SHW Fundamental Analysis - SHERWIN-WILLIAMS CO/THE

Fundamental Rating

We assign a fundamental rating of 6 out of 10 to SHW. SHW was compared to 83 industry peers in the Chemicals industry. SHW scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, SHW is valued expensive at the moment.

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1. Profitability

1.1 Basic Checks

In the past year SHW was profitable.

SHW had a positive operating cash flow in the past year.

In the past 5 years SHW has always been profitable.

In the past 5 years SHW always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of 10.03%, SHW belongs to the top of the industry, outperforming 97.59% of the companies in the same industry.

SHW has a Return On Equity of 57.83%. This is amongst the best in the industry. SHW outperforms 100.00% of its industry peers.

The Return On Invested Capital of SHW (14.97%) is better than 95.18% of its industry peers.

The Average Return On Invested Capital over the past 3 years for SHW is significantly above the industry average of 6.34%.

		Industry Rank	Sector Rank
ROA	10.03%
ROE	57.83%
ROIC	14.97%

ROA(3y)10.23%

ROA(5y)9.93%

ROE(3y)65.2%

ROE(5y)65.66%

ROIC(3y)15.49%

ROIC(5y)14.7%

1.3 Margins

Looking at the Profit Margin, with a value of 11.03%, SHW belongs to the top of the industry, outperforming 89.16% of the companies in the same industry.

In the last couple of years the Profit Margin of SHW has grown nicely.

With an excellent Operating Margin value of 15.85%, SHW belongs to the best of the industry, outperforming 81.93% of the companies in the same industry.

In the last couple of years the Operating Margin of SHW has grown nicely.

SHW's Gross Margin of 48.87% is amongst the best of the industry. SHW outperforms 93.98% of its industry peers.

In the last couple of years the Gross Margin of SHW has grown nicely.

		Industry Rank	Sector Rank
OM	15.85%
PM (TTM)	11.03%
GM	48.87%

OM growth 3Y6.82%

OM growth 5Y3.75%

PM growth 3Y7.49%

PM growth 5Y6.16%

GM growth 3Y4.21%

GM growth 5Y1.54%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

SHW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.

Compared to 1 year ago, SHW has less shares outstanding

Compared to 5 years ago, SHW has less shares outstanding

Compared to 1 year ago, SHW has an improved debt to assets ratio.

2.2 Solvency

SHW has an Altman-Z score of 4.38. This indicates that SHW is financially healthy and has little risk of bankruptcy at the moment.

SHW has a Altman-Z score of 4.38. This is amongst the best in the industry. SHW outperforms 89.16% of its industry peers.

The Debt to FCF ratio of SHW is 4.96, which is a neutral value as it means it would take SHW, 4.96 years of fcf income to pay off all of its debts.

Looking at the Debt to FCF ratio, with a value of 4.96, SHW belongs to the top of the industry, outperforming 83.13% of the companies in the same industry.

SHW has a Debt/Equity ratio of 2.17. This is a high value indicating a heavy dependency on external financing.

SHW has a Debt to Equity ratio of 2.17. This is amonst the worse of the industry: SHW underperforms 83.13% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2.17
Debt/FCF	4.96
Altman-Z	4.38

ROIC/WACC1.7

WACC8.8%

2.3 Liquidity

A Current Ratio of 0.78 indicates that SHW may have some problems paying its short term obligations.

SHW has a worse Current ratio (0.78) than 92.77% of its industry peers.

SHW has a Quick Ratio of 0.78. This is a bad value and indicates that SHW is not financially healthy enough and could expect problems in meeting its short term obligations.

With a Quick ratio value of 0.48, SHW is not doing good in the industry: 91.57% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	0.78
Quick Ratio	0.48

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

SHW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.93%.

SHW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.02% yearly.

Looking at the last year, SHW shows a small growth in Revenue. The Revenue has grown by 0.31% in the last year.

Measured over the past years, SHW shows a small growth in Revenue. The Revenue has been growing by 5.23% on average per year.

