W.W. Grainger, Inc. (GWW)

FairStock Score: 62/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and hold a durable niche. Grainger fits much of that. It distributes MRO products—safety, plumbing, tools, cleaning—to businesses that need reliable, fast fulfillment. The scale and embedded purchasing relationships create switching costs, a real but not impenetrable moat. Filed fiscal Q2 2026, the quarter ended 2026-06-30, showed revenue $5.0B and net income $570.0M, or diluted EPS $12.01, versus fiscal Q2 2025, the quarter ended 2025-06-30, revenue $4.6B, net income $482.0M, diluted EPS $9.97. That is good progress. For fiscal year 2025, ended 2025-12-31, revenue was $17.9B, net income $1.7B, diluted EPS $35.40; fiscal year 2024, ended 2024-12-31, was $17.2B, $1.9B, $38.71. So recent quarterly growth outweighs a softer full-year profit comparison. Financial health is excellent: FairStock shows ROE 46.09%, ROCE 19.93%, Piotroski 7/9, Altman 10.92, and free cash flow $1.5B. But price is the investor's adversary. At the 2026-10-13 close of $1,325.10, FairStock's P/E is 33.75, P/B 15.11, FCF yield 2.4%, PEG 2.13, and Graham Number $278.35—a margin of safety of -376.06%. Those are not Graham-style bargain numbers. Grainger is a quality stalwart; FairStock classifies it as STALWART with 19.7% annual profit growth over five years. The business deserves respect, but the valuation already assumes a lot. I would want a wider gap between price and intrinsic value before calling it attractive.

In plain English: W.W. Grainger sells maintenance, repair, and safety supplies to businesses, mainly in North America, Japan, and the UK. The business looks financially strong: in fiscal Q2 2026, the quarter ended 2026-06-30, it earned $570 million on $5.0 billion of sales. But at the 2026-10-13 close of $1,325.10, the price looks expensive compared with the company's profits and accounting value, so investors are paying a premium for that strength.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer