Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Sherwin Williams Co

SHW · NYSE · Materials

Fundamental quality

REASONABLE

69

out of 100

Sherwin Williams Co earns a fundamental-quality score of 69 out of 100, profiling it as a company of reasonable quality. Its score rests mainly on its profitability (net margin 11%). Its weakest area is its growth (revenue +5.3%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Sherwin-Williams is the largest paint and coatings maker in the Americas, with thousands of company-owned stores serving mainly the professional painter. That direct channel is its moat: pros don't switch brands or stores.

What will shape its future

  • The U.S. housing and remodeling market, which sets the pace of paint demand.
  • Its own-store network and pro-painter loyalty, the basis of its pricing power.
  • Raw-material costs (resins, pigments, oil derivatives), which squeeze margins.

Breakdown by area

I.Growth
46

EPS growth: 5.2% · Revenue growth: 5.3%

II.Profitability
80

Net margin: 11% · ROE: 69.7% · ROIC: 19.7%

III.Financial health
70

Net debt/EBITDA: 2.69x · FCF: 13.2%

Source: SEC EDGAR · TTM through 30/06/2026

The score includes +4 for dividend strength: 49 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 27 Materials companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 67%
ROEbeats 96%
Growthbeats 30%
Cash generationbeats 80%
Less debtbeats 30%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Sherwin Williams Co strengths

  • Reasonable return on capital: its ROE (69.7%) is inflated by buybacks, but ROIC —which strips that out— is 19.7%.
  • Strong free-cash-flow generation (FCF margin of 13.2%): profit turns into real cash.
  • Revenue rising without interruption since 2020.
  • Solid net margin (11%): the business is clearly profitable.

Sherwin Williams Co risks and weaknesses

  • Its net debt has grown over the period.

Sherwin Williams Co historical evolution

YearRevenueNet incomeFree cash flowNet debt
202018,3622,0303,1058,065
202119,9451,8641,8739,449
202222,1492,0201,27510,371
202323,0522,3892,6349,574
202423,0992,6812,0839,678
202523,5742,5692,65410,664

Between 2020 and 2025, revenue went from $18,362M to $23,574M (+28%) and net income went from $2,030M to $2,569M (+27%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+7.2%
  • Net income+9.5%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score6869
  • ROE58.7%69.7%
  • FCF margin12.1%13.2%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$3.16

per share, yearly

30.7% of earnings

Payout

49 straight years raising it

Growth

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Sherwin Williams Co cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Sherwin Williams Co a good company to invest in?

In terms of business quality, Sherwin Williams Co scores 69 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Sherwin Williams Co a profitable company?

Yes. Sherwin Williams Co shows a net margin of 11% and an ROE of 69.7%, a sign of a profitable business.

Does Sherwin Williams Co have a lot of debt?

A moderate level: its net debt is 2.69 times its EBITDA.

Is Sherwin Williams Co growing?

Its revenue has grown 5.3% annualized in recent years and its earnings per share 5.2%, and without interruption since 2020.

Does Sherwin Williams Co generate cash?

Yes. It converts about 13.2% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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