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

NYSE:SHW • US8243481061

347.67 USD
-1.16 (-0.33%)
At close: Mar 4, 2026
347.39 USD
-0.28 (-0.08%)
After Hours: 3/4/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This SHW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

SHW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 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.


Dividend Valuation Growth Profitability Health

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.
  • SHW had a positive operating cash flow in 4 of the past 5 years.
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 (9.81%) is better than 95.18% of its industry peers.
  • With an excellent Return On Equity value of 58.12%, SHW belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 13.83%, SHW belongs to the best of the industry, outperforming 93.98% 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 6.36%.
Industry RankSector Rank
ROA 9.81%
ROE 58.12%
ROIC 13.83%
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

  • With an excellent Profit Margin value of 11.05%, SHW belongs to the best of the industry, outperforming 87.95% of the companies in the same industry.
  • In the last couple of years the Profit Margin of SHW has remained more or less at the same level.
  • SHW has a Operating Margin of 15.81%. This is amongst the best in the industry. SHW outperforms 80.72% 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 48.88%. This is amongst the best in the industry. SHW outperforms 93.98% of its industry peers.
  • SHW's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 15.81%
PM (TTM) 11.05%
GM 48.88%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • Compared to 1 year ago, SHW has less shares outstanding
  • The number of shares outstanding for SHW has been reduced compared to 5 years ago.
  • SHW has a better debt/assets ratio than 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 4.13 indicates that SHW is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 4.13, SHW belongs to the best of the industry, outperforming 90.36% 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.
  • With an excellent Debt to FCF ratio value of 4.75, SHW belongs to the best of the industry, outperforming 80.72% of the companies in the same industry.
  • A Debt/Equity ratio of 2.52 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 2.52, SHW is doing worse than 84.34% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.52
Debt/FCF 4.75
Altman-Z 4.13
ROIC/WACC0.96
WACC14.36%
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 0.82. 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 Current ratio (0.82) than 95.18% 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 92.77% of its industry peers.
Industry RankSector Rank
Current Ratio 0.82
Quick Ratio 0.52
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. SHW Growth Analysis

3.1 Past

  • SHW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.06%.
  • SHW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.94% yearly.
  • SHW shows a small growth in Revenue. In the last year, the Revenue has grown by 2.06%.
  • 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.
  • The Revenue is expected to grow by 4.45% on average over the next years.
EPS Next Y6.35%
EPS Next 2Y9.52%
EPS Next 3Y10.77%
EPS Next 5Y8.85%
Revenue Next Year4.42%
Revenue Next 2Y4.45%
Revenue Next 3Y4.74%
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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Find the best growth stocksShow best growing peers

2

4. SHW Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 30.36, SHW can be considered very expensive at the moment.
  • SHW's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 27.03. SHW is around the same levels.
  • A Price/Forward Earnings ratio of 28.55 indicates a quite expensive valuation of 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 (25.11), we can say SHW is valued inline with the index average.
Industry RankSector Rank
PE 30.36
Fwd PE 28.55
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

  • 74.70% of the companies in the same industry are cheaper than SHW, based on the Enterprise Value to EBITDA ratio.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as SHW.
Industry RankSector Rank
P/FCF 35.52
EV/EBITDA 22.07
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.
  • The excellent profitability rating of SHW may justify a higher PE ratio.
PEG (NY)4.78
PEG (5Y)4.38
EPS Next 2Y9.52%
EPS Next 3Y10.77%

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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 0.89%, SHW is not a good candidate for dividend investing.
  • SHW's Dividend Yield is comparable with the industry average which is at 2.19.
  • 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 0.89%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.53%
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

  • 30.09% 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 2Y9.52%
EPS Next 3Y10.77%
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

More info and screens

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SHW Fundamentals: All Metrics, Ratios and Statistics

SHERWIN-WILLIAMS CO/THE

NYSE:SHW (3/4/2026, 8:04:00 PM)

After market: 347.39 -0.28 (-0.08%)

347.67

-1.16 (-0.33%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)01-29
Earnings (Next)04-27
Inst Owners84.03%
Inst Owner Change-0.68%
Ins Owners0.06%
Ins Owner Change-0.29%
Market Cap86.18B
Revenue(TTM)23.57B
Net Income(TTM)2.57B
Analysts74.38
Price Target396.01 (13.9%)
Short Float %1.49%
Short Ratio1.92
Dividend
Industry RankSector Rank
Dividend Yield 0.89%
Yearly Dividend2.86
Dividend Growth(5Y)13.53%
DP30.09%
Div Incr Years21
Div Non Decr Years21
Ex-Date03-02
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)0.72%
PT rev (3m)0.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.09%
EPS NY rev (1m)-3.04%
EPS NY rev (3m)-4.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.18%
Valuation
Industry RankSector Rank
PE 30.36
Fwd PE 28.55
P/S 3.7
P/FCF 35.52
P/OCF 26.17
P/B 19.48
P/tB N/A
EV/EBITDA 22.07
EPS(TTM)11.45
EY3.29%
EPS(NY)12.18
Fwd EY3.5%
FCF(TTM)9.79
FCFY2.82%
OCF(TTM)13.29
OCFY3.82%
SpS93.89
BVpS17.85
TBVpS-27.57
PEG (NY)4.78
PEG (5Y)4.38
Graham Number67.82
Profitability
Industry RankSector Rank
ROA 9.81%
ROE 58.12%
ROCE 19.65%
ROIC 13.83%
ROICexc 13.99%
ROICexgc 31.34%
OM 15.81%
PM (TTM) 11.05%
GM 48.88%
FCFM 10.42%
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 Turnover0.89
Health
Industry RankSector 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 4.13
F-Score6
WACC14.36%
ROIC/WACC0.96
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.06%
EPS 3Y9.42%
EPS 5Y6.94%
EPS Q2Q%6.7%
EPS Next Y6.35%
EPS Next 2Y9.52%
EPS Next 3Y10.77%
EPS Next 5Y8.85%
Revenue 1Y (TTM)2.06%
Revenue growth 3Y2.1%
Revenue growth 5Y5.12%
Sales Q2Q%5.64%
Revenue Next Year4.42%
Revenue Next 2Y4.45%
Revenue Next 3Y4.74%
Revenue Next 5Y4.45%
EBIT growth 1Y-1.67%
EBIT growth 3Y8.16%
EBIT growth 5Y5.87%
EBIT Next Year20.99%
EBIT Next 3Y12.97%
EBIT Next 5Y8.29%
FCF growth 1Y18.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y4.98%
OCF growth 3YN/A
OCF growth 5YN/A

SHERWIN-WILLIAMS CO/THE / SHW 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 6.35% 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 30.09%.