Credit Suisse AG Increases Investment in W.W. Grainger,
June 12, 2023
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W.W. ($NYSE:GWW): It is one of the largest companies of its kind in the world, and is listed on the New York Stock Exchange (NYSE). The increased investment is seen as a vote of confidence in Grainger’s long-term prospects, as well as a demonstration of the Swiss investment giant’s interest in the industrial supply market.
Market Price
On Monday, Credit Suisse AG increased its investment in W.W. Grainger, Inc. sending strong signals to the market. W.W. Grainger stock opened at $677.4 and closed at $675.7, down by 0.3% from the prior day’s closing price of $677.8. This movement in the stock price was an indication of the market’s response to the news of Credit Suisse AG increasing its stake in the company. Although the stock price declined, investors seemed optimistic about the company’s future prospects, as the decrease was minimal. Live Quote…
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 |
| 15.67k | 1.67k | 10.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for W.w. Grainger. More…
| Operations | Investing | Financing |
| 1.44k | -302 | -1.04k |
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 |
| 7.83k | 4.78k | 48.54 |
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 |
| 10.3% | 30.7% | 15.2% |
| FCF Margin | ROE | ROA |
| 7.3% | 61.1% | 19.0% |
Analysis
At GoodWhale, we have been analyzing the financials of W.W. GRAINGER and have come up with some interesting insights. Through our Star Chart, we have identified that W.W. GRAINGER is strong in asset, dividend, growth and profitability. We have also classified W.W. GRAINGER as a ‘gorilla’, meaning that it has achieved steady and high revenue or earning growth due to its strong competitive advantage. Investors looking for a safe investment option may be interested in W.W. GRAINGER as it has a high health score of 9/10, considering its cash flows and debt, and is capable of safely riding out any crisis without the risk of bankruptcy. Additionally, the company is well-positioned to remain an attractive option for investors due to its strong asset, dividend, growth and profitability metrics. More…
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
Credit Suisse AG recently increased its ownership of W.W. Grainger, Inc. stock, indicating strong belief in the company’s financial prospects. Analysts have identified several favorable factors that could lead to strong returns for investors. These include strong balance sheets and cash flows, consistent revenue growth and operating margins, expanding product lines and global presence, as well as improving customer satisfaction. Furthermore, the company has a low dividend payout ratio, allowing it to return more of its profits to shareowners. With a low debt-to-equity ratio, W.W. Grainger, Inc. is in a strong financial position that could yield favorable results for investors.
Additionally, the company’s presence in multiple markets provides potential for further growth and expansion. Overall, W.W. Grainger, Inc. is an attractive investment option with multiple benefits for potential investors.
