SHW
Sherwin-Williams
$369.85
▲ 1.8%Updated Aug 7, 11:30 AM ET
SHW at a glance — five pillars scored 0–100 from real filed financials.
Overall: Weak · 41/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 3.2% over the last 12 months
Market Cap
$86.93B
P/E
35.09x
Forward P/E (est.)
35.6x
ROE
58.2%
Revenue Growth
3.9%
EPS Growth
-1.4%
Profit Margin
10.9%
FCF Yield
3.6%
Debt / Equity
2.41x
ROIC
24.0%
Interest Coverage
9.97x
Current Ratio
0.86x
Dividend Yield
1.0%
Implied Growth (rev. DCF)
5.8%
Rating Score
41/100
Sherwin-Williams (SHW) is a large-cap company in the Specialty Chemicals industry, part of the Materials sector of the S&P 500, with a market value around $86.93B.
In its latest reported year it generated about $23.57B in revenue and $2.57B in net profit.
Our model rates SHW Weak (41/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (9 years of history).
The filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
48.0% average over the last 3 years
±2.5 pts around 45.4% across 9 years
grew in 8 of the last 8 year-over-year periods
positive in 9 of 9 years
24.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what SHW's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. SHW trades near $369.85, above its 50-day average ($317.37) and 200-day average ($333.58). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 79 it is overbought — the recent rally is stretched and can cool off.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. SHW's is $9.14 (~2.5% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month SHW found buyers near $296.73 (support) and sellers near $352.48 (resistance); its 52-week range is $289.86–$379.65. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.7× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
4.3%
Revenue moved from $14.98B in 2017 to $23.57B in 2025, a 5.8% compound annual growth rate. The most recent year was roughly flat (3.9%) year over year. Slower, mature growth is common for established businesses.
Gross Margin
48.8%
Operating Margin
14.1%
Net Margin
10.9%
ROE
58.2%
Sherwin-Williams keeps about 10.9% of each sales dollar as net profit, with a 48.8% gross margin and 14.1% operating margin. Return on equity is 58.2% and return on invested capital about 24.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$9.32B
Net Debt
$9.11B
Net Debt / EBITDA
—
Debt / Equity
2.41x
Leverage: debt-to-equity is 2.4x, and operating profit covers interest about 10.0x, with a current ratio of 0.9x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $9.32B of total debt against $216.90M of cash.
Operating CF
$3.45B
Free Cash Flow
$2.65B
FCF Margin
11.3%
In the latest year Sherwin-Williams produced about $3.45B of operating cash flow and $2.65B of free cash flow after capital spending. That is a free-cash-flow yield of about 3.6% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
1.0%
Per share (latest FY)
$3.16
Total paid (latest FY)
$789.80M
History on record
9 years
dividend uses 30% of free cash flow
31% of net income paid out
total dividends increased 8 years in a row
no cuts in the last 9 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
35.09x
P/S
3.37x
P/B
20.04x
EV / EBITDA
—
SHW trades at 35.1x trailing earnings (about 35.6x on estimated forward earnings), 3.4x sales, and 20.0x book value. Reverse-engineering today's price implies the market expects roughly 5.8% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$183.71
Current price
$369.85
Starting FCF (latest 10-K)
$2.65B
Growth, years 1–5
3.9%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where SHW sits versus its Materials sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 54 Materials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How SHW stacks up against its Materials peers — valuation, profitability, and growth versus the sector median.
In the Materials sector (78 S&P 500 companies), SHW ranks #41 of 78 by our overall rating. It trades at a premium versus the sector on earnings (35.1x P/E vs. 22.7x median) with a higher return on equity (58.2% vs. 16.1%) and slower revenue growth (3.9% vs. 7.9%).
P/E vs sector
35.1x
median 22.7x
ROE vs sector
58.2%
median 16.1%
Growth vs sector
3.9%
median 7.9%
Sector rank
#41
of 78 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Materials companies by sub-industry and size. Sector median is across all 78 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $369.85 today · expected CAGR -5% – 5%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $24.52B | $25.50B | $26.52B | $27.58B | $28.68B |
| Net income | $2.70B | $2.80B | $2.92B | $3.03B | $3.15B |
| EPS | $11.47 | $11.93 | $12.41 | $12.91 | $13.42 |
| Share price (low) | $240.95 | $250.58 | $260.61 | $271.03 | $281.87 |
| Share price (high) | $401.58 | $417.64 | $434.35 | $451.72 | $469.79 |
| CAGR (low–high) | -35% / 9% | -18% / 6% | -11% / 6% | -7% / 5% | -5% / 5% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for SHW:
- Strong return on equity (58.2%) shows capital is put to work well.
- As an established S&P 500 member in Materials, it brings scale and a long operating history.
The case against SHW:
- Elevated leverage (debt/equity 2.4x) adds financial risk.
- Our model's overall read is Weak (41/100).
Valuation risk — at 35.1x earnings, disappointing results could compress the multiple.
Balance-sheet risk — debt/equity of 2.4x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen weakly: Sherwin-Williams is a large-cap materials business growing at a mature pace, with modest profitability, and a heavier debt load to watch. It trades at 35.1x earnings, which our model scores Weak (41/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 29 Wall Street analysts covering SHW recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more cautious over the last three months (-3 pts of buy ratings).
Latest SEC Filings
SHW's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
SHW — frequently asked questions
Is SHW a good stock to buy?
We don't give buy or sell advice. Our model rates Sherwin-Williams Weak (41/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is SHW's rating on The Stocks School?
Sherwin-Williams currently scores 41/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does SHW's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Sherwin-Williams's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for SHW calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this SHW analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell SHW. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.