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W.W. Grainger
S&P 500
🏹 Trader: 🎯 Near 52W High 💎 VCP Breakout | BRS 64 Forming View all →
$63.0B
Market Cap
28.5
P/E
2.74
PEG
30.1%
ROCE
45.3%
ROE
0.64
D/E
13.9%
OPM
-4.6%
% from 52W High
70
α RS
🔍 GWW is showing a high-conviction setup because it matches 7 of 37 tracked screener presets, RS Rating is 70, and it's within 4.6% of its 52-week high. Net: Broad signal stack, not a recommendation. ? Conviction RS Rating 52W High
Sources
Conviction 7/37 · RS Rating 70 · 4.6% from 52W high
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🌏 Global Investor Returns
Currency-adjusted total returns for GWW including FX impact
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📈 Price History
Ratio Health
Excellent
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By Category
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About

W.W. Grainger, Inc., together with its subsidiaries, distributes maintenance, repair, and operating products and services primarily in North America, Japan, and the United Kingdom.

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📈 Growth Pattern
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 19.2K $21.0M 0.03% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
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🎙 Management Tone Confident Specific ↑ Improving 5 quarters Full tone analysis in Intelligence →
Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$5.0B
+10.3% YoY
Operating Income
$807M
+19.0% YoY
Operating Margin
16.1%
+1.2pp YoY
Net Income
$570M
+18.3% YoY
What Went Right
  • Total sales rose 13.7% on a daily organic constant currency basis to $5.0B, with broad-based demand strength.
  • Diluted EPS was $12.01, up 20.5%, and operating margin expanded 120 bps to 16.1%.
  • Endless Assortment grew 20.6% daily organic constant currency, with Zoro up 18.4% and MonotaRO up 24% locally.
What to Watch
  • Gross margin faced mix headwinds from higher volumes of lower-margin products and project-related spend, plus unfavorable freight.
  • MonotaRO benefited from a ~$45M pre-buy of petroleum-related products that has fully subsided, slowing expected H2 growth.
  • Tariff refunds were a one-off benefit; management still expects September pricing actions to address freight/fuel and tariff cost pressures.
Management Guidance
  • Q3: sales expected north of $5B, up over 12% on a daily organic constant currency basis; July prelim up >13%.
  • Q3: operating margin expected in the mid-15% range, down sequentially as tariff refunds lap.
  • FY26: sales $19.4-$19.7B; daily organic cc growth 11.5%-13%; operating margin 15.8%-16.2%; EPS $45.50-$47.25; operating cash flow $2.25-$2.4B.
Investor Lens
This call strengthens the thesis: Grainger is gaining share in an improving MRO market, delivering double-digit organic growth and raising full-year guidance. Tariff refunds and mix effects muddy margin optics, but management is managing price-cost and investing for growth. Watch the fade in MonotaRO pre-buy and freight/project headwinds in H2. Overall, the growth algorithm remains intact with profitability guided to a healthy range.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong Q2 with +20% EPS growth and raised full-year outlook
Revenue
Total company Q2 sales were $5.0B, up 10.3% reported and 13.7% on a daily organic constant currency basis. High-Touch Solutions grew 11.7% on a daily constant currency basis, while Endless Assortment grew 20.6% on a daily organic constant currency basis.
Profitability
Net earnings attributable to Grainger were $570M, up 18.3%, and diluted EPS was $12.01, up 20.5%. Operating earnings rose 19% to $807M.
Margins
Gross margin was 39.5%, up 100 bps, helped by 90 bps of IEEPA tariff refunds and the U.K. exit. Operating margin was 16.1%, up 120 bps, with High-Touch segment margin at 17.3% and Endless Assortment margin at 11.5%.
Balance Sheet
Operating cash flow was $444M, CapEx was $111M, and free cash flow was $333M. Grainger returned $341M to shareholders via dividends and share repurchases.
Key Risks
Margin pressure from lower-margin project sales and freight inflation. MonotaRO's ~$45M petroleum pre-buy has faded, creating a back-half growth headwind. Tariff/refund uncertainty and the September pricing round are key variables.
Outlook
Q3 sales are expected north of $5B, up over 12% on a daily organic constant currency basis, with operating margin around mid-15%. Full-year EPS guidance was raised to $45.50-$47.25 with daily organic cc growth of 11.5%-13%.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-04
Q2 2026 saw double-digit sales growth, margin expansion, and strong EPS gains, aided by tariff refunds and robust demand across segments. Guidance was raised for sales, margins, and EPS, with continued momentum expected despite inflation and mix headwinds. CFO transition announced.
Q1 2026 Q1 2026 2026-05-07
Q1 2026 saw double-digit sales growth, margin expansion, and EPS up 18%, driven by strong execution, price realization, and broad-based demand. Guidance was raised for the year, with continued focus on managing inflation, tariffs, and supply chain risks.
Q4 2025 Q4 2025 2026-02-03
Delivered 4.5% sales growth in 2025 with strong margin management and $17.9B in revenue, despite macro headwinds. 2026 guidance calls for 6.5%–9% organic sales growth, margin expansion, and over 10% EPS growth, supported by technology investments and portfolio streamlining.
Q3 2025 Q3 2025 2025-10-31
Q3 2025 results exceeded expectations with $4.7B in sales, strong margin management, and robust digital growth. The company is exiting the U.K. market, focusing on North America and Japan, and expects gross margin to stabilize around 39% as LIFO impacts subside.
Q2 2025 Q2 2025 2025-08-01
Second quarter sales grew 5.6% year-over-year to $4.6 billion, with operating margin at 14.9% and EPS up 2.2%. LIFO and tariff-related headwinds drove a lower gross margin outlook for 2025, but pricing actions and supply chain investments are expected to support recovery over time.
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
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