W.W. GRAINGER Reports Strong Q2 FY2023 Financials with 9.0% Revenue Increase and 26.7% Net Income Rise
August 3, 2023
☀️Earnings Overview
On June 30, 2023, W.W. GRAINGER ($NYSE:GWW) reported their second quarter of FY2023 financial results, revealing total revenue of USD 4182.0 million, a 9.0% year-on-year increase, and net income of USD 470.0 million, a 26.7% year-on-year increase.
Analysis
GoodWhale has rigorously analyzed the fundamentals of W.W. GRAINGER and based on their Risk Rating, have determined that it is a medium risk investment in terms of financial and business aspects. Although the company appears to have strong financials, GoodWhale has detected one risk warning in the non-financial area. To view and understand this warning in more detail, users should register on the GoodWhale website. GoodWhale provides an in-depth analysis of financial and non-financial risks of companies so that investors can make informed decisions. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for W.w. Grainger. More…
| Total Revenues | Net Income | Net Margin |
| 16.02k | 1.77k | 11.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for W.w. Grainger. More…
| Operations | Investing | Financing |
| 1.64k | -282 | -1.1k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for W.w. Grainger. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.03k | 4.8k | 54.52 |
Key Ratios Snapshot
Some of the financial key ratios for W.w. Grainger are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.3% | 41.2% | 15.7% |
| FCF Margin | ROE | ROA |
| 8.5% | 57.5% | 19.6% |
Peers
The company operates in North America and Asia. Grainger’s competitors include Ferguson PLC, RS Group PLC, and Fastenal Co.
– Ferguson PLC ($NYSE:FERG)
Ferguson PLC is a publicly traded company with a market capitalization of 23.43 billion as of 2022. The company has a return on equity of 36.36%. Ferguson PLC is a provider of plumbing and heating products and services. The company operates in two segments: wholesale and retail. The wholesale segment comprises of distribution centers that sell plumbing, heating, and industrial supplies to professional contractors, industrial customers, and retailers. The retail segment operates stores that sell plumbing, heating, and industrial supplies to consumers.
– RS Group PLC ($NASDAQ:FAST)
The company’s market cap is 26.73B as of 2022 and its ROE is 28.04%. The company is a leading provider of industrial and construction supplies and services. It has over 2,200 locations in the United States, Canada, Mexico, Europe, and Asia. The company offers a wide range of products and services, including fasteners, tools, and other industrial and construction supplies.
Summary
W.W. GRAINGER reported strong financial results for the second quarter of FY2023, with total revenue of USD 4182.0 million, a 9.0% year-over-year increase, and net income of USD 470.0 million, a 26.7% year-over-year rise. Despite these positive numbers, the stock price moved down on the same day. Investors may want to take a closer look at these results and analyze W.W. GRAINGER’s business fundamentals and competitive environment to determine if this is a buying opportunity or not. A thorough assessment of the company’s performance in the upcoming quarters could provide further insight into whether investing in W.W. GRAINGER is a potential good option.
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