SHERWIN-WILLIAMS CO/THE (SHW) Fundamental Analysis & Valuation

NYSE:SHW • US8243481061

Current stock price

312.72 USD
-3.67 (-1.16%)
Last:

This SHW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. SHW Profitability Analysis

1.1 Basic Checks

  • SHW had positive earnings in the past year.
  • In the past year SHW had a positive cash flow from operations.
  • 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.
SHW Yearly Net Income VS EBIT VS OCF VS FCFSHW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 9.92%, SHW belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 55.86%, SHW belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • SHW's Return On Invested Capital of 14.54% is amongst the best of the industry. SHW outperforms 95.12% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SHW is significantly above the industry average of 6.46%.
Industry RankSector Rank
ROA 9.92%
ROE 55.86%
ROIC 14.54%
ROA(3y)10.56%
ROA(5y)9.93%
ROE(3y)62.11%
ROE(5y)65.59%
ROIC(3y)15.96%
ROIC(5y)14.83%
SHW Yearly ROA, ROE, ROICSHW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

1.3 Margins

  • SHW's Profit Margin of 10.90% is amongst the best of the industry. SHW outperforms 89.02% of its industry peers.
  • SHW's Profit Margin has been stable in the last couple of years.
  • Looking at the Operating Margin, with a value of 16.11%, SHW belongs to the top of the industry, outperforming 81.71% of the companies in the same industry.
  • In the last couple of years the Operating Margin of SHW has remained more or less at the same level.
  • Looking at the Gross Margin, with a value of 48.85%, SHW belongs to the top of the industry, outperforming 93.90% of the companies in the same industry.
  • SHW's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 16.11%
PM (TTM) 10.9%
GM 48.85%
OM growth 3Y5.93%
OM growth 5Y0.71%
PM growth 3Y6.11%
PM growth 5Y-0.29%
GM growth 3Y5.08%
GM growth 5Y0.65%
SHW Yearly Profit, Operating, Gross MarginsSHW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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5

2. SHW Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SHW is still creating some value.
  • Compared to 1 year ago, SHW has less shares outstanding
  • Compared to 5 years ago, SHW has less shares outstanding
  • SHW has about the same debt/assets ratio as last year.
SHW Yearly Shares OutstandingSHW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
SHW Yearly Total Debt VS Total AssetsSHW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • SHW has an Altman-Z score of 3.61. This indicates that SHW is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of SHW (3.61) is better than 82.93% of its industry peers.
  • The Debt to FCF ratio of SHW is 4.17, which is a neutral value as it means it would take SHW, 4.17 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of SHW (4.17) is better than 84.15% of its industry peers.
  • SHW has a Debt/Equity ratio of 2.33. This is a high value indicating a heavy dependency on external financing.
  • SHW has a worse Debt to Equity ratio (2.33) than 85.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.33
Debt/FCF 4.17
Altman-Z 3.61
ROIC/WACC1.01
WACC14.45%
SHW Yearly LT Debt VS Equity VS FCFSHW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 0.87 indicates that SHW may have some problems paying its short term obligations.
  • SHW has a Current ratio of 0.87. This is amonst the worse of the industry: SHW underperforms 95.12% of its industry peers.
  • A Quick Ratio of 0.53 indicates that SHW may have some problems paying its short term obligations.
  • SHW's Quick ratio of 0.53 is on the low side compared to the rest of the industry. SHW is outperformed by 91.46% of its industry peers.
Industry RankSector Rank
Current Ratio 0.87
Quick Ratio 0.53
SHW Yearly Current Assets VS Current LiabilitesSHW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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4

3. SHW Growth Analysis

3.1 Past

  • SHW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.06%.
  • Measured over the past 5 years, SHW shows a small growth in Earnings Per Share. The EPS has been growing by 6.94% on average per year.
  • The Revenue has been growing slightly by 2.06% in the past year.
  • The Revenue has been growing slightly by 5.12% on average over the past years.
EPS 1Y (TTM)1.06%
EPS 3Y9.42%
EPS 5Y6.94%
EPS Q2Q%6.7%
Revenue 1Y (TTM)2.06%
Revenue growth 3Y2.1%
Revenue growth 5Y5.12%
Sales Q2Q%5.64%

