Sherwin-Williams Company (SHW) AI Stock Analysis

• Market Cap: $83.66B
• Dividend Yield: 0.93%
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): 33.0
• Beta (1Y): 0.74
• Revenue Growth: 0.96%
• EPS Growth: 1.96%
• Country: US
• Employees: 63,890
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 3.59
• Shares Outstanding: 247,893,510
• 10 Day Avg. Volume: 1,707,230
• 30 Day Avg. Volume: 2,113,358
• PEG Ratio: 2.26
• Price to Book (P/B): 21.32
• Price to Sales (P/S): 3.74
• P/FCF Ratio: 41.46
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 4.31
• Enterprise Value/Gross Profit: 8.82
• Enterprise Value/Ebitda: 22.82
• 1Y Price Target: $394.75
• Price Target Upside: 16.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 11.38
• Revenue Forecast (FY): $23.53B

• Rating: 72 Outperform
• Price Target: $393.00 ▲(16.45% Upside)

Sherwin-Williams' strong financial performance and positive earnings call are significant strengths, contributing to a solid overall score. However, technical analysis and valuation concerns, such as high P/E ratio and mixed technical signals, slightly offset these positives.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Cash Generation

Robust cash generation enhances financial flexibility, enabling strategic investments, debt reduction, and shareholder returns, bolstering long-term resilience.

Successful Acquisition

The acquisition of Suvinil strengthens the company's portfolio in Latin America, offering new growth avenues and competitive advantages in emerging markets.

Negative Factors

High Debt Levels

Elevated debt levels can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth or weather economic downturns.

Challenging Demand Environment

Persistent demand challenges may hinder revenue growth and profitability, requiring strategic adjustments to maintain market position and financial performance.

Margin Pressure

Decreasing margins in key segments can erode profitability, necessitating cost management and efficiency improvements to sustain long-term financial health.

Sherwin-Williams Company Business Overview & Revenue Model

Company Description

The Sherwin-Williams Company develops, manufactures, distributes, and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers. It operates through three segments: The Americas Group, Consumer Brands Group, and Performance Coatings Group. The Americas Group segment offers architectural paints and coatings, and protective and marine products, as well as OEM product finishes and related products for architectural and industrial paint contractors, and do-it-yourself homeowners. The Consumer Brands Group segment supplies a portfolio of branded and private-label architectural paints, stains, varnishes, industrial products, wood finishes products, wood preservatives, applicators, corrosion inhibitors, aerosols, caulks, and adhesives to retailers and distributors. The Performance Coatings Group segment develops and sells industrial coatings for wood finishing and general industrial applications, automotive refinish products, protective and marine coatings, coil coatings, packaging coatings, and performance-based resins and colorants. It serves retailers, dealers, jobbers, licensees, and other third-party distributors through its branches and direct sales staff, as well as through outside sales representatives. The company has operations primarily in the North and South America, the Caribbean, Europe, Asia, and Australia. As of February 17, 2022, it operated approximately 5,000 company-operated stores and facilities. The Sherwin-Williams Company was founded in 1866 and is headquartered in Cleveland, Ohio.

How the Company Makes Money

Sherwin-Williams generates revenue primarily through the sale of its paint and coatings products across its various business segments. The key revenue streams include retail sales through company-owned stores and independent dealers, as well as sales to professional contractors, industrial clients, and original equipment manufacturers (OEMs). The company also benefits from significant partnerships with home improvement retailers, allowing it to reach a broader customer base. Additionally, Sherwin-Williams engages in strategic acquisitions to expand its product offerings and market presence, further enhancing its earnings potential. The company's focus on innovation and sustainability in its product development also contributes to its competitive advantage and revenue growth.

Sherwin-Williams Company Financial Statement Overview

Summary

Sherwin-Williams demonstrates strong financial performance with solid revenue growth and profitability margins. The high debt-to-equity ratio is a concern, but the company effectively generates cash flow, supporting financial stability.

Income Statement

Sherwin-Williams has demonstrated strong revenue growth with a TTM increase of 8.48%, supported by a solid gross profit margin of 48.88%. The net profit margin remains healthy at 11.05%, indicating efficient cost management. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, suggesting potential cost pressures.

Balance Sheet

The company maintains a high debt-to-equity ratio of 3.07, which could pose financial risk if not managed carefully. However, the return on equity is robust at 26.52%, reflecting strong profitability relative to shareholder equity. The equity ratio is moderate, indicating a balanced asset structure.

