GWW W.W. Grainger

W. W. Grainger, Inc. is an American Fortune 500 industrial supply company founded in 1927 in Chicago by William W. Grainger. He founded the company in order to provide consumers with access to a consistent supply of motors. The company now serves more than 3 million customers worldwide with offerings such as motors, lighting, material handling, fasteners, plumbing, tools, and safety supplies, along with inventory management services and technical support. Revenue is generally from business-to-business sales rather than retail sales. Grainger serves its over 3 million customers through a network of approximately 598 branches, online channels , and 33 distribution centers. The company was founded as a supplier for businesses by William Wallace Grainger in 1927 in Chicago, Illinois, and incorporated as W. W. Grainger, Inc. in 1928. Sales in the early days were generated primarily through mail order via post cards and a catalog. The MotorBook, as the catalog was originally called, was the basis for today's Grainger catalog. Grainger headquarters are now located in Lake Forest, Illinois. By 1936, Grainger had established 15 branches to improve customer service.
Company profile
Ticker
GWW
Exchange
Website
CEO
Donald Macpherson
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Former names
GRAINGER W W INC
SEC CIK
Corporate docs
IRS number
361150280
GWW stock data
()
News
Morgan Stanley Maintains Equal-Weight on W.W. Grainger, Raises Price Target to $405
4 Feb 21
A Look Into W.W. Grainger's Debt
4 Feb 21
W.W. Grainger: Q4 Earnings Insights
3 Feb 21
W.W. Grainger Q4 Adj. EPS $3.66 Misses $3.86 Estimate, Sales $2.94B Beat $2.92B Estimate
3 Feb 21
Earnings Scheduled For February 3, 2021
3 Feb 21
Press releases
Calendar
23 Feb 21
2 Mar 21
31 Dec 21
Financial summary
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Dec 20 | Sep 20 | Jun 20 | Mar 20 | |
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Dec 20 | Dec 19 | Dec 18 | Dec 17 | |
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Financial data from company earnings reports.
Cash burn rate (estimated) | Burn method: Change in cash | Burn method: Operating income/loss | Burn method: FCF (opex + capex) | Last Q | Avg 4Q | Last Q | Avg 4Q | Last Q | Avg 4Q |
---|---|---|---|---|---|---|
Cash on hand (at last report) | 585M | 585M | 585M | 585M | 585M | 585M |
Cash burn (monthly) | 91.33M | (positive/no burn) | (positive/no burn) | (positive/no burn) | (positive/no burn) | (positive/no burn) |
Cash used (since last report) | 186.64M | n/a | n/a | n/a | n/a | n/a |
Cash remaining | 398.36M | n/a | n/a | n/a | n/a | n/a |
Runway (months of cash) | 4.4 | n/a | n/a | n/a | n/a | n/a |
Recent insider trades
Date | Owner | Security | Transaction | Code | Indirect | 10b5-1 | $Price | #Shares | $Value | #Remaining |
---|---|---|---|---|---|---|---|---|---|---|
4 Jan 21 | Robert F OKeef | Common Stock | Grant | Aquire A | No | No | 0 | 613 | 0 | 3,787 |
10 Dec 20 | Howard John L | Common Stock | Sell | Dispose S | No | Yes | 408.2612 | 644 | 262.92K | 39,567 |
10 Dec 20 | Howard John L | Common Stock | Sell | Dispose S | No | Yes | 405.9593 | 4,625 | 1.88M | 40,211 |
10 Dec 20 | Howard John L | Common Stock | Sell | Dispose S | No | Yes | 405.0275 | 501 | 202.92K | 44,836 |
10 Dec 20 | Howard John L | Common Stock | Sell | Dispose S | No | Yes | 404.1052 | 1,929 | 779.52K | 45,337 |
10 Dec 20 | Howard John L | Common Stock | Sell | Dispose S | No | Yes | 402.8605 | 6,253 | 2.52M | 47,266 |
10 Dec 20 | Howard John L | Common Stock | Sell | Dispose S | No | Yes | 402.1531 | 4,665 | 1.88M | 53,519 |
10 Dec 20 | Howard John L | Common Stock | Sell | Dispose S | No | Yes | 401.0442 | 286 | 114.7K | 58,184 |
10 Dec 20 | Howard John L | Common Stock | Option exercise | Aquire M | No | Yes | 248.22 | 7,360 | 1.83M | 58,470 |
10 Dec 20 | Howard John L | Common Stock | Option exercise | Aquire M | No | Yes | 245.86 | 11,543 | 2.84M | 51,110 |
