Sherwin-Williams Company (SHW)
NYSE:SHW
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Sherwin-Williams Company
(NYSE:SHW)
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Rating:67Neutral
Price Target:
$349.00
▲(8.40% Upside)
Action:DowngradedDate:02/20/26
The score is driven mainly by strong profitability and cash generation, tempered by high balance-sheet leverage. Technicals are steady but not strongly bullish, while valuation (high P/E and low yield) limits upside. Earnings-call guidance is constructive but cautious due to persistent demand softness and cost/interest headwinds.
Positive Factors
Margin expansion and profitability
Sustained gross- and EBITDA-margin improvement indicates durable pricing power and cost control across channels. Higher margins create earnings resilience versus modest top-line growth, supporting cash flow and investment even if volumes stay pressured over the next several quarters.
Negative Factors
High financial leverage
Elevated debt magnifies downside risk if demand or margins deteriorate, reducing financial flexibility for opportunistic investment or buybacks. High leverage increases sensitivity to interest-rate and cash-flow swings and constrains ability to absorb unexpected shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin expansion and profitability
Sustained gross- and EBITDA-margin improvement indicates durable pricing power and cost control across channels. Higher margins create earnings resilience versus modest top-line growth, supporting cash flow and investment even if volumes stay pressured over the next several quarters.
Read all positive factors
Sherwin-Williams Company (SHW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$79.77B
Dividend Yield0.98%
Average Volume (3M)1.67M
Price to Earnings (P/E)31.1
Beta (1Y)0.74
Revenue Growth0.96%
EPS Growth1.96%
CountryUS
Employees63,890
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)2.23
Shares Outstanding247,774,770
10 Day Avg. Volume1,828,428
30 Day Avg. Volume1,668,090
Financial Highlights & Ratios
PEG Ratio-11.07
Price to Book (P/B)17.36
Price to Sales (P/S)3.39
P/FCF Ratio30.08
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue3.97
Enterprise Value/Gross Profit8.11
Enterprise Value/Ebitda21.29
Forecast
1Y Price Target
$393.30Price Target Upside22.16% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)11.9
Revenue Forecast (FY)$24.57B
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 Bran...
How the Company Makes Money
Sherwin-Williams primarily makes money by selling paints, coatings, and related products through multiple go-to-market channels that align to its operating segments. (1) Paint Stores Group: This is centered on sales through Sherwin-Williams’ compa...
Sherwin-Williams Company Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows revenue generated by each business segment, indicating where the company is experiencing growth and where it might face challenges.
Shows revenue generated by each business segment, indicating where the company is experiencing growth and where it might face challenges.
Data provided by:
The Fly
The FlySherwin-Williams Company Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The company reported solid financial performance and record results for 2025 (sales, adjusted EPS, expanded EBITDA margin, strong cash generation and disciplined SG&A control) while navigating a persistent weak demand environment. Management provided realistic, slightly growth-oriented guidance for 2026 (low- to mid-single-digit sales growth and modest adjusted EPS growth) and highlighted cost control, pricing actions, store expansion and strategic integration of Suvenil as levers to offset raw material, tariff and interest-cost headwinds. The call balanced tangible operational and financial achievements against significant macro and commodity challenges that are expected to persist into 2026.Positive Updates
Record Full-Year Sales and EPS
Company delivered record full-year consolidated sales and record adjusted diluted net income per share (2025 adjusted diluted EPS $11.43). Full-year adjusted diluted EPS growth guidance midpoint of $11.70 implies +2.4% versus 2025 (excluding acquisition amortization).
Negative Updates
Softer-for-Longer Demand Backdrop
Management reiterated no meaningful recovery across end markets and expects the 'softer for longer' demand dynamic to persist well into 2026, limiting top-line tailwinds and keeping the outlook cautious.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Full-Year Sales and EPS
Company delivered record full-year consolidated sales and record adjusted diluted net income per share (2025 adjusted diluted EPS $11.43). Full-year adjusted diluted EPS growth guidance midpoint of $11.70 implies +2.4% versus 2025 (excluding acquisition amortization).
