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WW Grainger Inc (GWW)

Fair Value
IndustrialsIndustrial DistributionUnited States

Fundamental

71

Price

$1251.31

Market Cap

$59.29B

Part 1 · What the company is worth

Overview

W.W. Grainger, Inc., together with its subsidiaries, distributes maintenance, repair, and operating products and services primarily in North America, Japan, and the United Kingdom. The company operates through two segments, High-Touch Solutions North America and Endless Assortment. It provides safety, security, material handling and storage equipment, pumps and plumbing equipment, cleaning and maintenance, and metalworking and hand tools. The company also offers technical support and inventory management services. It serves smaller businesses to large corporations, government entities, and other institutions, as well as commercial, healthcare, and manufacturing industries 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.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

Compare

Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users

P/E: 42.3Score: 67Market cap: $58.21B

Fastenal sells the same maintenance, repair and operating supplies to the same North American industrial and construction accounts, winning the business through onsite stores and vending machines where Grainger wins it through branches and its catalog.

P/E: 20.0Score: 69Market cap: $2.69T

Amazon Business courts the same purchasing departments with a vast online assortment and fast delivery, attacking Grainger's e-commerce arms Zoro and MonotaRO head-on and pushing price transparency into the MRO channel.

P/E: 19.9Score: 61Market cap: $289.22B

Through Home Depot Pro and the former HD Supply, it supplies facilities maintenance products to property managers, hospitality, healthcare and government buyers — the same non-industrial customers Grainger serves in its High-Touch Solutions segment.

P/E: 483.6Score: 46Market cap: $17.66B

Its Motion Industries arm distributes bearings, power transmission, hydraulics and industrial supplies to the same plant maintenance budgets Grainger targets across North America.

MSC Industrial Direct Co., Inc.MSM

MSC is the other large US broad-line MRO distributor, overlapping with Grainger on metalworking, cutting tools and plant supplies sold to manufacturers through a mix of catalog, e-commerce and field sales.

McMaster-Carr Supply CompanyNot tracked

This private catalogue and web distributor serves the same engineers and maintenance teams looking for a single source of immediately shipped MRO parts, competing directly on breadth of assortment and next-day availability.

Balance Sheet & Liquidity

Revenue

$18.84B

Trailing 12 months (through 6/30/2026)

Net Income

$1.87B

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$1.33B

Total Equity

$3.74B

Total Liabilities

$4.82B

Current Ratio

2.81

Interest Coverage

33.89

Debt/EBITDA

0.99

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$1340.26

Current Price

$1251.31

Margin of Safety

+6.6%

Fair Value Range

$1135.30 - $1545.23

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$1331.64
Discounted cash flow (DCF):$1395.07
Earnings multiple (P/E):$998.31
Graham growth formula:$1848.08
Earnings power value (EPV):$469.01
Justified P/B:$607.36
Dividend discount (Gordon):$174.95
P/FFO, funds from operations:$691.62
Mid-cycle earnings:$1041.15
Revenue multiple:$1135.43
Analyst Consensus:Hold (7B / 14H / 3S)
Last Earnings Surprise:+5.16%

Valuation Metrics

P/E Ratio

31.76

ROE

45.7%

P/B Ratio

14.20

P/FCF

38.86

Gross Margin

39.4%

ROIC

29.0%

Profitability Radar

Value Creation (Economic Moat)

ROIC

29.0%

WACC

9.5%

ROIC − WACC

+19.5 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (20)

  • EPS shows upward trend
  • EPS CAGR 11.60%
  • Price CAGR 18.61%
  • ROIC 29.0%
  • Gross Margin 39.4%
  • Debt/Equity ratio
  • Operating Margin 14.6%
  • Positive Free Cash Flow
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • Low reliance on intangibles
  • ROE 48.7%
  • Revenue Growth 5Y 8.8%
  • Earnings Surprise avg 4.6%
  • PEG Ratio 1.39
  • Earnings Quality (OCF/NI) 1.16
  • Share Dilution -2.3%
  • Piotroski F-Score 7/9

Failed (7)

  • P/FCF 38.86
  • P/B Ratio 14.20
  • CapEx intensity
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Analyst Consensus 29% Buy
  • Net Margin Trend 9.9% vs 11.0%

Unavailable (1)

  • Dividend Payout NaN%

Piotroski F-Score

7/9

Strong financial health

score
criteria

Earnings Quality

1.16

High quality: earnings backed by cash

Share Dilution

-2.3%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Donald G. MacphersonChairman & CEO57
Ms. Nancy L. Berardinelli-KrantzSenior VP & Chief Legal Officer47
Ms. Melanie J. TintoSenior VP & Chief Human Resources Officer52
Ms. Paige K. RobbinsSenior VP & President of Grainger Business Unit56
Ms. Laurie R. ThomsonInterim CFO, VP, Controller & Principal Accounting Officer52
Mr. Jonny LeRoySenior VP & CTO53
Mr. Kyle BlandVice President of Investor Relations-
Mr. Masaya SuzukiManaging Director of Endless Assortment Business50
Mr. Barry GreenhouseSenior Vice President of Merchandising & Supplier Management52
Mr. Brian WalkerSenior Vice President of Sales & Onsite Services47

Audit Risk

4

Board Risk

4

Compensation Risk

5

Shareholder Rights Risk

4

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-19

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-08-04

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-08-04

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for GWW, sourced from Markets Gazette.

  • 3/3/2026NEUTRAL
    The Analyst Verdict: W.W. Grainger In The Eyes Of 5 Experts

    W.W. Grainger Inc. (GWW) is under analyst scrutiny, with several investment firms recently updating their ratings. Morgan Stanley maintained an "Equal-Weight" rating in February 2022, confirming its prior stance. Oppenheimer, however, reiterated an "Outperform" rating in the same month, suggesting potential upside for the stock. These divergent opinions indicate a divided market on GWW's future performance, necessitating careful consideration by investors before making trading decisions. The analysis is based on a compilation of recent ratings, offering a composite view of expert sentiment.

via Markets Gazette