SHW The Sherwin-Williams Company - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
SHW trades at a significant valuation premium to peers like Linde (P/E 28.32) despite comparable revenue growth (3.2% vs 3.1%), making it one of the most expensive names in the sector without commensurate profitability or growth differentiation.
- Forward P/E of 25.99 is lower than current P/E, suggesting some earnings recovery priced in
- Price/Sales of 3.61 reflects brand premium in specialty chemicals
- Current P/E of 32.47 is well above sector average of 28.32 despite slower growth
- Price/Book of 18.50 indicates extreme asset valuation, unsupported by ROA of only 9.19%
While earnings growth remains positive and price momentum has stabilized (+0.1% over 1M), the 1Y return of -13.6% and underperformance vs LIN (-5.4%) highlight weak investor sentiment amid macro concerns in construction and DIY demand.
- 12.9% YoY EPS growth and 6.2% Q/Q EPS expansion signal underlying earnings momentum
- Analyst target implies confidence in forward recovery and margin stabilization
- Revenue growth of 3.2% is stagnant and below historical trends
- Recent earnings misses and declining surprise trend suggest execution risks
Over the past five years, SHW delivered a 42.4% total return with strong profitability and margin discipline, but the last 12 months have seen declining earnings accuracy and weakening price performance, breaking a prior uptrend.
- Long history of strong earnings surprises, including multiple +20% beats in 2020–2023
- Consistently high profitability with operating margin of 18.2% and profit margin of 11.05%
- Earnings surprise trend has deteriorated: average miss of -0.89% over last 4 quarters
- Gross margin compression risk evident in recent quarters despite still-high level
SHW’s balance sheet is significantly more leveraged than peers, with debt/equity over 5x the sector norm, and weak liquidity ratios that could pressure operations during downturns, especially in cyclical end markets.
- Operating cash flow likely robust given high operating margin and stable business model
- No reported cash burn; company maintains investment-grade credit profile
- Debt/Equity of 3.25 is extremely high vs sector average of 0.65, increasing financial risk
- Current ratio of 0.82 and quick ratio of 0.46 indicate potential liquidity strain
The dividend is sustainable given the low payout ratio and strong earnings base, but the sub-1% yield limits appeal in a rising rate environment, especially compared to higher-yielding peers in basic materials.
- Dividend payout ratio of 30.13% is conservative and well-covered by earnings
- Annual dividend rate of $3.16 provides income stability with room for growth
- Yield of 0.95% is below sector average and may not attract income-focused investors
- No data on dividend growth history or consistency of increases
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for SHW and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
SHW
The Sherwin-Williams Company
Primary
|
+42.4% | +42.2% | -13.6% | -8.2% | +0.1% | -2.1% |
|
ECL
Ecolab Inc.
Peer
|
+27.9% | +75.0% | +5.5% | +0.3% | -5.5% | +1.0% |
|
APD
Air Products and Chemicals, Inc.
Peer
|
+9.9% | -5.1% | -15.8% | -5.8% | +0.8% | -0.1% |
|
CTVA
Corteva, Inc.
Peer
|
+85.9% | +2.0% | +16.1% | -3.3% | +6.6% | +2.9% |
|
DD
DuPont de Nemours, Inc.
Peer
|
+64.7% | +42.6% | +16.6% | +38.5% | +20.9% | -0.2% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Basic Materials Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
SHW
The Sherwin-Williams Company
|
NEUTRAL | $84.0B | 32.47 | 59.9% | 11.0% | $332.18 | |
|
ECL
Ecolab Inc.
|
NEUTRAL | $74.2B | 37.15 | 21.9% | 12.5% | $258.58 | |
|
APD
Air Products and Chemicals, Inc.
|
NEUTRAL | $58.54B | - | -1.9% | -3.3% | $259.34 | |
|
CTVA
Corteva, Inc.
|
NEUTRAL | $44.73B | 26.72 | 6.7% | 9.2% | $66.0 | |
|
DD
DuPont de Nemours, Inc.
|
BULLISH | $17.01B | 22.95 | 3.2% | -6.0% | $39.71 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-10-03 | ANDERSON KERRII B | Director | Stock Award | 29 | $10,001 |
| 2025-10-03 | GAMGORT ROBERT JAMES | Director | Stock Award | 98 | $33,752 |
| 2025-10-03 | WILLIAMS THOMAS L II | Director | Stock Award | 98 | $33,752 |
| 2025-10-03 | THAMAN MICHAEL H | Director | Stock Award | 98 | $33,752 |
| 2025-08-25 | BINNS JUSTIN T | Officer | Sale | 609 | $224,611 |
| 2025-08-25 | BINNS JUSTIN T | Officer | Option Exercise | 609 | $48,629 |
| 2025-08-06 | LANG JAMES P | Officer | Sale | 860 | $301,301 |
| 2025-08-06 | LANG JAMES P | Officer | Option Exercise | 860 | $160,691 |
| 2025-07-31 | MISTYSYN ALLEN J | Chief Financial Officer | Gift | 11,100 | - |
| 2025-07-07 | ANDERSON KERRII B | Director | Stock Award | 28 | $10,001 |
| 2025-07-07 | GAMGORT ROBERT JAMES | Director | Stock Award | 97 | $33,752 |
| 2025-07-07 | WILLIAMS THOMAS L II | Director | Stock Award | 97 | $33,752 |
| 2025-07-07 | THAMAN MICHAEL H | Director | Stock Award | 97 | $33,752 |
| 2025-06-06 | REA TODD D | President | Sale | 4,223 | $1,516,733 |
| 2025-06-06 | REA TODD D | President | Option Exercise | 2,686 | $635,628 |
Wall Street Analysts
Professional analyst ratings and price targets