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Grainger

LSE:GRI
Snowflake Description

Acceptable track record with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GRI
LSE
£2B
Market Cap
  1. Home
  2. GB
  3. Real Estate
Company description

Grainger plc, together with its subsidiaries, owns, develops, manages, and rents residential properties in the United Kingdom. The last earnings update was 14 days ago. More info.


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GRI Share Price and Events
7 Day Returns
0.7%
LSE:GRI
2.2%
GB Real Estate
0.9%
GB Market
1 Year Returns
28%
LSE:GRI
27.3%
GB Real Estate
8.7%
GB Market
GRI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Grainger (GRI) 0.7% 7.2% 13.1% 28% 20% 53.8%
GB Real Estate 2.2% 5.1% 8.7% 27.3% -8% 20.1%
GB Market 0.9% -0.5% 0.9% 8.7% 3.6% 9.9%
1 Year Return vs Industry and Market
  • GRI matched the Real Estate industry (27.3%) over the past year.
  • GRI outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 8.7% over the past year.
Price Volatility
GRI
Industry
5yr Volatility vs Market

Value

 Is Grainger undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Grainger to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Grainger.

LSE:GRI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-09-30) in GBP £ 0.075504375
Payout Ratio Company Filings (2019-09-30) 2315%
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:GRI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.1%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.047 (1 + (1- 19%) (75.8%))
1.348
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.35
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (1.348 * 6.07%)
8.71%

Discounted Cash Flow Calculation for LSE:GRI using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Grainger is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

LSE:GRI Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= £0.08 / (8.71% - 0.53%)
£0.92
LSE:GRI Discount to Share Price
Calculation Result
Value per share (GBP) From above. £0.92
Current discount Discount to share price of £2.80
= -1 x (£2.80 - £0.92) / £0.92
-203.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Grainger is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Grainger's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Grainger's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:GRI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in GBP £0.20
LSE:GRI Share Price ** LSE (2019-12-11) in GBP £2.8
United Kingdom of Great Britain and Northern Ireland Real Estate Industry PE Ratio Median Figure of 30 Publicly-Listed Real Estate Companies 14.4x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 751 Publicly-Listed Companies 17.25x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Grainger.

LSE:GRI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:GRI Share Price ÷ EPS (both in GBP)

= 2.8 ÷ 0.20

14.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Grainger is good value based on earnings compared to the GB Real Estate industry average.
  • Grainger is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Grainger's expected growth come at a high price?
Raw Data
LSE:GRI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.1x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
11.5%per year
United Kingdom of Great Britain and Northern Ireland Real Estate Industry PEG Ratio Median Figure of 18 Publicly-Listed Real Estate Companies 1.09x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 559 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

LSE:GRI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.1x ÷ 11.5%

1.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Grainger is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Grainger's assets?
Raw Data
LSE:GRI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in GBP £2.00
LSE:GRI Share Price * LSE (2019-12-11) in GBP £2.8
United Kingdom of Great Britain and Northern Ireland Real Estate Industry PB Ratio Median Figure of 37 Publicly-Listed Real Estate Companies 1.11x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,312 Publicly-Listed Companies 1.51x
LSE:GRI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:GRI Share Price ÷ Book Value per Share (both in GBP)

= 2.8 ÷ 2.00

1.4x

* Primary Listing of Grainger.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Grainger is overvalued based on assets compared to the GB Real Estate industry average.
X
Value checks
We assess Grainger's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. Grainger has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Grainger expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Grainger expected to grow at an attractive rate?
  • Grainger's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Grainger's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Grainger's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:GRI Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:GRI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 11.5%
LSE:GRI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts -21.9%
United Kingdom of Great Britain and Northern Ireland Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 17.7%
United Kingdom of Great Britain and Northern Ireland Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 1.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 12.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:GRI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:GRI Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-09-30 142 158 163 1
2021-09-30 117 130 148 2
2020-09-30 103 130 131 1
2019-12-11
LSE:GRI Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-09-30 223 184 115
2019-06-30 233 174 105
2019-03-31 242 164 95
2018-12-31 257 145 91
2018-09-30 271 126 87
2018-06-30 277 109 85
2018-03-31 283 91 82
2017-12-31 274 68 78
2017-09-30 265 46 74
2017-06-30 246 42 76
2017-03-31 228 39 78
2016-12-31 224 46 76

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Grainger's earnings are expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).
  • Grainger's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:GRI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Grainger Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:GRI Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-09-30 0.27 0.29 0.25 2.00
2021-09-30 0.24 0.26 0.22 2.00
2020-09-30 0.21 0.23 0.20 2.00
2019-12-11
LSE:GRI Past Financials Data
Date (Data in GBP Millions) EPS *
2019-09-30 0.20
2019-06-30 0.17
2019-03-31 0.20
2018-12-31 0.17
2018-09-30 0.21
2018-06-30 0.20
2018-03-31 0.20
2017-12-31
2017-09-30 0.18
2017-06-30 0.18
2017-03-31 0.19
2016-12-31 0.18

