Sherwin-Williams Company (SHW) AI Stock Analysis

• Market Cap: $84.92B
• Dividend Yield: 0.92%
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): 33.4
• Beta (1Y): 0.78
• 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: 2,301,541
• 30 Day Avg. Volume: 2,154,105
• 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: 1.18
• Enterprise Value/Revenue: 4.31
• Enterprise Value/Gross Profit: 8.82
• Enterprise Value/Ebitda: 22.82
• 1Y Price Target: $394.58
• Price Target Upside: 14.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 11.37
• Revenue Forecast (FY): $23.52B

• Rating: 72 Outperform
• Price Target: $393.00 ▲(13.89% 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 through multiple key streams. The Paint Stores Group, which accounts for a significant portion of the company's sales, includes over 4,800 retail locations that sell a variety of paint and coatings products directly to consumers and contractors. The Consumer Brands Group provides products to mass merchandisers and home improvement stores, further diversifying their retail presence. Additionally, the Global Coatings Group serves international markets, supplying industrial and protective coatings, which cater to sectors like automotive, aerospace, and construction. The company benefits from strategic partnerships with major retailers, allowing for broader distribution of its products. Moreover, Sherwin-Williams invests in innovation and product development to enhance its offerings, contributing to revenue growth. Overall, the combination of direct retail sales, partnerships, and diverse product lines plays a crucial role in the company's earnings.

Sherwin-Williams Company Financial Statement Overview

Summary

Sherwin-Williams showcases strong profitability and robust cash flow generation, with consistent revenue growth and healthy margins. However, high leverage poses a financial risk, requiring close monitoring of debt levels.

Income Statement

Sherwin-Williams demonstrates strong profitability, with a gross profit margin of approximately 48.9% and a net profit margin of around 11% in TTM. Revenue has shown stable growth over the years, with a slight uptick in EBIT and EBITDA margins, indicating efficient operations. However, net income slightly decreased in the TTM compared to the previous year, which could be a concern if the trend continues.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio of about 2.9 in TTM, indicating considerable financial risk. However, the company has improved its equity base over the years, enhancing its equity ratio slightly. The return on equity stands strong at approximately 57.8%, showcasing effective equity utilization, though the high debt levels remain a potential risk.

Cash Flow

Sherwin-Williams exhibits robust cash flow generation, with a strong operating cash flow to net income ratio of 1.20 and a healthy free cash flow growth rate. The free cash flow to net income ratio is 0.85, indicating effective cash management despite high capital expenditures. Consistent positive cash flow trends provide a buffer against potential financial uncertainties.

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	-972.00M	-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: Positive
• Last Price: 345.08
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHW, the sentiment is Positive. The current price of 345.08 is above the 20-day moving average (MA) of 338.96, above the 50-day MA of 344.83, and below the 200-day MA of 347.66, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 53.95 is Neutral, neither overbought nor oversold. The STOCH value of 42.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$6.14B	13.91	21.75%	―	-1.83%	40.64%
SHW	72 Outperform	$84.92B	33.45	59.94%	0.92%	0.96%	1.96%
RPM	69 Neutral	$13.85B	20.17	24.05%	1.93%	3.09%	12.25%
PPG	67 Neutral	$21.53B	17.12	16.31%	2.90%	-12.98%	-11.34%
ECL	66 Neutral	$73.23B	37.19	21.73%	0.99%	1.38%	-2.54%
DD	62 Neutral	$16.86B	―	-0.46%	120.64%	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 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.

Sherwin-Williams Amends Credit Agreement and Secures New Loan

On August 8, 2025, Sherwin-Williams Company and its subsidiaries amended their existing revolving credit agreement, extending the maturity date to August 8, 2030, and modifying certain financial terms. Additionally, Sherwin-Williams entered into a new 364-day senior unsecured delayed draw term loan credit agreement, providing a $750 million US dollar tranche and a €250 million Euro tranche, available for general corporate purposes. These financial arrangements aim to enhance the company’s liquidity and operational flexibility, potentially impacting its financial leverage and market positioning.

The most recent analyst rating on (SHW) stock is a Buy with a $370.00 price target. To see the full list of analyst forecasts on Sherwin-Williams Company stock, see the SHW Stock Forecast page.

Sherwin-Williams Announces $1.5 Billion Senior Notes Offering

On July 29, 2025, Sherwin-Williams Company announced the offering and sale of $1.5 billion in senior notes with varying maturity dates and interest rates. This financial move, involving major underwriters and trust companies, is part of the company’s strategic financial management to support its operations and growth plans.

The most recent analyst rating on (SHW) stock is a Buy with a $378.00 price target. To see the full list of analyst forecasts on Sherwin-Williams Company stock, see the SHW Stock Forecast page.