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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on GWW

W.W. Grainger's recent performance was positively driven by strong Q4 earnings, beating estimates with $9.44 per share, and a 4.5% year-over-year sales increase. The company's Endless Assortment segment showed significant growth, offsetting margin pressure. Total sales reached $179.9 billion in 2025, with a 4.9% daily organic constant currency growth. Institutional investors, such as Cadinha & Co. LLC, increased their stake in the company. Grainger's digital investments and segment strength are expected to continue driving growth, navigating challenges amidst a competitive industrial products market.

1.c. Company Highlights

2. W.W. Grainger's 2025 Earnings Report: A Strong Finish

W.W. Grainger delivered total company sales growth of 4.5% on a reported basis and 4.9% on a daily organic constant currency basis, with total sales finishing the year at $17.9 billion. Operating margin finished at 15% for the year, and adjusted EPS growth was 1.3% to $39.48 per share. In the fourth quarter, daily sales grew 4.5% or 4.6% on a daily organic constant currency basis, with diluted EPS of $9.44, slightly below estimates of $9.46.

Publication Date: Feb -04

📋 Highlights
  • Total Sales Growth:: Achieved $79.9 billion in sales (4.9% daily organic constant currency growth) for 2025.
  • Operating Margin Performance:: Maintained 15% operating margin for the year, despite a 70-basis-point decline in Q4 due to SG&A expenses.
  • Endless Assortment Momentum:: Zoro and MonotaRO drove 12.5–15% growth in 2026, with MonotaRO adding 25% enterprise customers in 2025.
  • 2026 Guidance:: Projects 6.5–9% daily organic constant currency sales growth and EPS of $42.25–$44.75 (+10% at midpoint).
  • Margin Strategy:: Embedded ~3% price increases for 2026, with gross margin expected to decline 10 basis points due to Endless Assortment outgrowth.

Segment Performance

The High Touch Solutions segment delivered sales growth of 2.2% on a reported basis, with gross margin finishing the quarter at 42.3%, flat versus the prior year. Operating margin for the segment finished at 15.8%, down 120 basis points versus the prior-year quarter. The Endless Assortment segment, which includes Zoro and MonotaRO, regained growth momentum, with MonotaRO driving strong results, including 25% growth of enterprise customers.

Guidance and Outlook

For 2026, W.W. Grainger expects daily organic constant currency sales growth between 6.5% and 9%, with operating margins ranging from 15.4% to 15.9%. The endless assortment segment is expected to grow between 12.5% and 15% on a daily organic constant currency basis. Analysts estimate next year's revenue growth at 6.6%, which is within the company's guidance range.

Valuation Metrics

With a P/E Ratio of 32.05, the stock appears to be fairly valued, considering the company's expected earnings growth. The EV/EBITDA ratio of 20.67 also suggests a reasonable valuation. Additionally, the company's ROE of 49.17% and ROIC of 27.1% indicate strong profitability.

Digital Channel Growth

W.W. Grainger's e-commerce platform, eDiePRO, has become a significant share of its business, with KeepStock growing as a percentage of the total. The company's digital channels are expected to continue driving growth, with a focus on improving endless assortment and repeat rates.

Tariff-Related Pressures

The company has passed on the majority of known tariff-related costs to date, but the situation remains fluid. W.W. Grainger is staying agile and remains confident in its ability to adhere to its core tenets to reach price cost neutrality over time while maintaining competitive pricing.

3. NewsRoom

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TWELVE DIRECTORS SLATED FOR GRAINGER'S BOARD TO BE VOTED ON AT THE COMPANY'S ANNUAL MEETING ON APRIL 29, 2026

Feb -18

Source: prnewswire.com

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Dividend Income: Lanny's December 2025 Summary

Feb -17

Source: seekingalpha.com

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Atria Investments Inc Reduces Stock Position in W.W. Grainger, Inc. $GWW

Feb -16

Source: defenseworld.net

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Ameritas Advisory Services LLC Has $513,000 Holdings in W.W. Grainger, Inc. $GWW

Feb -16

Source: defenseworld.net

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VYM vs. NOBL: Which Dividend-Focused ETF Delivers a Higher Yield and Lower Fees?

Feb -11

Source:

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Market Today: Novo sues Hims; Highlander EV; Alphabet bond

Feb -09

Source: gurufocus.com

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First Look: Amazon's $200B Capex, Coinbase's SB Ad, Kroger CEO

Feb -09

Source: gurufocus.com

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W.W. Grainger Inc (GWW) Q4 2025 Earnings Call Highlights: Navigating Growth Amidst Challenges

Feb -03

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.80%)

6. Segments

High-Touch Solutions (N.A.)

Expected Growth: 7.2%

High-Touch Solutions is expected to grow slightly above the global average due to its focus on high-value customers and the potential for increased customer loyalty and retention, driving revenue growth.

Endless Assortment

Expected Growth: 8.0%

Endless Assortment is expected to be a key growth driver, benefiting from the trend towards e-commerce and the increasing demand for a wide range of products. Its growth rate is anticipated to be higher than the global average.

Other

Expected Growth: 6.0%

The 'Other' category is expected to grow at a rate slightly below the global average due to the diverse nature of the businesses it encompasses, some of which might be in early stages or less directly related to the company's core operations.

7. Detailed Products

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.

8. W.W. Grainger, Inc.'s Porter Forces

Forces Ranking

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.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.79%
Debt Cost 4.44%
Equity Weight 59.21%
Equity Cost 9.88%
WACC 7.66%
Leverage 68.90%

11. Quality Control: W.W. Grainger, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
TransDigm Group

A-Score: 7.0/10

Value: 3.0

Growth: 8.0

Quality: 6.7

Yield: 9.0

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
PACCAR

A-Score: 6.0/10

Value: 4.1

Growth: 6.7

Quality: 5.0

Yield: 8.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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MSC Industrial Direct Co

A-Score: 6.0/10

Value: 4.0

Growth: 3.7

Quality: 6.0

Yield: 8.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

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Paychex

A-Score: 6.0/10

Value: 2.1

Growth: 5.8

Quality: 9.0

Yield: 7.0

Momentum: 2.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Fastenal

A-Score: 5.5/10

Value: 0.7

Growth: 5.8

Quality: 7.8

Yield: 4.0

Momentum: 5.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Grainger

A-Score: 5.1/10

Value: 2.4

Growth: 7.8

Quality: 6.7

Yield: 2.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1127.07$

Current Price

1127.07$

Potential

-0.00%

Expected Cash-Flows