Why Quality-Oriented Investors Should Consider NYSE:SHW.

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.

• 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.
• With a notable ROIC excluding cash and goodwill at 47.2%, 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.
• 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.
• 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.
• The 5-year EBIT growth of SHERWIN-WILLIAMS CO/THE has been remarkable, with 13.79% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• 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.

What else is there to say on the fundamentals of NYSE:SHW?

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, SHW scores 6 out of 10 in our fundamental rating. SHW was compared to 84 industry peers in the Chemicals industry. SHW scores excellent on profitability, but there are some minor concerns on its financial health. SHW is quite expensive at the moment. It does show a decent growth rate.

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.

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.