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

NYSE:SHW • US8243481061

Current stock price

335.73 USD
+0.06 (+0.02%)
At close:
335.73 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.
  • In the past 5 years SHW has always been profitable.
  • Each year in the past 5 years SHW had a positive operating cash flow.
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

  • Looking at the Return On Assets, with a value of 9.92%, SHW belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 55.86%, SHW belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • SHW has a better Return On Invested Capital (14.54%) than 95.12% 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 6.48%.
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 Profit Margin of 10.90%. This is amongst the best in the industry. SHW outperforms 89.02% of its industry peers.
  • SHW's Profit Margin has been stable in the last couple of years.
  • SHW has a better Operating Margin (16.11%) than 81.71% of its industry peers.
  • In the last couple of years the Operating Margin of SHW has remained more or less at the same level.
  • The Gross Margin of SHW (48.85%) is better than 93.90% of its industry peers.
  • 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.
  • SHW has less shares outstanding than it did 1 year ago.
  • 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

  • An Altman-Z score of 3.75 indicates that SHW is not in any danger for bankruptcy at the moment.
  • SHW has a better Altman-Z score (3.75) than 84.15% 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 84.15% 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.
  • The Debt to Equity ratio of SHW (2.33) is worse than 85.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.33
Debt/FCF 4.17
Altman-Z 3.75
ROIC/WACC1.01
WACC14.47%
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's Current ratio of 0.87 is on the low side compared to the rest of the industry. SHW is outperformed by 95.12% of its industry peers.
  • A Quick Ratio of 0.53 indicates that SHW may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.53, SHW is not doing good in the industry: 91.46% of the companies in the same industry are doing better.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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.
  • The Revenue has been growing slightly by 2.06% in the past year.
  • 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

  • The Earnings Per Share is expected to grow by 8.85% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 4.45% on average over the next years.
EPS Next Y4.83%
EPS Next 2Y9.18%
EPS Next 3Y10.48%
EPS Next 5Y8.85%
Revenue Next Year4.56%
Revenue Next 2Y4.62%
Revenue Next 3Y4.78%
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

  • The Price/Earnings ratio is 29.32, which means the current valuation is very expensive for SHW.
  • The rest of the industry has a similar Price/Earnings ratio as SHW.
  • The average S&P500 Price/Earnings ratio is at 26.91. SHW is around the same levels.
  • The Price/Forward Earnings ratio is 27.97, which means the current valuation is very expensive for SHW.
  • SHW's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 23.69. SHW is around the same levels.
Industry RankSector Rank
PE 29.32
Fwd PE 27.97
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 74.39% of the companies in the same industry.
  • SHW's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 31.29
EV/EBITDA 20.72
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)6.07
PEG (5Y)4.23
EPS Next 2Y9.18%
EPS Next 3Y10.48%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. SHW Dividend Analysis

5.1 Amount

  • SHW has a Yearly Dividend Yield of 1.01%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.07, SHW has a dividend in line with its industry peers.
  • With a Dividend Yield of 1.01, SHW pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.01%

5.2 History

  • The dividend of SHW is nicely growing with an annual growth rate of 12.07%!
  • 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)12.07%
Div Incr Years22
Div Non Decr Years22
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

More info and screens

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SHW Fundamentals: All Metrics, Ratios and Statistics

SHERWIN-WILLIAMS CO/THE

NYSE:SHW (4/9/2026, 3:42:55 PM)

After market: 335.73 0 (0%)

335.73

+0.06 (+0.02%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)01-29
Earnings (Next)04-28
Inst Owners82.91%
Inst Owner Change0%
Ins Owners0.07%
Ins Owner Change-0.29%
Market Cap83.05B
Revenue(TTM)23.57B
Net Income(TTM)2.57B
Analysts74.84
Price Target394.25 (17.43%)
Short Float %1.98%
Short Ratio2.5
Dividend
Industry RankSector Rank
Dividend Yield 1.01%
Yearly Dividend3.17
Dividend Growth(5Y)12.07%
DP30.75%
Div Incr Years22
Div Non Decr Years22
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)-0.38%
EPS NQ rev (3m)-5.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.15%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-0.32%
Valuation
Industry RankSector Rank
PE 29.32
Fwd PE 27.97
P/S 3.52
P/FCF 31.29
P/OCF 24.06
P/B 18.06
P/tB N/A
EV/EBITDA 20.72
EPS(TTM)11.45
EY3.41%
EPS(NY)12
Fwd EY3.58%
FCF(TTM)10.73
FCFY3.2%
OCF(TTM)13.95
OCFY4.16%
SpS95.3
BVpS18.59
TBVpS-29.93
PEG (NY)6.07
PEG (5Y)4.23
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 3.75
F-Score6
WACC14.47%
ROIC/WACC1.01
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 Year4.56%
Revenue Next 2Y4.62%
Revenue Next 3Y4.78%
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.


What is the profitability of SHW stock?

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


What are the PE and PB ratios of SHERWIN-WILLIAMS CO/THE (SHW) stock?

The Price/Earnings (PE) ratio for SHERWIN-WILLIAMS CO/THE (SHW) is 29.32 and the Price/Book (PB) ratio is 18.06.


Can you provide the financial health for SHW stock?

The financial health rating of SHERWIN-WILLIAMS CO/THE (SHW) is 5 / 10.