SHERWIN-WILLIAMS CO/THE (SHW) Fundamental Analysis & Valuation

NYSE:SHW • US8243481061

Current stock price

311.99 USD
-8.71 (-2.72%)
Last:

This SHW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. SHW Profitability Analysis

1.1 Basic Checks

  • SHW had positive earnings in the past year.
  • 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.
SHW Yearly Net Income VS EBIT VS OCF VS FCFSHW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

1.2 Ratios

  • The Return On Assets of SHW (9.92%) is better than 95.18% of its industry peers.
  • SHW's Return On Equity of 55.86% is amongst the best of the industry. SHW outperforms 100.00% of its industry peers.
  • SHW's Return On Invested Capital of 14.54% is amongst the best of the industry. SHW outperforms 95.18% of its industry peers.
  • SHW had an Average Return On Invested Capital over the past 3 years of 15.96%. This is significantly above the industry average of 6.47%.
Industry RankSector Rank
ROA 9.92%
ROE 55.86%
ROIC 14.54%
ROA(3y)10.56%
ROA(5y)9.93%
ROE(3y)62.11%
ROE(5y)65.59%
ROIC(3y)15.96%
ROIC(5y)14.83%
SHW Yearly ROA, ROE, ROICSHW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

1.3 Margins

  • SHW has a better Profit Margin (10.90%) than 87.95% of its industry peers.
  • In the last couple of years the Profit Margin of SHW has remained more or less at the same level.
  • Looking at the Operating Margin, with a value of 16.11%, SHW belongs to the top 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 remained more or less at the same level.
  • Looking at the Gross Margin, with a value of 48.85%, SHW belongs to the top of the industry, outperforming 93.98% of the companies in the same industry.
  • In the last couple of years the Gross Margin of SHW has remained more or less at the same level.
Industry RankSector Rank
OM 16.11%
PM (TTM) 10.9%
GM 48.85%
OM growth 3Y5.93%
OM growth 5Y0.71%
PM growth 3Y6.11%
PM growth 5Y-0.29%
GM growth 3Y5.08%
GM growth 5Y0.65%
SHW Yearly Profit, Operating, Gross MarginsSHW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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5

2. SHW Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SHW is creating value.
  • SHW has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for SHW has been reduced compared to 5 years ago.
  • The debt/assets ratio for SHW has remained at the same level compared to a year ago.
SHW Yearly Shares OutstandingSHW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
SHW Yearly Total Debt VS Total AssetsSHW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • SHW has an Altman-Z score of 3.65. This indicates that SHW is financially healthy and has little risk of bankruptcy at the moment.
  • SHW's Altman-Z score of 3.65 is amongst the best of the industry. SHW outperforms 85.54% of its industry peers.
  • SHW has a debt to FCF ratio of 4.17. This is a neutral value as SHW would need 4.17 years to pay back of all of its debts.
  • SHW has a better Debt to FCF ratio (4.17) than 85.54% of its industry peers.
  • A Debt/Equity ratio of 2.33 is on the high side and indicates that SHW has dependencies on debt financing.
  • SHW has a Debt to Equity ratio of 2.33. This is amonst the worse of the industry: SHW underperforms 84.34% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.33
Debt/FCF 4.17
Altman-Z 3.65
ROIC/WACC1.77
WACC8.22%
SHW Yearly LT Debt VS Equity VS FCFSHW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 0.87 indicates that SHW may have some problems paying its short term obligations.
  • SHW has a Current ratio of 0.87. This is amonst the worse of the industry: SHW underperforms 95.18% of its industry peers.
  • A Quick Ratio of 0.53 indicates that SHW may have some problems paying its short term obligations.
  • SHW's Quick ratio of 0.53 is on the low side compared to the rest of the industry. SHW is outperformed by 91.57% of its industry peers.
Industry RankSector Rank
Current Ratio 0.87
Quick Ratio 0.53
SHW Yearly Current Assets VS Current LiabilitesSHW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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4

3. SHW Growth Analysis

3.1 Past

  • SHW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.06%.
  • Measured over the past 5 years, SHW shows a small growth in Earnings Per Share. The EPS has been growing by 6.94% on average per year.
  • The Revenue has been growing slightly by 2.06% in the past year.
  • SHW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.12% yearly.
EPS 1Y (TTM)1.06%
EPS 3Y9.42%
EPS 5Y6.94%
EPS Q2Q%6.7%
Revenue 1Y (TTM)2.06%
Revenue growth 3Y2.1%
Revenue growth 5Y5.12%
Sales Q2Q%5.64%

