NYSE: GWW · Industrial Machinery & Supplies & Components
W. W. Grainger
W.W. Grainger, based in Lake Forest, Illinois, is a broad line distributor of maintenance, repair and operating (MRO) products and services, mainly in North America and Japan. It runs two models: High-Touch Solutions N.A., which serves customers with sales and service representatives, local product availability and inventory services ($13,993 million of 2025 sales), and Endless Assortment, the Zoro (U.S.) and MonotaRO (Japan) online platforms offering millions of products ($3,625 million). 2025 sales rose 5% to $17,942 million, but net earnings fell to $1,706 million after a $186 million loss on the sale of the U.K. Cromwell business as Grainger exited the U.K. In Q2 2026 sales rose 10% to $5,021 million.
Last updated
Analysis last edited: October 25, 2026 · Financial data fetched: October 25, 2026 03:34 (SEC EDGAR) · Source 10-K filed: February 19, 2026
Built on10-K FY2025 · filed 2026-02-1910-Q (quarter ended 2026-09-30) · filed 2026-11-04Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 8.7%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 13.9%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +20.1 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 0.7x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.18x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 5 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 32.3x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.76
Higher than 54% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 35% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 87% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 31% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 21% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-09-30
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$1,472.33close on 2026-11-04
Market cap$69.82B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 32.3x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 18.7x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 25.4x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 1.9%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 0.6%
At FY2025 year-end: 28.5x
Earnings: trailing 12 months to 2026-09-30
At FY2025 year-end: 12.8x
Book value at FY2025 year-end
At FY2025 year-end: 17.6x
EBITDA for FY2025
At FY2025 year-end: 2.8%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$4.66B → $5.18B (vs. a year earlier)↑ +11.3%$4.66B → $5.18B (vs. a year earlier)
- Operating margin11.0% → 16.0% (vs. a year earlier)↑ +5.0 pts11.0% → 16.0% (vs. a year earlier)
- Net income$294M → $587M (vs. a year earlier)↑ +99.7%$294M → $587M (vs. a year earlier)
- Diluted EPS$6.12 → $12.42 (vs. a year earlier)↑ +102.9%$6.12 → $12.42 (vs. a year earlier)
- Cash$589M → $768M (vs. previous quarter-end)↑ +30.4%$589M → $768M (vs. previous quarter-end)
- Long-term debt$2.41B → $2.69B (vs. previous quarter-end)↑ +11.5%$2.41B → $2.69B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Nov 4, 2026.
Management outlook ↑ Raised
Raised 2026 outlook, with adjusted EPS of $47.00–$48.00. Source sentence
Increasing full year 2026 earnings outlook, including diluted adjusted EPS range of $47.00 to $48.00
Key changes
Q3 sales up 11.3%. Source sentence
Sales in the quarter increased 11.3% compared to the third quarter of 2025.
Operating cash flow $661M; returned $396M to shareholders. Source sentence
Produced $661 million in operating cash flow and returned $396 million to Grainger shareholders through dividends and share repurchases
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- W.W. GRAINGER, INC.
- Headquarters
- LAKE FOREST, IL
- Incorporated in
- Illinois
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: GWW
- Industry
- Industrial Machinery & Supplies & Components
- CIK
- 277135
- Website
- https://www.grainger.com/ ↗
Workforce (as of FY2025 year-end)
Employees
25,000
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 31–34 days after quarter end (Feb 3, 2026; Jan 31, 2025; Feb 2, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 25–38 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 30, 2026 | Nov 4, 2026 (+35 days) | Nov 4, 2026 10-Q (+35 days) |
| Q2 FY2026 | Jun 30, 2026 | Aug 4, 2026 (+35 days) | Aug 4, 2026 10-Q (+35 days) |
| Q1 FY2026 | Mar 31, 2026 | May 8, 2026 (+38 days) | May 7, 2026 10-Q (+37 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 3, 2026 (+34 days) | Feb 19, 2026 10-K (+50 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 31, 2025 (+31 days) | Oct 31, 2025 10-Q (+31 days) |
| Q2 FY2025 | Jun 30, 2025 | Aug 1, 2025 (+32 days) | Aug 1, 2025 10-Q (+32 days) |
| Q1 FY2025 | Mar 31, 2025 | May 1, 2025 (+31 days) | May 1, 2025 10-Q (+31 days) |
| Q4 FY2024 | Dec 31, 2024 | Jan 31, 2025 (+31 days) | Feb 20, 2025 10-K (+51 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 31, 2024 (+31 days) | Oct 31, 2024 10-Q (+31 days) |
| Q2 FY2024 | Jun 30, 2024 | Aug 1, 2024 (+32 days) | Aug 1, 2024 10-Q (+32 days) |
| Q1 FY2024 | Mar 31, 2024 | Apr 25, 2024 (+25 days) | Apr 25, 2024 10-Q (+25 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 2, 2024 (+33 days) | Feb 22, 2024 10-K (+53 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
High-Touch Solutions N.A.
