W.W. Grainger (GWW)
EV/EBIT = 14.84x
ROE = 69.84%
Debt/Equity = 116%
FCF Yield = 3.03%
Dividend Yield = 1.2%
Market Capitalization = $29.06 billion
W.W. Grainger (GWW) is an industrial supply company. It was founded in 1927 in Chicago as a mail-order business.
Grainger operates globally, but the company operates primarily in the United States, where 78% of sales occur. The next largest market is Japan, where 13% of revenue is derived after that is Canada, with 4% of sales taking place there.
At a high level, Grainger is a procurement company for businesses. Grainger is a trusted partner when an enterprise requires a one-stop shop for its procurement needs.
The customer base and product assortment are vast and highly diversified. Customers include manufacturers, governments, contractors, healthcare companies, transportation companies, and many more. The product assortment is also enormous and wide-ranging - safety equipment, plumbing equipment, HVAC systems, power tools, lighting, cleaning supplies, and many more.
The company is currently divided into three segments
High-Touch Solutions - This is the firm's most crucial segment, representing 78% of sales. This segment caters mostly to large businesses. Grainger delivers customized procurement solutions to these large enterprises. High Touch Solutions will frequently send a sales & service representative to the large business and provide them with custom tailored solutions. This is also the fastest growing segment of the company, posting sales growth of 19% in the last year.
Endless Assortment - This is an online platform with one-stop shopping for millions of different products. Endless assortment includes Grainger's critical US website, zoro.com. Endless assortment focuses on the needs of smaller businesses that need a simple platform to order their equipment. This segment represents 19.78% of sales. This segment grew by 8.6% in the last year.
Other - Small international high-touch solutions. This represents only 2% of sales. This segment actually produces slight losses.
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