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Is this Large Market Cap Stock target price reasonable for W.W. Grainger, Inc. (NYSE:GWW)?

The company in question is, W.W. Grainger, Inc. (NYSE:GWW) currently with a stock price of 220.57 (1.07% today). The market cap for W.W. Grainger, Inc. is 13920.17, and is in the sector Services, and Industrial Equipment Wholesale industry. The target price for W.W. Grainger, Inc. is 221.43. Currently W.W. Grainger, Inc. is trading with a P/E of 20.07, and a forward P/E of 17.69. Average volume for W.W. Grainger, Inc. is 542.15 and so far today it is 656700.

Performance in the last year for W.W. Grainger, Inc. has been 5.29%. For EPS growth, W.W. Grainger, Inc. has seen a growth of 1.10%, and is looking to grow in the next year to 8.09%. More long term stats show that EPS growth has been 10.80% over the last five years and could be 6.20% for the next five years. W.W. Grainger, Inc. has seen sales growth quarter over quarter at -48.30%, with EPS growth quarter over quarter at -56.80%. The 20-day simple moving average is -2.07%, with the 200-day simple moving average coming to 1.76%.

Since the IPO date for W.W. Grainger, Inc. on the 12/17/1984, W.W. Grainger, Inc. has seen performance year to date to be 10.73%. With W.W. Grainger, Inc. trading at 220.57, the dividend yield is 2.21%, and the EPS is 10.99.

So could W.W. Grainger, Inc., be undervalued? Well as said before P/E is 20.07. The PEG is 3.24, P/S is 1.38 and the P/B is at 6.29. The P/cash is 44.05, with P/free cash flow at 41.17.

W.W. Grainger, Inc. ability to deal with debt shows that the current ratio is 1.9, and the quick ratio is 1.1. This is with long term debt/equity at 0.83, and total debt/equity at 1.06.

In terms of margins, W.W. Grainger, Inc. has a gross margin of 41.20%, an operating margin of 12.10% and a profit margin of 6.80%.Payout ratio for W.W. Grainger, Inc. is 42.70%. Return on assets come to 11.70% with return on investment coming to 19.60%.

Insider ownership for W.W. Grainger, Inc., is at 1.80% and institutional ownership comes to 85.70%. Outstanding shares are at 63.11. While shares float is 55.26. The float short is currently 15.24%, and short ratio is 15.54.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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