Sherwin-Williams Company (SHW) AI Stock Analysis

• Market Cap: $82.50B
• Dividend Yield: 0.88%
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): 32.9
• Beta (1Y): 0.83
• Revenue Growth: 0.31%
• EPS Growth: 2.66%
• Country: US
• Employees: 63,890
• Sector: Basic Materials
• Sector Strength: 55
• Industry: Chemicals - Specialty
• EPS (TTM): 3.38
• Shares Outstanding: 249,333,310
• 10 Day Avg. Volume: 2,099,445
• 30 Day Avg. Volume: 1,702,876
• PEG Ratio: -6.82
• Price to Book (P/B): 18.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 38.42
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 8.45
• Enterprise Value/Ebitda: 5.36
• 1Y Price Target: $384.00
• Price Target Upside: 11.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 68 Neutral
• Price Target: $370.00 ▲(7.74%Upside)

Sherwin-Williams exhibits solid financial performance with strong profitability and cash flows, yet high leverage is a concern. Technical indicators show bearish trends, and valuation suggests potential overvaluation. Despite growth in certain segments, reduced earnings guidance and demand challenges weigh on the outlook.

Positive Factors

Competitive Positioning

Changes in the competitive landscape are providing Sherwin-Williams not only a means to capture higher pricing but also grab share.

Pricing Strategy

Sherwin-Williams' ability to consistently raise prices is encouraging, even in a challenging environment.

Raw Material Costs

Sherwin-Williams is expected to outperform the market in 2025 due to growing tailwinds from raw material deflation and a more resilient housing market.

Negative Factors

Financial Performance

Earnings per share were well below expectations due to greater-than-expected headwinds from SG&A investments and costs tied to the new headquarters.

Housing Market

The weak housing market remains a significant challenge for Sherwin-Williams, affecting new residential demand.

Investor Sentiment

Investor fatigue is growing due to continued cost headwinds from Sherwin-Williams investing for growth and the new headquarters, especially with the housing recovery in a perpetual pause.

Sherwin-Williams Company Business Overview & Revenue Model

Company Description

Sherwin-Williams Company (SHW) is a leading global producer of paints and coatings. Headquartered in Cleveland, Ohio, the company operates in the paint and coatings industry, serving both professional and retail customers. Sherwin-Williams offers a wide range of products, including architectural paints, industrial coatings, and protective finishes. With a strong presence in North America, the company also operates in various international markets, supporting its growth and market reach.

How the Company Makes Money

Sherwin-Williams makes money primarily through the sale of paints and coatings products. The company's revenue model is driven by its three reportable segments: The Americas Group, Consumer Brands Group, and Performance Coatings Group. The Americas Group generates revenue by selling directly to professional contractors and DIY customers through a network of over 4,000 company-operated stores. The Consumer Brands Group sells products under well-known brands to retailers and distributors, including home centers, independent paint dealers, and hardware stores. The Performance Coatings Group provides advanced coating solutions for industrial applications, serving sectors such as automotive, aerospace, and construction. Strategic partnerships with major retailers and a focus on innovation and quality contribute significantly to Sherwin-Williams' earnings.

Sherwin-Williams Company Financial Statement Overview

Summary

Sherwin-Williams showcases strong profitability with robust cash flow generation and stable revenue growth. However, high debt levels pose a financial risk despite effective equity utilization and 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	3.77B	4.15B	3.97B	3.57B	3.87B
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: Neutral
• Last Price: 343.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHW, the sentiment is Neutral. The current price of 343.41 is above the 20-day moving average (MA) of 341.45, below the 50-day MA of 346.67, and below the 200-day MA of 353.65, indicating a neutral trend. The MACD of -2.82 indicates Positive momentum. The RSI at 51.87 is Neutral, neither overbought nor oversold. The STOCH value of 38.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SHW.

Sherwin-Williams Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPM	76 Outperform	$15.07B	21.94	25.42%	1.74%	0.51%	17.21%
AXTA	73 Outperform	$6.13B	13.92	22.09%	―	-1.01%	50.58%
SHW	68 Neutral	$82.50B	32.86	62.43%	0.88%	0.31%	2.66%
DD	65 Neutral	$30.09B	40.24	0.06%	2.26%	4.51%	-121.68%
EMN	63 Neutral	$8.38B	9.25	14.52%	5.61%	1.60%	-3.97%
Sector *	59 Neutral	HK$16.89B	4.53	-5.46%	4.41%	-3.64%	-62.57%
PPG	55 Neutral	$23.81B	18.71	16.88%	2.60%	-10.59%	-7.79%

Sherwin-Williams Company Corporate Events

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.