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

NYSE:SHW • US8243481061

Current stock price

345.55 USD
+12.21 (+3.66%)
At close:
345.991 USD
+0.44 (+0.13%)
After Hours:

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.
  • 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.
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

  • With an excellent Return On Assets value of 9.92%, SHW belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
  • SHW has a better Return On Equity (55.86%) than 100.00% of its industry peers.
  • The Return On Invested Capital of SHW (14.54%) is better than 95.12% of its industry peers.
  • SHW had an Average Return On Invested Capital over the past 3 years of 15.96%. This is significantly above the industry average of 6.49%.
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 has a Profit Margin of 10.90%. This is amongst the best in the industry. SHW outperforms 89.02% of its industry peers.
  • In the last couple of years the Profit Margin of SHW has remained more or less at the same level.
  • SHW has a better Operating Margin (16.11%) than 81.71% of its industry peers.
  • In the last couple of years the Operating Margin of SHW has remained more or less at the same level.
  • SHW has a Gross Margin of 48.85%. This is amongst the best in the industry. SHW outperforms 93.90% of its industry peers.
  • In the last couple of years the Gross Margin of SHW has remained more or less at the same level.
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

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SHW is creating some value.
  • SHW has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, SHW has less shares outstanding
  • Compared to 1 year ago, SHW has about the same debt to assets ratio.
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

  • An Altman-Z score of 3.73 indicates that SHW is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of SHW (3.73) is better than 85.37% of its industry peers.
  • SHW has a debt to FCF ratio of 4.17. This is a neutral value as SHW would need 4.17 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 4.17, SHW belongs to the top of the industry, outperforming 84.15% of the companies in the same industry.
  • SHW has a Debt/Equity ratio of 2.33. This is a high value indicating a heavy dependency on external financing.
  • SHW's Debt to Equity ratio of 2.33 is on the low side compared to the rest of the industry. SHW is outperformed by 85.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.33
Debt/FCF 4.17
Altman-Z 3.73
ROIC/WACC1
WACC14.53%
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's Current ratio of 0.87 is on the low side compared to the rest of the industry. SHW is outperformed by 95.12% of its industry peers.
  • SHW has a Quick Ratio of 0.87. This is a bad value and indicates that SHW is not financially healthy enough and could expect problems in meeting its short term obligations.
  • SHW has a worse Quick ratio (0.53) than 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

  • The Earnings Per Share has been growing slightly by 1.06% over the past year.
  • 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.
  • Measured over the past years, SHW shows a small growth in Revenue. The Revenue has been growing by 5.12% on average per year.
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

  • Based on estimates for the next years, SHW will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.85% on average per year.
  • SHW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.45% yearly.
EPS Next Y4.45%
EPS Next 2Y8.64%
EPS Next 3Y10.32%
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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3

4. SHW Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 30.18, the valuation of SHW can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of SHW is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Earnings ratio of 27.87, SHW is valued at the same level.
  • The Price/Forward Earnings ratio is 28.89, which means the current valuation is very expensive for SHW.
  • The rest of the industry has a similar Price/Forward Earnings ratio as SHW.
  • When comparing the Price/Forward Earnings ratio of SHW to the average of the S&P500 Index (38.51), we can say SHW is valued slightly cheaper.
Industry RankSector Rank
PE 30.18
Fwd PE 28.89
SHW Price Earnings VS Forward Price EarningsSHW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • SHW's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SHW is more expensive than 71.95% of the companies in the same industry.
  • SHW's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 32.21
EV/EBITDA 20.59
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.
  • SHW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.79
PEG (5Y)4.35
EPS Next 2Y8.64%
EPS Next 3Y10.32%

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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 of 0.95%, SHW is not a good candidate for dividend investing.
  • SHW's Dividend Yield is comparable with the industry average which is at 2.04.
  • Compared to an average S&P500 Dividend Yield of 1.82, SHW's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.95%

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

  • SHW pays out 30.75% of its income as dividend. This is a 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 2Y8.64%
EPS Next 3Y10.32%
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 (4/17/2026, 8:04:00 PM)

After market: 345.991 +0.44 (+0.13%)

345.55

+12.21 (+3.66%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)01-29
Earnings (Next)04-28
Inst Owners83.01%
Inst Owner Change0.02%
Ins Owners0.08%
Ins Owner Change-0.29%
Market Cap85.48B
Revenue(TTM)23.57B
Net Income(TTM)2.57B
Analysts74.84
Price Target390.54 (13.02%)
Short Float %2.25%
Short Ratio2.94
Dividend
Industry RankSector Rank
Dividend Yield 0.95%
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)-1.38%
PT rev (3m)-0.71%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-5.32%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-5.49%
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 30.18
Fwd PE 28.89
P/S 3.63
P/FCF 32.21
P/OCF 24.76
P/B 18.59
P/tB N/A
EV/EBITDA 20.59
EPS(TTM)11.45
EY3.31%
EPS(NY)11.96
Fwd EY3.46%
FCF(TTM)10.73
FCFY3.1%
OCF(TTM)13.95
OCFY4.04%
SpS95.3
BVpS18.59
TBVpS-29.93
PEG (NY)6.79
PEG (5Y)4.35
Graham Number69.2035 (-79.97%)
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 3.73
F-Score6
WACC14.53%
ROIC/WACC1
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 Y4.45%
EPS Next 2Y8.64%
EPS Next 3Y10.32%
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 Year20.79%
EBIT Next 3Y12.78%
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 3 / 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 30.18 and the Price/Book (PB) ratio is 18.59.


Can you provide the financial health for SHW stock?

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