A Business at a Glance
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W.W. GRAINGER, INC.
GWW
$66.6B
Mkt Cap
$1,382.60
+1.11%
W.W. GRAINGER, INC. (GWW) has a current P/E ratio of 39.1, compared to its historical median P/E of 21.8. The stock is currently considered Expensive based on its historical valuation range.
W.W. GRAINGER, INC. (GWW) has a 5-year average return on invested capital (ROIC) of 37.6%. This indicates strong capital allocation and a potential competitive advantage.
W.W. GRAINGER, INC. (GWW) has a market capitalization of $65.5B. It is classified as a large-cap stock.
Yes, W.W. GRAINGER, INC. (GWW) pays a dividend with a trailing twelve-month yield of 0.70%. The company also returns capital through share buybacks, with a buyback yield of 1.53%.
Based on historical P/E analysis, W.W. GRAINGER, INC. (GWW) appears expensive. The current P/E of 39.1 is 79% above its historical median of 21.8. The estimated fair value CAGR (P/E method) is 20.8%.
W.W. GRAINGER, INC. (GWW) operates in the Wholesale-Durable Goods industry, within the Consumer Cyclical sector.
W.W. GRAINGER, INC. (GWW) reported annual revenue of $17.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
Grainger is a leading distributor of maintenance, repair, and operating (MRO) supplies and products, operating through two primary segments: High-Touch Solutions, which serves customers through a direct sales force and digital channels in North America and select international markets, and Endless Assortment, which includes Zoro (a digital-first e-commerce platform in the U.S. and U.K.) and MonotaRO (a leading MRO distributor in Japan and Southeast Asia). The company earns revenue through product sales with a mix of branded and private-label offerings, leveraging a broad assortment of industrial supplies, safety equipment, and facility maintenance products. High-Touch Solutions operates on a consultative, relationship-driven model with significant sales force investment and customer-facing tools like KeepStock, which provides data-driven procurement insights to drive customer cost savings and loyalty. Endless Assortment operates on a digital, transaction-based model with lower customer acquisition costs and higher repeat rates, particularly through improved targeting and marketing effectiveness. The company's competitive moat derives from its extensive product assortment, established supplier relationships, proprietary data and analytics capabilities, and multi-channel distribution network spanning North America, Japan, and Southeast Asia. Grainger serves a diverse customer base including contractors, healthcare facilities, government agencies, and mid-market to large enterprises, with pricing power demonstrated through regular annual price increases and the ability to pass through supplier cost increases to customers.
【Strong momentum into 2026】 Management expects continued robust demand in the MRO market with double-digit organic sales growth driven by improved market conditions and strong execution across both segments. The company anticipates sustained pricing power, with price realization exceeding prior expectations in the first quarter and expectations for pricing to remain competitive while achieving price-cost neutrality over time. Operating margins are expected to improve through the year as gross margin recovers from tariff-related headwinds and LIFO inventory valuation impacts subside, though near-term headwinds from fuel costs and private-label inventory timing will create sequential margin pressure in the second quarter. Management remains committed to strategic growth initiatives including seller effectiveness tools, KeepStock expansion, and new distribution center investments, while maintaining disciplined capital allocation focused on returning excess cash to shareholders through dividends and share repurchases.
| Metric | Target | Period |
|---|---|---|
| EPS | $44.25 to $46.25 | FY2026 |
| Operating cash flow | $2.1 billion to $2.3 billion | FY2026 |
EPS (FY2026): “Taking all this together, EPS is expected to be between $44.25 and $46.25, representing nearly 15% year-over-year growth at the midpoint.”
