SHW

Sherwin-WilliamsNYSE:SHW Stock Report

Market Cap

US$76.9b

7D

-2.3%

1Y

26.7%

Updated

18 Sep, 2021

Data

Company Financials +
SHW fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance4/6
Financial Health2/6
Dividends4/6

SHW Overview

The Sherwin-Williams Company develops, manufactures, distributes, and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers.

Sherwin-Williams Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sherwin-Williams
Historical stock prices
Current Share PriceUS$293.74
52 Week HighUS$218.06
52 Week LowUS$310.43
Beta1.08
1 Month Change-2.94%
3 Month Change9.54%
1 Year Change26.71%
3 Year Change87.51%
5 Year Change211.39%
Change since IPO10,117.04%

Recent News & Updates

Sep 13
Some Investors May Be Worried About Sherwin-Williams' (NYSE:SHW) Returns On Capital

Some Investors May Be Worried About Sherwin-Williams' (NYSE:SHW) Returns On Capital

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Amongst other things...

Shareholder Returns

SHWUS ChemicalsUS Market
7D-2.3%-2.2%-0.6%
1Y26.7%22.2%33.8%

Return vs Industry: SHW exceeded the US Chemicals industry which returned 22.2% over the past year.

Return vs Market: SHW underperformed the US Market which returned 33.8% over the past year.

Price Volatility

Is SHW's price volatile compared to industry and market?
SHW volatility
SHW Beta1.08
Industry Beta1.14
Market Beta1

Stable Share Price: SHW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: SHW's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
186661,031John Morikishttps://www.sherwin-williams.com

The Sherwin-Williams Company develops, manufactures, distributes, and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers. It operates in three segments: The Americas Group, Consumer Brands Group, and Performance Coatings Group. The Americas Group segment offers architectural paints and coatings, and protective and marine products, as well as OEM product finishes and related products for architectural and industrial paint contractors, and do-it-yourself homeowners.

Sherwin-Williams Fundamentals Summary

How do Sherwin-Williams's earnings and revenue compare to its market cap?
SHW fundamental statistics
Market CapUS$76.92b
Earnings (TTM)US$2.17b
Revenue (TTM)US$19.65b

35.4x

P/E Ratio

3.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SHW income statement (TTM)
RevenueUS$19.65b
Cost of RevenueUS$10.54b
Gross ProfitUS$9.11b
ExpensesUS$6.94b
EarningsUS$2.17b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 26, 2021

Earnings per share (EPS)8.12
Gross Margin46.36%
Net Profit Margin11.05%
Debt/Equity Ratio318.7%

How did SHW perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

25%

Payout Ratio

Valuation

Is Sherwin-Williams undervalued compared to its fair value and its price relative to the market?

35.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SHW ($293.74) is trading above our estimate of fair value ($216.76)

Significantly Below Fair Value: SHW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SHW is poor value based on its PE Ratio (35.4x) compared to the US Chemicals industry average (22.4x).

PE vs Market: SHW is poor value based on its PE Ratio (35.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: SHW is poor value based on its PEG Ratio (7.8x)


Price to Book Ratio

PB vs Industry: SHW is overvalued based on its PB Ratio (27.1x) compared to the US Chemicals industry average (2.7x).


Future Growth

How is Sherwin-Williams forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHW's forecast earnings growth (4.6% per year) is above the savings rate (2%).

Earnings vs Market: SHW's earnings (4.6% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: SHW's earnings are forecast to grow, but not significantly.

Revenue vs Market: SHW's revenue (4.4% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: SHW's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SHW's Return on Equity is forecast to be very high in 3 years time (75.2%).


Past Performance

How has Sherwin-Williams performed over the past 5 years?

11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHW has high quality earnings.

Growing Profit Margin: SHW's current net profit margins (11.1%) are higher than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: SHW's earnings have grown by 11.2% per year over the past 5 years.

Accelerating Growth: SHW's earnings growth over the past year (24.6%) exceeds its 5-year average (11.2% per year).

Earnings vs Industry: SHW earnings growth over the past year (24.6%) underperformed the Chemicals industry 32.6%.


Return on Equity

High ROE: Whilst SHW's Return on Equity (76.43%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Sherwin-Williams's financial position?


Financial Position Analysis

Short Term Liabilities: SHW's short term assets ($5.2B) do not cover its short term liabilities ($6.2B).

Long Term Liabilities: SHW's short term assets ($5.2B) do not cover its long term liabilities ($11.5B).


Debt to Equity History and Analysis

Debt Level: SHW's debt to equity ratio (318.7%) is considered high.

Reducing Debt: SHW's debt to equity ratio has increased from 171.5% to 318.7% over the past 5 years.

Debt Coverage: SHW's debt is well covered by operating cash flow (39.1%).

Interest Coverage: SHW's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet


Dividend

What is Sherwin-Williams's current dividend yield, its reliability and sustainability?

0.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SHW's dividend (0.75%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: SHW's dividend (0.75%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

Stable Dividend: SHW's dividends per share have been stable in the past 10 years.

Growing Dividend: SHW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.5%), SHW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SHW's dividends in 3 years are forecast to be well covered by earnings (21.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

John Morikis (58 yo)

5.67yrs

Tenure

US$15,323,284

Compensation

Mr. John G. Morikis has been the President of The Valspar Corporation since June 1, 2017. Mr. Morikis has been the Chief Executive Officer of The Sherwin-Williams Company since January 1, 2016 and has been...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD15.32M) is above average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SHW's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: SHW's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SHW insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.6%.


Top Shareholders

Company Information

The Sherwin-Williams Company's employee growth, exchange listings and data sources


Key Information

  • Name: The Sherwin-Williams Company
  • Ticker: SHW
  • Exchange: NYSE
  • Founded: 1866
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$76.918b
  • Shares outstanding: 261.86m
  • Website: https://www.sherwin-williams.com

Number of Employees


Location

  • The Sherwin-Williams Company
  • 101 West Prospect Avenue
  • Cleveland
  • Ohio
  • 44115-1075
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.