When investors are recalibrating their portfolios they should take a look at current volatility levels and the target weight calculation of a given stock. W.W. Grainger, Inc. (NYSE:GWW) has a current target weight (% as a decimal) of 0.04050. This means that any balanced portfolio should not be holding more than this percentage of stock within their holdings group. This number is based on recent stock volatility for the past 100 days.
Individuals invest in order to get a return on the investment. Nobody enters the equity markets with the hope of losing money. Returns on investments may come in different forms. With any stock investment, there may be some level of risk involved. Understanding the risk is important and should be considered very carefully. Of course, the stock may go up and become a winner, or shares could sour and turn into losers. Returns in the stock market may often mimic the amount of risk. Generally speaking, the greater the risk, the greater the reward. With the greater chance of reward comes the greater chance of losses. Keeping a balanced and diversified portfolio can help manage the risk associated with investing in the stock market.
W.W. Grainger, Inc. (NYSE:GWW) of the Support Services sector closed the recent session at 311.810000 with a market value of $17418442.
Taking look at some key returns data we can note the following:
So how has W.W. Grainger, Inc. (NYSE:GWW) performed in terms of returns? The ROIC quality score stands at 8.809975 whilet he actual return on invested capital holds at 0.455593. W.W. Grainger, Inc.’s book to market ratio is at 0.120160 while the book to market mean difference is -0.08603. This indicator tells you how a company is currently valued in terms of Book to Market compared to its average Book to Market over the past 10 years. It’s important to note that BM is the inverse of the Price to book ratio. Thus a high BM ratio means a company is undervalued. W.W. Grainger, Inc. (NYSE:GWW) has seen free cash flow growth of 0.169456 and has a free cash flow score of 0.792965. Free Cash Flow Score (FCF Score) is a value that is calculated by combining Free cash flow growth with free cash flow stability. It thus gives you a combined indication of free cash flow quality.
Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.176775 for W.W. Grainger, Inc. (NYSE:GWW). The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.
Investors are usually scouring the markets for that next great stock pick. Locating that special winner to jumpstart the portfolio may involve lots of diligent hard work. Filing through the massive amounts of data regarding public companies can be an overwhelming task. Many successful investors will approach the equity markets from various sides. This may include keeping a close eye on the fundamentals as well as the technical data. This may also include following sell-side analyst opinions and tracking what the big money institutions are buying or selling.
In addition to Capex to PPE we can look at Cash Flow to Capex. This ration compares a stock’s operating cash flow to its capital expenditure and can identify if a firm can generate enough cash to meet investment needs. Investors are looking for a ratio greater than one, which indicates that the firm can meet that need. Comparing to other firms in the same industry is relevant for this ratio. W.W. Grainger, Inc. (NYSE:GWW)’s Cash Flow to Capex stands at 4.422594.
In looking at some Debt ratios, W.W. Grainger, Inc. (NYSE:GWW) has a debt to equity ratio of 1.06068 and a Free Cash Flow to Debt ratio of 0.368468. This ratio provides insight as to how high the firm’s total debt is compared to its free cash flow generated. In terms of Net Debt to EBIT, that ratio stands at 1.25149. This ratio reveals how easily a company is able to pay interest and capital on its net outstanding debt. The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio. W.W. Grainger, Inc.’s ND to MV current stands at 0.096564. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.
Investors are frequently looking for any possible way to get a leg up in the market. This may involve committing to plan that will hopefully outperform the market and maximize profits. Many investors will choose to employ top-down analysis. Top-down analysis involves examining the big picture of the economy and the world of finance. After studying global economic conditions, investors may then analyze different sectors that are possibly well positioned to beat the market. After identifying the sector or sectors, investors may then do further analysis of stocks within the specific industry in order to find firms that are successful and primed for growth. Other individual investors may choose to go with bottom-up analysis when looking for stock to add to the portfolio. The bottom-up approach takes the emphasis off of the power and significance of market and economic cycles. Investors may focus on individual companies and not worry so much about the specific industry or economy in general.
Near-Term Growth Drilldown
Now we’ll take a look at some key growth data as decimals. One year cash flow growth ratio is calculated on a trailing 12 months basis and is a one year percentage growth of a firm’s cash flow from operations. This number stands at 0.00042 for W.W. Grainger, Inc. (NYSE:GWW). The one year Growth EBIT ratio stands at 0.15383 and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number stands at 0.12045 which is calculated similarly to EBIT Growth with just the addition of amortization.
Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at 0.00167. The one year growth in Net Profit after Tax is 0.34585 and lastly sales growth was 0.07637.
50/200 Simple Moving Average Cross
W.W. Grainger, Inc. (NYSE:GWW) has a 0.91909 50/200 day moving average cross value. Cross SMA 50/200 (SMA = Simple Moving Average) and is calculated as follows:
Cross SMA 50/200 = 50 day moving average / 200day moving average. If the Cross SMA 50/200 value is greater than 1, it tell us that the 50 day moving average is above the 200 day moving average (golden cross), indicating an upward moving share price.
On the other hand if the Cross SMA 50/200 value is less than 1, this shows that the 50 day moving average is below the 200 day moving average (a death cross), and tells us that share prices has fallen recently and may continue to do so.
When dealing with the equity markets, investors are often tasked with trying to find stocks that are bound for glory. Every investor dreams of finding those stocks that were overlooked but are poised to pick up momentum. New investors are often instructed to set goals before starting to invest. Creating attainable, realistic goals can be a good starting point before digging into the investment trenches. After setting up goals considering financial status, objectives, timeframes and risk appetite, the next step may involve creating an actionable plan. Once the plan is in place, it may be extremely important to routinely monitor the performance of the portfolio. There are often many well crafted investment plans that for whatever reason don’t seem to be working out properly. Being able to evaluate and adjust the plan based on market activity may end up being the difference between a winning or losing portfolio. Being able to adapt to the fast paced and often times tumultuous market landscape can be a gigantic benefit for long-term portfolio health.