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Why I Like W.W. Grainger, Inc. (NYSE:GWW)

Blake Harford

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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on W.W. Grainger, Inc. (NYSE:GWW) due to its excellent fundamentals in more than one area. GWW is a highly-regarded dividend-paying company that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on W.W. Grainger here.

Established dividend payer with adequate balance sheet

GWW is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. GWW’s has produced operating cash levels of 0.48x total debt over the past year, which implies that GWW’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NYSE:GWW Historical Debt February 9th 19

GWW is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

NYSE:GWW Historical Dividend Yield February 9th 19

Next Steps:

For W.W. Grainger, I’ve compiled three essential aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for GWW’s future growth? Take a look at our free research report of analyst consensus for GWW’s outlook.
  2. Historical Performance: What has GWW’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GWW? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.