SHERWIN WILLIAMS CO (SHW) Factsheet
SHERWIN WILLIAMS CO (SHW) Stock Analysis
Analysis from 10-Q filed 2025-10-28. Data as of Q1 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 18.5%. FCF margin 12.1%. D/E 2.6x. Source: 10-Q filed 2025-10-28.
| Metric | Value | Context |
|---|---|---|
| ROIC | 18.5% | Solid returns |
| FCF Margin | 12.1% | Healthy cash flow |
| Debt/Equity | 2.6x | Elevated debt |
ROIC 18.5% — Top 25% of sector peers. FCF margin 12.1% — Top 5%.
Explore SHERWIN WILLIAMS CO: Earnings History | Filings | ROIC Analysis
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for SHW: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: SHERWIN WILLIAMS CO earns 18.5% ROIC, Top 25% in Consumer Discretionary
ROIC TTM 18.5%, sector median 8.1%, Top 25%. DuPont: NOPAT margin 12.5% × asset turnover 0.9x. Gross margin 49.0%. Operating margin 16.2%. Source: 10-Q filed 2025-10-28.
| Metric | SHW | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 18.5% | Good | Above sector median of 8.1% |
| Return on Equity (ROE) | 58.7% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 49.0% | Good | Strong pricing power |
| Operating Margin | 16.2% | Good | Efficient operations |
Cash Flow: SHERWIN WILLIAMS CO generates $2.9B FCF at 12.1% margin, positive NaN/8 quarters
FCF TTM $2.9B. FCF margin 12.1%, Top 5%. OCF/Net income 1.4x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-28.
| Metric | SHW | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 12.1% | Good | Healthy cash generation |
| Free Cash Flow (TTM) | $2.9B | Good | Positive cash generation |
| OCF/Net Income | 1.4x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: SHERWIN WILLIAMS CO at 2.6x leverage
Debt/Equity 2.6x. Total debt $11.7B, cash & investments $216.9M. Source: 10-Q filed 2025-10-28.
| Metric | SHW | Rating | Context |
|---|---|---|---|
| Debt to Equity | 2.6x | Warning | Elevated leverage |
| Net Cash Position | $-11.5B | Warning | Net debt position |
Valuation: SHERWIN WILLIAMS CO trades at 30.4x earnings
P/E 30.4x. EV/Sales 3.8x. FCF yield 3.7%. Dividend yield 1.0%. Source: 10-Q filed 2025-10-28.
| Metric | SHW | Rating | Context |
|---|---|---|---|
| P/E Ratio | 30.4x | Adequate | Premium valuation |
| EV/Sales | 3.8x | Good | Growth premium priced in |
| FCF Yield | 3.7% | Adequate | Lower cash yield |
| Dividend Yield | 1.0% | Adequate | Growth focus over income |
Capital Allocation: SHERWIN WILLIAMS CO returns 3.4% shareholder yield
Total shareholder yield 3.4% (div 1.0% + buyback 2.4%). Capital returned $2.7B TTM. Source: 10-Q filed 2025-10-28.
| Metric | SHW | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 3.4% | Good | Dividend + buyback yield combined |
| Buyback Yield | 2.4% | Adequate | Active share repurchases |
| Total Capital Returned (TTM) | $2.7B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 18.5% | Top 25% | 2.3x above |
| Free Cash Flow Margin | 12.1% | Top 5% | 5.5x above |
| Gross Margin | 49.0% | Top 50% | 1.3x above |
| Operating Margin | 16.2% | Top 25% | 3.9x above |
| Return on Equity (ROE) | 58.7% | Top 5% | 5.7x above |
| P/E Ratio | 30.4x | N/A | - |
Financial Scorecard
| Metric | SHW | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 18.5% | Good | Top 25% of sector (median: 8.1%) |
| Free Cash Flow Margin | 12.1% | Good | Top 5% of sector (median: 2.2%) |
| Gross Margin | 49.0% | Good | Top 50% of sector (median: 39.1%) |
| Debt to Equity Ratio | 264.0% | Warning | High financial leverage |
| P/E Ratio (Price-to-Earnings) | 30.4x | Adequate | Growth premium |
| Free Cash Flow Yield | 3.7% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is SHERWIN WILLIAMS CO's Return on Invested Capital (ROIC)?
SHERWIN WILLIAMS CO (SHW) has a trailing twelve-month Return on Invested Capital (ROIC) of 18.5%. Sector median 8.1%. Source: 10-Q filed 2025-10-28.
Q: What is SHERWIN WILLIAMS CO's Free Cash Flow Margin?
SHERWIN WILLIAMS CO (SHW) has a free cash flow margin of 12.1%, generating $2.9 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-28.
Q: What is SHERWIN WILLIAMS CO's P/E ratio and how does it compare to peers?
SHERWIN WILLIAMS CO (SHW) trades at a P/E ratio of 30.4x, which is above the sector median of N/A. EV/Sales 3.8x. FCF yield 3.7%. Source: 10-Q filed 2025-10-28.
Q: Does SHERWIN WILLIAMS CO pay a dividend?
SHERWIN WILLIAMS CO (SHW) currently pays a dividend yield of 1.0%. Total shareholder yield (dividend + buybacks) 3.4%. Source: 10-Q filed 2025-10-28.
Q: How much debt does SHERWIN WILLIAMS CO have?
SHERWIN WILLIAMS CO (SHW) has a debt-to-equity ratio of 2.6x with total debt of $11.7 billion. Net debt $11.5 billion. Source: 10-Q filed 2025-10-28.
Q: What is SHERWIN WILLIAMS CO's revenue and earnings growth?
SHERWIN WILLIAMS CO (SHW) grew revenue by 3.9% year-over-year. EPS -1.5% YoY. Source: 10-Q filed 2025-10-28.
Q: Is SHERWIN WILLIAMS CO buying back stock?
SHERWIN WILLIAMS CO (SHW) repurchased $1.9 billion of stock over the trailing twelve months. This represents a buyback yield of 2.4%. Source: 10-Q filed 2025-10-28.
Q: How does SHERWIN WILLIAMS CO compare to competitors in Consumer Discretionary?
Compared to other companies in Consumer Discretionary, SHERWIN WILLIAMS CO (SHW) shows: ROIC 18.5%, sector median 8.1% (Top 25%). FCF margin 12.1%, sector median 2.2% (Top 5%). Gross margin 49.0%, 9.9pp above sector median. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.
Q: What warning signs should I watch for with SHERWIN WILLIAMS CO?
Quantitative warning flags for SHERWIN WILLIAMS CO (SHW): 1) ROIC declining -11.0% over 8 quarters; 2) debt/equity 2.6x (above 1.5x threshold). Source: 10-Q filed 2025-10-28.
Data Source: Data sourced from 10-Q filed 2025-10-28. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.