SHERWIN-WILLIAMS CO/THE (SHW) Stock Fundamental Analysis
USA - NYSE:SHW - US8243481061 - Common Stock
335.7 USD
-0.07 (-0.02%)
We assign a fundamental rating of 6 out of 10 to SHW. SHW was compared to 82 industry peers in the Chemicals industry. SHW has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, SHW is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year SHW was profitable.
SHW had a positive operating cash flow in the past year.
SHW had positive earnings in each of the past 5 years.
In the past 5 years SHW always reported a positive cash flow from operatings.
1.2 Ratios
SHW has a Return On Assets of 9.81%. This is amongst the best in the industry. SHW outperforms 97.56% of its industry peers.
Looking at the Return On Equity, with a value of 58.12%, SHW belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
SHW has a Return On Invested Capital of 13.81%. This is amongst the best in the industry. SHW outperforms 93.90% of its industry peers.
SHW had an Average Return On Invested Capital over the past 3 years of 15.49%. This is significantly above the industry average of 6.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.81% | ||
| ROE | 58.12% | ||
| ROIC | 13.81% |
ROA(3y)10.23%
ROA(5y)9.93%
ROE(3y)65.2%
ROE(5y)65.66%
ROIC(3y)15.49%
ROIC(5y)14.7%
1.3 Margins
With an excellent Profit Margin value of 11.05%, SHW belongs to the best of the industry, outperforming 89.02% of the companies in the same industry.
SHW's Profit Margin has improved in the last couple of years.
SHW has a Operating Margin of 15.81%. This is in the better half of the industry: SHW outperforms 79.27% of its industry peers.
SHW's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 48.88%, SHW belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
In the last couple of years the Gross Margin of SHW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.81% | ||
| PM (TTM) | 11.05% | ||
| GM | 48.88% |
OM growth 3Y6.82%
OM growth 5Y3.75%
PM growth 3Y7.49%
PM growth 5Y6.16%
GM growth 3Y4.21%
GM growth 5Y1.54%
2. Health
2.1 Basic Checks
SHW has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for SHW has been reduced compared to 1 year ago.
SHW has less shares outstanding than it did 5 years ago.
SHW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.06 indicates that SHW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.06, SHW belongs to the top of the industry, outperforming 89.02% of the companies in the same industry.
SHW has a debt to FCF ratio of 4.75. This is a neutral value as SHW would need 4.75 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.75, SHW belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
SHW has a Debt/Equity ratio of 2.52. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.52, SHW is doing worse than 84.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.52 | ||
| Debt/FCF | 4.75 | ||
| Altman-Z | 4.06 |
ROIC/WACC1.68
WACC8.24%
2.3 Liquidity
SHW has a Current Ratio of 0.82. This is a bad value and indicates that SHW is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.82, SHW is doing worse than 93.90% of the companies in the same industry.
A Quick Ratio of 0.52 indicates that SHW may have some problems paying its short term obligations.
The Quick ratio of SHW (0.52) is worse than 91.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.35% over the past year.
Measured over the past years, SHW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.02% on average per year.
Looking at the last year, SHW shows a small growth in Revenue. The Revenue has grown by 0.96% in the last year.
Measured over the past years, SHW shows a small growth in Revenue. The Revenue has been growing by 5.23% on average per year.
EPS 1Y (TTM)2.35%
EPS 3Y11.65%
EPS 5Y10.02%
EPS Q2Q%6.53%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y5.02%
Revenue growth 5Y5.23%
Sales Q2Q%3.18%
3.2 Future
The Earnings Per Share is expected to grow by 8.04% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.89% on average over the next years.
EPS Next Y1.35%
EPS Next 2Y6.27%
EPS Next 3Y8.46%
EPS Next 5Y8.04%
Revenue Next Year1.38%
Revenue Next 2Y3.14%
Revenue Next 3Y3.66%
Revenue Next 5Y3.89%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.68, SHW can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of SHW is on the same level as its industry peers.
SHW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 26.24, which means the current valuation is very expensive for SHW.
SHW's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, SHW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.68 | ||
| Fwd PE | 26.24 |
4.2 Price Multiples
74.39% of the companies in the same industry are cheaper than SHW, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.5 | ||
| EV/EBITDA | 21.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SHW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)21.92
PEG (5Y)2.96
EPS Next 2Y6.27%
EPS Next 3Y8.46%
5. Dividend
5.1 Amount
SHW has a yearly dividend return of 0.92%, which is pretty low.
Compared to an average industry Dividend Yield of 4.05, SHW is paying slightly less dividend.
With a Dividend Yield of 0.92, SHW pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
The dividend of SHW is nicely growing with an annual growth rate of 13.53%!
SHW has paid a dividend for at least 10 years, which is 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)13.53%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
30.09% 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.
