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About The Company

CEO

Mr. Donald G. Macpherson

Market Cap

46.61 Billion USD

Sector

Industrials

Website

https://www.grainger.com

Last Update

2/22/2024, 12:00:00 PM

Description

W.W.

Read More

Overview

Value

67

Growth

48

Health

52

Management

44

Analyst Opinion

89

Total

60

All Scores Out Of 100

Best Features

  • Earnings growth has improved recently
  • Has a history of share buybacks
  • Low risk of bankruptcy
  • Has a margin-of-safety above fair value
  • Liked by analysts
  • Low preportion of income is paid as dividend
  • Very safe dividend

Risk Factors

  • Disliked by Twitter users
  • Price-to-earnings ratio of 27.3 is higher than the market average (19.6x)

Market Peers

GWW

Key Figures

PE Ratio (TTM)

27.30

Margin Of Safety (DCF)

4641.68%

Revenue Growth (5 Year Average)

9.01%

Ratings Consensus

Strong Buy

Share Buybacks

100.00%

Dividend Yeild (TTM)

0.80%

Valuation

Value Score

67

  • Margin-of-safety of 4641.68% is better than the market average (17.95%)
  • Estimated intrinsic-value of 47.15 Thousand USD is higher than current price ( 947.84 USD)
  • Price-to-earnings ratio of 27.3 is higher than the market average (19.6x)
  • Free-cashflow-yeild of 3.24% is worse than the market average (4.7%)

Desired Margin Of Safety

0%

Tip: Set your desired Margin Of Safety

Free Cash Flow Type

Annual Cashflow Growth

0%

Discount Rate

0%

Buy Target: < 19400.9 USD

Current Price: 994.4 USD

How Does This Work?

Show Advanced Options

This calculator helps investors estimate the Intrinsic Value of a company based on the current value of future cash flows. To use the tool, simply input a desired Margin Of Safety, which is an additional discount applied to the present value of the expected future cash flows. The tool calculates the present value using a discount rate that reflects the risk and time value of money, and provides an estimated target price for the company based on the selected margin of safety. The calculator defaults to using 5 Year Free Cash Flow Growth % and a discount rate based on the US 10-year treasury bond coupon rate. Use our performance analyser to get a feel the impact this has on longterm investment returns and discover a margin of safety you are comfortable with. This can be a useful tool for investors looking to make informed decisions about whether to buy or sell shares of a particular company.

Price/Earnings

27.30x

Free Cashflow Yeild

3.24%

PE/Earnings Growth

N/A

Price/Book

14.21x

Growth

Growth Score

48

  • 5 Year Average Earnings growth of 15.42% is higher than the market average (14.48%)
  • Earnings growth has improved this year
  • Free Cashflow growth has improved this year
  • 5 Year Average Revenue growth of 9.01% is lower than the market average (10.97%)
  • Revenue growth has slowed this year
  • 5 Year Average Free Cashflow growth of 7.46% is lower than the market average (12.35%)

Revenue Growth

9.01%

Earnings Growth

15.42%

Cashflow Growth

7.46%

Health

Health Score

52

  • Low risk of bankruptcy
  • Assets cover liabilities
  • Normal operation does not require debt to be sustainable
  • Debt repayments do not significantly impact cashflow
  • Has a high level of debt

Altman Z Score

11.75

Piostroski Score

7.00

Debt/Equity

1.11x

Current Assets/Liabilities

2.41x

Free Cashflow/Total Debt

0.40x

Debt/Capital

0.54x

Dividend

Secure Dividend Score

77

  • Very safe
  • Long term dividend payout ratio of 39.63% is considered good
  • Payout ratio (TTM) of 21.43% is lower than the average (40%)
  • Dividends have shown growth over the last 5 years
  • Spending a lower percentage of their income on dividends than last 5 years
  • Dividend yeild of 0.80% is less than the market average (1.85%)
  • Dividend growth has been slowing recently

Dividend Yeild

0.80%

Dividend Growth

3.64%

Payout Ratio (Earnings)

21.43%

Payout Ratio (Cashflow)

24.72%

Management

Management Score

44

  • Has repurchased shares when value is good
  • Has a history of returning value to shareholders through stock buybacks
  • Has returned higher dividends when earnings have risen
  • Return-on-capital-employed of 27.16% is higher than the market average (10%)
  • Return-on-equity of 0.00% is lower than the market average (15%)

Average Buybacks/Dilution

100.00%

Recent Buybacks/Dilution

N/A

5 Year Price Volitility

25.37%

Return On Assets

0.00%

Return On Capital Employed

27.16%

Return On Equity

0.00%

Return On Free Cashflow

N/A

Return On Investments

N/A

Social Sentiment

Social Sentiment Score

0

Twitter Sentiment

N/A

Stocktwits Sentiment

N/A

Analysts

Analyst Opinion

89

  • Ratings consensus is Strong Buy

SEC Filings

Find yearly (10-K), quaterly (10-Q) and disclosure (8-K) report here, on the Securities and Exchange Commission's EDGAR database. If reading through reports isn't your cup of tea, don't worry. We've made it easy for you by summarizing all the important bits.

Other Information

Company Name

W.W. Grainger, Inc.

Currency

USD

Beta

1.220286

Vol Avg

272965

Ceo

Mr. Donald G. Macpherson

Cik

0000277135

Cusip

384802104

Exchange

New York Stock Exchange

Full Time Employees

23000

Industry

Industrial Distribution

Sector

Industrials

Ipo Date

1973-02-21

Address

100 Grainger Parkway

City

Lake Forest

State

IL

Country

US

Zip

60045-5201

Phone

847 535 1000

Analysis Last Updated

2/22/2024, 12:00:00 PM

All financial data provided by FMP

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