GWWW. W. Grainger
Is the business good?
A genuinely good business: earnings fully cash-backed (1.1×) and elite returns on assets.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 46% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GWW?
W. W. Grainger earns 36% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 27 points above what the capital costs: growth creates value
- Operating margin
- 15%
Operating margin · Industrial Distribution median 8.3% · 12 months to Q2 2026
- Cash conversion
- 1.07×
Cash conversion · 1.00× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.9%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 8.6% |
| FY2021 | 12% |
| FY2022 | 15% |
| FY2023 | 16% |
| FY2024 | 15% |
| FY2025 | 14% |
Details›
- Gross margin12 months to Q2 2026
- 39%
- Operating margin12 months to Q2 2026
- 15%
- Net margin12 months to Q2 2026
- 9.9%
- Free cash flow margin
- 8.0%
- Revenue, trailing twelve months
- $18.8B
- Free cash flow, trailing twelve months
- $1.51B
- Net income, trailing twelve months
- $1.87B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 36%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Industrial Distribution
The closest names by size in the same industry