EPS 1Y (TTM)1.93%

EPS 3Y11.65%

EPS 5Y10.02%

EPS Q2Q%-8.65%

Revenue 1Y (TTM)0.31%

Revenue growth 3Y5.02%

Revenue growth 5Y5.23%

Sales Q2Q%0.69%

3.2 Future

The Earnings Per Share is expected to grow by 8.27% on average over the next years. This is quite good.

Based on estimates for the next years, SHW will show a small growth in Revenue. The Revenue will grow by 3.87% on average per year.

EPS Next Y0.95%

EPS Next 2Y6.48%

EPS Next 3Y8.74%

EPS Next 5Y8.27%

Revenue Next Year0.46%

Revenue Next 2Y2.57%

Revenue Next 3Y3.44%

Revenue Next 5Y3.87%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 32.47, SHW can be considered very expensive at the moment.

Compared to the rest of the industry, the Price/Earnings ratio of SHW is on the same level as its industry peers.

SHW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.

SHW is valuated quite expensively with a Price/Forward Earnings ratio of 28.03.

Based on the Price/Forward Earnings ratio, SHW is valued a bit more expensive than 63.86% of the companies in the same industry.

The average S&P500 Price/Forward Earnings ratio is at 22.73. SHW is valued slightly more expensive when compared to this.

		Industry Rank	Sector Rank
PE	32.47
Fwd PE	28.03

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHW indicates a slightly more expensive valuation: SHW is more expensive than 73.49% of the companies listed in the same industry.

The rest of the industry has a similar Price/Free Cash Flow ratio as SHW.

		Industry Rank	Sector Rank
P/FCF	41.67
EV/EBITDA	23.41

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SHW does not grow enough to justify the current Price/Earnings ratio.

The excellent profitability rating of SHW may justify a higher PE ratio.

PEG (NY)34.16

PEG (5Y)3.24

EPS Next 2Y6.48%

EPS Next 3Y8.74%

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5. Dividend

5.1 Amount

With a yearly dividend of 0.86%, SHW is not a good candidate for dividend investing.

SHW's Dividend Yield is comparable with the industry average which is at 3.49.

With a Dividend Yield of 0.86, SHW pays less dividend than the S&P500 average, which is at 2.45.

		Industry Rank	Sector Rank
Dividend Yield	0.86%

5.2 History

The dividend of SHW is nicely growing with an annual growth rate of 13.53%!

SHW has been paying a dividend for at least 10 years, so it has a reliable track record.

SHW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Dividend Growth(5Y)13.53%

Div Incr Years21

Div Non Decr Years21

5.3 Sustainability

SHW pays out 29.89% of its income as dividend. This is a sustainable payout ratio.

SHW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.

DP29.89%

EPS Next 2Y6.48%

EPS Next 3Y8.74%

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SHERWIN-WILLIAMS CO/THE

NYSE:SHW (9/12/2025, 8:16:57 PM)

After market: 360.1 0 (0%)

360.1

-8.58 (-2.33%)

Chartmill FA Rating

GICS SectorMaterials

GICS IndustryGroupMaterials

GICS IndustryChemicals

Earnings (Last)07-22 2025-07-22/bmo

Earnings (Next)10-20 2025-10-20/amc

Inst Owners83.59%

Inst Owner Change0.37%

Ins Owners0.06%

Ins Owner Change-3.84%

Market Cap89.78B

Analysts72.73

Price Target387.72 (7.67%)

Short Float %1.78%

Short Ratio2.21

Dividend

		Industry Rank	Sector Rank
Dividend Yield	0.86%

Yearly Dividend2.86

Dividend Growth(5Y)13.53%

DP29.89%

Div Incr Years21

Div Non Decr Years21

Ex-Date08-15 2025-08-15 (0.79)