Operating cash flow (FY2026): “Our business is positioned to generate strong cash flow in 2026, with expected operating cash of approximately $2.1 billion-$2.3 billion, reflecting conversion of around 100%.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 18.4B | 17.9B | 17.2B | 16.5B | 15.2B | 13.0B |
| Net Income | 1.8B | 1.7B | 1.9B | 1.8B | 1.5B | 1.0B |
| EPS | $37.22 | $35.40 | $38.71 | $36.23 | $30.06 | $19.84 |
| Free Cash Flow | 1.4B | 1.3B | 1.6B | 1.6B | 1.1B | 682M |
| ROIC | 34.6% | 34.2% | 41.2% | 42.5% | 39.5% | 30.4% |
| Gross Margin | 39.2% | 39.1% | 39.4% | 39.4% | 38.4% | 36.2% |
| Debt/Equity | 0.58 | 0.70 | 0.83 | 0.74 | 0.95 | 1.26 |
| Dividends/Share | $9.70 | $8.83 | $8.01 | $7.30 | $6.78 | $6.39 |
| Operating Income | 2.6B | 2.5B | 2.6B | 2.6B | 2.2B | 1.5B |
| Operating Margin | 14.2% | 13.9% | 15.4% | 15.6% | 14.5% | 11.9% |
| ROE | 45.3% | 48.1% | 59.0% | 65.9% | 71.7% | 56.3% |
| Shares Outstanding | 47M | 48M | 49M | 50M | 51M | 53M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 10.0B | 10.0B | 10.1B | 10.4B | 11.2B | 11.5B | 11.8B | 13.0B | 15.2B | 16.5B | 17.2B | 17.9B | 18.4B |
| Gross Margin | 43.3% | 42.4% | 40.6% | 39.3% | 38.7% | 38.3% | 35.9% | 36.2% | 38.4% | 39.4% | 39.4% | 39.1% | 39.2% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 3.0B | 2.9B | 3.0B | 3.1B | 3.2B | 3.1B | 3.2B | 3.2B | 3.6B | 3.9B | 4.1B | 4.5B | 4.6B |
| EBIT | 1.3B | 1.3B | 1.1B | 1.0B | 1.2B | 1.3B | 1.0B | 1.5B | 2.2B | 2.6B | 2.6B | 2.5B | 2.6B |
| Op. Margin | 13.5% | 13.0% | 11.0% | 9.9% | 10.3% | 11.0% | 8.6% | 11.9% | 14.5% | 15.6% | 15.4% | 13.9% | 14.2% |
| Net Income | 792M | 761M | 601M | 581M | 776M | 849M | 695M | 1.0B | 1.5B | 1.8B | 1.9B | 1.7B | 1.8B |
| Net Margin | 7.9% | 7.6% | 5.9% | 5.6% | 6.9% | 7.4% | 5.9% | 8.0% | 10.2% | 11.1% | 11.1% | 9.5% | 9.7% |
| Non-Recurring | -29M | 43M | 106M | 95M | 158M | 129M | -48M | 6.0M | 14M | -17M | 0 | -196M | -196M |
| Returns on Capital | |||||||||||||
| ROIC | 24.0% | 22.0% | 17.9% | 18.4% | 24.1% | 25.5% | 22.1% | 30.4% | 39.5% | 42.5% | 41.2% | 34.2% | 34.6% |
| ROE | 24.5% | 27.8% | 29.6% | 33.3% | 43.0% | 45.0% | 37.7% | 56.3% | 71.7% | 65.9% | 59.0% | 48.1% | 45.3% |
| ROA | 15.0% | 13.7% | 10.4% | 10.1% | 13.3% | 14.3% | 11.3% | 16.2% | 21.8% | 23.2% | 22.5% | 19.2% | 18.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 960M | 1.0B | 1.0B | 1.1B | 1.1B | 1.0B | 1.1B | 937M | 1.3B | 2.0B | 2.1B | 2.0B | 2.1B |
| Free Cash Flow | 572M | 662M | 740M | 820M | 818M | 821M | 926M | 682M | 1.1B | 1.6B | 1.6B | 1.3B | 1.4B |
| Owner Earnings | 721M | 782M | 765M | 783M | 753M | 792M | 908M | 722M | 1.1B | 1.7B | 1.7B | 1.6B | 1.7B |
| CapEx | 387M | 374M | 284M | 237M | 239M | 221M | 197M | 255M | 256M | 445M | 541M | 684M | 729M |
| Maint. CapEx | 190M | 207M | 223M | 241M | 257M | 210M | 169M | 173M | 206M | 277M | 311M | 330M | 331M |
| Growth CapEx | 197M | 167M | 61M | 0 | 0 | 11M | 28M | 82M | 50M | 168M | 230M | 354M | 398M |
| D&A | 190M | 207M | 223M | 241M | 257M | 210M | 169M | 173M | 206M | 277M | 311M | 330M | 331M |
| CapEx/OCF | 40.4% | 37.8% | 27.8% | 22.4% | 22.6% | 21.2% | 17.5% | 27.2% | 19.2% | 21.9% | 25.6% | 33.9% | 34.6% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 291M | 306M | 303M | 304M | 316M | 328M | 338M | 357M | 370M | 392M | 421M | 467M | 460M |
