# Grainger plc (GRI.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Real Estate / Real Estate Management & Development. Price 171p, market value 1.3 billionp.

## Valuation
- **P/E (trailing): 9.5×** (5-yr avg 3190.2×, 3-yr avg 4436.1×). Grainger plc trades at 9.5× trailing earnings, well below its own five-year average of 3190.2×: cheap by its own standards. The Real Estate median in the September 2026 study was 25.2×. Forward P/E is 16.0×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.03**. A PEG of 0.03 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 2.3×**. Each dollar of revenue is priced at 2.3×.
- **Price / book: 0.6×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 13.5×**. Enterprise value is 13.5× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 20.1%** (5-yr avg 0.1%). Free cash flow equals 20.1% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 10.6%**. The inverse of the P/E: 10.6% of the price is earned each year.

## Profitability
- **Gross margin: 69.1%**. Grainger plc keeps 69.1% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 45.3%**. 45.3% of revenue is left after running the business, an exceptional level.
- **Net margin: 78.3%**. 78.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.9%**. 9.9% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 7.0%**. Return on all capital, debt included, is 7.0%.
- **Return on assets: 6.4%**. Each dollar of assets produces 6.4% of profit.

## Growth
- **Revenue growth (1 yr): -9.0%** (3-yr -3.2%/yr, 5-yr 3.4%/yr). Revenue fell 9.0% over the last year, against 3.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 541.3%** (3-yr -4.5%/yr, 5-yr 15.7%/yr). Earnings per share rose 541.3%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 7.2%/yr**. Free cash flow has compounded at 7.2% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.78**. Debt is 0.78 times equity, moderate leverage.
- **Net debt / EBITDA: 7.4×**. It would take 7.4 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 2.8×**. Operating profit covers interest 2.8×, thin but manageable.
- **Current ratio: 2.71** (quick 0.91). Current assets cover the next year's liabilities 2.71 times.
- **Altman Z-score: 1.49**. A Z-score of 1.49 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 5.00%** (0p per share, trailing). Grainger plc yields 5.00%, an income-level yield.
- **Payout ratio: 29%** (46% of free cash flow). 29% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 1**. 1 straight year of increases.
- **Dividend growth (5 yr): 7.5%/yr** (1-yr 209.4%). The dividend has grown 7.5% a year over five years.
- **Shareholder yield: 5.0%**. Dividends plus net buybacks return 5.0% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (8 analysts). 8 analysts cover Grainger plc; the consensus is buy, with an average price target of 226p (+32% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -10.7%** (YTD -6.3%, 3-mo 11.4%). The shares are down 10.7% over twelve months including dividends.
- **From 52-week high: -15.9%** (14.1% above the low). Trading 16% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 45**. An RSI of 45 is neutral.
- **Beta (1 yr): 0.97** (volatility 24%). Beta of 0.97 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=GRI.L · Page: https://foliofundamentals.com/stocks/gri.l

Not investment advice.