Grainger MRO supply
Safety, material handling, metalworking, cleaning, electrical and other MRO products with sales representatives and inventory services.
Endless Assortment
Zoro
U.S. online platform with one-stop shopping for millions of products.
Endless Assortment
MonotaRO
Japanese online MRO platform; Q2 2026 enterprise customer growth.
From the Form 10-K, FY2025.
U.S. and worldwide share of flagship products/services
The 10-K describes Grainger as a broad line MRO distributor but gives no market share or rank.
Reviewed: Form 10-K (FY2025) · Form 10-Q (quarter ended 2026-06-30)
07
Recent strategic focusSite analysis
Recent developments.
2025 results
Net sales $17,942M (+5%); operating earnings $2,495M; EPS $35.40 including the Cromwell loss.
Source: Form 10-K (FY2025)
U.K. exit
Completed the sale of Cromwell on December 17, 2025 (loss $186M) and closed Zoro U.K.
Source: Form 10-K (FY2025)
Q2 2026
Net sales $5,021M (+10%; +14% daily organic constant currency); net earnings attributable to Grainger $570M versus $482M.
Source: Form 10-Q (quarter ended 2026-06-30)
CFO change
CFO Deidra Merriwether notified the Board on July 31, 2026 of her resignation.
Source: Form 8-K (2026-08-03) — Item 5.02 CFO resignation
Capex ÷ D&A (FY2025)
2.07x
Well above depreciation — expansion-stage investment
formulacapital expenditures ÷ depreciation & amortization
e.g.$684M ÷ $330M = 2.07x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Where the money goes, over time
Unit: $M. Capex went from $197M in FY2020 to $684M in FY2025
- Capex
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$17.94B
As reported in the 10-K
Revenue CAGR (5 years)
+8.7%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($17,942M ÷ $11,797M) ^ (1÷5) − 1 = 8.7%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
13.9%▲favorable
+5.3pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$2,495M ÷ $17,942M × 100 = 13.9%
ROE (FY2025)
48.1%▲favorable
6-year average: 56.5%
As reported in the 10-K
P/B (FY2025 end)
12.81x
formulafiscal year-end closing price ÷ book value per share
e.g.$1009.05 ÷ $78.79 = 12.81x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
17.6x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($47,848M + $2,488M − $585M) ÷ ($2,495M + $330M) = 17.6x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +8.7% a year over 5 years (strong growth)
From $11.8B in FY2020 to $17.94B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Operating margin improved: 8.6% → 13.9%
How much operating profit is left per $100 of revenue. It moved +5.3 points over 5 years — pricing power, cost control, and product mix all show up here.
- ―
Equity ratio is 41.7% (a middling level)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 56.5% over 6 years (latest: 48.1%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
No partners or suppliers named in the filings.
07 · what it does
Key activities
- High-touch MRO sales and services in the U.S., Canada and Mexico
- Online endless assortment via Zoro and MonotaRO
- Inventory management and technical support services
06 · what it draws on
Key resources
- About 25,000 team members (22,100 full-time)
- Distribution centers and branches with local product availability
- Supplier network including some suppliers that also sell direct
02 · why customers buy
Value propositions
- MRO products with high-touch solutions and differentiated sales and service, plus endless-assortment online (Zoro, MonotaRO).
04 · how it keeps them
Customer relationships
- Contract customers and KeepStock inventory management services.
03 · how it reaches them
Channels
- Sales representatives, branches, distribution centers and eCommerce.
01 · who it serves
Customer segments
- Businesses and institutions of many sizes and industries
- No single end customer above 10% of sales
09 · where money goes
Cost structure
FY2025, share of revenue ($17.94B)
- Cost of revenue60.9%
- Selling, general & administrative25.2%
Operating profit left: 13.9% of revenue. Depreciation & amortization (inside the costs above): $330M. Capital spending: $684M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- High-Touch Solutions N.A. $13,993M
- Endless Assortment $3,625M
- Other $324M (2025)
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Buys MRO products from many suppliers and sells them to businesses through sales representatives, branches, distribution centers and eCommerce, plus online endless-assortment platforms.
