W.W. Grainger, Inc.Find Ratings Reports
GRAINGER (W W) INC's gross profit margin for the first quarter of its fiscal year 2021 has decreased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the subsector average, its revenue growth has not. GRAINGER (W W) INC has average liquidity. Currently, the Quick Ratio is 1.40 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q1 FY21||Q1 FY20|
|Net Sales ($mil)||3084.0||3001.0|
|Net Income ($mil)||238.0||173.0|
|Balance Sheet||Q1 FY21||Q1 FY20|
|Cash & Equiv. ($mil)||562.0||1492.0|
|Total Assets ($mil)||6333.0||7177.0|
|Total Debt ($mil)||2380.0||3341.0|
|Profitability||Q1 FY21||Q1 FY20|
|Gross Profit Margin||36.84||38.85|
|Return on Assets||12.0||10.71|
|Return on Equity||41.85||42.49|
|Debt||Q1 FY21||Q1 FY20|
|Share Data||Q1 FY21||Q1 FY20|
|Shares outstanding (mil)||52.11||53.47|
|Div / share||1.53||1.44|
|Book value / share||34.85||33.85|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||226098.0||316535.0|
BUY. GRAINGER (W W) INC's P/E ratio indicates that it is valued on par with the average of 32.21 for the Wholesale Trade subsector and a value on par with the S&P 500 average of 34.07. For additional comparison, its price-to-book ratio of 13.04 indicates a significant premium versus the S&P 500 average of 4.54 and a significant premium versus the subsector average of 6.46. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, GRAINGER (W W) INC has mixed valuation results when compared to the investment alternatives.
|GWW 32.21||Peers 33.81||GWW 20.23||Peers 19.38|
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.
|GWW 19.77||Peers 26.03||GWW 0.58||Peers 2.81|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
GWW is trading at a discount to its peers.
Discount. 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 significant discount to its peers.
|GWW 13.04||Peers 6.46||GWW 0.85||Peers 10.66|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
GWW is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, GWW is expected to significantly trail its peers on the basis of its earnings growth rate.
|GWW 1.99||Peers 2.67||GWW 1.64||Peers 5.71|
Discount. 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 significant discount to its subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
GWW significantly trails its peers on the basis of sales growth.