W.W. Grainger Inc.

W.W. Grainger Inc.

GWW

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Market Cap$58.27B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
W.W. Grainger Inc.W.W. Grainger Inc.32.80.75%43%3.30.8

Earnings Call Q1 2026

May 7, 2026 - AI Summary

Strong Q1 performance; raising 2026 outlook - Total company reported sales +10.1% YoY ( +12.2% on daily organic constant currency basis). - Operating margin 16.7%; diluted EPS $11.65 (+18.2% YoY). - Operating cash flow $739M; returned $345M to shareholders via dividends + share repurchases. - Management says Q1 finished meaningfully ahead of February expectations, and 2026 guidance was increased based on early strength and continued momentum.
Guidance/forecast details (top line, profit, seasonality) - Full-year 2026 daily organic constant-currency sales growth: 9.5%–12%. - EPS forecast: $44.25–$46.25 (≈ +15% YoY at the midpoint), midpoint +$1.75 vs prior range. - Operating margin outlook ticks up slightly at the midpoint, but is tempered by transitory headwinds (i.e., added revenue dollars less profitable). - Q2 expectations: preliminary April up >13% daily organic constant currency; Q2 sales >$4.9B (approaching 12% daily organic constant currency). - Q2 margin headwind: sequential margin decline expected due to fuel leakage + private-label cost coming through + seasonality; Q2 operating margins in low-15% range (a U-shaped / “more of a U” margin pattern is expected vs earlier guidance framing).
Price/cost dynamics: good momentum, but costs/timing create U-shape - Q1 gross margin 40% (+30 bps YoY); management attributes to price realization stronger than anticipated, plus partial effects from freight/mix. - Deidra expects the year’s margin profile to be more U-shaped because: - Q1 pricing beat (price/cost better than forecast). - Private-label inventory sell-through was slower than expected in Q1, so the negative cost impact moves into Q2. - Fuel costs add margin pressure as they build and the business is partly unable to pass them through immediately (large contracts include free/covered partial shipping). - LIFO effect: LIFO expected to drive Q1→Q2 margin dynamics; company estimates ~70 bps benefit from Q4 to Q1 at total-company level and expects LIFO “normalizes and subsides” rather than disappearing.

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$1244.90

Target Price by Analysts

3.1% downsideW.W. Grainger Target Price DetailsTarget Price
$688.64

Current Fair Value

46.4% downside

Overvalued by 46.4% based on the discounted cash flow analysis.

Share Statistics

Market cap$58.27 Billion
Enterprise Value$60.56 Billion
Dividend Yield$9.27 (0.75%)
Earnings per Share$35.47
Beta1.04
Outstanding Shares47,300,000

Return

Return on Equity42.85%ROE
Return on Assets17.78%
Return on Invested Capital35.37%

Valuation & Multiples

P/E Ratio32.76P/E Ratio
PEG206.48PEG
Price to Sales3.31Price to Sales
Price to Book Ratio14.11Price to Book Ratio
Enterprise Value to Revenue3.3
Enterprise Value to EBIT23.54
Enterprise Value to Net Income35
Total Debt to Enterprise0.05
Debt to Equity0.76Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
May 7, 2026
EPS Estimate
$10.21
Average shareholder expectation
Revenue Estimate
$4.58 B
Average shareholder expectation

Next Earnings Call

Expected Date
August 4, 2026
EPS Estimate
$11.22
Average shareholder expectation
Revenue Estimate
$4.94 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.2495▼ 6.19%
Total Calls1,211,023▲ 19.60%
Total Puts302,124▼ 4.18%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %72.44%▼ 2.12%
Total Invested$37.51B▲ 4.98%
Investors Holding1,301▲ 25.00%

ESG Score

No data

About W.W. Grainger Inc.

CEO: Donald Macpherson

Relevant Senate Committees

Finance

This powerful committee controls taxation and trade. Changes in corporate tax rates directly impact Grainger's profitability, while trade policies (e.g., tariffs) can significantly affect its supply chain costs and product pricing.

Appropriations

This committee allocates discretionary federal spending. Its subcommittees determine the precise budgets for government agencies and projects, directly impacting the purchasing power of key customers for Grainger's MRO products.

Health, Education, Labor, and Pensions

This committee directly impacts labor laws (e.g., minimum wage, workplace safety, union regulations), which significantly affect W.W. Grainger's operational costs and those of its customers, influencing demand for products like safety equipment.

Armed Services

This committee oversees the Department of Defense and authorizes the NDAA. DoD facilities and defense contractors are major customers for Grainger's MRO products, so funding decisions directly impact a significant revenue stream.

Homeland Security and Governmental Affairs

This committee regulates government procurement and efficiency. As W.W. Grainger sells maintenance, repair, and operating (MRO) products to federal agencies, policies and funding decisions made here directly impact a significant customer segment and procurement terms.