Read all positive updates
Company Guidance
Management guided 2026 consolidated sales to increase a low- to mid-single-digit percentage and GAAP diluted net income per share to $10.70–$11.10 (adjusted diluted EPS, excluding $0.80 of acquisition‑related amortization, $11.50–$11.90; midpoint $11.70, +2.4% vs. 2025 adjusted EPS of $11.43). They expect Paint Stores Jan. 1 pricing of 7% with realization in the low single digits, a raw‑material basket up a low single‑digit percentage, GAAP SG&A dollars up a low single digit (including a low‑single‑digit contribution from Suvenil), and roughly $90M of incremental interest expense (≈$40M HQ lease, $35M delayed‑draw term loan, $15M refinancing). The company expects full‑year gross‑margin expansion, plans to open 80–100 net new U.S./Canada stores, will continue opportunistic buybacks, is proposing a 1.3% dividend raise to $3.20, and expects to end 2026 within its 2.0–2.5x net debt/adjusted‑EBITDA target; for context FY2025 net operating cash rose 9.4% to $3.5B (14.6% of sales), free cash flow was $2.7B (59% conversion) and Q4 FCF conversion was 90.1%.Sherwin-Williams Company Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
55
Neutral
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 23.57B | 23.10B | 23.05B | 22.15B | 19.94B |
| Gross Profit | 11.54B | 11.20B | 10.76B | 9.33B | 8.54B |
| EBITDA | 4.40B | 4.49B | 4.15B | 3.54B | 3.16B |
| Net Income | 2.57B | 2.68B | 2.39B | 2.02B | 1.86B |
Balance Sheet | |||||
| Total Assets | 25.90B | 23.63B | 22.95B | 22.59B | 20.67B |
| Cash, Cash Equivalents and Short-Term Investments | 207.20M | 210.40M | 276.80M | 198.80M | 165.70M |
| Total Debt | 14.53B | 11.91B | 11.81B | 12.51B | 11.50B |
| Total Liabilities | 21.30B | 19.58B | 19.24B | 19.49B | 18.23B |
| Stockholders Equity | 4.60B | 4.05B | 3.72B | 3.10B | 2.44B |
Cash Flow | |||||
| Free Cash Flow | 2.65B | 2.08B | 2.63B | 1.28B | 1.87B |
| Operating Cash Flow | 3.45B | 3.15B | 3.52B | 1.92B | 2.24B |
| Investing Cash Flow | -2.01B | -1.20B | -1.04B | -1.61B | -476.40M |
| Financing Cash Flow | -1.38B | -2.02B | -2.42B | -282.40M | -1.83B |
Sherwin-Williams Company Technical Analysis
Negative
321.95
Price Trends
346.37
Negative
339.88
Negative
343.01
Negative
Market Momentum
-10.42
Positive
42.76
Neutral
53.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHW, the sentiment is Negative. The current price of 321.95 is below the 20-day moving average (MA) of 329.12, below the 50-day MA of 346.37, and below the 200-day MA of 343.01, indicating a bearish trend. The MACD of -10.42 indicates Positive momentum. The RSI at 42.76 is Neutral, neither overbought nor oversold. The STOCH value of 53.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SHW.
Sherwin-Williams Company Risk Analysis
Sherwin-Williams Company disclosed 22 risk factors in its most recent earnings report. Sherwin-Williams Company reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sherwin-Williams Company Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $75.72B | 35.83 | 22.03% | 1.01% | 1.38% | -2.54% | |
68 Neutral | $23.84B | 14.71 | 33.60% | 2.71% | -12.98% | -11.34% | |
67 Neutral | $79.77B | 31.08 | 58.53% | 0.98% | 0.96% | 1.96% | |
65 Neutral | $5.90B | 18.46 | 16.86% | ― | -1.83% | 40.64% | |
63 Neutral | $12.66B | 21.09 | 22.70% | 1.96% | 3.09% | 12.25% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | $18.95B | -21.54 | -3.77% | 1.74% | 2.42% | -196.54% |
* Basic Materials Sector Average
SHW
Sherwin-Williams Company
321.95
-14.79
-4.39%
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Sherwin-Williams Company Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Sherwin-Williams Extends Credit Facility, Strengthens Liquidity Position
Positive
Feb 9, 2026
On February 9, 2026, Sherwin-Williams amended its Amended and Restated Credit Agreement with Citicorp USA, Inc. and a syndicate of lenders to extend the maturity of $75 million in available commitments and letter-of-credit capacity from June 20, 2...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.