Should you consider NYSE:SHW for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if SHERWIN-WILLIAMS CO/THE (NYSE:SHW) is suited for quality investing. Investors should of course do their own research, but we spotted SHERWIN-WILLIAMS CO/THE showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

• Over the past 5 years, SHERWIN-WILLIAMS CO/THE has experienced impressive revenue growth, with 8.13% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a notable ROIC excluding cash and goodwill at 57.7%, 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.
• With a favorable Debt/Free Cash Flow Ratio of 4.07, SHERWIN-WILLIAMS CO/THE showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• With a favorable Profit Quality (5-year) ratio of 120.0%, SHERWIN-WILLIAMS CO/THE showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• SHERWIN-WILLIAMS CO/THE has experienced impressive EBIT growth over the past 5 years, with 12.05% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• SHERWIN-WILLIAMS CO/THE demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

A complete fundamental analysis of NYSE:SHW

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Overall SHW gets a fundamental rating of 5 out of 10. We evaluated SHW against 84 industry peers in the Chemicals industry. While SHW has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, SHW is valued expensive at the moment.

Our latest full fundamental report of SHW contains the most current fundamental analsysis.

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

Disclaimer

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.