3.2 Future

  • SHW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.85% yearly.
  • Based on estimates for the next years, SHW will show a small growth in Revenue. The Revenue will grow by 4.45% on average per year.
EPS Next Y4.83%
EPS Next 2Y9.18%
EPS Next 3Y10.48%
EPS Next 5Y8.85%
Revenue Next Year4.56%
Revenue Next 2Y4.62%
Revenue Next 3Y4.78%
Revenue Next 5Y4.45%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
SHW Yearly Revenue VS EstimatesSHW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B
SHW Yearly EPS VS EstimatesSHW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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2

4. SHW Valuation Analysis

4.1 Price/Earnings Ratio

  • SHW is valuated quite expensively with a Price/Earnings ratio of 27.31.
  • The rest of the industry has a similar Price/Earnings ratio as SHW.
  • The average S&P500 Price/Earnings ratio is at 26.21. SHW is around the same levels.
  • With a Price/Forward Earnings ratio of 26.05, SHW can be considered very expensive at the moment.
  • SHW's Price/Forward Earnings ratio is in line with the industry average.
  • SHW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
Industry RankSector Rank
PE 27.31
Fwd PE 26.05
SHW Price Earnings VS Forward Price EarningsSHW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 71.95% of the companies in the same industry are cheaper than SHW, based on the Enterprise Value to EBITDA ratio.
  • SHW's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 29.15
EV/EBITDA 19.65
SHW Per share dataSHW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 60 80

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SHW does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of SHW may justify a higher PE ratio.
PEG (NY)5.66
PEG (5Y)3.94
EPS Next 2Y9.18%
EPS Next 3Y10.48%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. SHW Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.01%, SHW has a reasonable but not impressive dividend return.
  • SHW's Dividend Yield is comparable with the industry average which is at 2.07.
  • With a Dividend Yield of 1.01, SHW pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.01%

5.2 History

  • The dividend of SHW is nicely growing with an annual growth rate of 12.07%!
  • SHW has been paying a dividend for at least 10 years, so it has a reliable track record.
  • SHW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.07%
Div Incr Years22
Div Non Decr Years22
SHW Yearly Dividends per shareSHW Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 30.75% of the earnings are spent on dividend by SHW. This is a low number and sustainable payout ratio.
  • The dividend of SHW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP30.75%
EPS Next 2Y9.18%
EPS Next 3Y10.48%
SHW Yearly Income VS Free CF VS DividendSHW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
SHW Dividend Payout.SHW Dividend Payout, showing the Payout Ratio.SHW Dividend Payout.PayoutRetained Earnings

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SHW Fundamentals: All Metrics, Ratios and Statistics

SHERWIN-WILLIAMS CO/THE

NYSE:SHW (4/7/2026, 1:08:56 PM)

