W.W. Grainger Inc.GWW

Morningstar Rating

Stock Research and Analysis

by Anil Daka

W.W. Grainger distributes industrial supplies such as motors, tools, fasteners, and safety gear for maintenance and repair operations (MRO). We believe the firm's established, extensive scale, wide product range, superb delivery times, and localized Read more

Bulls Say

Grainger's store expansion plan is still under way. An increased geographic footprint will help the firm resist a contracting economy.

As the economy gets tougher, customers become more cost-conscious and could shop more at Grainger instead of local stores.

Grainger's solid balance sheet will allow it to make more acquisitions as targets get more attractive in a downturn. Read more

Bears Say

Grainger's heavy exposure to the U.S. economy points to a lack of diversity. Current market conditions will hurt Grainger more than distributors with a significant international presence.

A strong U.S. dollar will be a head wind in the short term as foreign revenue fetches less in dollars.

As manufacturers move production overseas, Grainger will see the domestic pie shrink for MRO supplies. Read more

Strategy

Grainger captures market share by offering a wide variety of products that reduce searching costs for its customers. Customers also see value in Grainger's same-day delivery since this eliminates the Read more

Management

Grainger's management practices are generally solid. James Ryan served as COO and in other roles within the firm before being appointed CEO in June 2008. In April 2009, Ryan succeeded former CEO Richard Keyser as chairman. Keyser remains on the board Read more

Profile

Grainger provides customers with facility maintenance products. The firm employs a multichannel strategy using physical stores, an online Web site, and direct marketing Read more

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