WW Grainger Story

<div class='circular--portrait' style='background:#347AFC;color: #ffffff;font-size:4em;'>WG</div>
GWW -- USA Stock  

USD 372.71  7.25  1.91%

As many rational traders are trying to avoid industrials space, it makes sense to focus on W W Grainger a little further and understand how it stands against Fastenal and other similar entities. We are going to recap some of the competitive aspects of both W W and Fastenal.
Published over three weeks ago
View all stories for WW Grainger | View All Stories
Will W W (NYSE:GWW) sophisticated investors shift to Fastenal (NASDAQ:FAST)?
By analyzing existing technical and fundamental indicators between W W and Fastenal, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Fastenal with a short position in W W. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. W W has an asset utilization ratio of 199.74 percent. This indicates that the company is making $2.0 for each dollar of assets. An increasing asset utilization means that W W Grainger is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as WW Grainger or Fastenal is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING WW Grainger dividends

A dividend is the distribution of a portion of WW Grainger earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. WW Grainger dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. WW Grainger one year expected dividend income is about $2.91 per share.
Dividend Yield is likely to climb to 0.0204 in 2021, whereas Payment of Dividends and Other Cash Distributions is likely to drop (318.5 M) in 2021.
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-295.2 M-318.5 M
Dividend Yield 0.0196  0.0204 
Dividends per Basic Common Share 6.53  5.81 
Investing in dividend-paying stocks, such as WW Grainger is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in WW Grainger must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for WW Grainger. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is WW Grainger's Liquidity

WW Grainger financial leverage refers to using borrowed capital as a funding source to finance WW Grainger ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. WW Grainger financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between WW Grainger's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for WW Grainger, but it might be worth checking our own buy vs. sell analysis

Correlation Between WW Grainger and Fastenal

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding WW Grainger together with similar or unrelated positions with a negative correlation. For example, you can also add Fastenal to your portfolio. If Fastenal is not perfectly correlated to WW Grainger it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When WW Grainger for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between GWW and FAST for more information.

A Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at W W revenue. Based on the latest financial disclosure, W W Grainger reported 11.7 B of revenue. This is 234.42% higher than that of the Industrials sector and 219.15% higher than that of the Industrial Distribution industry. The revenue for all United States stocks is 24.01% lower than that of the stock. As for Fastenal we see revenue of 5.65 B, which is 54.12% higher than that of the Industrial Distribution

W W11.7 Billion
Sector3.5 Billion
Fastenal5.65 Billion
11.7 B
W W
3.5 B
Sector
5.7 B
Fastenal

How will W W sophisticated investors react to the next fall?

The treynor ratio is down to 0.12 as of today. W W Grainger has relatively low volatility with skewness of 0.08 and kurtosis of 0.46. However, we advise all investors to independently investigate W W Grainger to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Takeaway

While some firms in the industrial distribution industry are either recovering or due for a correction, W W may not be performing as strong as the other in terms of long-term growth potentials. While some sophisticated investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to W W.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of WW Grainger. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com