W.W. Grainger
Inc is the leading provider of maintenance, repair, supplies and service for
safety, lab, automotive and industrial products to businesses and institutions
to keep their facilities and equipment running.
The company has grown profits and dividends at a 13-14% rate over the
past 10 years earning a 12-20% return on equity. While GWW
was impacted by the slowdown in the economy, it made a strong come back in 2010
and should continue to record profit growth for the long term by:
(1) expanded
product offerings. The company added
234,000 since 2006. It is also rapidly growing
its private label products,
(2) rapid
penetration of the e-commerce market which is the fastest growing segment of
its business,
(3)
international expansion,
(4) strong cash
flow which sustains a continuing stock buy back program.
Negatives:
(1) slow global
economic growth,
(2) margin
problems in Canada .
Statistical Summary
Stock Dividend Payout # Increases
Yield
Growth Rate Ratio Since 2003
Debt/ EPS Down Net
Value Line
Equity ROE Since 2003 Margin Rating
Chart
Note:
GWW stock made great progress off its March
2009 low, quickly surpassing the downtrend off its September 2008 high (red
line) and the November 2008 trading high (green line). Long term, GWW
is in an uptrend (straight blue lines).
Intermediate term it is in an uptrend (purple lines). The wiggly blue line is on balance
volume. The Dividend Growth owns a one
half position in GWW , having Sold one half
when dictated by our Discipline. The
upper boundary of its Buy Value
Range Sell Half
Range
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