DP30.09%
EPS Next 2Y6.27%
EPS Next 3Y8.46%
NYSE:SHW (11/6/2025, 1:57:06 PM)
335.7
-0.07 (-0.02%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners83.88%
Inst Owner Change-1.16%
Ins Owners0.06%
Ins Owner Change-3.88%
Market Cap83.70B
Revenue(TTM)23.28B
Net Income(TTM)2.57B
Analysts73.33
Price Target386.11 (15.02%)
Short Float %1.58%
Short Ratio1.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend2.86
Dividend Growth(5Y)13.53%
DP30.09%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.39%
Min EPS beat(2)-12.08%
Max EPS beat(2)3.31%
EPS beat(4)3
Avg EPS beat(4)-1.29%
Min EPS beat(4)-12.08%
Max EPS beat(4)3.31%
EPS beat(8)4
Avg EPS beat(8)-1.14%
EPS beat(12)8
Avg EPS beat(12)3.29%
EPS beat(16)10
Avg EPS beat(16)2.15%
Revenue beat(2)1
Avg Revenue beat(2)0.42%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)1.58%
Revenue beat(4)1
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-2.75%
Max Revenue beat(4)1.58%
Revenue beat(8)1
Avg Revenue beat(8)-1.34%
Revenue beat(12)4
Avg Revenue beat(12)-0.36%
Revenue beat(16)6
Avg Revenue beat(16)-0.3%
PT rev (1m)-0.41%
PT rev (3m)-1.39%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)-0.5%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-4.71%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.68 | ||
| Fwd PE | 26.24 | ||
| P/S | 3.6 | ||
| P/FCF | 34.5 | ||
| P/OCF | 25.41 | ||
| P/B | 18.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.5 |
EPS(TTM)11.31
EY3.37%
EPS(NY)12.79
Fwd EY3.81%
FCF(TTM)9.73
FCFY2.9%
OCF(TTM)13.21
OCFY3.94%
SpS93.35
BVpS17.75
TBVpS-27.41
PEG (NY)21.92
PEG (5Y)2.96
Graham Number67.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.81% | ||
| ROE | 58.12% | ||
| ROCE | 19.65% | ||
| ROIC | 13.81% | ||
| ROICexc | 13.98% | ||
| ROICexgc | 31.32% | ||
| OM | 15.81% | ||
| PM (TTM) | 11.05% | ||
| GM | 48.88% | ||
| FCFM | 10.42% |
ROA(3y)10.23%
ROA(5y)9.93%
ROE(3y)65.2%
ROE(5y)65.66%
ROIC(3y)15.49%
ROIC(5y)14.7%
ROICexc(3y)15.7%
ROICexc(5y)14.9%
ROICexgc(3y)47.86%
ROICexgc(5y)48.91%
ROCE(3y)20.83%
ROCE(5y)19.67%
ROICexgc growth 3Y0.33%
ROICexgc growth 5Y1.49%
ROICexc growth 3Y8.3%
ROICexc growth 5Y7.54%
OM growth 3Y6.82%
OM growth 5Y3.75%
PM growth 3Y7.49%
PM growth 5Y6.16%
GM growth 3Y4.21%
GM growth 5Y1.54%
F-Score5
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.52 | ||
| Debt/FCF | 4.75 | ||
| Debt/EBITDA | 2.58 | ||
| Cap/Depr | 132.93% | ||
| Cap/Sales | 3.73% | ||
| Interest Coverage | 8.6 | ||
| Cash Conversion | 76.01% | ||
| Profit Quality | 94.35% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 4.06 |
F-Score5
WACC8.24%
ROIC/WACC1.68
Cap/Depr(3y)141.7%
Cap/Depr(5y)108.46%
Cap/Sales(3y)3.8%
Cap/Sales(5y)2.98%
Profit Quality(3y)83.69%
Profit Quality(5y)100.89%
High Growth Momentum
Growth
EPS 1Y (TTM)2.35%
EPS 3Y11.65%
EPS 5Y10.02%
EPS Q2Q%6.53%
EPS Next Y1.35%
EPS Next 2Y6.27%
EPS Next 3Y8.46%
EPS Next 5Y8.04%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y5.02%
Revenue growth 5Y5.23%
Sales Q2Q%3.18%
Revenue Next Year1.38%
Revenue Next 2Y3.14%
Revenue Next 3Y3.66%
Revenue Next 5Y3.89%
EBIT growth 1Y-1.67%
EBIT growth 3Y12.18%
EBIT growth 5Y9.18%
EBIT Next Year14.62%
EBIT Next 3Y11.07%
EBIT Next 5Y7.71%
FCF growth 1Y-0.62%
FCF growth 3Y3.62%
FCF growth 5Y0.9%
OCF growth 1Y1.52%
OCF growth 3Y12%
OCF growth 5Y6.32%
SHERWIN-WILLIAMS CO/THE / SHW FAQ
Can you provide the ChartMill fundamental rating for SHERWIN-WILLIAMS CO/THE?
ChartMill assigns a fundamental rating of 6 / 10 to SHW.
What is the valuation status for SHW stock?
ChartMill assigns a valuation rating of 2 / 10 to SHERWIN-WILLIAMS CO/THE (SHW). This can be considered as Overvalued.
Can you provide the profitability details for SHERWIN-WILLIAMS CO/THE?
SHERWIN-WILLIAMS CO/THE (SHW) has a profitability rating of 9 / 10.
What is the valuation of SHERWIN-WILLIAMS CO/THE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SHERWIN-WILLIAMS CO/THE (SHW) is 29.68 and the Price/Book (PB) ratio is 18.91.
What is the earnings growth outlook for SHERWIN-WILLIAMS CO/THE?
The Earnings per Share (EPS) of SHERWIN-WILLIAMS CO/THE (SHW) is expected to grow by 1.35% in the next year.