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

NYSE:SHW • US8243481061

Current stock price

321.95 USD
+8.25 (+2.63%)
At close:
321.95 USD
0 (0%)
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

  • 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.
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

  • The Return On Assets of SHW (9.92%) is better than 95.18% of its industry peers.
  • SHW has a Return On Equity of 55.86%. This is amongst the best in the industry. SHW outperforms 100.00% of its industry peers.
  • SHW has a Return On Invested Capital of 14.54%. This is amongst the best in the industry. SHW outperforms 95.18% 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 6.51%.
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 better Profit Margin (10.90%) than 89.16% of its industry peers.
  • In the last couple of years the Profit Margin of SHW has remained more or less at the same level.
  • The Operating Margin of SHW (16.11%) is better than 81.93% of its industry peers.
  • In the last couple of years the Operating Margin of SHW has remained more or less at the same level.
  • Looking at the Gross Margin, with a value of 48.85%, SHW belongs to the top of the industry, outperforming 93.98% of the companies in the same industry.
  • 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.
  • Compared to 1 year ago, SHW has less shares outstanding
  • SHW has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for SHW has remained at the same level compared to a year ago.
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

  • SHW has an Altman-Z score of 3.59. This indicates that SHW is financially healthy and has little risk of bankruptcy at the moment.
  • SHW's Altman-Z score of 3.59 is amongst the best of the industry. SHW outperforms 83.13% of its industry peers.
  • The Debt to FCF ratio of SHW is 4.17, which is a neutral value as it means it would take SHW, 4.17 years of fcf income to pay off 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 84.34% of the companies in the same industry.
  • A Debt/Equity ratio of 2.33 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 2.33, SHW is doing worse than 85.54% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.33
Debt/FCF 4.17
Altman-Z 3.59
ROIC/WACC1
WACC14.5%
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 has a Current ratio of 0.87. This is amonst the worse of the industry: SHW underperforms 95.18% of its industry peers.
  • A Quick Ratio of 0.53 indicates that SHW may have some problems paying its short term obligations.
  • SHW has a worse Quick ratio (0.53) than 91.57% 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.
  • SHW shows a small growth in Revenue. In the last year, the Revenue has grown by 2.06%.
  • SHW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.12% yearly.
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.
  • Based on estimates for the next years, SHW will show a small growth in Revenue. The Revenue will grow by 4.45% on average per year.
EPS Next Y4.83%
EPS Next 2Y9.18%
EPS Next 3Y10.48%
EPS Next 5Y8.85%
Revenue Next Year4.48%
Revenue Next 2Y4.53%
Revenue Next 3Y4.7%
Revenue Next 5Y4.45%

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 accelerating.
  • 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

  • SHW is valuated quite expensively with a Price/Earnings ratio of 28.12.
  • 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 25.61, which is the current average of the S&P500 Index.
  • SHW is valuated quite expensively with a Price/Forward Earnings ratio of 26.82.
  • Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 28.12
Fwd PE 26.82
SHW Price Earnings VS Forward Price EarningsSHW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 73.49% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, SHW is valued a bit cheaper than the industry average as 60.24% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 30.01
EV/EBITDA 19.5
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)5.82
PEG (5Y)4.05
EPS Next 2Y9.18%
EPS Next 3Y10.48%

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5

5. SHW Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.03%, SHW has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.12, SHW has a dividend in line with its industry peers.
  • With a Dividend Yield of 1.03, SHW pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.03%

5.2 History

  • On average, the dividend of SHW grows each year by 12.07%, 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)12.07%
Div Incr Years21
Div Non Decr Years21
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

  • 30.75% 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.
DP30.75%
EPS Next 2Y9.18%
EPS Next 3Y10.48%
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 (3/25/2026, 7:00:00 PM)

After market: 321.95 0 (0%)

321.95

+8.25 (+2.63%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)01-29
Earnings (Next)04-27
Inst Owners82.91%
Inst Owner Change-0.66%
Ins Owners0.07%
Ins Owner Change-0.29%
Market Cap79.64B
Revenue(TTM)23.57B
Net Income(TTM)2.57B
Analysts74.38
Price Target396.01 (23%)
Short Float %1.8%
Short Ratio2.3
Dividend
Industry RankSector Rank
Dividend Yield 1.03%
Yearly Dividend3.17
Dividend Growth(5Y)12.07%
DP30.75%
Div Incr Years21
Div Non Decr Years21
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)-0.05%
PT rev (3m)0.54%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-5.25%
EPS NY rev (1m)-1.43%
EPS NY rev (3m)-5.58%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.63%
Valuation
Industry RankSector Rank
PE 28.12
Fwd PE 26.82
P/S 3.38
P/FCF 30.01
P/OCF 23.07
P/B 17.32
P/tB N/A
EV/EBITDA 19.5
EPS(TTM)11.45
EY3.56%
EPS(NY)12
Fwd EY3.73%
FCF(TTM)10.73
FCFY3.33%
OCF(TTM)13.95
OCFY4.33%
SpS95.3
BVpS18.59
TBVpS-29.93
PEG (NY)5.82
PEG (5Y)4.05
Graham Number69.2
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 3.59
F-Score6
WACC14.5%
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 Y4.83%
EPS Next 2Y9.18%
EPS Next 3Y10.48%
EPS Next 5Y8.85%
Revenue 1Y (TTM)2.06%
Revenue growth 3Y2.1%
Revenue growth 5Y5.12%
Sales Q2Q%5.64%
Revenue Next Year4.48%
Revenue Next 2Y4.53%
Revenue Next 3Y4.7%
Revenue Next 5Y4.45%
EBIT growth 1Y0.93%
EBIT growth 3Y8.16%
EBIT growth 5Y5.87%
EBIT Next Year21.24%
EBIT Next 3Y12.72%
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.


Can you provide the profitability details for SHERWIN-WILLIAMS CO/THE?

SHERWIN-WILLIAMS CO/THE (SHW) has a profitability rating of 8 / 10.


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 4.83% in the next year.


Can you provide the dividend sustainability for SHW stock?

The dividend rating of SHERWIN-WILLIAMS CO/THE (SHW) is 5 / 10 and the dividend payout ratio is 30.75%.