01 what it draws on
Inputs & resources
- About 25,000 team members (22,100 full-time)
- Distribution centers and branches with local product availability
- Supplier network including some suppliers that also sell direct
02 what it does
Activities
- High-touch MRO sales and services in the U.S., Canada and Mexico
- Online endless assortment via Zoro and MonotaRO
- Inventory management and technical support services
03 who it serves
Customers
- Businesses and institutions of many sizes and industries
- No single end customer above 10% of sales
04 how money comes in
How it earns
- High-Touch Solutions N.A. $13,993M
- Endless Assortment $3,625M
- Other $324M (2025)
How the business makes money
- High-Touch Solutions N.A. earnings $2,354M on $13,993M of sales in 2025.
- Endless Assortment sales rose 16% in 2025.
- Exited the U.K. in Q4 2025 by selling Cromwell (completed Dec 17, 2025) and closing Zoro U.K.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Grainger sells to governments and is exposed to tariffs and climate policy costs.
Government as customer
Government contracts
As a contractor to federal, state and local governments it may face regulatory reviews.
Supports and constrainsTouches: Customers · How it earnsSource: Form 10-K (FY2025)
Trade & export rules
Tariffs and trade rules
Tariff developments and shifting government budgets affect demand and costs.
Constrains the businessTouches: Inputs & resourcesSource: Form 10-K (FY2025)
Environmental rules
Climate policy costs
Carbon pricing and emissions rules may raise energy and raw material costs.
Constrains the businessTouches: Inputs & resourcesSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
High-Touch Solutions N.A.
13,993 (78%)Endless Assortment
3,625 (20%)Other (mainly Cromwell, sold Dec 2025)
324 (2%)
Source: Form 10-K (FY2025) Other is total net sales of $17,942M less the two reportable segments.
10
Where it earnsSite analysis
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
United States — 80% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
14,441 (80%)Japan
2,173 (12%)Canada
683 (4%)Other foreign countries
645 (4%)
Source: Form 10-K (FY2025) Revenue by destination country of the customer.
11
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
12
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Businesses and institutions in many industries in North America and Japan.
Named by the company
No single end customer accounted for more than 10% of 2025 sales.
Suppliers
Thousands of MRO product suppliers, some of which also sell direct.
Named by the company
No single supplier is named as material.
13
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Grainger competes with manufacturers selling direct, wholesale distributors, retailers and internet-based businesses; the 10-K names no specific competitors.
Competitors named in the 10-K
The 10-K names competitor categories only.
Peer group the company chose
2025 compensation comparator group (20 companies), from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Comparator group for 2025 pay; Cummins, Johnson Controls and PACCAR were added and Avnet removed.
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Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
14
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
| Line item | FY202010-K on EDGAR ↗ | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 11,797 | 13,022 | 15,228 | 16,478 | 17,168 | 17,942 |
| Operating income | 1,019 | 1,547 | 2,215 | 2,565 | 2,637 | 2,495 |
| Pretax income | 947 | 1,485 | 2,146 | 2,500 | 2,584 | 2,430 |
| Net income (attributable) | 695 | 1,043 | 1,547 | 1,829 | 1,909 | 1,706 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 10.4% | 16.9% | 8.2% | 4.2% | 4.5% |
| Operating margincalcoperating income ÷ revenue × 100 | 8.6% | 11.9% | 14.5% | 15.6% | 15.4% | 13.9% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 5.9% | 8.0% | 10.2% | 11.1% | 11.1% | 9.5% |
| Balance sheet ($M) | ||||||
| Total assets | 6,295 | 6,592 | 7,588 | 8,147 | 8,829 | 8,962 |
| Total equity | 2,093 | 2,160 | 2,735 | 3,441 | 3,703 | 4,141 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 2,397 | 2,362 | 2,319 | 2,300 | 2,778 | 2,488 |
| Equity ratio | 29.0% | 28.4% | 32.2% | 38.2% | 38.0% | 41.7% |
| ROE | 38.0% | 56.3% | 71.7% | 65.9% | 59.0% | 48.1% |
| Cash flow ($M) | ||||||
| Operating CF | 1,123 | 937 | 1,333 | 2,031 | 2,111 | 2,015 |
