Stock Analysis Report

Executive Summary

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

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 has not had significant price volatility in the past 3 months.

Market Performance

7 Day Return




US Chemicals


US Market

1 Year Return




US Chemicals


US Market

Return vs Industry: SHW exceeded the US Chemicals industry which returned -7.4% over the past year.

Return vs Market: SHW exceeded the US Market which returned 17.8% over the past year.

Shareholder returns

7 Day-2.1%-0.9%-1.1%
30 Day-3.6%0.5%1.5%
90 Day-1.2%-0.2%6.6%
1 Year31.2%30.3%6.1%-7.4%20.2%17.8%
3 Year88.0%83.4%28.2%3.4%47.5%38.1%
5 Year110.8%101.0%36.8%7.2%71.2%52.4%

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


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


Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: SHW ($573.34) is trading above our estimate of fair value ($532.94)

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 (34.1x) compared to the Chemicals industry average (22.6x).

PE vs Market: SHW is poor value based on its PE Ratio (34.1x) compared to the US market (18.2x).

Price to Earnings Growth Ratio

PEG Ratio: SHW is poor value based on its PEG Ratio (2.5x)

Price to Book Ratio

PB vs Industry: SHW is overvalued based on its PB Ratio (11.6x) compared to the US Chemicals industry average (2.1x).

Next Steps

Future Growth

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


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHW's forecast earnings growth (13.7% per year) is above the savings rate (1.7%).

Earnings vs Market: SHW's earnings (13.7% per year) are forecast to grow slower than the US market (14.1% per year).

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

Revenue vs Market: SHW's revenue (3.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: SHW's revenue (3.4% 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 (52.1%).

Next Steps

Past Performance

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


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SHW has high quality earnings.

Growing Profit Margin: SHW's current net profit margins (8.6%) are higher than last year (6.3%).

Past Earnings Growth Analysis

Earnings Trend: SHW's earnings have grown by 10.1% per year over the past 5 years.

Accelerating Growth: SHW's earnings growth over the past year (39%) exceeds its 5-year average (10.1% per year).

Earnings vs Industry: SHW earnings growth over the past year (39%) exceeded the Chemicals industry -15.9%.

Return on Equity

High ROE: Whilst SHW's Return on Equity (37.38%) is high, this metric is skewed due to their high level of debt.

Return on Assets

Return on Capital Employed

Next Steps

Financial Health

How is Sherwin-Williams's financial position?

Financial Position Analysis

Short Term Liabilities: SHW's short term assets ($4.6B) exceed its short term liabilities ($4.5B).

Long Term Liabilities: SHW's short term assets ($4.6B) do not cover its long term liabilities ($11.9B).

Debt to Equity History and Analysis

Debt Level: SHW's debt to equity ratio (210.6%) is considered high.

Reducing Debt: SHW's debt to equity ratio has increased from 182.4% to 210.6% over the past 5 years.

Debt Coverage: SHW's debt is well covered by operating cash flow (26.7%).

Interest Coverage: SHW's interest payments on its debt are well covered by EBIT (7.7x coverage).

Balance Sheet

Inventory Level: SHW has a high level of physical assets or inventory.

Debt Coverage by Assets: SHW's debt is not covered by short term assets (assets are 0.5x debt).

Next Steps


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


Current Dividend Yield

Upcoming Dividend Payment

Purchase Sherwin-Williams before the 'Buy Limit' to receive their next dividend payment.

Dividend Yield vs Market


Current dividend yield vs market & industry

Notable Dividend: SHW's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SHW's dividend (0.93%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 reasonably low payout ratio (26.9%), 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 (23.4% payout ratio).

Next Steps


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


Average management tenure


John Morikis (56yo)





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 as its C ...

CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD13.21M) is about average for companies of similar size in the US market ($USD10.81M).

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

Leadership Team

John Morikis
Chairman & CEO4.1yrsUS$13.21m0.14% $67.0m
David Sewell
President & COO0.9yrsUS$3.04m0.011% $5.1m
Allen Mistysyn
Senior VP of Finance & CFO3.1yrsUS$3.37m0.021% $9.9m
Peter Ippolito
President of The Americas Group2.1yrsUS$2.74m0.014% $6.9m
Aaron Erter
President of Performance Coatings Group2.7yrsUS$3.13m0.0039% $1.9m
James Jaye
Senior Vice President of Investor Relations & Corporate Communications0yrsno datano data
Mary Garceau
Senior VP0yrsno data0.0019% $917.6k
Karl Schmitt
Senior Vice President of Marketing0yrsno datano data
Thomas Gilligan
Senior Vice President of Human Resources4.1yrsno data0.0081% $3.9m
Thomas Hablitzel
Senior Vice President of Enterprise Strategic Accounts0yrsno datano data


Average Tenure


Average Age

Experienced Management: SHW's management team is considered experienced (2.9 years average tenure).

Board Members

John Morikis
Chairman & CEO4.1yrsUS$13.21m0.14% $67.0m
David Hodnik
Independent Director14.6yrsUS$260.80k0.0098% $4.7m
Christine Poon
Independent Director5.8yrsUS$279.31k0.0027% $1.3m
Susan Kropf
Independent Director17yrsUS$263.80k0.0089% $4.3m
Steven Wunning
Lead Director0.7yrsUS$285.42k0.0020% $956.0k
Michael Thaman
Independent Director2.8yrsUS$266.80k0.00075% $360.3k
Kerrii Anderson
Independent Director0.8yrsno data0.00011% $52.8k
Richard Kramer
Independent Director8yrsUS$260.80k0.0054% $2.6m
Arthur Anton
Independent Director13.8yrsUS$281.80k0.014% $6.8m
Matthew Thornton
Independent Director5.6yrsUS$260.80k0.0027% $1.3m


Average Tenure


Average Age

Experienced Board: SHW's board of directors are considered experienced (5.7 years average tenure).


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

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$48.042b
  • Shares outstanding: 83.79m
  • Website: https://www.sherwin-williams.com

Number of Employees


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


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


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. The Consumer Brands Group segment provides branded and private-label architectural paints, stains, varnishes, industrial products, wood finishes products, wood preservatives, applicators, corrosion inhibitors, aerosols, caulks, and adhesives to retailers and distributors. The Performance Coatings Group segment develops and sells industrial coatings for wood finishing and general industrial applications, automotive refinish products, protective and marine coatings, coil coatings, packaging coatings, and performance-based resins and colorants. It serves retailers, dealers, jobbers, licensees, and other third-party distributors through its branches and direct sales staff, as well as through outside sales representatives. The company has operations primarily in North and South America, the Caribbean, Europe, Asia, and Australia. As of February 06, 2020, it operated approximately 5,000 company-operated stores and facilities. The company was founded in 1866 and is headquartered in Cleveland, Ohio. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 23:46
End of Day Share Price2020/02/21 00:00
Annual Earnings2019/12/31

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.