SHERWIN-WILLIAMS CO/THE (SHW) Stock Fundamental Analysis
USA - NYSE:SHW - US8243481061 - Common Stock
336.87 USD
-1.57 (-0.46%)
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.
1. Profitability
1.1 Basic Checks
In the past year SHW was profitable.
In the past year SHW had a positive cash flow from operations.
SHW had positive earnings in each of the past 5 years.
SHW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SHW (10.03%) is better than 97.59% of its industry peers.
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.
With an excellent Return On Invested Capital value of 14.97%, SHW belongs to the best of the industry, outperforming 95.18% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SHW is significantly above the industry average of 6.30%.
| 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
SHW has a better Profit Margin (11.03%) than 89.16% of its industry peers.
SHW's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.85%, SHW belongs to the top of the industry, outperforming 80.72% of the companies in the same industry.
In the last couple of years the Operating Margin of SHW has grown nicely.
SHW has a better Gross Margin (48.87%) than 95.18% of its industry peers.
SHW's Gross Margin has improved in the last couple of years.
| 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SHW is creating value.
SHW has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SHW has less shares outstanding
SHW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.16 indicates that SHW is not in any danger for bankruptcy at the moment.
SHW has a Altman-Z score of 4.16. This is amongst the best in the industry. SHW outperforms 89.16% of its industry peers.
SHW has a debt to FCF ratio of 4.96. This is a neutral value as SHW would need 4.96 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 4.96, SHW belongs to the best of the industry, outperforming 84.34% of the companies in the same industry.
A Debt/Equity ratio of 2.17 is on the high side and indicates that SHW has dependencies on debt financing.
The Debt to Equity ratio of SHW (2.17) is worse than 83.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 4.96 | ||
| Altman-Z | 4.16 |
ROIC/WACC1.82
WACC8.21%
2.3 Liquidity
SHW has a Current 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.
SHW's Current ratio of 0.78 is on the low side compared to the rest of the industry. SHW is outperformed by 93.98% of its industry peers.
A Quick Ratio of 0.48 indicates that SHW may have some problems paying its short term obligations.
SHW's Quick ratio of 0.48 is on the low side compared to the rest of the industry. SHW is outperformed by 92.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.48 |
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%.
Measured over the past years, SHW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.02% on average per year.
The Revenue has been growing slightly by 0.31% in the past year.
SHW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.23% yearly.
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.
The Revenue is expected to grow by 3.87% on average over the next years.
EPS Next Y0.95%
EPS Next 2Y6.48%
EPS Next 3Y8.74%
EPS Next 5Y8.27%
Revenue Next Year0.46%
Revenue Next 2Y2.49%
Revenue Next 3Y3.37%
Revenue Next 5Y3.87%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 30.38 indicates a quite expensive valuation of SHW.
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 27.77. SHW is around the same levels.
SHW is valuated quite expensively with a Price/Forward Earnings ratio of 26.23.
SHW's Price/Forward Earnings is on the same level as the industry average.
SHW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.38 | ||
| Fwd PE | 26.23 |
4.2 Price Multiples
SHW's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SHW is more expensive than 72.29% of the companies 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 | 38.98 | ||
| EV/EBITDA | 21.65 |
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.
SHW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)31.95
PEG (5Y)3.03
EPS Next 2Y6.48%
EPS Next 3Y8.74%
5. Dividend
5.1 Amount
SHW has a yearly dividend return of 0.95%, which is pretty low.
SHW's Dividend Yield is slightly below the industry average, which is at 3.76.
Compared to an average S&P500 Dividend Yield of 2.36, SHW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
On average, the dividend of SHW grows each year by 13.53%, 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)13.53%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
29.89% of the earnings are spent on dividend by SHW. This is a low number and 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%
NYSE:SHW (10/22/2025, 10:35:09 AM)
336.87
-1.57 (-0.46%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners83.88%
Inst Owner Change-0.34%
Ins Owners0.06%
Ins Owner Change-3.88%
Market Cap83.99B
Revenue(TTM)23.08B
Net Income(TTM)2.54B
Analysts72.73
Price Target387.72 (15.09%)
Short Float %1.86%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend2.86
Dividend Growth(5Y)13.53%
DP29.89%
Div Incr Years21
Div Non Decr Years21
Ex-Date
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%
PT rev (3m)-0.98%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-3.16%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.67%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.38 | ||
| Fwd PE | 26.23 | ||
| P/S | 3.64 | ||
| P/FCF | 38.98 | ||
| P/OCF | 27.44 | ||
| P/B | 19.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.65 |
EPS(TTM)11.09
EY3.29%
EPS(NY)12.85
Fwd EY3.81%
FCF(TTM)8.64
FCFY2.57%
OCF(TTM)12.28
OCFY3.64%
SpS92.57
BVpS17.65
TBVpS-27.88
PEG (NY)31.95
PEG (5Y)3.03
Graham Number66.37
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%
ROICexgc growth 3Y0.33%
ROICexgc 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 | 4.16 |
F-Score6
WACC8.21%
ROIC/WACC1.82
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 2Y2.49%
Revenue Next 3Y3.37%
Revenue Next 5Y3.87%
EBIT growth 1Y-1.75%
EBIT growth 3Y12.18%
EBIT growth 5Y9.18%
EBIT Next Year14.62%
EBIT Next 3Y11.07%
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%