📊 GWW Key Takeaways
Is W.w. Grainger, Inc.. (GWW) a Good Investment?
W.W. Grainger exhibits solid financial health with excellent liquidity (2.69x current ratio), conservative leverage (0.61x debt/equity), and robust free cash flow generation ($569M, 12% FCF margin). However, the company faces profitability headwinds with net income declining 5.6% despite 4.5% revenue growth, suggesting margin compression that warrants monitoring before resuming accumulation.
Grainger exhibits strong profitability and exceptional returns on capital, supported by robust cash generation and a solid balance sheet. Despite mid-single-digit revenue growth, net income and EPS declined YoY, indicating near-term margin pressure. High liquidity and interest coverage, coupled with reinvestment, position the company to stabilize margins and re-accelerate earnings.
Why Buy W.w. Grainger, Inc.. Stock? GWW Key Strengths
- Excellent liquidity position with 2.69x current ratio and $695M cash
- Conservative leverage with 0.61x debt/equity ratio and 12.4x interest coverage
- Strong free cash flow generation at $569M with 12% FCF margin
- Solid profitability with 16.7% operating margin and 40% gross margin
- Healthy balance sheet with $3.9B stockholders equity
- High returns on capital: ROE 45.7%, ROA 19.0%
- Healthy margins with strong cash generation: 13.9% operating margin, $1.33B FCF
- Conservative balance sheet and liquidity: 2.83x current ratio, 39x interest coverage, D/E 0.67x
GWW Stock Risks: W.w. Grainger, Inc.. Investment Risks
- Margin compression: net income declining 5.6% despite 4.5% revenue growth
- EPS declining faster than net income (-8.6% vs -5.6%), indicating efficiency concerns or dilution
- Moderate revenue growth at 4.5% suggests potential market headwinds or competitive pressures
- Operating leverage deterioration in wholesale distribution model
- Margin pressure evidenced by -5.6% YoY net income and -8.6% EPS
- Exposure to cyclical industrial demand and pricing competition
- Elevated capex ($684M) could constrain FCF margins if returns lag
Key Metrics to Watch
- Operating margin stabilization and recovery trajectory
- Free cash flow sustainability and conversion rate
- Revenue growth acceleration above 4.5% threshold
- Gross margin trend and pricing power
- Debt/equity ratio and debt service capacity
- Operating margin trend
- Free cash flow margin (FCF/Revenue)
W.w. Grainger, Inc.. (GWW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.69x current ratio provides a solid financial cushion.
GWW Profit Margin, ROE & Profitability Analysis
GWW vs Market Sector: How W.w. Grainger, Inc.. Compares
How W.w. Grainger, Inc.. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is W.w. Grainger, Inc.. Stock Overvalued? GWW Valuation Analysis 2026
Based on fundamental analysis, W.w. Grainger, Inc.. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
W.w. Grainger, Inc.. Balance Sheet: GWW Debt, Cash & Liquidity
GWW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: W.w. Grainger, Inc..'s revenue has grown significantly by 38% over the 5-year period, indicating strong business expansion. The most recent EPS of $36.23 reflects profitable operations.
GWW Revenue Growth, EPS Growth & YoY Performance
GWW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $4.3B | $479.0M | $9.86 |
| Q3 2025 | $4.4B | $294.0M | $6.12 |
| Q2 2025 | $4.3B | $470.0M | $9.51 |
| Q1 2025 | $4.2B | $478.0M | $9.62 |
| Q3 2024 | $4.2B | $476.0M | $9.43 |
| Q2 2024 | $4.2B | $470.0M | $9.28 |
| Q1 2024 | $4.1B | $478.0M | $9.61 |
| Q3 2023 | $3.9B | $426.0M | $8.27 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
W.w. Grainger, Inc.. Dividends, Buybacks & Capital Allocation
GWW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for W.w. Grainger, Inc.. (CIK: 0000277135)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 14, 2026 | 4 | xslF345X06/wk-form4_1778771886.xml | View → |
| May 14, 2026 | 4 | xslF345X06/wk-form4_1778771855.xml | View → |
| May 14, 2026 | 4 | xslF345X06/wk-form4_1778771830.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778620487.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778620456.xml | View → |
❓ Frequently Asked Questions about GWW
What is the AI rating for GWW?
W.w. Grainger, Inc.. (GWW) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GWW's key strengths?
Claude: Excellent liquidity position with 2.69x current ratio and $695M cash. Conservative leverage with 0.61x debt/equity ratio and 12.4x interest coverage. ChatGPT: High returns on capital: ROE 45.7%, ROA 19.0%. Healthy margins with strong cash generation: 13.9% operating margin, $1.33B FCF.
What are the risks of investing in GWW?
Claude: Margin compression: net income declining 5.6% despite 4.5% revenue growth. EPS declining faster than net income (-8.6% vs -5.6%), indicating efficiency concerns or dilution. ChatGPT: Margin pressure evidenced by -5.6% YoY net income and -8.6% EPS. Exposure to cyclical industrial demand and pricing competition.
What is GWW's revenue and growth?
W.w. Grainger, Inc.. reported revenue of $4.7B.
Does GWW pay dividends?
W.w. Grainger, Inc.. pays dividends, with $108.0M distributed to shareholders in the trailing twelve months.
Where can I find GWW SEC filings?
Official SEC filings for W.w. Grainger, Inc.. (CIK: 0000277135) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GWW's EPS?
W.w. Grainger, Inc.. has a diluted EPS of $11.65.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GWW a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, W.w. Grainger, Inc.. has a BUY rating with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is GWW stock overvalued or undervalued?
Valuation metrics for GWW: ROE of 14.1% (sector avg: 15%), net margin of 11.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy GWW stock in 2026?
Our dual AI analysis gives W.w. Grainger, Inc.. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GWW's free cash flow?
W.w. Grainger, Inc..'s operating cash flow is $739.0M, with capital expenditures of $170.0M. FCF margin is 12.0%.
How does GWW compare to other Market stocks?
Vs Default sector averages: Net margin 11.7% (avg: 12%), ROE 14.1% (avg: 15%), current ratio 2.69 (avg: 1.8).