W.W. Grainger, Inc.GWW
NYSE•Industrials•Industrial Distribution
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.
as of March 2026
Are revenues and earnings expanding?
$18.38B in TTM revenue grew 6.6% YoY, reaching $4.74B last quarter. TTM EBITDA of $2.87B on operating income of $793.00M shows growth is flowing through. Net income of $1.78B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.
Is revenue turning into profit effectively?
Op. margin of 16.7% is up 1.1% YoY — cost efficiency is improving. Net margin at 11.7% and gross margin of 40.0%. ROE of 45.3% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 34.8x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 3.4x and P/B of 15.8x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.
Is the company financially stable?
With $9.47B in assets and $2.41B in long-term debt, the D/E of 0.6 shows a conservative capital structure — the company has a strong financial cushion to weather downturns.
Is the business self-funding?
FCF of $569.00M on $739.00M in operating cash flow. The FCF / Net Income ratio of 0.3x indicates partial cash conversion — earnings quality needs attention. Cash reserves of $695.00M provide financial flexibility.
Competitive analysis based on 68 quarters of fundamental data
Operating margins are positive at ~14.8% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 51.4% suggests a durable competitive advantage and efficient capital allocation.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (7 of 7 quarters up), with ~9.7% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 68 quarters
Operating margins declined 7.1% — watch for continued compression, which may signal competitive or cost pressure.
FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.6 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 3.5% — net buybacks are reducing shares outstanding and boosting per-share value.