W.W. Grainger (GWW)
Industrials · $67.8B market cap · SEC CIK 0000277135
ahead of 85% of the S&P 500 · #6 of 79 in Industrials
Next reports on Feb 2, 2027, after the close, with analysts expecting $11.49 in earnings per share.
52-week range $906.52 to $1,521. 3% below its 52-week high and 62% above its low.
The case for GWW
- Earns 54% back on shareholder equity.
- Revenue growing 9.1% year over year.
- Earnings per share up 27.5%.
- Current assets cover the near-term bills 2.6 times over.
- Within 3% of its 52-week high: the trend is up.
- Up 51.6% over the past year.
The case against
- Free-cash-flow yield of 2.0% is lower than 88% of Industrials companies.
- Weakest against its peers: P/E of 31.3× is higher than 68% of Industrials companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 38 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 75 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 67 |
| Momentumhow the price has behaved lately | 84 |
| Stabilityhow violently it moves, what it owes and what it pays you | 71 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +9.1% |
|---|---|
| Over 5 years | +8.8% a year |
| FY2025 revenue | $17.9B (+5%) |
Free cash flow
Is it generating real cash? Yes
| FY2025 free cash flow | $1.3B |
|---|---|
| Of revenue | 7% |
| Of profit | 78% |
Profit margins
Is profitability improving? Holding steady
| Gross margin | 39% |
|---|---|
| Operating margin | 16% |
| Net margin, FY24 → FY25 → now | 11.1% → 9.5% → 11.2% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $585M |
|---|---|
| Long-term debt | $2.4B |
| Net debt | $1.8B |
| Years to repay | 1.2 yrs |
Valuation
Is the stock price reasonable? A bit pricey
| P/E | 31.3× |
|---|---|
| Fair P/E for its growth | 30× |
| P/FCF | 50.9× |
| Forward P/E | 27.0× |
| EV / EBITDA | 21.0× |
At 31.3× earnings it trades close to the 30× that 13% a year of growth plus a 0.9% dividend would justify. At 50.9× free cash flow it trades well above that same mark.
The financials, five years deep
Pulled from W.W. Grainger's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $17.9B | $17.2B | $16.5B | $15.2B | $13.0B |
| Change on the year | +5% | +4% | +8% | +17% | — |
| Free cash flow | |||||
| Free cash flow | $1.3B | $1.6B | $1.6B | $1.1B | $682M |
| Of revenue | 7% | 9% | 10% | 7% | 5% |
| Profit margins | |||||
| Gross margin | 39.1% | 39.4% | 39.4% | 38.4% | 36.2% |
| Operating margin | 13.9% | 15.4% | 15.6% | 14.5% | 11.9% |
| Net margin | 9.5% | 11.1% | 11.1% | 10.2% | 8.0% |
| Debt vs. cash | |||||
| Cash | $585M | $1.0B | $660M | $325M | $241M |
| Long-term debt | $2.4B | $2.3B | $2.3B | $2.3B | $2.4B |
| Net cash (debt) | −$1.8B | −$1.2B | −$1.6B | −$2.0B | −$2.1B |
What W.W. Grainger says it does
W.W. Grainger, Inc., incorporated in the State of Illinois in 1928, is a broad line, distributor of maintenance, repair and operating (MRO) products and services with operations primarily in North America, Japan and the United Kingdom (U.K.). In the fourth quarter of 2025, Grainger exited the U.K. market by completing the sale of the Cromwell business and closing the Zoro U.K. business. In this report, the words “Grainger” or “Company” mean W.W. Grainger, Inc. and its subsidiaries, except where the context makes it clear that the reference is only to W.W. Grainger, Inc. itself and not its subsidiaries. For financial information regarding the Company, see the Consolidated Financial Statements and Notes included in Part II, Item 8: Financial Statements and Supplementary Data of this Form 10-K. The Grainger Edge Grainger's strategic framework, the Grainger Edge®, uniquely defines the Company by asserting why it exists, how it serves…