W.W. Grainger Inc.

GWW
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
TTM ROIC
26%
FY2025 · NOPAT / Invested Capital · WACC ~8.5% · Moat spread +17.5pp

Financial Snapshot

ticker: GWW step: 04 generated: 2026-05-12 source: quick-research

W.W. Grainger (GWW) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $15.2B $16.5B $17.2B +4.2%
Gross Margin ~39.1% ~39.4% ~39.4% flat
Operating Margin ~14.5% ~15.6% ~15.5% -0.1pp
Net Income ~$1.5B ~$1.83B ~$1.91B +4.4%
EPS (diluted) ~$30.07 $36.23 $39.04 +7.8%

Note: EPS compound growth has significantly outpaced revenue growth due to aggressive share repurchases (shares outstanding ~49M, down from ~55M over 5 years). Gross margin has been remarkably stable at ~39% through the post-pandemic inflation period, reflecting Grainger's pricing power with enterprise customers under multi-year contracts.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$2.1B
Free Cash Flow ~$1.2B
Cash & Equivalents ~$500M
Total Debt ~$3.0B

Key Ratios (approximate)

  • P/E: ~25x (FY2024) | EV/EBITDA: ~18x | FCF Yield: ~2.5%
  • Revenue Growth (FY2024): +4.2% | FCF Margin: ~7%
  • Dividend Yield: ~0.8% (Dividend Aristocrat, 50+ consecutive annual increases)

Growth Profile

Grainger has compounded revenue at ~7–10% annually over the past decade, driven by MRO market share gains (taking share from fragmented local distributors) and volume growth in its Endless Assortment segment (Zoro U.S. + MonotaRO Japan). Operating margin stability at ~15–16% is a key quality attribute — Grainger passes through cost inflation via contract price escalators rather than absorbing it. Share repurchases have amplified per-share EPS growth to consistently outpace top-line growth. FY2025 revenue was $17.9B (+4.5%), with FY2026 guidance of $18.7–19.1B on 6.5–9.0% organic growth.

Forward Estimates

  • FY2025 (actual): Revenue $17.9B; net income ~$2.0B
  • FY2026E Revenue: $18.7B–$19.1B (company guidance); EPS ~$43–46 range
  • Medium-term: Management projects ~$21.6B revenue and ~$2.4B net income by 2029 (6.3% CAGR)

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $GWW.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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