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Grainger is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Grainger's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Grainger has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Grainger performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Grainger's growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Grainger's year on year earnings growth rate has been positive over the past 5 years.
  • Grainger's 1-year earnings growth exceeds its 5-year average (31.5% vs 14.2%)
  • Grainger's earnings growth has exceeded the GB Real Estate industry average in the past year (31.5% vs 2.2%).
Earnings and Revenue History
Grainger's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Grainger Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:GRI Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 222.80 114.90 30.20
2019-06-30 232.60 104.75 31.05
2019-03-31 242.40 94.60 31.90
2018-12-31 256.55 91.00 31.95
2018-09-30 270.70 87.40 32.00
2018-06-30 276.75 84.65 31.60
2018-03-31 282.80 81.90 31.20
2017-12-31 273.75 77.70 31.10
2017-09-30 264.70 73.50 31.00
2017-06-30 246.40 75.65 31.55
2017-03-31 228.10 77.80 32.10
2016-12-31 224.00 76.15 33.60
2016-09-30 219.90 74.50 35.10
2016-06-30 209.45 64.00 35.95
2016-03-31 199.00 53.50 36.80
2015-12-31 196.05 48.75 36.10
2015-09-30 193.10 44.00 35.40
2015-06-30 133.90 47.20 32.75
2015-03-31 74.70 50.40 30.10
2014-12-31 118.15 62.55 32.50
2014-09-30 161.60 74.70 34.90
2014-06-30 221.30 81.35 37.00
2014-03-31 281.00 88.00 39.10
2013-12-31 223.20 70.80 36.40
2013-09-30 165.40 53.60 33.70
2013-06-30 161.70 26.15 32.80
2013-03-31 158.00 -1.30 31.90
2012-12-31 165.40 -0.45 31.60

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Grainger has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Grainger used its assets less efficiently than the GB Real Estate industry average last year based on Return on Assets.
  • Grainger's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Grainger's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Grainger has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Grainger's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Grainger's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Grainger is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Grainger's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Grainger's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Grainger Company Filings, last reported 2 months ago.

LSE:GRI Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 1,223.50 1,294.10 189.30
2019-06-30 1,223.50 1,294.10 189.30
2019-03-31 1,179.10 1,221.10 141.90
2018-12-31 1,179.10 1,221.10 141.90
2018-09-30 815.60 964.60 113.70
2018-06-30 815.60 964.60 113.70
2018-03-31 774.80 998.30 100.40
2017-12-31 774.80 998.30 100.40
2017-09-30 745.30 930.60 92.30
2017-06-30 745.30 930.60 92.30
2017-03-31 706.50 869.60 83.00
2016-12-31 706.50 869.60 83.00
2016-09-30 675.20 856.80 91.00
2016-06-30 675.20 856.80 91.00
2016-03-31 578.70 986.50 67.00
2015-12-31 578.70 986.50 67.00
2015-09-30 564.90 1,261.90 90.80
2015-06-30 564.90 1,261.90 90.80
2015-03-31 536.20 1,196.30 116.20
2014-12-31 536.20 1,196.30 116.20
2014-09-30 537.70 1,166.10 74.40
2014-06-30 537.70 1,166.10 74.40
2014-03-31 507.30 1,064.50 96.70
2013-12-31 507.30 1,064.50 96.70
2013-09-30 465.50 1,140.10 90.30
2013-06-30 465.50 1,140.10 90.30
2013-03-31 418.60 1,340.40 61.50
2012-12-31 418.60 1,340.40 61.50
  • Grainger's level of debt (105.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (216.9% vs 105.8% today).
  • Debt is not well covered by operating cash flow (14.2%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.3x coverage).
X
Financial health checks
We assess Grainger's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Grainger has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Grainger's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.85%
Current annual income from Grainger dividends. Estimated to be 2.7% next year.
If you bought £2,000 of Grainger shares you are expected to receive £37 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Grainger's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).
  • Grainger's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Upcoming dividend payment

