GWW

W.W. Grainger Inc.

Consumer, Industrial/Transportation


Presented:10/07/2014
Price:$249.75
Cap:$17.10B
Current Price:$1,085.57
Cap:$53.00B

Presented

Date10/07/2014
Price$249.75
Market Cap$17.10B
Ent Value$17.40B
P/E Ratio21.01x
Book Value$47.60
Div Yield1.8%
Shares O/S68.40M
Ave Daily Vol420,000
Short Int5.59%

Current

Price$1,085.57
Market Cap$53.00B
W.W. Grainger, Inc. operates as a distributor of maintenance, repair, and operating (MRO) supplies; and other related products and services that are used by businesses and institutions in the United States and Canada. The company provides material handling equipment, safety and security supplies, lighting and electrical products, power and hand tools, pumps and plumbing supplies, cleaning and maintenance supplies, building and home inspection supplies, and vehicle and fleet components. It also offers inventory management and energy efficiency solutions; various industrial and safety supplies; tools, fasteners, instruments, welding, and shop equipment; and safety footwear, supplies, and services, as well as distributes metalworking products, production supplies, and MRO materials. The company sells private label brands under its registered trademarks, such as DAYTON, SPEEDAIRE, AIR HANDLER, TOUGH GUY, WESTWARD, CONDOR, and LUMAPRO; and offers its products through various branches, sales and service representatives, catalogs, and distribution centers, as well as through online Websites. It serves small and medium-sized businesses, large corporations, government entities, and other institutions. The company also operates in the Europe, Asia, Latin America, and internationally. W.W. Grainger, Inc. was founded in 1927 and is based in Lake Forest, Illinois.

Publicly traded companies mentioned herein: WW Grainger Inc (GWW), Amazon.com (AMZN), Fastenal Company (FAST)

Highlights

Shares of maintenance, repair and operating (MRO) supplier WW Grainger (GWW) appear to be overvalued at 20x the Street’s 2014 EPS estimates, and 18x 2015 estimates. With competition increasing, pressure on prices mounting, and sales and earnings growth slowing, the presenter is short the stock and believes the risk/ reward is attractive at ~$250.

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Idea Discussion

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