and services in the United States, Canada, Mexico, and the United Kingdom. β¦ |
TDG | TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. Its Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, β¦ |
FAST | Fastenal Company, together with its subsidiaries, engages in the wholesale distribution of industrial and construction supplies in the United States, Canada, Mexico, North America, and internationally. It offers fasteners, and β¦ |