W.w. Grainger Stock Fair Value Calculation – W.W. Grainger Stock Increases Thursday, Yet Still Underperforms Market
December 23, 2023
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Thursday brought good news to W.W. ($NYSE:GWW) Grainger Inc., a leading industrial supply company based in Lake Forest, Illinois. The company’s stock rose, although it still underperformed the market. W.W. Grainger has long been a stable investment option, known for its wide range of products and reliable customer service. With the price of their stock increasing, investors remain optimistic about the future of the company. W.W. Grainger’s services include procurement, inventory management, and technical support for its customers. Their large catalog of products includes items such as power tools, motors, safety equipment, janitorial supplies, and much more.
The Thursday stock jump was a positive sign for W.W. Grainger, although it still lagged behind the market performance. This could be attributed to the fact that the company is facing headwinds from the economic effects of the pandemic. Nonetheless, investors remain optimistic about the company’s future prospects and long-term success.
Share Price
On Thursday, W.W. Grainger stock increased slightly, rising 0.5% from its previous closing price of 824.0 to 827.8 when the markets closed. At the opening bell on Friday, the stock opened at $825.3, but still underperformed the market with its minimal increase. Despite the small increase, the company remains optimistic that its stock will continue to rise in the future. W.W. Grainger has recently implemented various strategies to improve its financial performance and investor confidence, and they remain confident that these strategies will pay off in the long run. 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 Stock Fair Value Calculation
At GoodWhale, we have analyzed W.W. GRAINGER‘s financials to understand the intrinsic value of its share. After our proprietary Valuation Line, we have established that the intrinsic value of a W.W. GRAINGER share is around $635.4. The current market price of W.W. GRAINGER stock stands at $827.8, which implies that the stock is overvalued by 30.3%. Investors should approach this stock with caution and consider the risks associated with investing in an overvalued stock. More…
Peers
The company operates in North America and Asia. Grainger’s competitors include Ferguson PLC, RS Group PLC, and Fastenal Co.
– Ferguson PLC ($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. saw its stock rise on Thursday, though it still lagged behind the overall market. However, analysts feel that the company’s long-term outlook remains strong, thanks to its leading position in the industrial supplies and services industry. While some investors may be cautious about investing in Grainger due to its underperformance, those who look beyond the short-term volatility may find attractive returns in the mid- to long-term.
