|GWW Overview
GWW

W.W. GRAINGER, INC.

Other • CIK: 0000277135

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Market Cap
$45.89B
P/E (TTM)
26.7x
Rev Growth (TTM)
+4.8%
Net Margin (TTM)
9.7%
FCF Yield (TTM)
2.7%
FCF Margin (TTM)
6.9%

LATEST EARNINGS

Q4 FY2025
24 days ago
View source
Revenue
$4.42B
Net Income
$451.00M
EPS
$9.44
Gross
39.5% 0.0%
Operating
14.3% -0.7%
Net
10.2% -1.0%
  • Full year sales grew 4.5% to $17.9 billion, or 4.9% on a daily, organic constant currency basis.
  • Endless Assortment segment sales increased 14.3% (15.7% daily, organic constant currency) driven by strong performance at MonotaRO and Zoro.
  • Returned $1.5 billion to shareholders through dividends and share repurchases in full year 2025.
  • Generated $2.0 billion in operating cash flow for the full year 2025.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$1.2B
Q3 '25
$339M+68%
Q2 '25
$202M-61%
FCF Margin
TTM6.9%
Q3 '257.3%+64%
Sector: 4.1%Above Avg
OCF Margin11.5%
OCF/NI1.18x
CapEx Coverage2.5x
FCF Yield2.7%
FCF Growth (2Y)+10%
Cash Conversion Cycle
126 days
DSO: 49+DIO: 78DPO: 0

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM3.7%
Div Yield1.0%
+
Buyback (TTM)2.7%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)1.0%
FCF Payout Ratio37.2%
Free Cash Flow (TTM)$1.2B
Stock Repurchases (TTM)$1.3B
Capital Return / FCF139.4%
Est. Dividends Paid (TTM)$458.0M
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
28.7%
Stable
-0.1% YoY-6.1%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
10.5%
8Q: 11.7%
Asset Turnover
2.01x
8Q: 2.03x
Leverage (1+D/E)
1.67x
D/E: 0.67x
DuPont: 35.2%28.7% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
8.88x
8Q:9.60x
-181.8%
Invested Cap Turn
2.72x
8Q:2.77x
-4.5%
CapEx Intensity
12.5%
8Q:8.2%
CapEx/Depreciation
2.48x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024Q4 2023
Revenue
$17.8B
$4.7B2.3%
$4.6B5.8%
$4.3B1.7%
$4.2B3.5%
$4.4B1.8%
$4.3B1.8%
$4.2B6.0%
$4.0B
Operating Income
$2.5B
$511.0M24.6%
$678.0M0.9%
$672.0M6.2%
$633.0M7.7%
$686.0M5.7%
$649.0M3.0%
$669.0M20.1%
$557.0M
Net Income
$1.7B
$294.0M39.0%
$482.0M0.6%
$479.0M0.8%
$475.0M2.3%
$486.0M3.4%
$470.0M1.7%
$478.0M21.0%
$395.0M
Operating Cash Flow
$2.0B
$597.0M58.4%
$377.0M41.6%
$646.0M50.9%
$428.0M30.0%
$611.0M48.7%
$411.0M37.8%
$661.0M9.4%
$604.0M
Free Cash Flow
$1.2B
$339.0M67.8%
$202.0M61.2%
$521.0M206.5%
$170.0M67.5%
$523.0M56.1%
$335.0M38.2%
$542.0M13.6%
$477.0M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
26.7x
Volatile
8Q: 104.6x+3089%
Multiple expansion without fundamental improvement
Valuation Lenses
Earnings
26.7x
vs sector
Cash Flow
79.0x
EV/FCF vs
Growth-Adj
PEG
N/A
Quality-Adj
0.9P/E per %ROIC
ROIC: 28.7%
Shareholder Returns
Dividend
1.0%
Buyback
2.7%
Total Yield
3.7%
Market Cap$45.89B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
93/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 10%
49.3%
8Q:
Return on Invested Capital (ROIC)Top 25%
28.7%
8Q:
-6.1%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 10.5%
Asset Turnover: 2.01x

Earnings Quality

Cash Conversion

1.18x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin39.1%

Capital Efficiency

Invested Capital Turnover2.72x

Working Capital

Cash Conversion Cycle126 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
60/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
4.8%
OpInc Growth YoY
-25.5%
EPS Growth YoY
-3.4%
FCF 3Y CAGR
10.2%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
39.1%
Operating
14.1%
Above Avg in sector
Net
9.7%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
-2.8 pts
FCF: 6.9% | Net: 9.7%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $1.83B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.67x
Balance sheet risk & solvency analysis