Purchase Grainger before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:GRI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 28 Stocks 2.7%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 678 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:GRI Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-09-30 0.09 3.00
2021-09-30 0.08 6.00
2020-09-30 0.07 7.00
2019-12-11
LSE:GRI Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-12-03 0.052 1.855
2018-11-14 0.053 2.165
2017-11-30 0.049 1.649
2016-12-06 0.045 1.755
2016-12-01 0.045 2.054
2016-05-19 0.040 1.790
2015-11-25 0.028 1.217
2015-11-19 0.028 1.127
2015-05-14 0.025 1.085
2014-11-21 0.025 1.234
2014-11-20 0.025 1.286
2014-05-19 0.021 1.024
2013-11-07 0.020 0.930
2013-05-16 0.020 1.156
2012-12-06 0.019 1.462
2012-11-22 0.019 1.702
2012-05-17 0.011 1.118
2011-12-05 0.013 1.249
2011-11-24 0.013 1.291
2011-05-19 0.000 0.000
2010-12-24 0.017 1.604
2010-11-25 0.017 1.737
2010-05-20 0.010 0.908
2009-11-05 0.039 2.768
2009-05-20 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Grainger's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess Grainger's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Grainger afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Grainger has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Grainger's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Helen Gordon
COMPENSATION £1,068,000
AGE 59
TENURE AS CEO 3.9 years
CEO Bio

Ms. Helen C. Gordon, MRICS, has been an Independent Non-Executive Director of Derwent London Plc since January 1, 2018. She has been the Chief Executive Officer at Grainger Plc since January 01, 2016. Ms. Gordon has considerable experience of complex property projects and transactions and high-level team leadership skills. She served as the Global Head of Global Restructuring Group-Real Estate Asset Management at The Royal Bank of Scotland Group plc. Ms. Gordon is an expert in enhancing 'Brownfield' sites and development of under-utilized resources. Ms. Gordon served as the Head of West Register at West Register (Investments) Limited and The Royal Bank of Scotland Group plc since July 2011. Ms. Gordon served as a Property Director of Life Fund at Legal and General Investment Management. She was responsible for the property portfolio of the Legal & General Life Fund and the Development and Project Services teams. Ms. Gordon joined Legal & General Property Limited in 2003 and served as its Director of Fund Management since 2003. She served as a Managing Director at Railtrack Property Development Limited and latterly, Group Property Director. Ms. Gordon served as Managing Director of John Laing Developments and John Laing Property Ventures. She serves as a Director of the English Cities Fund and the Central Saint Giles Partnership. She has been an Executive Director of Grainger Plc. since November 2015. Ms. Gordon serves as a Non-Executive Director of New Covent Garden Market. She served as Director of Covent Garden Market Authority until September 21, 2016 and British Waterways. She serves as a Trustee of the College of Estate Management. She serves as an Advisory Board member of Cambridge University Land Economy Department. She is also a vice president of the British Property Federation and a director of EPRA. She served as a Director of Canal & River Trust. Ms. Gordon is a Member of the Royal Institute of Chartered Surveyors. She holds a BSc in Estate Management.

CEO Compensation
  • Helen's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Helen's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Grainger management team in years:

3.8
Average Tenure
59
Average Age
  • The tenure for the Grainger management team is about average.
Management Team

Helen Gordon

TITLE
CEO & Executive Director
COMPENSATION
£1M
AGE
59
TENURE
3.9 yrs

Vanessa Simms

TITLE
CFO & Executive Director
COMPENSATION
£674K
AGE
43
TENURE
3.8 yrs

Andrew Saunderson

TITLE
Director of Investment and PDMR

David Smith

TITLE
Group Accounting Director
AGE
60

David Prescott

TITLE
Director of Strategy & Corporate Finance
TENURE
1.3 yrs

Kurt Mueller

TITLE
Director of Corporate Affairs

Adam McGhin

TITLE
Group General Counsel & Company Secretary

Manpreet Dillon

TITLE
Director of Property Services & Compliance

Anish Thobhani

TITLE
Customer Operations Director
Board of Directors Tenure

Average tenure and age of the Grainger board of directors in years:

2.8
Average Tenure
57
Average Age
  • The average tenure for the Grainger board of directors is less than 3 years, this suggests a new board.
Board of Directors

Mark Clare

TITLE
Independent Non-Executive Chairman of the Board
COMPENSATION
£165K
AGE
62
TENURE
2.8 yrs

Helen Gordon

TITLE
CEO & Executive Director
COMPENSATION
£1M
AGE
59
TENURE
4.1 yrs

Vanessa Simms

TITLE
CFO & Executive Director
COMPENSATION
£674K
AGE
43
TENURE
3.8 yrs

Andrew C. Carr-Locke

TITLE
Senior Independent Director
COMPENSATION
£65K
AGE
65
TENURE
1.8 yrs

Justin Read

TITLE
Independent Non-Executive Director
COMPENSATION
£56K
AGE
57
TENURE
2.8 yrs

Rob Wilkinson

TITLE
Independent Non-­Executive Director
COMPENSATION
£47K
AGE
46
TENURE
4.2 yrs