312.72

-3.67 (-1.16%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)01-29
Earnings (Next)04-28
Inst Owners82.91%
Inst Owner Change0%
Ins Owners0.07%
Ins Owner Change-0.29%
Market Cap77.35B
Revenue(TTM)23.57B
Net Income(TTM)2.57B
Analysts74.84
Price Target394.25 (26.07%)
Short Float %1.98%
Short Ratio2.5
Dividend
Industry RankSector Rank
Dividend Yield 1.01%
Yearly Dividend3.17
Dividend Growth(5Y)12.07%
DP30.75%
Div Incr Years22
Div Non Decr Years22
Ex-Date03-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.73%
Min EPS beat(2)2.14%
Max EPS beat(2)3.31%
EPS beat(4)3
Avg EPS beat(4)-0.83%
Min EPS beat(4)-12.08%
Max EPS beat(4)3.31%
EPS beat(8)5
Avg EPS beat(8)-0.82%
EPS beat(12)8
Avg EPS beat(12)3.45%
EPS beat(16)11
Avg EPS beat(16)2.52%
Revenue beat(2)1
Avg Revenue beat(2)0.76%
Min Revenue beat(2)-0.06%
Max Revenue beat(2)1.58%
Revenue beat(4)1
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-2.75%
Max Revenue beat(4)1.58%
Revenue beat(8)1
Avg Revenue beat(8)-1.29%
Revenue beat(12)4
Avg Revenue beat(12)-0.24%
Revenue beat(16)6
Avg Revenue beat(16)-0.23%
PT rev (1m)-0.44%
PT rev (3m)0.24%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-5.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.15%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-0.32%
Valuation
Industry RankSector Rank
PE 27.31
Fwd PE 26.05
P/S 3.28
P/FCF 29.15
P/OCF 22.41
P/B 16.82
P/tB N/A
EV/EBITDA 19.65
EPS(TTM)11.45
EY3.66%
EPS(NY)12
Fwd EY3.84%
FCF(TTM)10.73
FCFY3.43%
OCF(TTM)13.95
OCFY4.46%
SpS95.3
BVpS18.59
TBVpS-29.93
PEG (NY)5.66
PEG (5Y)3.94
Graham Number69.2
Profitability
Industry RankSector Rank
ROA 9.92%
ROE 55.86%
ROCE 20%
ROIC 14.54%
ROICexc 14.7%
ROICexgc 36.82%
OM 16.11%
PM (TTM) 10.9%
GM 48.85%
FCFM 11.26%
ROA(3y)10.56%
ROA(5y)9.93%
ROE(3y)62.11%
ROE(5y)65.59%
ROIC(3y)15.96%
ROIC(5y)14.83%
ROICexc(3y)16.17%
ROICexc(5y)15.02%
ROICexgc(3y)46.9%
ROICexgc(5y)45.45%
ROCE(3y)21.48%
ROCE(5y)20.06%
ROICexgc growth 3Y-2.57%
ROICexgc growth 5Y-7.49%
ROICexc growth 3Y3.32%
ROICexc growth 5Y0.74%
OM growth 3Y5.93%
OM growth 5Y0.71%
PM growth 3Y6.11%
PM growth 5Y-0.29%
GM growth 3Y5.08%
GM growth 5Y0.65%
F-Score6
Asset Turnover0.91
Health
Industry RankSector Rank
Debt/Equity 2.33
Debt/FCF 4.17
Debt/EBITDA 2.4
Cap/Depr 117.83%
Cap/Sales 3.38%
Interest Coverage 8.38
Cash Conversion 77.15%
Profit Quality 103.33%
Current Ratio 0.87
Quick Ratio 0.53
Altman-Z 3.61
F-Score6
WACC14.45%
ROIC/WACC1.01
Cap/Depr(3y)144.01%
Cap/Depr(5y)121.58%
Cap/Sales(3y)3.96%
Cap/Sales(5y)3.33%
Profit Quality(3y)97.09%
Profit Quality(5y)90.97%
High Growth Momentum
Growth
EPS 1Y (TTM)1.06%
EPS 3Y9.42%
EPS 5Y6.94%
EPS Q2Q%6.7%
EPS Next Y4.83%
EPS Next 2Y9.18%
EPS Next 3Y10.48%
EPS Next 5Y8.85%
Revenue 1Y (TTM)2.06%
Revenue growth 3Y2.1%
Revenue growth 5Y5.12%
Sales Q2Q%5.64%
Revenue Next Year4.56%
Revenue Next 2Y4.62%
Revenue Next 3Y4.78%
Revenue Next 5Y4.45%
EBIT growth 1Y0.93%
EBIT growth 3Y8.16%
EBIT growth 5Y5.87%
EBIT Next Year21.24%
EBIT Next 3Y12.72%
EBIT Next 5Y8.29%
FCF growth 1Y27.4%
FCF growth 3Y27.67%
FCF growth 5Y-3.09%
OCF growth 1Y9.46%
OCF growth 3Y21.59%
OCF growth 5Y0.25%

SHERWIN-WILLIAMS CO/THE / SHW Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for SHERWIN-WILLIAMS CO/THE?

ChartMill assigns a fundamental rating of 5 / 10 to SHW.


What is the valuation status of SHERWIN-WILLIAMS CO/THE (SHW) stock?

ChartMill assigns a valuation rating of 2 / 10 to SHERWIN-WILLIAMS CO/THE (SHW). This can be considered as Overvalued.


What is the profitability of SHW stock?

SHERWIN-WILLIAMS CO/THE (SHW) has a profitability rating of 8 / 10.


What are the PE and PB ratios of SHERWIN-WILLIAMS CO/THE (SHW) stock?

The Price/Earnings (PE) ratio for SHERWIN-WILLIAMS CO/THE (SHW) is 27.31 and the Price/Book (PB) ratio is 16.82.


Can you provide the financial health for SHW stock?

The financial health rating of SHERWIN-WILLIAMS CO/THE (SHW) is 5 / 10.