# W.W. Grainger Inc. (GWW) fundamentals

Data as of 2026-11-04. NYSE, United States. Sector: Industrials / Industrial Distribution & Rental. Price $1397.98, market value $65.8 billion.

## Valuation
- **P/E (trailing): 35.7×** (5-yr avg 24.1×, 3-yr avg 25.9×). W.W. Grainger Inc. trades at 35.7× trailing earnings, well above its own five-year average of 24.1×: investors are paying up relative to the company's past. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 27.4×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 3.5×**. Each dollar of revenue is priced at 3.5×.
- **Price / book: 15.9×**. The shares trade at 15.9× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 22.0×**. Enterprise value is 22.0× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 2.3%** (5-yr avg 3.3%). Free cash flow equals 2.3% of the market value, below its five-year average of 3.3%, so the shares are pricier on cash than usual.
- **Earnings yield: 2.8%**. The inverse of the P/E: 2.8% of the price is earned each year.

## Profitability
- **Gross margin: 39.4%**. W.W. Grainger Inc. keeps 39.4% of revenue after the direct cost of what it sells.
- **Operating margin: 14.6%**. 14.6% of revenue is left after running the business.
- **Net margin: 9.5%**. 9.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 45.7%**. 45.7% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 38.5%**. Return on all capital, debt included, is 38.5%: comfortably above what that capital costs.
- **Return on assets: 20.9%**. Each dollar of assets produces 20.9% of profit.

## Growth
- **Revenue growth (1 yr): 4.5%** (3-yr 5.6%/yr, 5-yr 8.7%/yr). Revenue grew 4.5% over the last year, against 8.7% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -8.6%** (3-yr 5.6%/yr, 5-yr 22.5%/yr). Earnings per share fell 8.6%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 7.3%/yr**. Free cash flow has compounded at 7.3% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.67**. Debt is 0.67 times equity, moderate leverage.
- **Net debt / EBITDA: 0.6×**. It would take 0.6 years of operating earnings to repay net borrowings, within the comfortable range.
- **Current ratio: 2.83** (quick 2.83). Current assets cover the next year's liabilities 2.83 times.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.71%** ($9.27 per share, trailing). W.W. Grainger Inc. yields 0.71%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 27%** (33% of free cash flow). 27% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 26**. 26 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 8.3%/yr** (1-yr 10.2%). The dividend has grown 8.3% a year over five years.

## Analyst view
- **Analyst consensus: hold** (14 analysts). 14 analysts cover W.W. Grainger Inc.; the consensus is hold, with an average price target of $1331.57 (-5% 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): 41.6%** (YTD 37.1%, 3-mo 0.5%). The shares are up 41.6% over twelve months including dividends.
- **From 52-week high: -1.5%** (54.2% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 65**. An RSI of 65 is neutral.
- **Beta (1 yr): 0.49** (volatility 24%). Beta of 0.49 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=GWW · Page: https://foliofundamentals.com/stocks/gww

Not investment advice.