NYSE:SHW

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

Fundamentals

Reasonable growth potential 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


Market Performance


7 Day Return

-0.4%

NYSE:SHW

0.8%

US Chemicals

1.4%

US Market


1 Year Return

18.0%

NYSE:SHW

-9.4%

US Chemicals

4.9%

US Market

SHW outperformed the Chemicals industry which returned -10% over the past year.

SHW outperformed the Market in United States of America which returned 4.3% over the past year.


Share holder returns

SHWIndustryMarket
7 Day-0.4%0.8%1.4%
30 Day8.2%3.6%3.8%
90 Day10.8%-3.8%3.5%
1 Year19.1%18.0%4.9%-9.4%7.2%4.9%
3 Year71.2%66.2%54.5%26.1%55.1%44.8%
5 Year136.8%125.2%35.8%6.6%57.5%40.1%

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 based on future cash flows and its price relative to the stock market?

3%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Sherwin-Williams's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Sherwin-Williams's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Sherwin-Williams is overvalued based on earnings compared to the US Chemicals industry average.

Sherwin-Williams is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Sherwin-Williams is poor value based on expected growth next year.


Price Based on Value of Assets

Sherwin-Williams is overvalued based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

How is Sherwin-Williams expected to perform in the next 1 to 3 years based on estimates from 26 analysts?

21.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sherwin-Williams's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).

Sherwin-Williams's earnings are expected to grow significantly at over 20% yearly.

Sherwin-Williams's revenue growth is positive but not above the United States of America market average.

Sherwin-Williams's earnings growth is expected to exceed the United States of America market average.

Sherwin-Williams's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Sherwin-Williams is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

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

14.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sherwin-Williams's year on year earnings growth rate has been positive over the past 5 years.

Sherwin-Williams's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Sherwin-Williams's 1-year earnings growth is negative, it can't be compared to the US Chemicals industry average.


Return on Equity

Whilst Sherwin-Williams has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Sherwin-Williams used its assets less efficiently than the US Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Sherwin-Williams's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sherwin-Williams's financial position?


Financial Position Analysis

Sherwin-Williams's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Sherwin-Williams's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Sherwin-Williams's level of debt (284.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (103.6% vs 284.1% today).

Debt is not well covered by operating cash flow (19%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

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

1.04%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Sherwin-Williams's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Sherwin-Williams's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5.3x coverage).


Next Steps

Management

What is the CEO of Sherwin-Williams's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

John Morikis (55yo)

3.4yrs

Tenure

US$13,213,749

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 as its C ...


CEO Compensation Analysis

John's remuneration is about average for companies of similar size in United States of America.

John's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.0yrs

Average Tenure

49yo

Average Age

The tenure for the Sherwin-Williams management team is about average.


Board Age and Tenure

5.2yrs

Average Tenure

61yo

Average Age

The tenure for the Sherwin-Williams board of directors is about average.


Insider Trading

Sherwin-Williams individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$478,11017 Jun 19
Susan Kropf
EntityIndividual
Role
Member of the Board of Directors
Shares1,000
Max PriceUS$478.11
BuyUS$216,03523 May 19
Jeffrey Fettig
EntityIndividual
Shares500
Max PriceUS$432.07
SellUS$3,006,88315 May 19
Robert Lynch
EntityIndividual
Shares6,984
Max PriceUS$433.53
SellUS$863,26225 Feb 19
Joel Baxter
EntityIndividual
Shares1,960
Max PriceUS$440.44
SellUS$121,34122 Feb 19
Jane Cronin
EntityIndividual
Shares275
Max PriceUS$441.24
BuyUS$253,12531 Oct 18
John Stropki
EntityIndividual
Shares675
Max PriceUS$375.00
SellUS$234,32810 Aug 18
David Hodnik
EntityIndividual
Role
Member of the Board of Directors
Shares524
Max PriceUS$447.19
SellUS$1,328,76006 Aug 18
Robert Wells
EntityIndividual
Shares3,000
Max PriceUS$442.92
SellUS$380,23106 Aug 18
Jane Cronin
EntityIndividual
Shares858
Max PriceUS$443.16
SellUS$237,65002 Aug 18
Peter Ippolito
EntityIndividual
Role
President of The Americas Group
Shares539
Max PriceUS$440.91
SellUS$1,132,77531 Jul 18
Joel Baxter
EntityIndividual
Shares2,533
Max PriceUS$447.68
SellUS$443,20330 Jul 18
Susan Kropf
EntityIndividual
Role
Member of the Board of Directors
Shares995
Max PriceUS$445.43

Ownership Breakdown


Management Team

  • Heidi Petz

    President & GM of Retail - North America Consumer Brands Group

    • Tenure: 0.4yrs
  • David Sewell (49yo)

    President & COO

    • Tenure: 0.3yrs
    • Compensation: $3.04m
  • Al Mistysyn (49yo)

    Senior VP of Finance & CFO

    • Tenure: 2.4yrs
    • Compensation: $3.37m
  • Jim Jaye

    Senior Vice President of Investor Relations & Corporate Communications

  • Pete Ippolito (54yo)

    President of The Americas Group

    • Tenure: 1.4yrs
    • Compensation: $2.74m
  • Karl Schmitt

    Senior Vice President of Marketing

  • Thomas Gilligan (57yo)

    Senior Vice President of Human Resources

    • Tenure: 3.4yrs
  • Aaron Erter (44yo)

    President of Performance Coatings Group

    • Tenure: 2.0yrs
    • Compensation: $3.13m
  • Mary Garceau (45yo)

    Senior VP

  • John Morikis (55yo)

    Chairman & CEO

    • Tenure: 3.4yrs
    • Compensation: $13.21m

Board Members

  • Heidi Petz

    President & GM of Retail - North America Consumer Brands Group

    • Tenure: 0.4yrs
  • Mike Thaman (54yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: $266.80k
  • Christine Poon (66yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: $279.31k
  • Matt Thornton (59yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: $260.80k
  • Rich Kramer (54yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: $260.80k
  • Art Anton (61yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: $281.80k
  • David Hodnik (70yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: $260.80k
  • Susan Kropf (69yo)

    Independent Director

    • Tenure: 16.3yrs
    • Compensation: $263.80k
  • Steven Wunning (67yo)

    Lead Director

    • Compensation: $285.42k
  • John Morikis (55yo)

    Chairman & CEO

    • Tenure: 2.4yrs
    • Compensation: $13.21m

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$42.789b
  • Shares outstanding: 91.83m
  • Website: Click here

Number of Employees


Location

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

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 Analysis2019/06/24 23:44
End of Day Share Price2019/06/24 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.