Sherwin-Williams Company (SHW) AI Stock Analysis

• Market Cap: $91.74B
• Dividend Yield: 0.84%
• Average Volume (3M): 2.01M
• Price to Earnings (P/E): 36.5
• Beta (1Y): 0.82
• Revenue Growth: 0.31%
• EPS Growth: 2.66%
• Country: US
• Employees: 63,890
• Sector: Basic Materials
• Sector Strength: 56
• Industry: Chemicals - Specialty
• EPS (TTM): 3.38
• Shares Outstanding: 249,333,310
• 10 Day Avg. Volume: 2,183,427
• 30 Day Avg. Volume: 2,011,226
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 4.32
• Enterprise Value/Gross Profit: 8.83
• Enterprise Value/Ebitda: 22.97
• 1Y Price Target: $390.08
• Price Target Upside: 7.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 72 Outperform
• Price Target: $386.00 ▲(6.08% Upside)

Sherwin-Williams' stock score reflects strong financial performance and robust cash flow generation as key strengths. However, the high debt levels and reduced earnings guidance present risks. The technical analysis shows neutral momentum, and while valuation metrics suggest potential overvaluation, consistent gross margin expansion is a positive indicator.

Positive Factors

Competitive Advantage

Management commentary surrounding the competitive opportunity remained very bullish.

Market Position

The disappearance of some competitors and chaos at others has resulted in an improved environment for SHW.

Negative Factors

Cost Management

Investor fatigue is growing due to continued cost headwinds from SHW investing for growth and the new headquarters.

Earnings Guidance

SHW lowered the FY guide largely due to the 2Q miss and weak demand expected to continue, with increased costs for the new building.

Sherwin-Williams Company Business Overview & Revenue Model

Company Description

Sherwin-Williams Company (SHW) is a leading global manufacturer of paints, coatings, and related products. Founded in 1866 and headquartered in Cleveland, Ohio, the company operates through three primary segments: the Paint Stores Group, the Consumer Brands Group, and the Global Coatings Group. Sherwin-Williams offers a wide range of products including architectural paints, industrial coatings, and specialty finishes, catering to both professional and DIY customers across various industries.

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 cash flow generation, with a stable revenue growth and healthy margins. Despite high leverage, robust cash flow provides a buffer against financial uncertainties. High debt levels are a concern but mitigated by solid cash management.

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	23.08B	23.10B	23.05B	22.15B	19.94B	18.36B
Gross Profit	11.28B	11.20B	10.76B	9.33B	8.54B	8.68B
EBITDA	4.34B	4.49B	4.15B	3.54B	3.16B	3.44B
Net Income	2.54B	2.68B	2.39B	2.02B	1.86B	2.03B
Balance Sheet
Total Assets	25.36B	23.63B	22.95B	22.59B	20.67B	20.40B
Cash, Cash Equivalents and Short-Term Investments	269.80M	210.40M	276.80M	198.80M	165.70M	226.60M
Total Debt	12.77B	11.91B	11.81B	12.51B	11.50B	10.11B
Total Liabilities	20.96B	19.58B	19.24B	19.49B	18.23B	16.79B
Stockholders Equity	4.40B	4.05B	3.72B	3.10B	2.44B	3.61B
Cash Flow
Free Cash Flow	2.15B	2.08B	2.63B	1.28B	1.87B	3.10B
Operating Cash Flow	3.06B	3.15B	3.52B	1.92B	2.24B	3.41B
Investing Cash Flow	-1.17B	-1.20B	-1.04B	-1.61B	-476.40M	-322.40M
Financing Cash Flow	-1.83B	-2.02B	-2.42B	-282.40M	-1.83B	-3.02B

Sherwin-Williams Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 363.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 363.86 is above the 20-day moving average (MA) of 351.51, above the 50-day MA of 346.48, and above the 200-day MA of 352.12, indicating a bullish trend. The MACD of 6.08 indicates Negative momentum. The RSI at 61.04 is Neutral, neither overbought nor oversold. The STOCH value of 75.53 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	79 Outperform	$6.73B	15.10	22.09%	―	-1.01%	50.58%
RPM	78 Outperform	$16.21B	23.59	25.42%	1.64%	0.51%	17.21%
SHW	72 Outperform	$91.74B	36.54	62.43%	0.84%	0.31%	2.66%
EMN	65 Neutral	$7.66B	9.37	14.52%	4.95%	1.60%	-3.97%
DD	64 Neutral	$30.65B	40.24	0.31%	2.12%	4.55%	-130.25%
PPG	63 Neutral	$25.47B	20.01	16.88%	2.45%	-10.59%	-7.79%
Sector *	61 Neutral	$10.07B	6.27	0.59%	3.01%	2.91%	-45.05%

Sherwin-Williams Company Corporate Events

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.