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

NYSE:SHW • US8243481061

Current stock price

315.37 USD
-4.18 (-1.31%)
At close:
315.37 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

  • SHW has a Return On Assets of 9.92%. This is amongst the best in the industry. SHW outperforms 95.18% of its industry peers.
  • With an excellent Return On Equity value of 55.86%, SHW belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 14.54%, SHW belongs to the top of the industry, outperforming 95.18% of the companies in the same industry.
  • SHW had an Average Return On Invested Capital over the past 3 years of 15.96%. This is significantly above the industry average of 6.58%.
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

  • Looking at the Profit Margin, with a value of 10.90%, SHW belongs to the top of the industry, outperforming 89.16% of the companies in the same industry.
  • SHW's Profit Margin has been stable in the last couple of years.
  • SHW has a Operating Margin of 16.11%. This is amongst the best in the industry. SHW outperforms 81.93% of its industry peers.
  • SHW's Operating Margin has been stable in the last couple of years.
  • 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.
  • SHW's Gross Margin has been stable in the last couple of years.
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

  • SHW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • The number of shares outstanding for SHW has been reduced compared to 1 year ago.
  • The number of shares outstanding for SHW has been reduced compared to 5 years ago.
  • SHW has about the same debt/assets ratio as last year.
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 3.60 indicates that SHW is not in any danger for bankruptcy at the moment.
  • SHW has a better Altman-Z score (3.60) than 83.13% 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 84.34% 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.
  • 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 3.6
ROIC/WACC1
WACC14.52%
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

  • SHW has a Current 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.
  • The Current ratio of SHW (0.87) is worse than 95.18% 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 91.57% 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.
  • SHW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.94% yearly.
  • Looking at the last year, SHW shows a small growth in Revenue. The Revenue has grown by 2.06% in the last year.
  • 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.
  • SHW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.45% yearly.
EPS Next Y4.83%
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

  • 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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2

4. SHW Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 27.54 indicates a quite expensive valuation of 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 24.89, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 26.27, the valuation of SHW can be described as expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as SHW.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, SHW is valued at the same level.
Industry RankSector Rank
PE 27.54
Fwd PE 26.27
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

  • 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 69.88% of the companies listed in the same industry.
  • SHW's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 29.39
EV/EBITDA 19.6
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 an expensive valuation of the company.
  • SHW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.7
PEG (5Y)3.97
EPS Next 2Y9.18%
EPS Next 3Y10.48%

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5

5. SHW Dividend Analysis

5.1 Amount

  • SHW has a Yearly Dividend Yield of 1.00%. Purely for dividend investing, there may be better candidates out there.
  • SHW's Dividend Yield is comparable with the industry average which is at 2.04.
  • With a Dividend Yield of 1.00, SHW pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1%

5.2 History

  • On average, the dividend of SHW grows each year by 12.07%, which is quite nice.
  • 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 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.
  • SHW's earnings are growing slower than its dividend. 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 (3/27/2026, 8:04:00 PM)

After market: 315.37 0 (0%)

315.37

-4.18 (-1.31%)

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 Cap78.01B
Revenue(TTM)23.57B
Net Income(TTM)2.57B
Analysts74.38
Price Target394.25 (25.01%)
Short Float %1.8%
Short Ratio2.3
Dividend
Industry RankSector Rank
Dividend Yield 1%
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)-0.44%
PT rev (3m)0.24%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-4.91%
EPS NY rev (1m)-1.43%
EPS NY rev (3m)-5.15%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.39%
Valuation
Industry RankSector Rank
PE 27.54
Fwd PE 26.27
P/S 3.31
P/FCF 29.39
P/OCF 22.6
P/B 16.96
P/tB N/A
EV/EBITDA 19.6
EPS(TTM)11.45
EY3.63%
EPS(NY)12
Fwd EY3.81%
FCF(TTM)10.73
FCFY3.4%
OCF(TTM)13.95
OCFY4.42%
SpS95.3
BVpS18.59
TBVpS-29.93
PEG (NY)5.7
PEG (5Y)3.97
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 3.6
F-Score6
WACC14.52%
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 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 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%.