The Sherwin-Williams Company develops, manufactures, distributes, and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers.
Solid track record with mediocre balance sheet.
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.
7 Day Return
1 Year Return
Return vs Industry: SHW exceeded the US Chemicals industry which returned -3.7% over the past year.
Return vs Market: SHW exceeded the US Market which returned 20.1% over the past year.
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
1 week ago | Simply Wall StHere's Why Sherwin-Williams (NYSE:SHW) Can Manage Its Debt Responsibly
3 weeks ago | Simply Wall StWhat Kind Of Shareholder Owns Most The Sherwin-Williams Company (NYSE:SHW) Stock?
1 month ago | Simply Wall StAt US$569, Is It Time To Put The Sherwin-Williams Company (NYSE:SHW) On Your Watch List?
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 ($585.45) is trading above our estimate of fair value ($491.28)
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 (34.9x) compared to the Chemicals industry average (22.2x).
PE vs Market: SHW is poor value based on its PE Ratio (34.9x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: SHW is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: SHW is overvalued based on its PB Ratio (13x) compared to the US Chemicals industry average (2.2x).
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 (14.5% 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%).
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 -14.6%.
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
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 ($11.9B).
Debt to Equity History and Analysis
Debt Level: SHW's debt to equity ratio (210.6%) is considered high.
Reducing Debt: SHW's debt to equity ratio has increased from 182.4% to 210.6% over the past 5 years.
Debt Coverage: SHW's debt is well covered by operating cash flow (25%).
Interest Coverage: SHW's interest payments on its debt are well covered by EBIT (7.7x coverage).
Inventory Level: SHW has a high level of physical assets or inventory.
Debt Coverage by Assets: SHW's debt is not covered by short term assets (assets are 0.5x debt).
What is Sherwin-Williams's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SHW's dividend (0.77%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: SHW's dividend (0.77%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: SHW is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: SHW is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: SHW is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SHW's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Morikis (56yo)
Mr. John G. Morikis has been the President of The Valspar Corporation since June 1, 2017. Mr. Morikis has been the Chief Executive Officer of The Sherwin-Williams Company since January 1, 2016 and as its C ...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($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.
|Chairman & CEO||4.1yrs||US$13.21m||0.13% $67.1m|
|President & COO||0.9yrs||US$3.04m||0.0084% $4.5m|
|Senior VP of Finance & CFO||3.1yrs||US$3.37m||0.018% $9.6m|
|President of The Americas Group||2.1yrs||US$2.74m||0.013% $6.9m|
|President of Performance Coatings Group||2.7yrs||US$3.13m||0.0039% $2.1m|
|Senior Vice President of Investor Relations & Corporate Communications||0yrs||no data||no data|
|Senior VP||0yrs||no data||0.0013% $702.2k|
|Senior Vice President of Marketing||0yrs||no data||no data|
|Senior Vice President of Human Resources||4.1yrs||no data||0.0061% $3.3m|
|Senior Vice President of Enterprise Strategic Accounts||0yrs||no data||no data|
Experienced Management: SHW's management team is considered experienced (2.9 years average tenure).
|Chairman & CEO||4.1yrs||US$13.21m||0.13% $67.1m|
|Independent Director||14.6yrs||US$260.80k||0.0093% $5.0m|
|Independent Director||5.8yrs||US$279.31k||0.0022% $1.2m|
|Independent Director||17yrs||US$263.80k||0.0084% $4.5m|
|Lead Director||0.7yrs||US$285.42k||0.0015% $814.7k|
|Independent Director||2.8yrs||US$266.80k||0.00047% $251.9k|
|Independent Director||0.8yrs||no data||0.00011% $59.0k|
|Independent Director||8yrs||US$260.80k||0.0049% $2.6m|
|Independent Director||13.8yrs||US$281.80k||0.014% $7.3m|
|Independent Director||5.6yrs||US$260.80k||0.0020% $1.1m|
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The Sherwin-Williams Company's company bio, 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$53.601b
- Shares outstanding: 91.56m
- Website: https://www.sherwin-williams.com
Number of Employees
- The Sherwin-Williams Company
- 101 West Prospect Avenue
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SHW||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 1968|
|SJ3||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1968|
|SHW *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jan 1968|
|0L5V||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 1968|
|SJ3||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||Jan 1968|
|SHWW||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Jan 1968|
|S1HW34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 10 REPR 1 COM||BR||BRL||Jan 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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/16 23:41|
|End of Day Share Price||2020/02/14 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.