| Investing CF | -179 | -226 | -263 | -422 | -520 | -645 |
| Financing CF | -726 | -1,039 | -972 | -1,278 | -1,180 | -1,825 |
| Free cash flowcalccash flow from operations − capital expenditures | 926 | 682 | 1,077 | 1,586 | 1,570 | 1,331 |
| Cash and equivalents | 585 | 241 | 325 | 660 | 1,036 | 585 |
| Per share & other | ||||||
| EPS ($) | 12.82 | 19.84 | 30.06 | 36.23 | 38.71 | 35.40 |
| BVPS ($) | 34.80 | 36.59 | 48.55 | 63.16 | 69.48 | 78.79 |
| Dividend per share ($) | 5.94 | 6.39 | 6.78 | 7.30 | 8.01 | 8.83 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 46.3% | 32.2% | 22.6% | 20.1% | 20.7% | 24.9% |
| P/E (x) | 31.9 | 26.1 | 18.5 | 22.9 | 27.2 | 28.5 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 19.6 | 16.7 | 12.4 | 15.0 | 17.9 | 17.6 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 11.73 | 14.16 | 11.46 | 13.12 | 15.17 | 12.81 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-09-30 | $5.18B+11.3% | $828M+62.0% | $587M+99.7% | $12.42 |
| 2026-06-30 | $5.02B+10.3% | $807M+19.0% | $570M+18.3% | $12.01 |
| 2026-03-31 | $4.74B+10.1% | $793M+18.0% | $555M+15.9% | $11.65 |
| 2025-12-31 † | $4.43B+4.5% | $634M+0.2% | $451M-5.1% | — |
| 2025-09-30 | $4.66B | $511M | $294M | $6.12 |
| 2025-06-30 | $4.55B | $678M | $482M | $9.97 |
| 2025-03-31 | $4.31B | $672M | $479M | $9.86 |
| 2024-12-31 † | $4.23B | $633M | $475M | — |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
15
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
28.9%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$2,495M × (1 − 24%) ÷ $6,555M × 100 = 28.9%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
8.80%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $47.85B ÷ ($47.85B + $2.49B) = 95.1%
e.g.Debt weight: $2.49B ÷ ($47.85B + $2.49B) = 4.9%
e.g.WACC: 9.1% × 95.1% + 3.3% × (1 − 24%) × 4.9% = 8.80%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 7.2%–10.8% and ROIC − WACC runs +18.2 to +21.7 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 8.80% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.76 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 9.13%
- Cost of debt
- 3.26%
- Tax rate
- 24% (effective rate, FY2023–FY2025)
- Capital structure (equity : debt)
- 95% : 5%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 8.80%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.76 (price-derived adjusted beta. Raw β 0.63, R² 0.16, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.634 + 0.33 = 0.755
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.76 × 5.5% = 9.1%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
16
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
6.9%
Perpetual FCF growth: g = r − FCF ÷ EV = 8.8% − 1.9%
Past FCF growth (FY2020–FY2025)
+7.5%
Compound annual rate, 5 years
Past revenue growth (FY2020–FY2025)
+8.7%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $1.33B (operating CF − capex); enterprise value $71.72B = market cap $69.82B (latest close, 2026-11-04) + debt $2.49B − cash and short-term investments $585M; r = WACC of 8.8% using this page’s default assumptions (β 0.76, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$70.05B
FCF $1.33B ÷ (8.8% − 6.9%)
Theoretical ÷ actual enterprise value
0.98x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 6.8% | 7.8% | 8.8% | 9.8% | 10.8% |
|---|---|---|---|---|---|
| 0% | 0.27x | 0.24x | 0.21x | 0.19x | 0.17x |
| 2% | 0.39x | 0.32x | 0.27x | 0.24x | 0.21x |
| 4% | 0.66x | 0.49x | 0.39x | 0.32x | 0.27x |
| 6% | 2.32x | 1.03x | 0.66x | 0.49x | 0.39x |
| 8% | — | — | 2.32x | 1.03x | 0.66x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
17
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.13x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -3.5%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 103%
Most profit comes from core operations.
- ✓
Days sales outstanding: 46 → 46 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$2,015M ÷ $1,706M = 1.18x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$2,495M ÷ $2,430M × 100 = 103%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($2,232M + $2,329M) ÷ 2 ÷ $17,942M × 365 = 46 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
e.g.($2,306M + $2,394M) ÷ 2 ÷ $10,933M × 365 = 78 days
termsInventory · Cost of revenue (COGS)
18
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 75.0%
- Directors & officers (shares)
- 6.3%
- Everyone else (est.)
