📊 SHW Key Takeaways
Is Sherwin Williams Co (SHW) a Good Investment?
Sherwin Williams exhibits deteriorating financial health with declining net income (-4.2% YoY) despite flat revenue growth, signaling margin compression and operational stress. The company carries excessive leverage (2.10x debt-to-equity) while generating virtually no free cash flow ($800K on $5.7B revenue), creating acute financial vulnerability with sub-1.0 current ratio and low 1.7x interest coverage.
Sherwin Williams Co Key Strengths (SHW)
- Solid gross margin of 49.1% demonstrates pricing power and manufacturing efficiency
- $5.7B revenue base provides scale and established market position in building materials retail
- Positive operating cash flow of $139.1M demonstrates ongoing operational viability
SHW Stock Risks: Sherwin Williams Co Investment Risks
- Declining profitability with net income down 4.2% YoY and EPS down 2.7% despite flat revenue growth indicates margin compression
- Excessive leverage at 2.10x debt-to-equity with only 1.7x interest coverage provides minimal debt service flexibility and refinancing risk
- Critical liquidity crisis: current ratio of 0.86x and quick ratio of 0.53x indicate inability to cover current liabilities; potential covenant violation risk
- Virtually zero free cash flow ($800K) after capex on $5.7B revenue severely limits debt reduction and strategic investment capacity
Key Metrics to Watch
- Free cash flow generation and debt repayment trajectory
- Current ratio and liquidity coverage ratios for covenant compliance
- Net income and operating margin trends amid revenue stagnation
- Debt refinancing terms and access to capital markets
Sherwin Williams Co (SHW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.0% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
SHW Profit Margin, ROE & Profitability Analysis
SHW vs Consumer Sector: How Sherwin Williams Co Compares
How Sherwin Williams Co compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Sherwin Williams Co Stock Overvalued? SHW Valuation Analysis 2026
Based on fundamental analysis, Sherwin Williams Co shows some fundamental concerns relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Sherwin Williams Co Balance Sheet: SHW Debt, Cash & Liquidity
SHW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Sherwin Williams Co's revenue has grown significantly by 18% over the 5-year period, indicating strong business expansion. The most recent EPS of $9.25 reflects profitable operations.
SHW Revenue Growth, EPS Growth & YoY Performance
SHW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $5.3B | $503.9M | $2.00 |
| Q3 2025 | $6.2B | $503.9M | $3.18 |
| Q2 2025 | $6.3B | $503.9M | $3.00 |
| Q1 2025 | $5.3B | $503.9M | $1.97 |
| Q3 2024 | $6.1B | $477.4M | $2.95 |
| Q2 2024 | $6.2B | $477.4M | $3.07 |
| Q1 2024 | $5.4B | $477.4M | $1.84 |
| Q3 2023 | $6.0B | $370.8M | $2.62 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Sherwin Williams Co Dividends, Buybacks & Capital Allocation
SHW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Sherwin Williams Co (CIK: 0000089800)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SHW
What is the AI rating for SHW?
Sherwin Williams Co (SHW) has an AI grade of C with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SHW's key strengths?
Claude: Solid gross margin of 49.1% demonstrates pricing power and manufacturing efficiency. $5.7B revenue base provides scale and established market position in building materials retail.
What are the risks of investing in SHW?
Claude: Declining profitability with net income down 4.2% YoY and EPS down 2.7% despite flat revenue growth indicates margin compression. Excessive leverage at 2.10x debt-to-equity with only 1.7x interest coverage provides minimal debt service flexibility and refinancing risk.
What is SHW's revenue and growth?
Sherwin Williams Co reported revenue of $5.7B.
Does SHW pay dividends?
Sherwin Williams Co pays dividends, with $197.1M distributed to shareholders in the trailing twelve months.
Where can I find SHW SEC filings?
Official SEC filings for Sherwin Williams Co (CIK: 0000089800) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SHW's EPS?
Sherwin Williams Co has a diluted EPS of $2.15.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SHW's fundamental grade?
Based on our AI fundamental analysis in May 2026, Sherwin Williams Co has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SHW stock overvalued or undervalued?
Valuation metrics for SHW: ROE of 12.1% (sector avg: 18%), net margin of 9.4% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is SHW's AI grade for 2026?
Our dual AI analysis gives Sherwin Williams Co a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is SHW's free cash flow?
Sherwin Williams Co's operating cash flow is $139.1M, with capital expenditures of $138.3M. FCF margin is 0.0%.
How does SHW compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 9.4% (avg: 8%), ROE 12.1% (avg: 18%), current ratio 0.86 (avg: 1.5).
Is Sherwin Williams Co carrying too much debt?
SHW has a debt-to-equity ratio of 2.10x, which is above the Consumer sector average of 0.8x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.