📊 SHW Key Takeaways
Is Sherwin Williams Co (SHW) a Good Investment?
Sherwin Williams exhibits exceptional profitability metrics with 55.9% ROE and 14.2% operating margins, demonstrating strong operational efficiency and capital returns. However, declining net income (-4.2% YoY) coupled with elevated leverage (2.1x debt/equity) and weak liquidity (current ratio 0.87x) create meaningful financial risks that offset margin strength and solid free cash flow generation.
Why Buy Sherwin Williams Co Stock? SHW Key Strengths
- Exceptional ROE of 55.9% reflects superior capital efficiency and shareholder returns generation
- Strong margins: 48.8% gross margin and 14.2% operating margin demonstrate pricing power and operational efficiency
- Robust free cash flow of $2.7B (11.3% FCF margin) indicates effective cash conversion despite leverage
- Interest coverage of 8.4x shows adequate debt servicing capacity
- Large-scale profitable business with $23.6B revenue in resilient building materials sector
SHW Stock Risks: Sherwin Williams Co Investment Risks
- Net income declining 4.2% YoY while revenue grows only 2.1% indicates margin compression and operational headwinds
- Critical liquidity concern: current ratio 0.87x (below 1.0) and quick ratio 0.53x suggest working capital stress and potential refinancing needs
- High financial leverage at 2.1x debt/equity with only $207.2M cash against $9.7B debt creates vulnerability to disruption
- Slowing revenue growth of 2.1% YoY indicates limited organic expansion in mature market
- EPS declining 2.7% YoY despite revenue growth signals shareholder value erosion
Key Metrics to Watch
- Operating margin and net income trend reversal (current decline is primary concern)
- Current ratio and working capital improvement (liquidity position critical)
- Debt reduction progress and debt-to-equity ratio trending (leverage must decline)
- Operating cash flow sustainability and free cash flow consistency
- Revenue growth acceleration in core segments
Sherwin Williams Co (SHW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
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 has mixed fundamental signals 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $5.9B | $370.8M | $2.21 |
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 rating of HOLD with 70% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SHW's key strengths?
Claude: Exceptional ROE of 55.9% reflects superior capital efficiency and shareholder returns generation. Strong margins: 48.8% gross margin and 14.2% operating margin demonstrate pricing power and operational efficiency.
What are the risks of investing in SHW?
Claude: Net income declining 4.2% YoY while revenue grows only 2.1% indicates margin compression and operational headwinds. Critical liquidity concern: current ratio 0.87x (below 1.0) and quick ratio 0.53x suggest working capital stress and potential refinancing needs.
What is SHW's revenue and growth?
Sherwin Williams Co reported revenue of $23.6B.
Does SHW pay dividends?
Sherwin Williams Co pays dividends, with $789.8M 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 $10.26.
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 rating reflects both perspectives for balanced insights.
Is SHW a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Sherwin Williams Co has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SHW stock overvalued or undervalued?
Valuation metrics for SHW: ROE of 55.9% (sector avg: 18%), net margin of 10.9% (sector avg: 8%). Higher ROE suggests strong returns relative to peers.
Should I buy SHW stock in 2026?
Our dual AI analysis gives Sherwin Williams Co a combined HOLD rating 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 $3.5B, with capital expenditures of $797.6M. FCF margin is 11.3%.
How does SHW compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 10.9% (avg: 8%), ROE 55.9% (avg: 18%), current ratio 0.87 (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.
Why is SHW's return on equity (ROE) so high?
Sherwin Williams Co has a return on equity of 55.9%, significantly above the Consumer sector average of 18%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 10.9% net margin.