WW Grainger Stock Analysis, Valuation (NYSE:GWW)

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$178.79 $2.18 (1.23%) GWW stock closing price Sep 25, 2017 (Closing)
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WW Grainger
Updated on : Sep 25, 2017
previous close
GWW 178.8 (0%)
S&P 500 2496.7 (0%)
Closing Price On: Sep 25, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Industrial Services
Sector :
Industrial Products
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
10%
Sector Average:
8.6%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2.68B
Debt/Equity Ratio:
 1.45
Compared to the industry
Cash Flow
Operating cash flow:
$191.2M
Net Income:
$97.9M
Dividend Yield
GWW dividend yield:
2.76%
PROS      CONS
Operating Margins
Cash Flow
ROIC
ROE
PE Valuation
PS Valuation
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
GWW PS :
1
Industry PS :
1.4
Sector:   Industrial Products.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
14.6%
Return on Equity:
25.8%
Free Cash Flow Margin:
6.1%
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WW Grainger Stock Analysis

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View WW Grainger stock analysis video. This is our analyst opinion covering the buy and sell arguments for GWW stock.

W W Grainger Inc Stock Rating 3.6/5

Our WW Grainger stock opinion is based on fundamentals of the company. This WW Grainger stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy GWW stock?

  • WW Grainger's average operating margin of 10% was exceptional.
  • The company has an operating cash flow which is 2 times the net income. We see this as a positive signal.
  • GWW stock is trading at an earnings multiple of 16.1 which is better than the industry average of 23.1.
  • When compared with the Industrial Services industry average PS ratio of 1.4, the price-to-sales ratio of 1 for GWW stock is attractive.
  • WW Grainger's return on invested capital of 14.6% is good.
  • The LTM ROE of 25.8% for WW Grainger is attractive.

Should you sell GWW stock?

  • With a debt/equity ratio of  1.45, WW Grainger is highly leveraged in comparison to Industrial Products peers.

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