W.W. Grainger, Inc.


SKU: GWW Category:


This is our first report on W.W. Grainger, Inc., a global distributor of MRO materials and other related products and services. The company delivered an all-around beat for the final quarter of 2022 with a sales growth was 13.2% or 17.2% on a daily constant currency basis and solid growth in both segments. This includes high teen growth in local currency across Endless Assortment and an increase in the share of the U.S. high-touch market of about 800 basis points. The company continued to invest in its strategic objectives during the quarter and racked up a total of $35 million in non-recurring expenses. Daily sales in the High-Touch Solutions segment were up 16.8% from the fourth quarter of 2021. In the segment, Grainger continued to observe positive growth across all significant customer-end industries, with over 20% growth in heavy manufacturing, transportation, and natural resources. Zoro’s operational margins remained unchanged in the third quarter. At the same time, MonotaRO was negatively affected by start-up expenses at the new Inagawa DC and non-recurring asset retirement expenses connected to the anticipated closure of the Amagasaki facility. We initiate coverage on the stock of W.W. Grainger, Inc. with a ‘Hold’ rating.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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