Institutional ownership Q4 2020
68.4% owned by funds/institutions
13F holders |
Current |
---|---|
Total holders | 722 |
Opened positions | 105 |
Closed positions | 67 |
Increased positions | 208 |
Reduced positions | 254 |
13F shares |
Current |
---|---|
Total value | 14.99B |
Total shares | 36.73M |
Total puts | 533.4K |
Total calls | 285.9K |
Total put/call ratio | 1.9 |
Largest owners |
Shares | Value |
---|---|---|
Vanguard | 5.4M | $2.2B |
BLK Blackrock | 3.73M | $1.52B |
Longview Partners | 2.69M | $1.1B |
STT State Street | 2.29M | $934.81M |
Clearbridge Advisors | 2.05M | $836.91M |
NTRS Northern Trust | 1.16M | $473.53M |
Geode Capital Management | 824.15K | $335.77M |
Nuveen Asset Management | 723.76K | $295.54M |
BEN Franklin Resources | 710.48K | $290.12M |
BAC Bank Of America | 645.79K | $263.7M |
Financial report summary
?Risks
- Weakness in the economy, market trends and other conditions affecting the profitability and financial stability of Grainger’s customers could negatively impact Grainger’s sales growth and results of operations.
- The facilities maintenance industry is highly competitive, and changes in competition could result in decreased demand for Grainger’s products and services.
- Volatility in commodity prices may adversely affect gross margins.
- Unexpected product shortages, tariffs, product cost increases and risks associated with Grainger’s suppliers could negatively impact customer relationships or result in an adverse impact on results of operations.
- Changes in customer base or product mix could cause changes in Grainger’s revenue or gross margin, or affect Grainger’s competitive position.
- Disruptions in Grainger’s supply chain could result in an adverse impact on results of operations.
- Interruptions in the proper functioning of information systems could disrupt operations and cause unanticipated increases in costs and/or decreases in revenues.
- Cybersecurity incidents, including breaches of information systems security, could damage Grainger’s reputation, disrupt operations, increase costs and/or decrease revenues.
- Grainger’s ability to adequately protect its intellectual property or successfully defend against infringement claims by others may have an adverse impact on operations.
- Fluctuations in foreign currency could have an effect on reported results of operations.
- In order to compete, Grainger must attract, retain, train, motivate, develop and transition key employees, and the failure to do so could have an adverse effect on results of operations.
- Grainger’s continued success is substantially dependent on positive perceptions of Grainger’s reputation.
- Grainger is subject to various domestic and foreign laws, regulations and standards. Failure to comply or unforeseen developments in related contingencies such as litigation could adversely affect Grainger’s financial condition, results of operations and cash flows.
- Grainger is subject to a number of rules and regulations related to its government contracts, which may result in increased compliance costs and potential liabilities.
- In conducting its business Grainger may become subject to legal proceedings or governmental investigations, including in connection with product liability or product compliance claims if people, property or the environment are harmed by Grainger’s products or services.
- Tax changes could affect Grainger’s effective tax rate and future profitability.
- Grainger’s common stock may be subject to volatility or price declines.
- Changes in Grainger’s credit ratings and outlook may reduce access to capital and increase borrowing costs.
- Grainger has incurred substantial indebtedness and may incur substantial additional indebtedness, which could adversely affect cash flow, decrease business flexibility, or prevent Grainger from fulfilling its obligations.