3.2 Future

  • The Earnings Per Share is expected to grow by 8.85% on average over the next years. This is quite good.
  • SHW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.45% yearly.
EPS Next Y4.83%
EPS Next 2Y9.18%
EPS Next 3Y10.48%
EPS Next 5Y8.85%
Revenue Next Year4.44%
Revenue Next 2Y4.52%
Revenue Next 3Y4.74%
Revenue Next 5Y4.45%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
SHW Yearly Revenue VS EstimatesSHW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B
SHW Yearly EPS VS EstimatesSHW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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2

4. SHW Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 27.25, 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.
  • The average S&P500 Price/Earnings ratio is at 26.11. SHW is around the same levels.
  • Based on the Price/Forward Earnings ratio of 25.99, the valuation of SHW can be described as expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SHW is on the same level as its industry peers.
  • The average S&P500 Price/Forward Earnings ratio is at 24.12. SHW is around the same levels.
Industry RankSector Rank
PE 27.25
Fwd PE 25.99
SHW Price Earnings VS Forward Price EarningsSHW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 72.29% of the companies listed in the same industry.
  • SHW's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 29.13
EV/EBITDA 19.92
SHW Per share dataSHW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 60 80

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of SHW may justify a higher PE ratio.
PEG (NY)5.64
PEG (5Y)3.93
EPS Next 2Y9.18%
EPS Next 3Y10.48%

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5

5. SHW Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.01%, SHW has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.08, SHW has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.91, SHW's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.01%

5.2 History

  • On average, the dividend of SHW grows each year by 12.07%, which is quite nice.
  • SHW has paid a dividend for at least 10 years, which is 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)12.07%
Div Incr Years21
Div Non Decr Years21
SHW Yearly Dividends per shareSHW Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • SHW pays out 30.75% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of SHW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP30.75%
EPS Next 2Y9.18%
EPS Next 3Y10.48%
SHW Yearly Income VS Free CF VS DividendSHW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
SHW Dividend Payout.SHW Dividend Payout, showing the Payout Ratio.SHW Dividend Payout.PayoutRetained Earnings

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SHW Fundamentals: All Metrics, Ratios and Statistics

SHERWIN-WILLIAMS CO/THE

NYSE:SHW (3/18/2026, 12:40:06 PM)