| Dividend Yield | 2.0% | 2.4% | 2.6% | 2.9% | 2.1% | 2.2% | 2.0% | 1.6% | 1.4% | 1.1% | 0.9% | 1.0% | 0.7% |
| Share Buybacks | 525M | 1.4B | 790M | 605M | 425M | 700M | 601M | 695M | 603M | 850M | 1.2B | 1.0B | 1.0B |
| Buyback Yield | 3.5% | 12.1% | 6.3% | 4.9% | 2.9% | 4.0% | 2.8% | 2.6% | 2.2% | 2.1% | 2.3% | 2.1% | 1.5% |
| Stock-Based Comp | 49M | 47M | 36M | 33M | 47M | 40M | 46M | 42M | 48M | 62M | 62M | 64M | 66M |
| Debt Repayment | 171M | 53M | 263M | 39M | 96M | 42M | 1.4B | 8.0M | 15M | 37M | 39M | 506M | 506M |
| Balance Sheet | |||||||||||||
| Net Debt | 257M | 1.7B | 2.0B | 2.0B | 1.7B | 1.9B | 1.8B | 2.1B | 2.0B | 1.6B | 1.7B | 2.0B | 1.6B |
| Cash & Equiv. | 227M | 290M | 274M | 327M | 538M | 360M | 585M | 241M | 325M | 660M | 1.0B | 585M | 695M |
| Long-Term Debt | 403M | 1.4B | 1.8B | 2.2B | 2.1B | 1.9B | 2.4B | 2.4B | 2.3B | 2.3B | 2.3B | 2.4B | 2.4B |
| Debt/Equity | 0.15 | 0.88 | 1.25 | 1.39 | 1.16 | 1.19 | 1.31 | 1.26 | 0.95 | 0.74 | 0.83 | 0.70 | 0.58 |
| Interest Coverage | 133.5 | 38.7 | 14.6 | 11.6 | 13.2 | 16.0 | 11.0 | 17.8 | 23.8 | 27.6 | 34.2 | 30.8 | 32.3 |
| Equity | 3.2B | 2.3B | 1.8B | 1.7B | 1.9B | 1.9B | 1.8B | 1.9B | 2.4B | 3.1B | 3.4B | 3.7B | 3.9B |
| Total Assets | 5.3B | 5.9B | 5.7B | 5.8B | 5.9B | 6.0B | 6.3B | 6.6B | 7.6B | 8.1B | 8.8B | 9.0B | 9.5B |
| Total Liabilities | 2.0B | 3.5B | 3.8B | 4.0B | 3.8B | 3.9B | 4.2B | 4.4B | 4.9B | 4.7B | 5.1B | 4.8B | -5.0M |
| Intangibles | 264M | 648M | 586M | 569M | 460M | 304M | 228M | 238M | 232M | 234M | 243M | 265M | 268M |
| Retained Earnings | 6.3B | 6.8B | 7.1B | 7.4B | 7.9B | 8.4B | 8.8B | 9.5B | 10.7B | 12.2B | 13.7B | 15.0B | 15.4B |
| Working Capital | 1.7B | 1.3B | 1.4B | 1.7B | 2.1B | 1.9B | 2.5B | 2.5B | 3.0B | 3.4B | 3.4B | 3.5B | 3.7B |
| Current Assets | 3.0B | 3.0B | 3.0B | 3.2B | 3.6B | 3.6B | 3.9B | 4.0B | 5.0B | 5.3B | 5.7B | 5.5B | 5.9B |
| Current Liabilities | 1.3B | 1.8B | 1.6B | 1.5B | 1.5B | 1.7B | 1.4B | 1.5B | 2.0B | 1.8B | 2.3B | 1.9B | 2.2B |
| Per Share Data | |||||||||||||
| EPS | 11.45 | 11.58 | 9.87 | 10.02 | 13.73 | 15.32 | 12.82 | 19.84 | 30.06 | 36.23 | 38.71 | 35.40 | 37.22 |
| Owner EPS | 10.42 | 11.90 | 12.57 | 13.51 | 13.32 | 14.29 | 16.75 | 13.73 | 20.97 | 33.52 | 35.24 | 33.64 | 36.10 |
| Book Value | 46.39 | 34.47 | 29.53 | 29.15 | 33.99 | 33.47 | 33.72 | 35.65 | 47.41 | 61.70 | 68.09 | 77.52 | 82.91 |
| Cash Flow/Share | 13.87 | 15.76 | 16.82 | 18.23 | 18.70 | 18.80 | 20.71 | 17.82 | 25.90 | 40.23 | 42.81 | 41.81 | 44.58 |
| Dividends/Share | 4.17 | 4.59 | 4.83 | 5.06 | 5.36 | 5.68 | 5.94 | 6.39 | 6.78 | 7.30 | 8.01 | 8.83 | 9.70 |
| Shares Out. | 69.2M | 65.8M | 60.9M | 58.0M | 56.5M | 55.4M | 54.2M | 52.6M | 51.5M | 50.5M | 49.3M | 48.2M | 47.4M |
| Valuation | |||||||||||||
| P/E Ratio | 18.7 | 15.0 | 20.6 | 21.2 | 18.6 | 20.4 | 30.5 | 25.2 | 18.0 | 22.4 | 27.3 | 28.9 | 37.1 |
| P/FCF | 25.9 | 17.3 | 16.8 | 15.0 | 17.7 | 21.1 | 22.9 | 38.5 | 25.9 | 25.8 | 33.2 | 37.0 | 47.5 |
| EV/EBIT | 11.2 | 10.0 | 12.7 | 13.6 | 13.6 | 14.9 | 22.0 | 18.2 | 13.3 | 16.4 | 20.2 | 20.3 | 25.7 |
