WW Grainger Inc logo

WW Grainger Inc(GWW)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$1243.07
09/25/2026
(24-hour delay)

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Upturn Advisory & Investor View for GWW

09/25/2026: GWW (1-star) is currently NOT-A-BUY. Pass it for now.

WW Grainger Inc is a prominent distributor of maintenance, repair, and operating (MRO) supplies, serving as a critical partner for industrial and commercial businesses. The company holds a leading position in the fragmented MRO market, supported by a vast, automated supply chain and successful digital sales platforms like Zoro. Its growth strategy centers on expanding its 'Endless Assortment' model while maintaining high-touch services for large accounts. Key risks include intense e-commerce competition and economic cyclicality impacting industrial demand. Grainger's robust cash flow and consistent dividend history make it an appealing prospect for investors seeking stability, though valuation can be high, requiring careful monitoring of operational efficiency.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitWhile the company shows steady expansion, it is a mature business rather than a high-growth tech disruptor.
Momentum investorStrong fit while signal remains positiveThe stock has historically tracked well with industrial sentiment, often showing strong trend potential during market upswings.
Value investorMixed fitThe stock often trades at a premium multiple due to its perceived quality and reliability, which may limit deep value opportunities.
Dividend investorStrong fitGrainger's long history of dividend growth makes it a reliable candidate for income-focused portfolios.
Low-risk investorStrong fitThe company's defensive market position and strong cash flow provide stability, making it suitable for lower-risk strategies.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumAs a large-cap industrial, it is subject to broader market fluctuations but generally remains less volatile than tech or small-cap stocks.
Valuation riskMedium / highInvestors often pay a premium for Grainger's brand, which can lead to valuation compression if growth targets are missed.
Competition risk (Amazon Business)Medium / highAmazon Business continues to disrupt the transactional MRO space, pressuring pricing and delivery expectations.
Business qualityStrongThe company has a long-standing reputation for supply chain excellence and high-quality customer service.
Dividend incomeLow / noneThe dividend is highly stable and backed by strong free cash flow generation.
Execution riskMediumOngoing digital transformation requires successful integration of new technologies to maintain the competitive edge.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Smooth
PRICE STABILITY

Smooth

The stock has moved along a generally orderly path with only modest fluctuations.

Analysis of Past Performance

Type Stock
Historic Profit 52.07%
Avg. Invested days 68
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 4.0
Stock Returns Performance Upturn Returns Performance icon 3.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
GWW receives a 3-star rating, supported by solid company fundamentals, and solid quantitative characteristics. The rating is constrained by weak price momentum, and limited analyst upside.

Company Fundamentals

★★★★★
GWW has solid overall fundamentals (4 stars), with solid financial health, moderate growth momentum, and strong ownership. In FY2025 versus FY2024, solid cash generation (FCF margin 7.4%) is partially offset by negative earnings growth (-10.6%), moderate revenue growth (+4.5%), soft profitability (net margin 9.5%).

Financial Health Rating

★★★★★
GWW's financial health is supported by strong cash strength, including free-cash-flow generation of $1.3B (7.4% of revenue). Profitability is moderate (3 stars), which helps explain the 4-star overall score.

Growth Momentum Score

★★★★★
Revenue growth is GWW's strongest growth driver at +4.5% FY2025 versus FY2024 (moderate, 3 stars). By comparison, while earnings growth (-10.6%, negative) and free-cash-flow growth (-15.2%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 77.0% and approximately 91.5% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 6.28% supports management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 9.85%
Vanguard Capital Management, LLC 6.12%
Vanguard Portfolio Management, LLC 4.91%
State Street Corp 4.23%
Geode Capital Management, LLC 2.61%

Unit Economics (Per $1K Revenue)

★★★★★
GWW generates approximately $391 of gross profit, $150 of operating income, and $74 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong margins, cash conversion, and capital efficiency support the rating.

Economic Dimensions

★★★★★
Effective Tax Rate: 25.60%

Quantitative Style Profile

★★★★★
GWW has a high-quality, large-cap, liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Quality TiltLarge / Mega Cap StabilityHighly Liquid / Institution-Friendly

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 58.55B USD
Price to earnings Ratio 31.65
1Y Target Price 1331.64
Price to earnings Ratio 31.65
1Y Target Price 1331.64
Volume (30-day avg) 241.0K shares
Beta 1.03
52 Weeks Range 901.22 - 1417.14
Updated Date 09/26/2026
52 Weeks Range 901.22 - 1417.14
Updated Date 09/26/2026
Dividends yield (FY) 0.72%
Basic EPS (TTM) 39.28

How Company Makes Money

Business areaWhat it includesRetail investor read
High-Touch SolutionsDirect sales, inventory management, and specialized procurement services for large enterprise clients.This is the core, high-margin engine that relies on building deep, long-term relationships with large industrial buyers.
Endless AssortmentTransactional online sales via websites like Zoro.com and MonotaRO.This represents the scalable digital growth segment, competing directly on speed, selection, and ease of use.
GeographyPredominantly North America, with a growing international presence in Japan and other markets.Growth is tied primarily to the North American industrial economy, with secondary contributions from established international operations.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 31.65
Forward PE 24.75
Enterprise Value 62.06B
Price to Sales(TTM) 3.11
Enterprise Value 62.06B
Price to Sales(TTM) 3.11
Enterprise Value to Revenue 3.29
Enterprise Value to EBITDA 20.53
Shares Outstanding 47.10M
Shares Floating 43.10M
Shares Outstanding 47.10M
Shares Floating 43.10M
Percent Insiders 6.28
Percent Institutions 77.01

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About WW Grainger Inc

Exchange NYSE
Headquarters Lake Forest, IL, United States
IPO Launch date 1984-12-17
Chairman & CEO Mr. Donald G. Macpherson
Sector Industrials
Industry Industrial Distribution
Full time employees 22100
Full time employees 22100

W.W. Grainger, Inc., together with its subsidiaries, distributes maintenance, repair, and operating products and services primarily in North America, Japan, and the United Kingdom. The company operates through two segments, High-Touch Solutions North America and Endless Assortment. It provides safety, security, material handling and storage equipment, pumps and plumbing equipment, cleaning and maintenance, and metalworking and hand tools. The company also offers technical support and inventory management services. It serves smaller businesses to large corporations, government entities, and other institutions, as well as commercial, healthcare, and manufacturing industries through sales and service representatives, and electronic and ecommerce channels. W.W. Grainger, Inc. was founded in 1927 and is headquartered in Lake Forest, Illinois.