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Should Quality-Oriented Investors Explore SHERWIN-WILLIAMS CO/THE (NYSE:SHW)?

By Mill Chart

Last update: Mar 25, 2024

In this article we will dive into SHERWIN-WILLIAMS CO/THE (NYSE:SHW) as a possible candidate for quality investing. Investors should always do their own research, but we noticed SHERWIN-WILLIAMS CO/THE showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NYSE:SHW may be interesting for quality investors.

  • The 5-year revenue growth of SHERWIN-WILLIAMS CO/THE has been remarkable, with 5.62% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • With a notable ROIC excluding cash and goodwill at 56.88%, SHERWIN-WILLIAMS CO/THE demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • SHERWIN-WILLIAMS CO/THE demonstrates a well-balanced Debt/Free Cash Flow Ratio of 3.74, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • With a robust Profit Quality (5-year) ratio of 111.0%, SHERWIN-WILLIAMS CO/THE highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • SHERWIN-WILLIAMS CO/THE has consistently achieved strong EBIT growth over the past 5 years, with a 13.79% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • The EBIT 5-year growth of SHERWIN-WILLIAMS CO/THE has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

What else is there to say on the fundamentals of NYSE:SHW?

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Overall SHW gets a fundamental rating of 6 out of 10. We evaluated SHW against 85 industry peers in the Chemicals industry. SHW scores excellent on profitability, but there are some minor concerns on its financial health. SHW is valied quite expensively at the moment, while it does show a decent growth rate.

Check the latest full fundamental report of SHW for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.