Is SHERWIN-WILLIAMS CO/THE (NYSE:SHW) a Strong Candidate for Quality Investing?

In this article we will dive into SHERWIN-WILLIAMS CO/THE (NYSE:SHW) as a possible candidate for quality investing. Investors should always do their own research, but we noticed SHERWIN-WILLIAMS CO/THE showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

A Deep Dive into SHERWIN-WILLIAMS CO/THE's Quality Metrics.

• SHERWIN-WILLIAMS CO/THE has achieved substantial revenue growth over the past 5 years, with a 5.62% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a robust ROIC excluding cash and goodwill at 47.2%, SHERWIN-WILLIAMS CO/THE showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• With a Debt/Free Cash Flow Ratio of 4.37, SHERWIN-WILLIAMS CO/THE exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a robust Profit Quality (5-year) ratio of 111.0%, SHERWIN-WILLIAMS CO/THE highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• SHERWIN-WILLIAMS CO/THE has consistently achieved strong EBIT growth over the past 5 years, with a 13.79% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, SHERWIN-WILLIAMS CO/THE showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Fundamental analysis of NYSE:SHW

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall SHW gets a fundamental rating of 6 out of 10. We evaluated SHW against 84 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.

For an up to date full fundamental analysis you can check the fundamental report of SHW

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.