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Sherwin-Williams Company
(NYSE:SHW)
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Rating:73Outperform
Price Target:
$365.00
▲(14.96% Upside)
Action:Reiterated
Date:07/28/26
The score is driven primarily by strong underlying profitability and free cash flow, supported by a positive earnings update with raised guidance and solid cash conversion. Offsetting factors are the company’s high leverage, a mixed-to-weaker near-term technical setup (below the 20-day and 200-day averages), and a premium valuation (P/E ~30 with a sub-1% dividend yield).
Positive Factors
Strong cash generation
Consistent high free cash flow (roughly $3.2B TTM and ~83% of net income) provides durable internal funding for capex, dividends, buybacks, and debt reduction. This supports strategic flexibility and resilience across cycles without relying on volatile external financing.
Negative Factors
Elevated leverage
High leverage (debt materially above equity) constrains financial flexibility if demand softens or rates stay elevated. Although returns are enhanced, debt levels amplify cyclical risks and mean deleveraging depends on sustained cash generation rather than rapid paydown.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent high free cash flow (roughly $3.2B TTM and ~83% of net income) provides durable internal funding for capex, dividends, buybacks, and debt reduction. This supports strategic flexibility and resilience across cycles without relying on volatile external financing.
Read all positive factors
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 (SHW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$82.74B
Dividend Yield0.93%
Average Volume (3M)2.38M
Price to Earnings (P/E)31.1
Beta (1Y)0.68
Revenue Growth5.76%
EPS Growth7.42%
CountryUS
Employees64,249
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)10.95
Shares Outstanding242,758,150
10 Day Avg. Volume1,930,869
30 Day Avg. Volume2,380,402
Financial Highlights & Ratios
PEG Ratio-11.11
Price to Book (P/B)17.36
Price to Sales (P/S)3.39
P/FCF Ratio30.08
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$397.00Price Target Upside25.04% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)12.06
Revenue Forecast (FY)$25.10B
Sherwin-Williams Company Business Overview & Revenue Model
Company Description
The Sherwin-Williams Company (SHW) is a global manufacturer, distributor, and retailer of paints, coatings, and related products. The company serves professional, industrial, commercial, and consumer end markets through a combination of company-op...
How the Company Makes Money
Sherwin-Williams primarily makes money by selling coatings products (and complementary supplies) through multiple channels and end markets. A major revenue stream is its company-operated paint store network, which sells architectural paints, coati...
Sherwin-Williams Company Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call presents a largely positive operational and financial story: broad-based sales outperformance across all three reportable segments, strong adjusted EBITDA growth (+10.5%), improved cash generation (+21% net operating cash, 86% FCF conversion), substantial shareholder returns ($1.5B), and raised full-year sales and EPS guidance. Management is executing targeted pricing, cost and productivity actions and integrating Suvinil successfully. Offsetting this are near-term challenges: raw material inflation and volatility, some margin dilution from the acquisition, muted DIY and new residential demand, European destocking, and timing of price realization (some benefits may extend into 2027). Overall, the positives materially outweigh the negatives, but management remains cautious about macro demand and inflation risks.Positive Updates
Consolidated Sales Growth and Raised Guidance
Consolidated sales grew by a high single digit percentage (inclusive of a low single digit contribution from the Suvinil acquisition). Management raised full-year consolidated sales guidance to mid-to-high single digit growth and increased adjusted diluted net income per share guidance to $11.80–$12.20.
Negative Updates
Gross Margin Dilution from Acquisition
Reported gross margin decreased slightly on a consolidated basis, though it increased when excluding the dilutive impact of the Suvinil acquisition, signaling near-term acquisition-related margin dilution.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Sales Growth and Raised Guidance
Consolidated sales grew by a high single digit percentage (inclusive of a low single digit contribution from the Suvinil acquisition). Management raised full-year consolidated sales guidance to mid-to-high single digit growth and increased adjusted diluted net income per share guidance to $11.80–$12.20.
