SHERWIN-WILLIAMS CO/THE (SHW)
US8243481061 - Common Stock
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. While SHW has a great profitability rating, there are some minor concerns on its financial health. SHW is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SHW had positive earnings in the past year.
In the past year SHW had a positive cash flow from operations.
SHW had positive earnings in each of the past 5 years.
SHW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SHW's Return On Assets of 10.67% is amongst the best of the industry. SHW outperforms 94.05% of its industry peers.
Looking at the Return On Equity, with a value of 61.54%, SHW belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of SHW (16.45%) is better than 97.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SHW is significantly above the industry average of 6.50%.
The 3 year average ROIC (14.39%) for SHW is below the current ROIC(16.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.67% | ||
| ROE | 61.54% | ||
| ROIC | 16.45% |
ROA(3y)9.46%
ROA(5y)9.17%
ROE(3y)68.64%
ROE(5y)59.9%
ROIC(3y)14.39%
ROIC(5y)13.77%
1.3 Margins
The Profit Margin of SHW (11.09%) is better than 86.90% of its industry peers.
In the last couple of years the Profit Margin of SHW has grown nicely.
With an excellent Operating Margin value of 16.24%, SHW belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
SHW's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 48.46%, SHW belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
SHW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.24% | ||
| PM (TTM) | 11.09% | ||
| GM | 48.46% |
OM growth 3Y0.22%
OM growth 5Y7.74%
PM growth 3Y-2.13%
PM growth 5Y10.38%
GM growth 3Y-0.44%
GM growth 5Y1.98%
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.
SHW has less shares outstanding than it did 1 year ago.
SHW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SHW has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.66 indicates that SHW is not in any danger for bankruptcy at the moment.
The Altman-Z score of SHW (4.66) is better than 91.67% of its industry peers.
SHW has a debt to FCF ratio of 4.95. This is a neutral value as SHW would need 4.95 years to pay back of all of its debts.
SHW has a better Debt to FCF ratio (4.95) than 71.43% of its industry peers.
A Debt/Equity ratio of 2.19 is on the high side and indicates that SHW has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.19, SHW is doing worse than 88.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | 4.95 | ||
| Altman-Z | 4.66 |
ROIC/WACC1.94
WACC8.49%
2.3 Liquidity
A Current Ratio of 0.83 indicates that SHW may have some problems paying its short term obligations.
SHW has a worse Current ratio (0.83) than 94.05% of its industry peers.
A Quick Ratio of 0.51 indicates that SHW may have some problems paying its short term obligations.
With a Quick ratio value of 0.51, SHW is not doing good in the industry: 92.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.05% over the past year.
The Earnings Per Share has been growing by 10.87% on average over the past years. This is quite good.
The Revenue has been growing slightly by 0.10% in the past year.
Measured over the past years, SHW shows a small growth in Revenue. The Revenue has been growing by 5.62% on average per year.
EPS 1Y (TTM)6.05%
EPS 3Y8.09%
EPS 5Y10.87%
EPS Q2Q%5.31%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y7.88%
Revenue growth 5Y5.62%
Sales Q2Q%0.75%
3.2 Future
Based on estimates for the next years, SHW will show a small growth in Earnings Per Share. The EPS will grow by 6.05% on average per year.
The Revenue is expected to grow by 4.26% on average over the next years.
EPS Next Y10.49%
EPS Next 2Y11.72%
EPS Next 3Y11.82%
EPS Next 5Y6.05%
Revenue Next Year0.54%
Revenue Next 2Y2.44%
Revenue Next 3Y3.39%
Revenue Next 5Y4.26%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 34.69, the valuation of SHW can be described as expensive.
Based on the Price/Earnings ratio, SHW is valued a bit more expensive than the industry average as 61.90% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 28.96, SHW is valued at the same level.
SHW is valuated quite expensively with a Price/Forward Earnings ratio of 29.70.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SHW indicates a slightly more expensive valuation: SHW is more expensive than 67.86% of the companies listed in the same industry.
SHW's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.69 | ||
| Fwd PE | 29.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHW is valued a bit more expensive than the industry average as 76.19% of the companies are valued more cheaply.
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 | 47.14 | ||
| EV/EBITDA | 23.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of SHW may justify a higher PE ratio.
PEG (NY)3.31
PEG (5Y)3.19
EPS Next 2Y11.72%
EPS Next 3Y11.82%
5. Dividend
5.1 Amount
SHW has a yearly dividend return of 0.74%, which is pretty low.
SHW's Dividend Yield is comparable with the industry average which is at 2.95.
With a Dividend Yield of 0.74, SHW pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
The dividend of SHW is nicely growing with an annual growth rate of 16.11%!
SHW has paid a dividend for at least 10 years, which is a reliable track record.
SHW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.11%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
27.33% 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.
DP27.33%
EPS Next 2Y11.72%
EPS Next 3Y11.82%
SHERWIN-WILLIAMS CO/THE
NYSE:SHW (11/21/2024, 8:04:00 PM)
After market: 383.32 0 (0%)383.32
+11.66 (+3.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap96.54B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.69 | ||
| Fwd PE | 29.7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.31
PEG (5Y)3.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.67% | ||
| ROE | 61.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.24% | ||
| PM (TTM) | 11.09% | ||
| GM | 48.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)6.05%
EPS 3Y8.09%
EPS 5Y
EPS Q2Q%
EPS Next Y10.49%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.1%
Revenue growth 3Y7.88%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y