W.W. Grainger, Inc. (GWW) AI Stock Analysis

W.W. Grainger, Inc. distributes maintenance, repair, and operating (MRO) products and services across the United States, Japan, Canada, the United Kingdom, and other international markets. Founded in 1927 and headquartered in Lake Forest, Illinois, it operates through two primary segments: High-Touch Solutions N.A. and Endless Assortment. Its product catalog spans safety supplies, material handling equipment, pumps, plumbing tools, cleaning supplies, and metalworking tools. Grainger also delivers inventory management and technical support to businesses, corporations, government entities, and institutions through sales representatives, electronic commerce platforms, and ecommerce channels.

Grainger expanded revenue from $13.02B in FY2021 to $17.94B in FY2025, delivering an 8.7% revenue CAGR from FY2020 to FY2025. Annual net income grew from $1.04B in FY2021 to $1.91B in FY2024 before decreasing to $1.71B in FY2025, corresponding to an operating margin of 15.0%. Over the trailing twelve months, revenue reached $18.84B with a profit margin of 9.9% and EPS of $39.21. In the latest quarter ended June 30, 2026, quarterly revenue grew 10.3% year-over-year, while quarterly earnings increased 20.5% year-over-year.

As of June 30, 2026, Grainger held $589.0M in cash and short-term investments against total debt of $2.80B, resulting in net debt of $2.21B. Shareholders' equity was $4.13B, with a debt-to-equity ratio of 0.68 and a current ratio of 2.81. In FY2025, operating cash flow reached $2.02B and free cash flow stood at $1.33B. The company allocated $684.0M to capital expenditures, repurchased $1.04B in common stock, and paid $467.0M in cash dividends.

At $1330.70 per share, Grainger has a market capitalization of $62.68B and an enterprise value of $62.06B. The stock trades at a trailing P/E of 33.9x and a forward P/E of 24.8x, both higher than the median of its S&P 500 Industrials peers at 28.4x and 20.1x, respectively. Its EV/EBITDA of 20.5x and price-to-sales of 3.3x also exceed peer medians of 17.2x and 3.1x. Over the past year, GWW returned 40.6%, outpacing the S&P 500 (SPY) return of 16.8%, while its 5-year gain of 225.9% topped the index benchmark of 83.0%.

Grainger pays a forward annual dividend of $9.96 per share, yielding 0.75% with a payout ratio of 21.9%. The company has distributed consecutive quarterly dividends for 42 years, achieving an 8.3% annualized dividend growth rate over the past five years. Its most recent ex-dividend date occurred on August 10, 2026.

Grainger carries 19 analyst ratings: 3 Strong Buy, 1 Buy, 13 Hold, and 2 Sell. The mean price target is $1331.57, representing a 0.1% premium over the last close of $1330.70. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $46.48 on revenue of $19.67B. Grainger topped EPS estimates in 3 of the last 4 quarters, and its next earnings report is scheduled for November 4, 2026.

This page is an AI-written research summary of W.W. Grainger, Inc. (GWW). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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