Sherwin-Williams Company (SHW)
NYSE:SHW
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Sherwin-Williams Company
(NYSE:SHW)
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Rating:68Neutral
Price Target:
$354.00
▲(2.45% Upside)
Action:ReiteratedDate:04/29/26
The score is supported primarily by strong profitability, margin improvement, and solid free cash flow, reinforced by generally positive Q1 execution. Offsetting this are balance-sheet leverage risk, a weak technical trend with the stock below key moving averages, and a high P/E with a modest dividend yield.
Positive Factors
Sustained Margin Expansion
Consistent gross- and net-margin improvement reflects durable pricing power, better mix, and cost control across channels. Sustained margin expansion supports long-term profitability resilience even if top-line growth moderates, enabling reinvestment and shareholder returns.
Negative Factors
High Financial Leverage
A debt-heavy capital structure raises refinancing and interest-rate risk, limiting strategic flexibility during downturns or prolonged inflation. Elevated leverage can amplify earnings volatility and constrain opportunistic investments or larger M&A without deleveraging plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Margin Expansion
Consistent gross- and net-margin improvement reflects durable pricing power, better mix, and cost control across channels. Sustained margin expansion supports long-term profitability resilience even if top-line growth moderates, enabling reinvestment and shareholder returns.
Read all positive factors
Sherwin-Williams Company (SHW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$78.14B
Dividend Yield0.98%
Average Volume (3M)1.67M
Price to Earnings (P/E)36.8
Beta (1Y)0.68
Revenue Growth3.90%
EPS Growth-1.60%
CountryUS
Employees63,890
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)10.54
Shares Outstanding246,635,620
10 Day Avg. Volume1,577,269
30 Day Avg. Volume1,673,032
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/Revenue3.83
Enterprise Value/Gross Profit7.80
Enterprise Value/Ebitda20.51
Forecast
1Y Price Target
$383.83Price Target Upside11.08% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)11.74
Revenue Forecast (FY)$24.71B
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:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Neutral
The call reported multiple clear operational and financial positives — high single-digit consolidated sales growth, 90 bps gross margin expansion, mid/high single-digit gains in adjusted EPS and EBITDA, improved cash flow (+$200M), and substantial shareholder returns — alongside ongoing execution on share gains across segments. However, the tone was cautious given persistent demand softness across many end markets, elevated raw material inflation (revised to up low–mid single digits), geopolitical supply risk tied to the Middle East, moderation in volume expectations, and some acquisition-related dilution and SG&A headwinds. Management emphasized disciplined pricing (more surgical), cost-outs, and confidence in execution and the balance sheet. Overall the call presented a balanced picture of strong execution and results tempered by material external inflationary and demand headwinds.Positive Updates
Consolidated Sales Growth
Consolidated sales grew a high single-digit percentage in Q1 2026, inclusive of a low single-digit contribution from the Suvenil acquisition; sales exceeded guidance on a consolidated basis and across all three reportable segments.
Negative Updates
Persistent Demand Softness and Macro Uncertainty
Management cited heightened global uncertainty and persistent demand softness in most end markets; customer indicators show little support for a meaningful recovery and consumer sentiment remains weak, pressuring volume expectations.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Sales Growth
Consolidated sales grew a high single-digit percentage in Q1 2026, inclusive of a low single-digit contribution from the Suvenil acquisition; sales exceeded guidance on a consolidated basis and across all three reportable segments.
Read all positive updates
Company Guidance
Management left unchanged its consolidated sales and earnings guidance for FY2026 while updating key assumptions: full‑year raw‑material inflation was raised to up low‑to‑mid single digits and consolidated price/mix to the high end of the low‑single‑digit range, volumes were tempered (moving from prior low‑single‑digit growth assumptions toward low‑single‑digit declines in some areas), and full‑year SG&A guidance remains a low‑single‑digit increase (despite Q1 SG&A rising mid‑single‑digits and an expected ~100‑bp unfavorable SG&A‑to‑sales impact from non‑annualized acquisition/new‑building costs and FX). Q1 highlights that underlie the guide included consolidated sales up a high‑single‑digit percentage (including a low‑single‑digit contribution from Suvenil), gross margin expansion of ~90 bps, adjusted EBITDA up high‑single‑digits, adjusted diluted EPS up mid‑single‑digits, a $200M improvement in net operating cash, $773M returned to shareholders in the quarter, and a net debt to adjusted EBITDA ratio of 2.5x; the company also expects to open 80–100 new Paint Stores Group locations in 2026.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 | 23.94B | 23.57B | 23.10B | 23.05B | 22.15B | 19.94B |
| Gross Profit | 11.76B | 11.54B | 11.20B | 10.76B | 9.33B | 8.54B |
| EBITDA | 4.47B | 4.40B | 4.49B | 4.15B | 3.54B | 3.16B |
| Net Income | 2.60B | 2.57B | 2.68B | 2.39B | 2.02B | 1.86B |
Balance Sheet | ||||||
| Total Assets | 26.38B | 25.90B | 23.63B | 22.95B | 22.59B | 20.67B |
| Cash, Cash Equivalents and Short-Term Investments | 216.90M | 207.20M | 210.40M | 276.80M | 198.80M | 165.70M |
| Total Debt | 13.79B | 14.53B | 11.91B | 11.81B | 12.51B | 11.50B |
| Total Liabilities | 21.95B | 21.30B | 19.58B | 19.24B | 19.49B | 18.23B |
| Stockholders Equity | 4.43B | 4.60B | 4.05B | 3.72B | 3.10B | 2.44B |
Cash Flow | ||||||
| Free Cash Flow | 2.91B | 2.65B | 2.08B | 2.63B | 1.28B | 1.87B |
| Operating Cash Flow | 3.65B | 3.45B | 3.15B | 3.52B | 1.92B | 2.24B |
| Investing Cash Flow | -1.92B | -2.01B | -1.20B | -1.04B | -1.61B | -476.40M |
| Financing Cash Flow | -1.70B | -1.38B | -2.02B | -2.42B | -282.40M | -1.83B |
Sherwin-Williams Company Technical Analysis
Positive
345.55
Price Trends
337.89
Positive
338.34
Positive
341.74
Positive
Market Momentum
1.58
Negative
62.28
Neutral
76.69
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 345.55 is above the 20-day moving average (MA) of 324.09, above the 50-day MA of 337.89, and above the 200-day MA of 341.74, indicating a bullish trend. The MACD of 1.58 indicates Negative momentum. The RSI at 62.28 is Neutral, neither overbought nor oversold. The STOCH value of 76.69 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $71.55B | 43.35 | 21.70% | 1.01% | 4.90% | 0.42% | |
68 Neutral | $78.14B | 36.82 | 58.23% | 0.98% | 3.90% | -1.60% | |
65 Neutral | $24.43B | 15.65 | 31.80% | 2.71% | -3.94% | 18.25% | |
65 Neutral | $6.23B | 16.44 | 15.85% | ― | -2.57% | -16.43% | |
64 Neutral | $12.87B | 70.63 | 21.80% | 1.96% | 5.68% | 3.81% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $20.40B | 29.17 | -0.22% | 1.74% | -22.51% | 63.47% |
* Basic Materials Sector Average
SHW
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Sherwin-Williams Company Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Sherwin-Williams Shareholders Back Board, Pay and Governance
Positive
Apr 24, 2026
On April 22, 2026, Sherwin-Williams held its 2026 Annual Meeting of Shareholders, where investors elected nine directors to serve until the next annual meeting and approved, on an advisory basis, the compensation of the company’s named execu...
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.