Sherwin-Williams Company
Exchange: NYSESector: Basic MaterialsIndustry: Specialty Chemicals
Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution and sale of paint, coatings and related products to professional, industrial, commercial and retail customers. The Company manufactures products under well-known brands such as Sherwin-Williams ®, Valspar ®, HGTV HOME ® by Sherwin-Williams, Dutch Boy ®, Krylon ®, Minwax ®, Thompson's ® WaterSeal ®, Cabot ® and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams ® branded products are sold exclusively through a chain of more than 5,400 Company-operated stores and branches, while the Company's other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers and industrial distributors. The Sherwin-Williams Performance Coatings Group supplies a broad range of highly-engineered solutions for the construction, industrial, packaging and transportation markets in more than 120 countries around the world. Sherwin-Williams shares are traded on the New York Stock Exchange.
Did you know?
Earnings per share grew at a 4.9% CAGR.
Current Price
$318.00
-2.36%GoodMoat Value
$172.99
45.6% overvaluedProfile
Valuation (TTM)
Market Cap$78.83B
P/E30.69
EV$90.56B
P/B17.14
Shares Out247.89M
P/Sales3.34
Revenue$23.57B
EV/EBITDA18.35
Sherwin-Williams Company (SHW) Stock Analysis
GoodMoat Analysis
Sherwin-Williams possesses a strong brand and distribution moat but is priced at a significant premium to its estimated fair value. The valuation appears unfavourable, presenting a high hurdle for future returns.
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Sherwin-Williams is a dominant player in the paints and coatings industry, operating through its branded retail stores, consumer brands, and industrial segments. Its primary competitive advantages, as per the GoodMoat framework, include a powerful brand with deep consumer and professional recognition and a vast, company-owned distribution network that creates high switching costs for professional painters. This likely contributes to a strong Moat Score, allowing the company to earn a high Return on Equity of 55.9%. However, the business faces significant valuation concerns. The current price of $321.95 is far above the GoodMoat Target of $172.99, implying a negative margin of safety. The P/E of 31x is elevated, especially for a company with 5.6% revenue growth, and the Debt/Equity ratio of 2.8 indicates a leveraged balance sheet. Applying the Decision Framework, while the company likely passes the Moat & Quality Gate, it fails the Valuation & Risk Gate. The extreme premium to fair value and high financial leverage are critical red flags. For a value investor, this suggests the stock is unfavourable at current levels and requires a much lower price to offer an adequate margin of safety. Analysis based on data as of 2024-05-15.
Market Cap$78.83B
Current Price$318.00
P/E Ratio30.69
Forward P/E—
PEG Ratio29.46
EPS$10.26
Book Value$18.55
P/B Ratio17.14
SHW Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 4.9% FCF growth (CAGR)
Cash vs Debt
Net Debt: 12.7B
Revenue
17.9B
FY19
18.4B
FY20
19.9B
FY21
22.1B
FY22
23.1B
FY23
23.1B
FY24
23.6B
FY25
Net Income
1.5B
FY19
2.0B
FY20
1.9B
FY21
2.0B
FY22
2.4B
FY23
2.7B
FY24
2.6B
FY25
SHW 52-Week Range
$303.53
$373.50
50-Day MA: $342.21200-Day MA: $342.12
Did you know?
Earnings per share grew at a 4.9% CAGR.
Sherwin-Williams Company (SHW) Financial Summary
Sherwin-Williams Company (SHW) is a Basic Materials company in the Specialty Chemicals industry, listed on NYSE. The stock currently trades at $318.00 with a market capitalization of $78.83B.
Key valuation metrics include a P/E ratio of 30.69, price-to-book ratio of 17.14, and EPS of $10.26. The company reports a profit margin of 10.9% and return on equity of 55.9%.
SHW Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $78.83B |
| P/E Ratio | 30.69 |
| EPS | $10.26 |
| P/B Ratio | 17.14 |
| P/S Ratio | 3.34 |
| EV/EBITDA | 18.35 |
| Dividend Yield | 1.00% |
| Profit Margin | 10.9% |
| Return on Equity | 55.9% |
| Debt/Equity | 2.81 |
SHW Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $17.90B | $1.54B |
| FY20 | $18.36B | $2.03B |
| FY21 | $19.94B | $1.86B |
| FY22 | $22.15B | $2.02B |
| FY23 | $23.05B | $2.39B |
| FY24 | $23.10B | $2.68B |
| FY25 | $23.57B | $2.57B |
Sherwin-Williams Company (SHW) Valuation
Based on GoodMoat's DCF model, Sherwin-Williams Company has a fair value estimate of $172.99. At the current price of $318.00, the stock appears 83.8% overvalued relative to our intrinsic value estimate.
SHW Quality Indicators
Sherwin-Williams Company maintains a profit margin of 10.9% and an operating margin of 16.2%. Return on equity stands at 55.9%. The current ratio is 0.87. Debt-to-equity ratio is 2.81.
About Sherwin-Williams Company
Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution and sale of paint, coatings and related products to professional, industrial, commercial and retail customers. The Company manufactures products under well-known brands such as Sherwin-Williams ®, Valspar ®, HGTV HOME ® by Sherwin-Williams, Dutch Boy ®, Krylon ®, Minwax ®, Thompson's ® WaterSeal ®, Cabot ® and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams ® branded products are sold exclusively through a chain of more than 5,400 Company-operated stores and branches, while the Company's other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers and industrial distributors. The Sherwin-Williams Performance Coatings Group supplies a broad range of highly-engineered solutions for the construction, industrial, packaging and transportation markets in more than 120 countries around the world. Sherwin-Williams shares are traded on the New York Stock Exchange.
SHW Free Cash Flow
Sherwin-Williams Company generated $2.65B in trailing twelve-month free cash flow, representing an FCF yield of 3.37%. This moderate FCF yield indicates reasonable cash generation.
SHW Shares Outstanding
Sherwin-Williams Company has 0.25 billion shares outstanding at a share price of $318.00, giving it a market capitalization of $78.83B.
SHW Recent Insider Trades
Recent insider transactions at Sherwin-Williams Company include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Young Bryan J (SVP - Corp Strategy & Devel.) | SELL | 2,513 | $915913.11 |
| Davie Colin M. (Pres. & GM, Glob. Supply Chain) | SELL | 2,976 | $1.07M |