Cash Flow

Sherwin-Williams shows a positive free cash flow growth rate of 12.62% TTM, highlighting improved cash generation. The operating cash flow to net income ratio is 0.44, suggesting adequate cash flow relative to earnings. The free cash flow to net income ratio of 0.74 indicates efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.28B	23.10B	23.05B	22.15B	19.94B	18.36B
Gross Profit	11.38B	11.20B	10.76B	9.33B	8.54B	8.68B
EBITDA	4.40B	4.49B	4.15B	3.54B	3.16B	3.44B
Net Income	2.57B	2.68B	2.39B	2.02B	1.86B	2.03B
Balance Sheet
Total Assets	26.21B	23.63B	22.95B	22.59B	20.67B	20.40B
Cash, Cash Equivalents and Short-Term Investments	241.50M	210.40M	276.80M	198.80M	165.70M	226.60M
Total Debt	13.58B	11.91B	11.81B	12.51B	11.50B	10.11B
Total Liabilities	21.78B	19.58B	19.24B	19.49B	18.23B	16.79B
Stockholders Equity	4.43B	4.05B	3.72B	3.10B	2.44B	3.61B
Cash Flow
Free Cash Flow	2.43B	2.08B	2.63B	1.28B	1.87B	3.10B
Operating Cash Flow	3.29B	3.15B	3.52B	1.92B	2.24B	3.41B
Investing Cash Flow	-2.18B	-1.20B	-1.04B	-1.61B	-476.40M	-322.40M
Financing Cash Flow	-1.11B	-2.02B	-2.42B	-282.40M	-1.83B	-3.02B

Sherwin-Williams Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 337.49
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHW, the sentiment is Neutral. The current price of 337.49 is above the 20-day moving average (MA) of 337.46, below the 50-day MA of 338.01, and below the 200-day MA of 345.44, indicating a neutral trend. The MACD of 0.31 indicates Negative momentum. The RSI at 53.55 is Neutral, neither overbought nor oversold. The STOCH value of 92.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SHW.

Sherwin-Williams Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXTA	75 Outperform	$6.39B	14.38	21.75%	―	-1.83%	40.64%
SHW	72 Outperform	$83.66B	32.96	59.94%	0.93%	0.96%	1.96%
RPM	69 Neutral	$13.71B	19.96	24.05%	1.94%	3.09%	12.25%
PPG	67 Neutral	$22.41B	17.82	16.31%	2.77%	-12.98%	-11.34%
ECL	66 Neutral	$77.28B	39.25	21.73%	0.95%	1.38%	-2.54%
DD	62 Neutral	$16.72B	―	-0.46%	1.79%	2.42%	-196.54%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Sherwin-Williams Company Corporate Events

Sherwin-Williams Extends Credit Agreement to 2030

On November 17, 2025, Sherwin-Williams Company entered into an Amended and Restated Credit Agreement with Citicorp USA, Inc. and other lenders, extending the maturity of $75 million in commitments from December 20, 2025, to December 20, 2030. This agreement maintains similar terms to the previous one, ensuring continuity in financial arrangements and potentially stabilizing the company’s financial operations.

The most recent analyst rating on (SHW) stock is a Hold with a $392.00 price target. To see the full list of analyst forecasts on Sherwin-Williams Company stock, see the SHW Stock Forecast page.

Sherwin-Williams Extends Credit Agreement with Citicorp

On November 5, 2025, Sherwin-Williams Company amended its Credit Agreement with Citicorp USA, Inc., extending the maturity of $125 million in commitments from December 2025 to December 2030. This amendment is part of Sherwin-Williams’ financial strategy to maintain flexibility and ensure long-term liquidity, potentially impacting its financial operations and stakeholder relationships positively.

The most recent analyst rating on (SHW) stock is a Hold with a $392.00 price target. To see the full list of analyst forecasts on Sherwin-Williams Company stock, see the SHW Stock Forecast page.

Sherwin-Williams Reports Solid Q3 2025 Results

The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of paint, coatings, and related products, catering to professional, industrial, commercial, and retail customers worldwide.

Sherwin-Williams Reports Strong Q3 Amid Challenges

Sherwin-Williams’ recent earnings call conveyed a generally positive sentiment, underscored by strong financial performance in the third quarter. The company reported robust sales in its Paint Stores Group and demonstrated effective cost management strategies. The acquisition of Suvinil is anticipated to bolster growth opportunities, although the company is navigating a challenging demand environment, leading to tough decisions such as the temporary suspension of 401(k) matching.

Sherwin-Williams Acquires BASF’s Brazilian Paints Business

On August 8, 2025, Sherwin-Williams Company and its subsidiary, Sherwin-Williams Luxembourg, entered into a 364-day senior unsecured delayed draw Term Loan Credit Agreement, securing $750 million and €250 million respectively, to fund a transaction. On October 1, 2025, Sherwin-Williams do Brasil Indústria e Comércio Ltda., a subsidiary of Sherwin-Williams, completed the acquisition of BASF’s Brazilian architectural paints business, Suvinil Coatings S.A., for $1.15 billion, enhancing its market position in the Brazilian paints industry.

The most recent analyst rating on (SHW) stock is a Buy with a $380.00 price target. To see the full list of analyst forecasts on Sherwin-Williams Company stock, see the SHW Stock Forecast page.