| Price/Book | 4.7 | 5.1 | 7.0 | 7.4 | 7.6 | 9.4 | 11.6 | 14.0 | 11.4 | 13.2 | 15.5 | 13.2 | 16.7 |
| Price/Sales | 1.4 | 1.3 | 1.2 | 1.0 | 1.4 | 1.3 | 1.4 | 1.7 | 1.7 | 2.1 | 2.8 | 2.7 | 3.6 |
| FCF Yield | 3.8% | 5.7% | 5.9% | 6.6% | 5.6% | 4.7% | 4.4% | 2.6% | 3.9% | 3.9% | 3.0% | 2.7% | 2.1% |
| Market Cap | 15.0B | 11.6B | 12.5B | 12.4B | 14.6B | 17.3B | 21.2B | 26.3B | 27.8B | 41.0B | 52.2B | 49.3B | 65.5B |
| Avg. Price | 206.21 | 192.28 | 190.56 | 178.62 | 271.05 | 269.16 | 309.44 | 411.87 | 499.31 | 686.66 | 977.43 | 1,004.95 | 1,382.60 |
| Year-End Price | 214.56 | 174.01 | 203.74 | 212.60 | 256.04 | 313.02 | 391.37 | 499.35 | 541.07 | 811.75 | 1,057.49 | 1,022.35 | 1,382.60 |
W.W. GRAINGER, INC. passes 7 of 9 quality checks, indicating strong fundamentals.
W.W. GRAINGER, INC. trades at 39.1x trailing earnings, compared to its 15-year median P/E of 21.8x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 49.2x vs a median of 24.4x. The company's 5-year average ROIC is 37.6% with a gross margin of 38.5%. Total shareholder yield (dividends + buybacks) is 2.2%. At current prices, the estimated annualized return to fair value is +15.1%.
W.W. GRAINGER, INC. (GWW) has a net profit margin of 9.5%. This is a modest margin.
W.W. GRAINGER, INC. (GWW) generated $1.3 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
W.W. GRAINGER, INC. (GWW) has a debt-to-equity ratio of 0.70. This indicates moderate leverage.
W.W. GRAINGER, INC. (GWW) reported earnings per share (EPS) of $35.40 in its most recent fiscal year.
W.W. GRAINGER, INC. (GWW) has a return on equity (ROE) of 48.1%. This indicates the company generates strong returns for shareholders.
W.W. GRAINGER, INC. (GWW) has a 5-year average gross margin of 38.5%. This indicates decent pricing power.
The Ledger Terminal provides 19 years of financial data for W.W. GRAINGER, INC. (GWW), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
W.W. GRAINGER, INC. (GWW) has a book value per share of $77.52, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued robust demand in the MRO market with double-digit organic sales growth driven by improved market conditions and strong execution across both segments. The company anticipates sustained pricing power, with price realization exceeding prior expectations in the first quarter and expectations for pricing to remain competitive while achieving price-cost neutrality over time. Operating margins are expected to improve through the year as gross margin recovers from tariff-related headwinds and LIFO inventory valuation impacts subside, though near-term headwinds from fuel costs and private-label inventory timing will create sequential margin pressure in the second quarter. Management remains committed to strategic growth initiatives including seller effectiveness tools, KeepStock expansion, and new distribution center investments, while maintaining disciplined capital allocation focused on returning excess cash to shareholders through dividends and share repurchases.
Based on recent SEC filings and earnings calls, W.W. GRAINGER, INC. (GWW) has provided the following forward guidance: EPS: $44.25 to $46.25 (FY2026); Operating cash flow: $2.1 billion to $2.3 billion (FY2026).