Management Discussion
- Net sales were $9,070 million for the year ended December 31, 2020, an increase of $255 million, or 2.9%, compared with net sales of $8,815 million for 2019. On a daily basis, net sales increased 2.5% and consisted of the following:
- Overall, revenue increases for the U.S. business were primarily driven by COVID-19 pandemic-related sales, which accounted for the majority of the sales growth beginning in mid-February 2020. As a result of the COVID-19 pandemic, the U.S. business experienced strong sales volume of pandemic-related products primarily from large government and healthcare customers; however, sales to non-essential and disrupted industries are down compared to 2019. See Note 3 to the Financial Statements for information related to disaggregated revenue. From a product perspective, the U.S. business experienced strong demand for COVID-19 pandemic-related products; however, this elevated demand was partially offset by lower demand of non-pandemic products.
- Gross profit margin decreased 2.5 percentage points compared to the same period in 2019. The decrease was the result of pandemic related headwinds, including product, customer mix and inventory write-downs to reflect current
Content analysis
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New words:
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Removed:
adjustment, advance, auto, beneficial, cancelable, CDOR, clean, closing, combined, composed, conform, deductible, determination, energy, EURIBOR, immaterial, improved, indexed, integration, IRC, Jadin, janitorial, Joseph, lender, maximum, minimum, PLC, practical, realize, reinvestment, remeasured, remeasurement, reserve, retrospective, Ronald, Separation, site, stoppage, subsequent, taxation, track, utilize
Financial reports
10-K
2020 FY
Annual report
23 Feb 21
10-Q
2020 Q3
Quarterly report
22 Oct 20
10-Q
2020 Q2
Quarterly report
23 Jul 20
10-Q
2020 Q1
Quarterly report
23 Apr 20
10-K
2019 FY
Annual report
20 Feb 20
10-Q
2019 Q3
Quarterly report
23 Oct 19
10-Q
2019 Q2
Quarterly report
24 Jul 19
10-Q
2019 Q1
Quarterly report
22 Apr 19
10-K
2018 FY
Annual report
28 Feb 19
10-Q
2018 Q3
Quarterly report
1 Nov 18
Current reports
8-K
Grainger Reports Results for the Fourth Quarter and Full Year 2020
3 Feb 21
8-K
Grainger Announces Appointments of Chief Financial Officer and President of Grainger Business Unit
12 Jan 21
8-K
Grainger Announces CFO Leadership Transition
3 Dec 20
8-K
W.W. Grainger, Inc. Names Steven A. White to its Board of Directors
28 Oct 20
8-K
Grainger Reports Results for the Third Quarter 2020
22 Oct 20
8-K
Grainger Reports Results for the 2020 Second Quarter
23 Jul 20
8-K
Submission of Matters to a Vote of Security Holders
1 May 20
8-K
Grainger Reports Results for the 2020 First Quarter
23 Apr 20
8-K
Grainger to Hold Virtual Annual Shareholders’ Meeting
9 Apr 20
8-K
Grainger Elects to Draw Down on Revolving Credit Facility to Supplement Strong Cash Position
31 Mar 20
Registration and prospectus
424B2
Prospectus for primary offering
25 Feb 20
FWP
Free writing prospectus
21 Feb 20
424B5
Prospectus supplement for primary offering
21 Feb 20
S-3ASR
Automatic shelf registration
20 Feb 20
424B5
Prospectus supplement for primary offering
16 May 17
424B5
Prospectus supplement for primary offering
14 May 17
FWP
Free writing prospectus
14 May 17
424B5
Prospectus supplement for primary offering
9 May 16
424B5
Prospectus supplement for primary offering
8 May 16
FWP
Free writing prospectus
8 May 16
Proxies
DEFA14A
Additional proxy soliciting materials
9 Apr 20
DEFA14A
Additional proxy soliciting materials
19 Mar 20
DEFA14A
Additional proxy soliciting materials
