-5.63%
2.01%
-3.84%
12.77%
15.18%
114.69%
250.45%

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

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

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.

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.

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.

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.

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%

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, …
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 …
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. …
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, …
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 …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
1062.67$
Current Price
1062.67$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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