SHERWIN-WILLIAMS CO/THE (SHW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SHW - US8243481061 - Common Stock
323.8 USD
-3.33 (-1.02%)
Overall SHW gets a fundamental rating of 6 out of 10. We evaluated SHW against 82 industry peers in the Chemicals industry. While SHW belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SHW is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SHW had positive earnings in the past year.
SHW had a positive operating cash flow in the past year.
In the past 5 years SHW has always been profitable.
In the past 5 years SHW always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.81%, SHW belongs to the best of the industry, outperforming 96.34% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for SHW is significantly above the industry average of 6.05%.
| 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
SHW's Profit Margin of 11.05% is amongst the best of the industry. SHW outperforms 89.02% of its industry peers.
SHW's Profit Margin has improved in the last couple of years.
SHW has a better Operating Margin (15.81%) than 79.27% of its industry peers.
In the last couple of years the Operating Margin of SHW has grown nicely.
SHW's Gross Margin of 48.88% is amongst the best of the industry. SHW outperforms 93.90% of its industry peers.
SHW's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SHW is creating value.
SHW has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SHW has less shares outstanding
SHW has a better debt/assets ratio than last year.
2.2 Solvency
SHW has an Altman-Z score of 3.99. This indicates that SHW is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.99, SHW belongs to the top of the industry, outperforming 89.02% of the companies in the same industry.
The Debt to FCF ratio of SHW is 4.75, which is a neutral value as it means it would take SHW, 4.75 years of fcf income to pay off all of its debts.
SHW's Debt to FCF ratio of 4.75 is amongst the best of the industry. SHW outperforms 82.93% of its industry peers.
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 82.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.52 | ||
| Debt/FCF | 4.75 | ||
| Altman-Z | 3.99 |
ROIC/WACC1.63
WACC8.45%
2.3 Liquidity
A Current Ratio of 0.82 indicates that SHW may have some problems paying its short term obligations.
SHW's Current ratio of 0.82 is on the low side compared to the rest of the industry. SHW is outperformed by 93.90% of its industry peers.
A Quick Ratio of 0.52 indicates that SHW may have some problems paying its short term obligations.
SHW's Quick ratio of 0.52 is on the low side compared to the rest of the industry. SHW is outperformed by 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
SHW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.35%.
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.
The Revenue has been growing slightly by 5.23% on average over the past years.
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.
SHW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.89% yearly.
EPS Next Y1.44%
EPS Next 2Y5.92%
EPS Next 3Y8.11%
EPS Next 5Y8.04%
Revenue Next Year1.71%
Revenue Next 2Y3.41%
Revenue Next 3Y3.74%
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
The Price/Earnings ratio is 28.63, which means the current valuation is very expensive for SHW.
SHW's Price/Earnings is on the same level as the industry average.
SHW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.47, SHW can be considered very expensive at the moment.
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 (23.56), we can say SHW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.63 | ||
| Fwd PE | 25.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHW is valued a bit more expensive than 76.83% of the companies in the same industry.
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 | 33.08 | ||
| EV/EBITDA | 20.89 |
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)19.83
PEG (5Y)2.86
EPS Next 2Y5.92%
EPS Next 3Y8.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, SHW is not a good candidate for dividend investing.
SHW's Dividend Yield is slightly below the industry average, which is at 3.98.
Compared to an average S&P500 Dividend Yield of 2.31, SHW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
SHW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.09%
EPS Next 2Y5.92%
EPS Next 3Y8.11%
NYSE:SHW (12/9/2025, 11:55:54 AM)
323.8
-3.33 (-1.02%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners84.11%
Inst Owner Change-1.01%
Ins Owners0.06%
Ins Owner Change0.02%
Market Cap80.27B
Revenue(TTM)23.28B
Net Income(TTM)2.57B
Analysts73.75
Price Target393.87 (21.64%)
Short Float %1.92%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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)2.01%
PT rev (3m)1.59%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)-2.46%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)2.87%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.63 | ||
| Fwd PE | 25.47 | ||
| P/S | 3.45 | ||
| P/FCF | 33.08 | ||
| P/OCF | 24.37 | ||
| P/B | 18.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.89 |
EPS(TTM)11.31
EY3.49%
EPS(NY)12.71
Fwd EY3.93%
FCF(TTM)9.79
FCFY3.02%
OCF(TTM)13.29
OCFY4.1%
SpS93.89
BVpS17.85
TBVpS-27.57
PEG (NY)19.83
PEG (5Y)2.86
Graham Number67.4
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 | 3.99 |
F-Score5
WACC8.45%
ROIC/WACC1.63
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 Y1.44%
EPS Next 2Y5.92%
EPS Next 3Y8.11%
EPS Next 5Y8.04%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y5.02%
Revenue growth 5Y5.23%
Sales Q2Q%3.18%
Revenue Next Year1.71%
Revenue Next 2Y3.41%
Revenue Next 3Y3.74%
Revenue Next 5Y3.89%
EBIT growth 1Y-1.67%
EBIT growth 3Y12.18%
EBIT growth 5Y9.18%
EBIT Next Year14.7%
EBIT Next 3Y10.61%
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 28.63 and the Price/Book (PB) ratio is 18.14.
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 1.44% in the next year.