Janette Bell

TITLE
Independent Non-Executive Director
COMPENSATION
£30K
AGE
55
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
10. Apr 19 Buy Vanessa Simms Individual 05. Apr 19 05. Apr 19 124 £2.41 £298
10. Apr 19 Buy Helen Gordon Individual 05. Apr 19 05. Apr 19 126 £2.41 £303
14. Feb 19 Sell Vanessa Simms Individual 12. Feb 19 12. Feb 19 -5,579 £2.43 £-13,535
14. Feb 19 Sell Helen Gordon Individual 12. Feb 19 12. Feb 19 -13,465 £2.43 £-32,666
X
Management checks
We assess Grainger's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Grainger has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Here's What Grainger plc's (LON:GRI) P/E Ratio Is Telling Us

The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Grainger: P/E of 12.2 = £2.4 ÷ £0.20 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Does Grainger's P/E Ratio Compare To Its Peers?

Simply Wall St -

With A Return On Equity Of 8.0%, Has Grainger plc's (LON:GRI) Management Done Well?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Grainger: 8.0% = UK£95m ÷ UK£1.2b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

Is It Time To Consider Buying Grainger plc (LON:GRI)?

A question to answer is whether Grainger's current trading price of £2.35 reflective of the actual value of the small-cap? … GRI’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. … Will you have enough confidence to invest in the company should the price drop below its fair value?

Simply Wall St -

Grainger (LON:GRI) Shares Have Generated A Total Return Of -9.9% In The Last Year

That downside risk was realized by Grainger plc (LON:GRI) shareholders over the last year, as the share price declined 20%. … As it happens, Grainger's TSR for the last year was -9.9%, which exceeds the share price return mentioned earlier. … A Different Perspective While the broader market gained around 1.8% in the last year, Grainger shareholders lost 9.9% (even including dividends).

Simply Wall St -

Be Sure To Check Out Grainger plc (LON:GRI) Before It Goes Ex-Dividend

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. … Earnings per share have been growing moderately, and Grainger is paying out less than half its earnings and cash flow as dividends, which is an attractive combination as it suggests the company is investing in growth. … See what the two analysts we track are forecasting , with this visualisation of its historical and future estimated earnings and cash flow If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.

Simply Wall St -

A Spotlight On Grainger plc's (LON:GRI) Fundamentals

LSE:GRI Income Statement, May 15th 2019 Next Steps: For Grainger, I've put together three relevant factors you should look at: Future Outlook: What are well-informed industry analysts predicting for GRI’s future growth? … Take a look at our free research report of analyst consensus for GRI’s outlook. … The intrinsic value infographic in our free research report helps visualize whether GRI is currently mispriced by the market.

Simply Wall St -

Should Grainger plc (LON:GRI) Be Part Of Your Dividend Portfolio?

Is Grainger plc (LON:GRI) a good dividend stock? How would you know? A dividend paying company with growing earnings can be rewarding in the long term.. … If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful.. … Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1

Simply Wall St -

What Should We Expect From Grainger plc's (LON:GRI) Earnings Over The Next Few Years?

In September 2018, Grainger plc (LON:GRI) announced its latest earnings update, whicha … showed … business

Simply Wall St -

Do Directors Own Grainger plc (LON:GRI) Shares?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … Companies that used to be publicly owned tend to have lower insider ownership. … Grainger has a market capitalization of UK£1.5b, so we would expect some institutional investors to have noticed the stock.

Simply Wall St -

What Investors Should Know About Grainger plc's (LON:GRI) Financial Strength

Investors are always looking for growth in small-cap stocks like Grainger plc (LON:GRI), with a market cap of UK£1.5b. … Evaluating financial health as part of your investment thesis is. … The following basic checks can help you get a picture of the company's balance sheet strength.

Simply Wall St -

Company Info

Description

Grainger plc, together with its subsidiaries, owns, develops, manages, and rents residential properties in the United Kingdom. The company operates through three segments: Residential, Development, and Funds. It also provides property and asset management services. The company was founded in 1912 and is headquartered in Newcastle upon Tyne, the United Kingdom.

Details
Name: Grainger plc
GRI
Exchange: LSE
Founded: 1912
£1,707,149,242
609,696,158
Website: http://www.graingerplc.co.uk
Address: Grainger plc
Citygate,
St James' Boulevard,
Newcastle upon Tyne,
Tyne and Wear, NE1 4JE,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE GRI Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
DB 1U4 Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BATS-CHIXE GRIL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
Number of employees
Current staff
Staff numbers
266
Grainger employees.
Industry
Real Estate Operating Companies
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/11 20:33
End of day share price update: 2019/12/11 00:00
Last estimates confirmation: 2019/12/11
Last earnings filing: 2019/11/27
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.