Equity Brief · Industrials2026-09-16
GWW·Industrials

W.W. Grainger, Inc.

I · AI Analysis

The brief

Grainger distributes maintenance, repair, and operating supplies — safety gear, pumps, hand tools, cleaning equipment — to commercial, manufacturing, healthcare, and government customers [Yahoo Finance]. The company operates through two segments: High-Touch Solutions North America, which serves larger accounts with dedicated sales reps and technical support, and Endless Assortment, an ecommerce-driven model targeting smaller buyers [Yahoo Finance]. Founded in 1927 and based in Lake Forest, Illinois, Grainger employs 22,100 people and reaches customers through both field representatives and digital platforms [Yahoo Finance].

W.W. Grainger is a 97-year-old industrial distribution company that supplies maintenance, repair, and operating products to businesses across North America, Japan, and the United Kingdom [Yahoo Finance]. The company serves industries from small businesses to large manufacturers, delivering everything from safety equipment to hand tools through sales teams and online channels [Yahoo Finance]. With trailing-twelve-month revenue of $18.8B and a market cap of $59.8B, Grainger holds a dominant position in a stable, essential business [Yahoo Finance].

Grainger is exceptionally healthy financially, with strong margins, minimal debt, and consistent cash generation [Sentinellis calculation].

The brief AI analysisConfidence 8/10

Sentinellis health

Financially healthy

10.0/10

7+ strong · 4–7 moderate · under 4 weak

Profitability

14% of score10.0/10
Net margin+9.9%Gross margin+39.4%

Returns on capital

14% of score10.0/10
ROIC+32.2%Return on equity+45.3%

Growth & momentum

19% of score10.0/10
Revenue growth+10.3%Operating margin trend+1.2pp YoY

Balance sheet

29% of score10.0/10
Current ratio2.8xNet debt / EBITDA0.7xInterest coverage33.9xDebt / equity0.62

Cash generation

14% of score10.0/10
Free cash flow$1.5BCash vs reported profit$2.2B vs $1.9B

Value creation

10% of score10.0/10
ROIC vs cost of capital+22.3pp

Sentinellis calculation from the published statements — not a score reported by any data source. Each category is scored on the checks that had data; missing inputs are excluded rather than counted as failures.

Market capitalisation

$59.8B

Revenue (TTM)

$18.8B

II · Recent news

What moved

3 stories · ranked by relevance

  • company2026-09-12

    W.W. Grainger (GWW) Q1 2026 Earnings Call Transcript - Fortune

    Fortune

  • company2026-09-15

    GWW Assumed by Wolfe Research -- Rating Set to Peer Perform - GuruFocus

    GuruFocus

  • company2026-09-09

    Is W.W. Grainger Stock Outperforming the Nasdaq?

    Barchart

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The stock trades at 32.4 times trailing earnings, a premium valuation that leaves little room for disappointment — any margin pressure or slowing growth could trigger a correction [Yahoo Finance].

1 of 4 risks in this report

Risks

4

Opportunities

5

Leadership

10

8 more findings in the full report — free with any account.

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Produced 16 Sept 2026, 09:10 UTC

Figures come from company filings and market data. The Sentinellis health score and the wording attached to it are our interpretation of those figures, not numbers the company reported.

Not investment advice and not a recommendation to buy or sell. Sentinellis holds no positions in the companies it covers, takes no payment from issuers, and has no broker referral arrangements.

How every figure and score is calculated