311.99

-8.71 (-2.72%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)01-29
Earnings (Next)04-27
Inst Owners82.91%
Inst Owner Change-0.66%
Ins Owners0.07%
Ins Owner Change-0.29%
Market Cap77.30B
Revenue(TTM)23.57B
Net Income(TTM)2.57B
Analysts74.38
Price Target396.01 (26.93%)
Short Float %1.8%
Short Ratio2.3
Dividend
Industry RankSector Rank
Dividend Yield 1.01%
Yearly Dividend3.17
Dividend Growth(5Y)12.07%
DP30.75%
Div Incr Years21
Div Non Decr Years21
Ex-Date03-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.73%
Min EPS beat(2)2.14%
Max EPS beat(2)3.31%
EPS beat(4)3
Avg EPS beat(4)-0.83%
Min EPS beat(4)-12.08%
Max EPS beat(4)3.31%
EPS beat(8)5
Avg EPS beat(8)-0.82%
EPS beat(12)8
Avg EPS beat(12)3.45%
EPS beat(16)11
Avg EPS beat(16)2.52%
Revenue beat(2)1
Avg Revenue beat(2)0.76%
Min Revenue beat(2)-0.06%
Max Revenue beat(2)1.58%
Revenue beat(4)1
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-2.75%
Max Revenue beat(4)1.58%
Revenue beat(8)1
Avg Revenue beat(8)-1.29%
Revenue beat(12)4
Avg Revenue beat(12)-0.24%
Revenue beat(16)6
Avg Revenue beat(16)-0.23%
PT rev (1m)-0.05%
PT rev (3m)0.54%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)-5.59%
EPS NY rev (1m)-1.43%
EPS NY rev (3m)-5.58%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.67%
Valuation
Industry RankSector Rank
PE 27.25
Fwd PE 25.99
P/S 3.28
P/FCF 29.13
P/OCF 22.4
P/B 16.81
P/tB N/A
EV/EBITDA 19.92
EPS(TTM)11.45
EY3.67%
EPS(NY)12
Fwd EY3.85%
FCF(TTM)10.71
FCFY3.43%
OCF(TTM)13.93
OCFY4.47%
SpS95.15
BVpS18.56
TBVpS-29.88
PEG (NY)5.64
PEG (5Y)3.93
Graham Number69.15
Profitability
Industry RankSector Rank
ROA 9.92%
ROE 55.86%
ROCE 20%
ROIC 14.54%
ROICexc 14.7%
ROICexgc 36.82%
OM 16.11%
PM (TTM) 10.9%
GM 48.85%
FCFM 11.26%
ROA(3y)10.56%
ROA(5y)9.93%
ROE(3y)62.11%
ROE(5y)65.59%
ROIC(3y)15.96%
ROIC(5y)14.83%
ROICexc(3y)16.17%
ROICexc(5y)15.02%
ROICexgc(3y)46.9%
ROICexgc(5y)45.45%
ROCE(3y)21.48%
ROCE(5y)20.06%
ROICexgc growth 3Y-2.57%
ROICexgc growth 5Y-7.49%
ROICexc growth 3Y3.32%
ROICexc growth 5Y0.74%
OM growth 3Y5.93%
OM growth 5Y0.71%
PM growth 3Y6.11%
PM growth 5Y-0.29%
GM growth 3Y5.08%
GM growth 5Y0.65%
F-Score6
Asset Turnover0.91
Health
Industry RankSector Rank
Debt/Equity 2.33
Debt/FCF 4.17
Debt/EBITDA 2.4
Cap/Depr 117.83%
Cap/Sales 3.38%
Interest Coverage 8.38
Cash Conversion 77.15%
Profit Quality 103.33%
Current Ratio 0.87
Quick Ratio 0.53
Altman-Z 3.65
F-Score6
WACC8.22%
ROIC/WACC1.77
Cap/Depr(3y)144.01%
Cap/Depr(5y)121.58%
Cap/Sales(3y)3.96%
Cap/Sales(5y)3.33%
Profit Quality(3y)97.09%
Profit Quality(5y)90.97%
High Growth Momentum
Growth
EPS 1Y (TTM)1.06%
EPS 3Y9.42%
EPS 5Y6.94%
EPS Q2Q%6.7%
EPS Next Y4.83%
EPS Next 2Y9.18%
EPS Next 3Y10.48%
EPS Next 5Y8.85%
Revenue 1Y (TTM)2.06%
Revenue growth 3Y2.1%
Revenue growth 5Y5.12%
Sales Q2Q%5.64%
Revenue Next Year4.44%
Revenue Next 2Y4.52%
Revenue Next 3Y4.74%
Revenue Next 5Y4.45%
EBIT growth 1Y0.93%
EBIT growth 3Y8.16%
EBIT growth 5Y5.87%
EBIT Next Year21.24%
EBIT Next 3Y12.72%
EBIT Next 5Y8.29%
FCF growth 1Y27.4%
FCF growth 3Y27.67%
FCF growth 5Y-3.09%
OCF growth 1Y9.46%
OCF growth 3Y21.59%
OCF growth 5Y0.25%

SHERWIN-WILLIAMS CO/THE / SHW Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for SHERWIN-WILLIAMS CO/THE?

ChartMill assigns a fundamental rating of 5 / 10 to SHW.


What is the valuation status of SHERWIN-WILLIAMS CO/THE (SHW) stock?

ChartMill assigns a valuation rating of 2 / 10 to SHERWIN-WILLIAMS CO/THE (SHW). This can be considered as Overvalued.


Can you provide the profitability details for SHERWIN-WILLIAMS CO/THE?

SHERWIN-WILLIAMS CO/THE (SHW) has a profitability rating of 8 / 10.


What is the earnings growth outlook for SHERWIN-WILLIAMS CO/THE?

The Earnings per Share (EPS) of SHERWIN-WILLIAMS CO/THE (SHW) is expected to grow by 4.83% in the next year.


Can you provide the dividend sustainability for SHW stock?

The dividend rating of SHERWIN-WILLIAMS CO/THE (SHW) is 5 / 10 and the dividend payout ratio is 30.75%.