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)-4.39%

Min EPS beat(2)-12.08%

Max EPS beat(2)3.31%

EPS beat(4)2

Avg EPS beat(4)-3.57%

Min EPS beat(4)-12.08%

Max EPS beat(4)3.31%

EPS beat(8)4

Avg EPS beat(8)0.23%

EPS beat(12)8

Avg EPS beat(12)3.8%

EPS beat(16)9

Avg EPS beat(16)1.85%

Revenue beat(2)0

Avg Revenue beat(2)-1.75%

Min Revenue beat(2)-2.75%

Max Revenue beat(2)-0.75%

Revenue beat(4)0

Avg Revenue beat(4)-1.62%

Min Revenue beat(4)-2.75%

Max Revenue beat(4)-0.75%

Revenue beat(8)1

Avg Revenue beat(8)-1.47%

Revenue beat(12)4

Avg Revenue beat(12)-0.21%

Revenue beat(16)6

Avg Revenue beat(16)-0.39%

PT rev (1m)-0.98%

PT rev (3m)-1.04%

EPS NQ rev (1m)-0.71%

EPS NQ rev (3m)-5.28%

EPS NY rev (1m)-4.67%

EPS NY rev (3m)-4.69%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-2.64%

Revenue NY rev (1m)-0.28%

Revenue NY rev (3m)-0.96%

Valuation

		Industry Rank	Sector Rank
PE	32.47
Fwd PE	28.03
P/S	3.89
P/FCF	41.67
P/OCF	29.33
P/B	20.4
P/tB	N/A
EV/EBITDA	23.41

EPS(TTM)11.09

EY3.08%

EPS(NY)12.85

Fwd EY3.57%

FCF(TTM)8.64

FCFY2.4%

OCF(TTM)12.28

OCFY3.41%

SpS92.57

BVpS17.65

TBVpS-27.88

PEG (NY)34.16

PEG (5Y)3.24

Profitability

		Industry Rank	Sector Rank
ROA	10.03%
ROE	57.83%
ROCE	21.31%
ROIC	14.97%
ROICexc	15.19%
ROICexgc	38.96%
OM	15.85%
PM (TTM)	11.03%
GM	48.87%
FCFM	9.34%

ROA(3y)10.23%

ROA(5y)9.93%

ROE(3y)65.2%

ROE(5y)65.66%

ROIC(3y)15.49%

ROIC(5y)14.7%

ROICexc(3y)15.7%

ROICexc(5y)14.9%

ROICexgc(3y)47.86%

ROICexgc(5y)48.91%

ROCE(3y)20.83%

ROCE(5y)19.67%

ROICexcg growth 3Y0.33%

ROICexcg growth 5Y1.49%

ROICexc growth 3Y8.3%

ROICexc growth 5Y7.54%

OM growth 3Y6.82%

OM growth 5Y3.75%

PM growth 3Y7.49%

PM growth 5Y6.16%

GM growth 3Y4.21%

GM growth 5Y1.54%

F-Score6

Asset Turnover0.91

Health

		Industry Rank	Sector Rank
Debt/Equity	2.17
Debt/FCF	4.96
Debt/EBITDA	2.22
Cap/Depr	141.34%
Cap/Sales	3.93%
Interest Coverage	8.86
Cash Conversion	71.19%
Profit Quality	84.66%
Current Ratio	0.78
Quick Ratio	0.48
Altman-Z	4.38

F-Score6

WACC8.8%

ROIC/WACC1.7

Cap/Depr(3y)141.7%

Cap/Depr(5y)108.46%

Cap/Sales(3y)3.8%

Cap/Sales(5y)2.98%

Profit Quality(3y)83.69%

Profit Quality(5y)100.89%

High Growth Momentum

Growth

EPS 1Y (TTM)1.93%

EPS 3Y11.65%

EPS 5Y10.02%

EPS Q2Q%-8.65%

EPS Next Y0.95%

EPS Next 2Y6.48%

EPS Next 3Y8.74%

EPS Next 5Y8.27%

Revenue 1Y (TTM)0.31%

Revenue growth 3Y5.02%

Revenue growth 5Y5.23%

Sales Q2Q%0.69%

Revenue Next Year0.46%

Revenue Next 2Y2.57%

Revenue Next 3Y3.44%

Revenue Next 5Y3.87%

EBIT growth 1Y-1.75%

EBIT growth 3Y12.18%

EBIT growth 5Y9.18%

EBIT Next Year14.67%

EBIT Next 3Y10.98%

EBIT Next 5Y7.82%

FCF growth 1Y23.11%

FCF growth 3Y3.62%

FCF growth 5Y0.9%

OCF growth 1Y18.87%

OCF growth 3Y12%

OCF growth 5Y6.32%

SHERWIN-WILLIAMS CO/THE (SHW) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens