W.w. Grainger Intrinsic Stock Value – W.W. Grainger Stock Lags Behind Competitors Despite Gains
November 3, 2023
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Wednesday’s stock performance of W.W. ($NYSE:GWW) Grainger Inc. lagged behind its competitors despite the overall daily gains. W.W. Grainger Inc. is a leading global distributor of maintenance, repair, and operating supplies and services, as well as safety and security products for businesses and institutions. The company also has an e-commerce platform that allows customers to access a wide range of products and services. This is despite the company posting impressive first-quarter earnings that exceeded analysts’ expectations. The company reported strong growth in net sales and operating profits, making it one of the few companies to report positive financial results this quarter.
Analysts attribute this lag in stock prices to the ongoing uncertainty surrounding the coronavirus pandemic and its impact on the global economy. Nonetheless, W.W. Grainger Inc. is still well-positioned to benefit from the economic recovery as more businesses resume operations in the coming months.
Price History
It was a positive day for W.W. GRAINGER Inc on Thursday, with its stock opening at $747.0 and closing at $756.3, a 1.9% increase from its last closing price of 742.1. However, this was not enough for the company to keep up with its competitors, as the overall market rose significantly more than the 1.9% gains seen by W.W. GRAINGER. The lagging performance of the stock suggests investors may be losing confidence in the future of the company. 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 |
| 16.28k | 1.82k | 11.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for W.w. Grainger. More…
| Operations | Investing | Financing |
| 1.79k | -358 | -1.14k |
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 |
| 8.14k | 4.76k | 58.7 |
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 |
| 11.6% | 40.3% | 15.8% |
| FCF Margin | ROE | ROA |
| 8.7% | 54.9% | 19.8% |
Analysis – W.w. Grainger Intrinsic Stock Value
At GoodWhale, we have taken a closer look at W.W. GRAINGER‘s fundamentals and have arrived at an intrinsic value of $620.9 per share. This value was determined using our proprietary Valuation Line. We can compare this to the current trading price of $756.3, which indicates that the stock is currently overvalued by 21.8%. Therefore, investors should be aware that they are paying a premium for W.W. GRAINGER shares. We believe that potential investors should research further into this company’s fundamentals to ensure they are making an informed decision before investing in W.W. GRAINGER’s stock. We also recommend that investors use our Valuation Line as a reference point for further analysis of the stock before deciding whether or not to invest in it. More…
Peers
The company operates in North America and Asia. Grainger’s competitors include Ferguson PLC, RS Group PLC, and Fastenal Co.
– Ferguson PLC ($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
W.W. Grainger Inc. experienced a mixed performance on Wednesday in comparison to its competitors, closing the day with a modest gain but underperforming the market overall. Investors should note that this could signify a potential undervaluation of the company’s stock, making it an attractive buy for those looking to invest. As of the close of trading, the company’s stock was trading at a price-to-earnings ratio below its peers, suggesting that its stock might be undervalued when compared to competitors.
Furthermore, analysis of the company’s financials reveals strong fundamentals and long-term stability, indicating that the stock may be a good buy for conservative investors. Although the near-term performance of W.W. Grainger Inc.’s stock is uncertain, investors should take a closer look at the company’s financials before making any decisions.
