W.W. Grainger Inc.
Find Ratings ReportsGRAINGER (W W) INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector. GRAINGER (W W) INC has strong liquidity. Currently, the Quick Ratio is 1.56 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 27.66% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 3997.0 | 3802.0 |
EBITDA ($mil) | 640.0 | 581.0 |
EBIT ($mil) | 583.0 | 523.0 |
Net Income ($mil) | 395.0 | 384.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 660.0 | 325.0 |
Total Assets ($mil) | 8147.0 | 7588.0 |
Total Debt ($mil) | 2752.0 | 2705.0 |
Equity ($mil) | 3115.0 | 2440.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 40.53 | 41.14 |
EBITDA Margin | 16.01 | 15.28 |
Operating Margin | 14.59 | 13.76 |
Sales Turnover | 2.02 | 2.01 |
Return on Assets | 22.44 | 20.38 |
Return on Equity | 58.72 | 63.4 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 2.88 | 2.48 |
Debt/Capital | 0.47 | 0.53 |
Interest Expense | 23.0 | 23.0 |
Interest Coverage | 25.35 | 22.74 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 49.32 | 50.26 |
Div / share | 1.86 | 1.72 |
EPS | 7.89 | 7.54 |
Book value / share | 63.16 | 48.55 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 241469.0 | 271159.0 |
BUY. GRAINGER (W W) INC's P/E ratio indicates that it is valued on par with the average of 27.39 for the Wholesale Trade subsector and a value on par with the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 15.70 indicates a significant premium when compared to the S&P 500 average of 4.68 and valuation on par with the subsector average of 15.70. The current price-to-sales ratio is above the S&P 500 average, but it is similar to the subsector average, indicating a premium. The valuation analysis reveals that, GRAINGER (W W) INC appears to be valued on par with the investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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GWW 27.39 | Peers 27.39 | GWW 24.08 | Peers 24.08 | |||||||||||||||||||||
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation. GWW is trading at a valuation on par with its peers. |
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. GWW is trading at a valuation on par to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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GWW 23.06 | Peers 23.06 | GWW 3.26 | Peers 3.26 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. GWW is trading at a valuation on par with its peers. |
Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. GWW trades at a valuation on par to its peers. |
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Price/Book |
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Earnings Growth |
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GWW 15.70 | Peers 15.70 | GWW 20.41 | Peers 20.41 | |||||||||||||||||||||
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. GWW is trading at a valuation on par with its peers. |
Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. GWW is expected to keep pace with its peers on the basis of earnings growth. |
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Price/Sales |
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Sales Growth |
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GWW 2.97 | Peers 2.97 | GWW 8.20 | Peers 8.20 | |||||||||||||||||||||
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. GWW is trading at a valuation on par with its subsector on this measurement. |
Average. Comparing a company's sales growth to its subsector helps to determine if the company is adding or losing market share. GWW is keeping pace with its peers on the basis of sales growth. |
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