SHERWIN-WILLIAMS CO/THE (SHW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SHW - US8243481061 - Common Stock
333.11 USD
-2.26 (-0.67%)
332.99 USD
-0.12 (-0.04%)
Overall SHW gets a fundamental rating of 6 out of 10. We evaluated SHW against 81 industry peers in the Chemicals industry. SHW has an excellent profitability rating, but there are some minor concerns on its financial health. SHW is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SHW was profitable.
SHW had a positive operating cash flow in the past year.
Each year in the past 5 years SHW has been profitable.
SHW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SHW has a better Return On Assets (9.81%) than 95.06% of its industry peers.
SHW has a Return On Equity of 58.12%. This is amongst the best in the industry. SHW outperforms 100.00% of its industry peers.
The Return On Invested Capital of SHW (13.81%) is better than 93.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SHW is significantly above the industry average of 6.15%.
| 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 has a Profit Margin of 11.05%. This is amongst the best in the industry. SHW outperforms 88.89% of its industry peers.
SHW's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 15.81%, SHW is doing good in the industry, outperforming 79.01% of the companies in the same industry.
SHW's Operating Margin has improved in the last couple of years.
The Gross Margin of SHW (48.88%) is better than 95.06% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SHW 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.
Compared to 1 year ago, SHW has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.05 indicates that SHW is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.05, SHW belongs to the best of the industry, outperforming 88.89% 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.
The Debt to FCF ratio of SHW (4.75) is better than 82.72% 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.
SHW has a worse Debt to Equity ratio (2.52) than 82.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.52 | ||
| Debt/FCF | 4.75 | ||
| Altman-Z | 4.05 |
ROIC/WACC1.62
WACC8.51%
2.3 Liquidity
A Current Ratio of 0.82 indicates that SHW may have some problems paying its short term obligations.
SHW has a worse Current ratio (0.82) than 93.83% of its industry peers.
SHW has a Quick 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.
SHW has a worse Quick ratio (0.52) than 91.36% 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.
SHW shows a small growth in Revenue. In the last year, the Revenue has grown by 0.96%.
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
Based on estimates for the next years, SHW will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.04% on average per year.
Based on estimates for the next years, SHW will show a small growth in Revenue. The Revenue will grow by 3.89% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SHW is valuated quite expensively with a Price/Earnings ratio of 29.45.
The rest of the industry has a similar Price/Earnings ratio as SHW.
SHW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.46.
A Price/Forward Earnings ratio of 26.04 indicates a quite expensive valuation of SHW.
Based on the Price/Forward Earnings ratio, SHW is valued a bit more expensive than the industry average as 62.96% of the companies are valued more cheaply.
SHW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.45 | ||
| Fwd PE | 26.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHW indicates a slightly more expensive valuation: SHW is more expensive than 77.78% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SHW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.03 | ||
| EV/EBITDA | 21.36 |
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)21.75
PEG (5Y)2.94
EPS Next 2Y6.27%
EPS Next 3Y8.46%
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 3.88.
With a Dividend Yield of 0.94, SHW pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
On average, the dividend of SHW grows each year by 13.53%, which is quite nice.
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.
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%
333.11
-2.26 (-0.67%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners84.11%
Inst Owner Change-1.03%
Ins Owners0.06%
Ins Owner Change-3.86%
Market Cap82.57B
Revenue(TTM)23.28B
Net Income(TTM)2.57B
Analysts73.75
Price Target393.87 (18.24%)
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)2.13%
PT rev (3m)1.71%
EPS NQ rev (1m)-2.43%
EPS NQ rev (3m)-2.96%
EPS NY rev (1m)0.44%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)2.83%
Revenue NQ rev (3m)2.81%
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.45 | ||
| Fwd PE | 26.04 | ||
| P/S | 3.55 | ||
| P/FCF | 34.03 | ||
| P/OCF | 25.07 | ||
| P/B | 18.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.36 |
EPS(TTM)11.31
EY3.4%
EPS(NY)12.79
Fwd EY3.84%
FCF(TTM)9.79
FCFY2.94%
OCF(TTM)13.29
OCFY3.99%
SpS93.89
BVpS17.85
TBVpS-27.57
PEG (NY)21.75
PEG (5Y)2.94
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 | 4.05 |
F-Score5
WACC8.51%
ROIC/WACC1.62
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 29.45 and the Price/Book (PB) ratio is 18.66.
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.