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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