US8243481061 - Common Stock

**SHW** gets a fundamental rating of **6** out of 10. The analysis compared the fundamentals against 84 industry peers in the **Chemicals** industry. While **SHW** has a great profitability rating, there are some minor concerns on its financial health. **SHW** has a expensive valuation and it also scores bad on growth.

Each year in the past 5 years **SHW** has been profitable.

Each year in the past 5 years **SHW** had a positive operating cash flow.

The last **Return On Invested Capital** (**16.45%**) for **SHW** is above the 3 year average (**14.39%**), which is a sign of increasing profitability.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 10.67% | ||

ROE | 61.54% | ||

ROIC | 16.45% |

ROA(3y)9.46%

ROA(5y)9.17%

ROE(3y)68.64%

ROE(5y)59.9%

ROIC(3y)14.39%

ROIC(5y)13.77%

With an excellent **Operating Margin** value of **16.24%**, **SHW** belongs to the best of the industry, outperforming **85.71%** of the companies in the same industry.

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

Industry Rank | Sector Rank | ||
---|---|---|---|

OM | 16.24% | ||

PM (TTM) | 11.09% | ||

GM | 48.46% |

OM growth 3Y0.22%

OM growth 5Y7.74%

PM growth 3Y-2.13%

PM growth 5Y10.38%

GM growth 3Y-0.44%

GM growth 5Y1.98%

Compared to 1 year ago, **SHW** has less shares outstanding

The number of shares outstanding for **SHW** has been reduced compared to 5 years ago.

The debt/assets ratio for **SHW** has been reduced compared to a year ago.

The **Altman-Z score** of **SHW** (**4.71**) is better than **92.86%** of its industry peers.

Looking at the **Debt to FCF ratio**, with a value of **4.95**, **SHW** is in the better half of the industry, outperforming **75.00%** of the companies in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 2.19 | ||

Debt/FCF | 4.95 | ||

Altman-Z | 4.71 |

ROIC/WACC1.96

WACC8.39%

A Current Ratio of **0.83** indicates that **SHW** may have some problems paying its short term obligations.

With a **Quick ratio** value of **0.51**, **SHW** is not doing good in the industry: **94.05%** of the companies in the same industry are doing better.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 0.83 | ||

Quick Ratio | 0.51 |

Measured over the past years, **SHW** shows a quite strong growth in **Earnings Per Share**. The EPS has been growing by **10.87%** on average per year.

The **Revenue** has been growing slightly by **0.10%** in the past year.

The **Revenue** has been growing slightly by **5.62%** on average over the past years.

EPS 1Y (TTM)6.05%

EPS 3Y8.09%

EPS 5Y10.87%

EPS Q2Q%5.31%

Revenue 1Y (TTM)0.1%

Revenue growth 3Y7.88%

Revenue growth 5Y5.62%

Sales Q2Q%0.75%

The **Earnings Per Share** is expected to grow by **6.05%** on average over the next years.

EPS Next Y10.51%

EPS Next 2Y11.71%

EPS Next 3Y11.82%

EPS Next 5Y6.05%

Revenue Next Year0.54%

Revenue Next 2Y2.44%

Revenue Next 3Y3.39%

Revenue Next 5Y4.26%

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

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.

Based on the **Price/Earnings** ratio of **34.56**, the valuation of **SHW** can be described as expensive.

The rest of the industry has a similar **Price/Earnings** ratio as **SHW**.

When comparing the **Price/Earnings** ratio of **SHW** to the average of the S&P500 Index (**27.91**), we can say **SHW** is valued slightly more expensively.

With a **Price/Forward Earnings** ratio of **29.60**, **SHW** can be considered very expensive at the moment.

Compared to the rest of the industry, the **Price/Forward Earnings** ratio of **SHW** indicates a slightly more expensive valuation: **SHW** is more expensive than 67.86% of the companies listed in the same industry.

The average S&P500 **Price/Forward Earnings** ratio is at **23.57**. **SHW** is valued slightly more expensive when compared to this.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 34.56 | ||

Fwd PE | 29.6 |

Compared to the rest of the industry, the **Price/Free Cash Flow** ratio of **SHW** is on the same level as its industry peers.

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | 47.05 | ||

EV/EBITDA | 23.95 |

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)3.29

PEG (5Y)3.18

EPS Next 2Y11.71%

EPS Next 3Y11.82%

With a yearly dividend of 0.80%, **SHW** is not a good candidate for dividend investing.

With a **Dividend Yield** of **0.80**, **SHW** pays less dividend than the S&P500 average, which is at **2.26**.

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 0.8% |

The dividend of **SHW** is nicely growing with an annual growth rate of **16.11%**!

Dividend Growth(5Y)16.11%

Div Incr Years20

Div Non Decr Years20

The dividend of **SHW** is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.

DP27.33%

EPS Next 2Y11.71%

EPS Next 3Y11.82%

**SHERWIN-WILLIAMS CO/THE**

NYSE:SHW (11/6/2024, 3:27:04 PM)

**381.925**

**+3.72 (+0.98%) **

Chartmill FA Rating

GICS SectorMaterials

GICS IndustryGroupMaterials

GICS IndustryChemicals

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap96.34B

Analysts

Price Target

Dividend

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 0.8% |

Dividend Growth(5Y)

DP

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

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EPS beat(8)

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Avg EPS beat(12)

EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

Avg Revenue beat(2)

Min Revenue beat(2)

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Revenue beat(4)

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Min Revenue beat(4)

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Revenue beat(8)

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Revenue beat(12)

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Revenue beat(16)

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PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 34.56 | ||

Fwd PE | 29.6 | ||

P/S | |||

P/FCF | |||

P/OCF | |||

P/B | |||

P/tB | |||

EV/EBITDA |

EPS(TTM)

EY

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)3.29

PEG (5Y)3.18

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 10.67% | ||

ROE | 61.54% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 16.24% | ||

PM (TTM) | 11.09% | ||

GM | 48.46% | ||

FCFM |

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

ROCE(3y)

ROCE(5y)

ROICexcg growth 3Y

ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover0.96

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 2.19 | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 0.83 | ||

Quick Ratio | 0.51 | ||

Altman-Z |

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

Profit Quality(3y)

Profit Quality(5y)

High Growth Momentum

Growth

EPS 1Y (TTM)6.05%

EPS 3Y8.09%

EPS 5Y

EPS Q2Q%

EPS Next Y10.51%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)0.1%

Revenue growth 3Y7.88%

Revenue growth 5Y

Sales Q2Q%

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

EBIT Next Year

EBIT Next 3Y

EBIT Next 5Y

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y