GWW - W.W. Grainger Inc. | StockAlert.pro

Stock Details

W.W. Grainger Inc. (GWW), a prominent company in the trade & services sector within the wholesale-durable goods industry, is based in USA and primarily trades on the NYSE.Currently, the stock is trading at $1,054.43. Over the past 52 weeks, it has ranged between $892.04 and $1,222.56. This places the current price at 86.2% of its 52-week high and 18.2% above its 52-week low. Recent trading volume was recorded at 241,354. The International Securities Identification Number (ISIN) for this stock is US3848021040.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

26.68

Above market average

Forward P/E

25.58

Earnings expected to grow

PEG Ratio

2.28

Potentially overvalued

Price to Book

14.20

EV/EBITDA

17.71

EPS (TTM)

$38.99

Price to Sales

2.90

Beta

1.21

Similar volatility to market

How is GWW valued relative to its earnings and growth?

W.W. Grainger Inc. trades at a P/E ratio of 26.68, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 25.58 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.28 indicates a premium valuation even accounting for growth.

What is GWW's risk profile compared to the market?

With a beta of 1.21, W.W. Grainger Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 14.20 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

11.10%

Operating Margin

15.60%

Return on Equity

54.20%

Return on Assets

19.60%

Revenue Growth (YoY)

1.70%

Earnings Growth (YoY)

2.50%

How profitable and efficient is GWW's business model?

W.W. Grainger Inc. achieves a profit margin of 11.10%, meaning it retains $11.10 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 15.60% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 54.20% and ROA at 19.60%, the company generates strong returns on invested capital.

What are GWW's recent growth trends?

W.W. Grainger Inc.'s revenue grew by 1.70% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 2.50% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against WHOLESALE-DURABLE GOODS industry averages for proper context.

Dividend Information

Dividend Per Share

$8.20

Dividend Yield

0.88%

Ex-Dividend Date

5/12/2025

Dividend Date

6/1/2025

What dividend income can investors expect from GWW?

W.W. Grainger Inc. offers a dividend yield of 0.88%, paying $8.20 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 5/12/2025.

How reliable is GWW's dividend for long-term investors?

The dividend sustainability can be assessed through the payout ratio - W.W. Grainger Inc. pays $8.20 per share in dividends against earnings of $38.99 per share, resulting in a payout ratio of 21.03%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for 6/1/2025.

Company Size & Market

Shares Outstanding

48.04M

Book Value/Share

$72.39

Asset Type

Common Stock

What is GWW's market capitalization and position?

W.W. Grainger Inc. has a market capitalization of $49.97B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 48.04M shares outstanding, the company's ownership is relatively concentrated. As a participant in the WHOLESALE-DURABLE GOODS industry, it competes with other firms in this sector.

How does GWW's price compare to its book value?

W.W. Grainger Inc.'s book value per share is $72.39, while the current stock price is $1,054.43, resulting in a price-to-book (P/B) ratio of 14.57. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$1,080.97

2.52% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

How reliable are analyst predictions for GWW?

20 analysts cover GWW with 20% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $1,080.97 implies 2.5% upside, but targets are often adjusted to follow price moves rather than predict them.

What is the Wall Street consensus on GWW?

Current analyst recommendations:1 Strong Buy, 3 Buy, 13 Hold, 1 Sell, 2 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jul 1, 2025, 03:21 AM

W.W. Grainger Inc. (GWW) Stock