NYSE:SHW

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Solid track record average dividend payer.


Similar Companies

Share Price & News

How has Sherwin-Williams's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

Volatility Over Time: SHW's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-5.1%

SHW

-1.9%

US Chemicals

-3.6%

US Market


1 Year Return

31.7%

SHW

36.4%

US Chemicals

36.5%

US Market

Return vs Industry: SHW underperformed the US Chemicals industry which returned 36.4% over the past year.

Return vs Market: SHW underperformed the US Market which returned 36.4% over the past year.


Shareholder returns

SHWIndustryMarket
7 Day-5.1%-1.9%-3.6%
30 Day-1.7%3.6%2.7%
90 Day-9.0%3.8%7.5%
1 Year32.8%31.7%39.5%36.4%39.5%36.5%
3 Year79.1%74.3%32.3%11.9%53.5%43.6%
5 Year157.9%145.8%93.0%54.2%117.5%93.2%

Long-Term Price Volatility Vs. Market

How volatile is Sherwin-Williams's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

30.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SHW ($680.34) is trading above our estimate of fair value ($605.62)

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 (30.3x) compared to the US Chemicals industry average (26.7x).

PE vs Market: SHW is poor value based on its PE Ratio (30.3x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: SHW is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: SHW is overvalued based on its PB Ratio (16.9x) compared to the US Chemicals industry average (2.5x).


Next Steps

Future Growth

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

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHW's forecast earnings growth (8.5% per year) is above the savings rate (2%).

Earnings vs Market: SHW's earnings (8.5% per year) are forecast to grow slower than the US market (20.1% per year).

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

Revenue vs Market: SHW's revenue (4.5% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: SHW's revenue (4.5% 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 (68.7%).


Next Steps

Past Performance

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

10.0%

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 (8.6%).


Past Earnings Growth Analysis

Earnings Trend: SHW's earnings have grown by 10% per year over the past 5 years.

Accelerating Growth: SHW's earnings growth over the past year (31.7%) exceeds its 5-year average (10% per year).

Earnings vs Industry: SHW earnings growth over the past year (31.7%) exceeded the Chemicals industry -1.4%.


Return on Equity

High ROE: Whilst SHW's Return on Equity (56.23%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Sherwin-Williams's financial position?


Financial Position Analysis

Short Term Liabilities: SHW's short term assets ($4.6B) do not cover its short term liabilities ($4.6B).

Long Term Liabilities: SHW's short term assets ($4.6B) do not cover its long term liabilities ($12.2B).


Debt to Equity History and Analysis

Debt Level: SHW's debt to equity ratio (229.6%) is considered high.

Reducing Debt: SHW's debt to equity ratio has increased from 224.1% to 229.6% over the past 5 years.

Debt Coverage: SHW's debt is well covered by operating cash flow (41.1%).

Interest Coverage: SHW's interest payments on its debt are well covered by EBIT (8.9x coverage).


Balance Sheet


Next Steps

Dividend

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

0.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SHW's dividend (0.79%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: SHW's dividend (0.79%) is low compared to the top 25% of dividend payers in the US market (3.77%).


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 (23.9%), 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 (25.8% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

John Morikis (57 yo)

5.08yrs

Tenure

US$14,854,731

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 ($USD14.85M) is above average for companies of similar size in the US market ($USD10.55M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Morikis
Chairman of the Board & CEO5.08yrsUS$14.85m0.13%
$ 78.5m
David Sewell
President & COO1.92yrsUS$4.44m0.0088%
$ 5.3m
Allen Mistysyn
Senior VP of Finance & CFO4.08yrsUS$4.18m0.021%
$ 12.5m
Peter Ippolito
President of The Americas Group10.25yrsUS$3.62m0.015%
$ 9.3m
James Jaye
Senior Vice President of Investor Relations & Corporate Communications3.33yrsno data0.00022%
$ 133.4k
Mary Garceau
Senior VP3.5yrsno data0.0035%
$ 2.1m
Karl Schmitt
Senior Vice President of Marketingno datano datano data
Thomas Gilligan
Senior Vice President of Human Resources5.08yrsno data0.0097%
$ 5.9m
Thomas Hablitzel
Senior Vice President of Enterprise Strategic Accountsno datano datano data
Joel Baxter
President & GM of Global Supply Chain Division - Consumer Brands Group12.42yrsUS$2.55m0.0084%
$ 5.1m
Jane Cronin
Senior VP & Corporate Controller4.25yrsno data0.0068%
$ 4.1m
Todd Wipf
President & GM of Southeastern Division - The Americas Groupno datano datano data

4.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: SHW's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Morikis
Chairman of the Board & CEO5.08yrsUS$14.85m0.13%
$ 78.5m
Christine Poon
Independent Director6.83yrsUS$324.41k0.0032%
$ 1.9m
Susan Kropf
Independent Director18yrsUS$317.84k0.0083%
$ 5.0m
Steven Wunning
Independent Lead Director1.67yrsUS$342.36k0.0024%
$ 1.5m
Michael Thaman
Independent Director3.83yrsUS$304.42k0.0013%
$ 812.4k
Jeffrey Fettig
Independent Director1.83yrsUS$262.84k0.00080%
$ 485.0k
Kerrii Anderson
Independent Director1.83yrsUS$265.83k0.00036%
$ 218.3k
Richard Kramer
Independent Director9yrsUS$304.42k0.0059%
$ 3.6m
Arthur Anton
Independent Director14.83yrsUS$329.42k0.015%
$ 9.0m
Matthew Thornton
Independent Director6.58yrsUS$308.69k0.0031%
$ 1.9m

5.3yrs

Average Tenure

63yo

Average Age

Experienced Board: SHW's board of directors are considered experienced (5.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Sherwin-Williams Company's company bio, 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$60.626b
  • Shares outstanding: 89.11m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHWNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
SJ3DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
SHW *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
0L5VLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
SJ3ETLX (Eurotlx)YesCommon StockITEURJan 1968
SHWWWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
S1HW34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 10 REPR 1 COMBRBRLJan 2020

Biography

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 segmen...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/28 23:43
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
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.