- 18.7%
- Directors & officers (voting power)
- 6.3%
- Institutional-ownership rank
- 354 of 416
- Beta (adjusted)
- 0.76
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 85% of covered companies have more
above 1 = swings more than the market
- 35.3M shares reported by 1,363 13F filers ÷ 47.1M shares outstanding on 2026-07-28. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-03-10 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-28)
19
Strengths & weaknessesSite analysis
Strengths
1. High-touch profitability
High-Touch Solutions N.A. earned $2,354M on $13,993M of 2025 sales.
Evidence: Form 10-K (FY2025)
2. Fast-growing online model
Endless Assortment sales rose 16% in 2025 and 14% in Q2 2026.
Evidence: Form 10-Q (quarter ended 2026-06-30)
3. Dividend growth
Dividend per share rose every year from $5.94 (2020) to $8.83 (2025).
Evidence: Form 10-K (FY2025)
Weaknesses
1. 2025 earnings dip
Net earnings fell to $1,706M from $1,909M on the $186M Cromwell sale loss.
Evidence: Form 10-K (FY2025)
2. Rising capex
Capital expenditures rose from $445M (2023) to $684M (2025).
Evidence: Form 10-K (FY2025)
20
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
28.5x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
0.88%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
25%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
2.8%
(Operating CF − capex) ÷ market cap
1. Steady compounding
Sales grew every year from $11,797M (2020) to $17,942M (2025).
- What has to hold
- MRO demand and share gains continue.
- The other side
- Industrial slowdown.
Evidence: Form 10-K (FY2025)
2. Dividend record
Dividend per share raised each year 2020–2025.
- What has to hold
- Earnings keep growing.
- The other side
- Payout rises with capex needs.
Evidence: Form 10-K (FY2025)
2025 includes a $186M loss on the Cromwell sale with no tax benefit.
21
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
4.6x
$585M vs. $126M
Interest coverage (operating income ÷ interest expense)
30.8x
$2.5B vs. $81M
Free cash flow ÷ dividends paid
2.9x
$1.33B vs. $467M (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | -5.4% in FY2025 ($2.64B → $2.5B) | Not yet, as of FY2025 |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Growth through 2020
Sales and net earnings stayed positive in 2020 ($11,797M; $695M).
Source: Form 10-K (FY2025)
22
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Grainger faces routine product, employment, pricing and government-contract claims; the KMCO, LLC litigation it disclosed in earlier reports has been fully settled or resolved.
0 open matters · 1 settled or closed
KMCO, LLC litigation
SettledLawsuitPlaintiffs related to KMCO, LLC v. Grainger
Grainger was engaged in litigation involving KMCO, LLC, described in earlier quarterly and annual reports; it has settled or resolved all remaining lawsuits pending against it, with no effect on net earnings or cash flows.
Source: Form 10-K (FY2025) — Note 14, Contingencies and Legal Matters
Company statement: Other proceedings are described as ordinary-course and not expected to be material.
Based on Form 10-K (FY2025) — Note 14, Contingencies and Legal Matters, reviewed 2026-10-25. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
23
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Demand & macro
Industrial demand
- Company disclosure (summarized from the 10-K)
- A slowdown in the U.S., Canada, Japan or Mexico could reduce customer purchases.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 2Competition & technology shift
Competition and disintermediation
- Company disclosure (summarized from the 10-K)
- Competes with manufacturers selling direct (including its own suppliers), wholesale distributors, retailers and internet businesses.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 3Supply chain
Supply chain disruption
- Company disclosure (summarized from the 10-K)
- Disruptions to transportation networks could affect same-day shipping and next-day delivery.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 4FX & interest rates
Yen exposure
- Company disclosure (summarized from the 10-K)
- Q2 2026 Endless Assortment sales were reduced 6% by a weaker yen.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Low / Likelihood High
- 5Governance & key people
Executive transitions
- Company disclosure (summarized from the 10-K)
- The CFO resigned in July 2026; failures in succession planning are a stated risk.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Low / Likelihood Med
24
What to watch going forwardSite analysis
- High-Touch Solutions N.A. growth and margins.
- MonotaRO and Zoro growth and yen effects.
- CFO succession.
- Capital spending on supply chain capacity.
25
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Other sources referenced in the analysis
Last updated
Analysis last edited: October 25, 2026 · Financial data fetched: October 25, 2026 03:34 (SEC EDGAR) · Source 10-K filed: February 19, 2026
Built on10-K FY2025 · filed 2026-02-19Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent W. W. Grainger’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.