The Sherwin-Williams Company develops, manufactures, distributes, and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$293.74|
|52 Week High||US$218.06|
|52 Week Low||US$310.43|
|1 Month Change||-2.94%|
|3 Month Change||9.54%|
|1 Year Change||26.71%|
|3 Year Change||87.51%|
|5 Year Change||211.39%|
|Change since IPO||10,117.04%|
Recent News & Updates
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...
|SHW||US Chemicals||US Market|
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.
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
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
|SHW fundamental statistics|
Is SHW overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SHW income statement (TTM)|
|Cost of Revenue||US$10.54b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Oct 26, 2021
|Earnings per share (EPS)||8.12|
|Net Profit Margin||11.05%|
How did SHW perform over the long term?See historical performance and comparison
0.7%Current Dividend Yield
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 ($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).
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 (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%).
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 (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.
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 ($11.5B).
Debt to Equity History and Analysis
Debt Level: SHW's debt to equity ratio (318.7%) is considered high.
Reducing Debt: SHW's debt to equity ratio has increased from 171.5% to 318.7% over the past 5 years.
Debt Coverage: SHW's debt is well covered by operating cash flow (39.1%).
Interest Coverage: SHW's interest payments on its debt are well covered by EBIT (10.5x coverage).
What is Sherwin-Williams's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SHW's dividend (0.75%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: SHW's dividend (0.75%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: SHW's dividends per share have been stable in the past 10 years.
Growing Dividend: SHW's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (24.5%), SHW's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SHW's dividends in 3 years are forecast to be well covered by earnings (21.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Morikis (58 yo)
Mr. John G. Morikis has been the President of The Valspar Corporation since June 1, 2017. Mr. Morikis has been the Chief Executive Officer of The Sherwin-Williams Company since January 1, 2016 and has been...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($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.
Experienced Management: SHW's management team is considered experienced (4.8 years average tenure).
Experienced Board: SHW's board of directors are considered experienced (4.4 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.6%.
The Sherwin-Williams Company's employee growth, exchange listings and data sources
- 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
- The Sherwin-Williams Company
- 101 West Prospect Avenue
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/18 22:03|
|End of Day Share Price||2021/09/17 00:00|
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.