Disclaimer:

Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Wednesday, June 19, 2024

W.W. Grainger Valuation

 



W.W. Grainger, Inc., the industrial supply company is undervalued, according to Wolfteam Ltd.'s projections and estimates.

With 16.48 billion USD in revenue growing at 8.21 % and net profit margin of 11.10 % for 2023, W.W. Grainger's intrinsic value is 72 billion USD, compared with its current market capitalization of 45.36 billion USD.

Here is an excerpt from W.W. Grainger's first quarter 2024 earnings presentation:

Commentary vs. Prior Year

Sales increased 5.1% (reported and daily)
• 5.5% sales growth on a daily, organic constant currency
basis
• Generated growth in both segments
Gross profit margin declined 50 bps
• Slight margin contraction in both segments
Operating margin expanded 80 bps
• Strong SG&A leverage aided by lap of one-time items in
prior year
Diluted EPS of $8.33, up 16.7% versus prior year
($ in millions)

 

Summary Results (Adjusted) 


Q4 2023 Q4 2022
% vs. PY
Fav/(Unfav)
Sales $ 3,997 $ 3,802 5.1%
Daily Sales 63.5 60.3 5.1%
GP 1,563 1,506 3.8%
SG&A 980 983 0.3%
Op Earnings $ 583 $ 523 11.5%
EPS (diluted) $ 8.33 $ 7.14 16.7%
(% of sales)
Q4 2023 Q4 2022
bps vs. PY
Fav/(Unfav)
GP Margin 39.1 % 39.6 % (50)
SG&A 24.5 % 25.8 % 130
Op Margin 14.6 % 13.8 % 80

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