Read all positive updates
Company Guidance
Sherwin‑Williams raised its full‑year outlook, now expecting consolidated sales to grow mid‑to‑high single digits and adjusted diluted net income per share of $11.80–$12.20; it expects consolidated price/mix to be in the mid‑single‑digit range, an 8% Paint Stores price increase effective Sept. 1 with realization in its historic glide path, and raw‑material inflation to be high‑single digits in H2 (mid‑single digits for the full year) while maintaining full‑year gross margin roughly flat at last year’s midpoint. Management also expects full‑year reported SG&A to increase by a mid‑single‑digit percentage, and highlighted Q2 metrics underpinning the raise: adjusted EBITDA up 10.5% to $1.5B with margin +60 bps to 21.5%, net operating cash +21% (+$235M), free cash‑flow conversion 86%, $1.5B returned to shareholders, and a Q2 net debt/adjusted EBITDA of 2.4x.Sherwin-Williams Company Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
58
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.41B | 23.57B | 23.10B | 23.05B | 22.15B | 19.94B |
| Gross Profit | 11.98B | 11.54B | 11.20B | 10.76B | 9.33B | 8.54B |
| EBITDA | 4.46B | 4.40B | 4.49B | 4.15B | 3.54B | 3.16B |
| Net Income | 2.69B | 2.57B | 2.68B | 2.39B | 2.02B | 1.86B |
Balance Sheet | ||||||
| Total Assets | 26.95B | 25.90B | 23.63B | 22.95B | 22.59B | 20.67B |
| Cash, Cash Equivalents and Short-Term Investments | 293.50M | 207.20M | 210.40M | 276.80M | 198.80M | 165.70M |
| Total Debt | 14.22B | 12.94B | 11.91B | 11.81B | 12.51B | 11.50B |
| Total Liabilities | 23.10B | 21.30B | 19.58B | 19.24B | 19.49B | 18.23B |
| Stockholders Equity | 3.85B | 4.60B | 4.05B | 3.72B | 3.10B | 2.44B |
Cash Flow | ||||||
| Free Cash Flow | 3.21B | 2.65B | 2.08B | 2.63B | 1.28B | 1.87B |
| Operating Cash Flow | 3.89B | 3.45B | 3.15B | 3.52B | 1.92B | 2.24B |
| Investing Cash Flow | -1.89B | -2.01B | -1.20B | -1.04B | -1.61B | -476.40M |
| Financing Cash Flow | -1.95B | -1.38B | -2.02B | -2.42B | -282.40M | -1.83B |
Sherwin-Williams Company Technical Analysis
Positive
317.51
Price Trends
326.45
Positive
323.08
Positive
331.95
Positive
Market Momentum
8.03
Negative
67.31
Neutral
96.61
Negative
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 317.51 is below the 20-day moving average (MA) of 335.59, below the 50-day MA of 326.45, and below the 200-day MA of 331.95, indicating a bullish trend. The MACD of 8.03 indicates Negative momentum. The RSI at 67.31 is Neutral, neither overbought nor oversold. The STOCH value of 96.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $78.14B | 37.02 | 21.41% | 1.06% | 7.11% | -0.48% | |
73 Outperform | $82.74B | 31.13 | 62.12% | 1.00% | 5.76% | 7.42% | |
71 Outperform | $7.66B | 21.97 | 15.85% | ― | -0.92% | -20.25% | |
69 Neutral | $13.68B | 20.63 | 20.93% | 2.02% | 6.66% | -3.58% | |
69 Neutral | $18.50B | -761.06 | 0.34% | 1.68% | -22.51% | 63.46% | |
62 Neutral | $24.57B | 15.74 | 68.36% | 2.45% | 1.47% | 23.56% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
SHW
Sherwin-Williams Company
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PPG
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RPM
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AXTA
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38.07
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DD
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147.37
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68.96%
Sherwin-Williams Company Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Sherwin-Williams Extends Long-Term Credit Commitments to 2031
Positive
Jun 9, 2026
On June 9, 2026, Sherwin-Williams amended its existing Amended and Restated Credit Agreement by entering into Amendment No. 11 with Goldman Sachs Bank USA, Goldman Sachs Mortgage Company and a syndicate of lenders. The amendment extends the maturi...
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.