SHERWIN-WILLIAMS CO/THE (NYSE:SHW) Exhibits Quality Stock Traits. Here's Why.

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.

Looking into the quality metrics of SHERWIN-WILLIAMS CO/THE

• SHERWIN-WILLIAMS CO/THE has shown strong performance in revenue growth over the past 5 years, with a 5.62% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• The ROIC excluding cash and goodwill of SHERWIN-WILLIAMS CO/THE stands at 47.2%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• SHERWIN-WILLIAMS CO/THE maintains a healthy Debt/Free Cash Flow Ratio of 4.37, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• SHERWIN-WILLIAMS CO/THE demonstrates consistent Profit Quality over the past 5 years, with a strong 111.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• SHERWIN-WILLIAMS CO/THE has experienced impressive EBIT growth over the past 5 years, with 13.79% 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.

Zooming in on the fundamentals.

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

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. SHW is valied quite expensively at the moment, while it does show a decent growth rate.

Check the latest full fundamental report of SHW for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.