19 Mar 20
DEF 14A
Definitive proxy
19 Mar 20
DEFA14A
Additional proxy soliciting materials
14 Mar 19
DEF 14A
Definitive proxy
14 Mar 19
DEF 14A
Definitive proxy
14 Mar 18
DEFA14A
Additional proxy soliciting materials
14 Mar 18
DEF 14A
Definitive proxy
15 Mar 17
DEFA14A
Additional proxy soliciting materials
15 Mar 17
Other
UPLOAD
Letter from SEC
4 Jul 18
UPLOAD
Letter from SEC
25 Sep 16
CORRESP
Correspondence with SEC
15 Sep 16
UPLOAD
Letter from SEC
31 Aug 16
UPLOAD
Letter from SEC
4 Oct 15
CORRESP
Correspondence with SEC
24 Sep 15
UPLOAD
Letter from SEC
14 Sep 15
UPLOAD
Letter from SEC
15 May 13
CORRESP
Correspondence with SEC
13 May 13
UPLOAD
Letter from SEC
8 May 13
Ownership
SC 13G/A
W.W. GRAINGER / Longview Partners ownership change
16 Feb 21
SC 13G/A
W.W. GRAINGER / VANGUARD ownership change
10 Feb 21
SC 13G/A
W.W. GRAINGER / Williams Susan Slavik ownership change
8 Feb 21
SC 13G/A
W.W. GRAINGER / BlackRock ownership change
1 Feb 21
4
W.W. GRAINGER / Robert F OKeef ownership change
5 Jan 21
3
W.W. GRAINGER / Robert F OKeef ownership change
5 Jan 21
4
W.W. GRAINGER / JOHN L HOWARD ownership change
11 Dec 20
4
W.W. GRAINGER / Kathleen S Carroll ownership change
3 Dec 20
4
W.W. GRAINGER / Steven Andrew White ownership change
2 Dec 20
4
W.W. GRAINGER / Lucas E Watson ownership change
2 Dec 20
Patents
APP
Utility
System and Method for Using a Camera Image to Provide E-commerce Related Functionalities
28 Jan 21
A computer vision system, which can accurately, quickly, and simultaneously identify multiple SKUs and SKU categories from multiple images taken at a customer's location and that will allow a customer and/or a sales representative to quickly create definitive lists of SKUs and SKU categories that a target vendor sells.
GRANT
Utility
Power harvesting inventory management system with identity verification
2 Nov 20
An inventory management system includes a beacon or button connected to a warehouse server.
GRANT
Utility
System and method for using an image to obtain search results
29 Jun 20
A system and method compares an image of an object of interest captured by an image capturing device from a first positional view relative to the object of interest against each of a plurality of images of each of a plurality of reference objects wherein each of the plurality of images of each of the plurality of reference objects is reflective of a unique positional view of the corresponding one of the plurality of reference objects to determine a second positional view relative to the object of interest at which the image capturing device is to be positioned to capture a further image of the product of interest.
GRANT
Utility
System and method for using geographical locations to provide access to product information
15 Jun 20
A current geographic location of a mobile device, such as a smart phone, tablet computer, or the like, is used to customize a selection guide that is used to retrieve product related information.
GRANT
Utility
System and method for using a mobile device to access inventory
1 Jun 20
A system and method for using a mobile device to cause a vending machine to provide access to a product.
Transcripts
2020 Q4
Earnings call transcript
3 Feb 21
2020 Q3
Earnings call transcript
22 Oct 20
2020 Q2
Earnings call transcript
23 Jul 20
2020 Q1
Earnings call transcript
23 Apr 20
2019 Q4
Earnings call transcript
30 Jan 20
2019 Q3
Earnings call transcript
23 Oct 19
2019 Q2
Earnings call transcript
24 Jul 19
2019 Q1
Earnings call transcript
22 Apr 19
2018 Q4
Earnings call transcript
24 Jan 19
2018 Q3
Earnings call transcript
16 Oct 18
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