The Sherwin-Williams Company (SHW) is listed on NYSE and operates in the Chemicals - Specialty industry (Basic Materials sector).
The Sherwin-Williams Company develops, manufactures, distributes, and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers. It operates through 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 supplies a portfolio of 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 the North and South America, the Caribbean, Europe, Asia, and Australia. As of February 17, 2022, it operated approximately 5,000 company-operated stores and facilities. The Sherwin-Wi...
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 23 |
| Hold | 14 |
| Sell | 1 |
| Strong Sell | 0 |
The Sherwin-Williams Company specializes in the development, manufacturing, distribution, and sale of paints, coatings, and related products. It serves a diverse clientele, including professional, industrial, commercial, and retail customers. The company operates through three main segments: The Americas Group, Consumer Brands Group, and Performance Coatings Group. The Americas Group focuses on architectural paints, coatings, and protective products for both professional contractors and DIY homeowners. The Consumer Brands Group provides branded and private-label paints, stains, varnishes, and related products to retailers and distributors. The Performance Coatings Group offers industrial coatings for wood finishing, automotive refinish products, and protective coatings, among others. Sherwin-Williams reaches its customers through company-operated stores, direct sales staff, and external sales representatives. The company has a significant presence in North and South America, the Caribbean, Europe, Asia, and Australia, with approximately 5,000 stores and facilities as of February 2022. Founded in 1866, Sherwin-Williams is headquartered in Cleveland, Ohio.
Over the past three fiscal years, the company has demonstrated a modest revenue growth trajectory, with revenue increasing consistently at a 1.1% CAGR from $23.05 billion in 2023 to $23.57 billion in 2025. Despite this steady top-line growth, profitability metrics have shown mixed signals. The gross margin improved by 2.3 percentage points, reaching 48.9% in 2025, indicating some efficiency gains in production or cost management. However, operating and net margins exhibited inconsistency, with operating margin slightly increasing by 0.5 percentage points to 16.1% and net margin rising by 0.5 percentage points to 10.9% over the same period. Earnings per share (EPS) also reflected volatility, growing at a 5.4% CAGR, ending at $10.27 in 2025, suggesting some fluctuations in net income or share count adjustments.
On the cash flow front, the company maintained positive operating cash flow (OCF) and free cash flow (FCF) throughout the period, though both displayed inconsistency. OCF decreased slightly from $3.52 billion in 2023 to $3.45 billion in 2025, while FCF showed a marginal increase from $2.63 billion to $2.65 billion, with FCF margin slightly compressing by 0.2 percentage points to 11.3%. The cash conversion ratio (CCR) of 1.34 in 2025 indicates that earnings are well-supported by cash flows, despite the fluctuations.
The company's net debt position increased consistently, rising from $11.53 billion in 2023 to $14.33 billion in 2025, which may reflect increased borrowing or reduced cash reserves. Despite this, the interest coverage ratio remained robust at 8.1x, suggesting that the company can comfortably meet its interest obligations. Capital efficiency, as indicated by asset turnover, held steady around 0.95, while the company's liquidity position appears constrained with a current ratio below 1, highlighting potential short-term financial pressures. Overall, while the company has managed to grow and maintain profitability, the increasing net debt and liquidity constraints warrant close monitoring.
Sherwin-Williams is set to announce its first-quarter 2026 financial results on April 28, with Wall Street anticipating earnings growth. The company will host a conference call to discuss these results and provide guidance for the second quarter and full year. Earlier, on March 10, Sherwin-Williams received an analyst rating upgrade from Seeking Alpha, citing resilient performance in a challenging market environment. In terms of institutional activity, Clear Creek Financial Management LLC recently acquired 3,162 shares of Sherwin-Williams, while Empowered Funds LLC increased its holdings by 626 shares, reflecting continued investor interest. Additionally, BCS Wealth Management and Exchange Traded Concepts LLC have also increased their positions in the company, indicating confidence in its future prospects. Despite these positive developments, a recent analysis by GuruFocus suggested that Sherwin-Williams might be overvalued, with a discounted cash flow valuation of $216 per share. These activities and analyses suggest a mixed outlook for Sherwin-Williams, with strong institutional interest and positive earnings expectations tempered by concerns over valuation.