The Sherwin-Williams Company (SHW) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Basic Materials · Specialty Chemicals
Is The Sherwin-Williams Company a safe investment right now?
The Sherwin-Williams Company's Altman Z-Score of 3.75 places it in the safe zone. Our fair value estimate is $301.91 (Fairly Valued). Moat rating: 3.7/5 stars.
Could The Sherwin-Williams Company go bankrupt? Altman Z-Score analysis
Z-Score of 3.75 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives SHW's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | -0.0352 | 1.2 | -0.04 |
| B · Retained Earnings / Total Assets | RE / TA | 0.0397 | 1.4 | 0.06 |
| C · EBIT / Total Assets | EBIT / TA | 0.1468 | 3.3 | 0.48 |
| D · Market Cap / Total Liabilities | MCap / TL | 3.898 | 0.6 | 2.34 |
| E · Revenue / Total Assets | Rev / TA | 0.9101 | 1.0 | 0.91 |
How has SHW's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 4.18 | Safe |
| 2023 | 4.37 | Safe |
| 2024 | 4.42 | Safe |
| 2025 | 3.75 | Safe |
Source: Calculated from SHW's latest 10-K filing on SEC EDGAR.
What is The Sherwin-Williams Company actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $10.86 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $10.26 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $11.76 | 21 analysts consensus |
| Trailing P/E | 32.7x | Current market pricing |
| Fair P/E (β discount) | 27.8x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Growing | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $379.43 (21 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does The Sherwin-Williams Company have a durable competitive advantage?
Moat rating: 3.7/5.
What makes up SHW's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is SHW's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 21.7% | — |
| 2023 | 26.0% | Rising |
| 2024 | 27.7% | Rising |
| 2025 | 24.6% | Declining |
Source: ROIC calculated from SEC EDGAR filings.
Is The Sherwin-Williams Company's dividend safe?
Can The Sherwin-Williams Company afford its dividend?
Payout ratio is 30.8%. FCF covers the dividend 2.1x. 42 consecutive years of payments.
The Sherwin-Williams Company's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $23.6B | $23.1B | $22.1B | Rising |
| Net Income | $2.6B | $2.7B | $2.0B | Rising |
| Free Cash Flow | $2.7B | $2.1B | $1.3B | Rising |
| Gross Margin | 48.9% | 48.5% | 42.1% | Rising |
Recent events that affect our SHW analysis
SHW earnings report scheduled
Upcoming report. Consensus EPS estimate: $2.28. Revenue estimate: $5.56B. Our current Fair Value: $301.91 — a significant beat or miss could shift this estimate.
SHW analyst consensus: 60% bullish (15 of 25 analysts)
3 Strong Buy, 12 Buy, 9 Hold, 1 Sell, 0 Strong Sell. Consensus target: $379.43 (13.2% upside). Compare with our independent Fair Value: $301.91.
SHW paid $0.8000/share dividend
Dividend Safety Grade: A. Payout ratio: 30.8%.
SHW filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
SHW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SHW beat EPS estimates by 3.1%
Reported EPS: $2.23 vs estimate $2.16. Earnings strength supports our Fair Value of $301.91 (9.9% below current price).
SHW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SHW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SHW paid $0.7900/share dividend
Dividend Safety Grade: A. Payout ratio: 30.8%.
SHW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SHW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SHW beat EPS estimates by 4.4%
Reported EPS: $3.59 vs estimate $3.44. Earnings strength supports our Fair Value of $301.91 (9.9% below current price).
SHW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
SHW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SHW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SHW paid $0.7900/share dividend
Dividend Safety Grade: A. Payout ratio: 30.8%.
SHW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SHW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SHW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
SHW missed EPS estimates by 11.2%
Reported EPS: $3.38 vs estimate $3.81. Our Fair Value of $301.91 may face downward pressure if the trend continues.
SHW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SHW paid $0.7900/share dividend
Dividend Safety Grade: A. Payout ratio: 30.8%.
SHW beat EPS estimates by 4.1%
Reported EPS: $2.25 vs estimate $2.16. Earnings strength supports our Fair Value of $301.91 (9.9% below current price).
SHW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
SHW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SHW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SHW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SHW paid $0.7900/share dividend
Dividend Safety Grade: A. Payout ratio: 30.8%.
SHW filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
SHW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SHW beat EPS estimates by 1.6%
Reported EPS: $2.09 vs estimate $2.06. Earnings strength supports our Fair Value of $301.91 (9.9% below current price).
SHW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about The Sherwin-Williams Company
What is The Sherwin-Williams Company stock price today?
The Sherwin-Williams Company (SHW) stock price is $335.15 as of the latest market close, traded on the NYSE exchange.
What does The Sherwin-Williams Company do?
The Sherwin-Williams Company engages in the development, manufacture, distribution, and sale of paint, coatings, and related products to professional, industrial, commercial and retail customers. It operates through three segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group. The Paint Stores Group segment offers architectural paint and coatings; protective and marine products; and OEM product finishes and related products for architectural and industrial paint contractors, and do-it-yourself homeowners under the Sherwin-Williams brand.
What is The Sherwin-Williams Company market cap?
The Sherwin-Williams Company has a market capitalization of $83.04B, classifying it as a large-cap stock in the Basic Materials sector.
What sector and industry is SHW in?
The Sherwin-Williams Company operates in the Basic Materials sector, specifically within the Specialty Chemicals industry. It trades on the NYSE under the ticker symbol SHW.
Is SHW stock overvalued or undervalued?
Based on our valuation model, The Sherwin-Williams Company trades 11.0% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $301.91
- Current Price: $335.15
- Valuation Zone: Fairly Valued
What is SHW stock forecast and analyst target price?
Based on 21 Wall Street analysts, the consensus price target for The Sherwin-Williams Company is $379.43, implying upside of 13.2% from the current price.
- Analyst High Target: $420.00
- Analyst Low Target: $268.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is The Sherwin-Williams Company revenue and earnings growing?
Here are the analyst consensus growth estimates for The Sherwin-Williams Company:
- Revenue growth (current year est.): 4.4%
- EPS growth (current year est.): 2.9%
- Revenue growth (next year est.): 4.8%
- EPS growth (next year est.): 13.7%
What are The Sherwin-Williams Company's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $23.6B | Rising |
| Net Income | $2.6B | Rising |
| Free Cash Flow | $2.7B | Rising |
| Gross Margin | 48.9% | Rising |
What is SHW's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 32.7x
- Forward P/E (next 12 months est.): 25.1x
- FairValueLabs Fair P/E: 27.8x
How volatile is SHW stock?
The Sherwin-Williams Company has a beta of 1.27, meaning it is somewhat more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does The Sherwin-Williams Company have?
The Sherwin-Williams Company's balance sheet shows:
- Total Cash: $207.2M
- Total Debt: $14.07B
- Net Cash Position: $-13.87B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is The Sherwin-Williams Company's free cash flow?
The Sherwin-Williams Company generated $1.93B in trailing twelve-month free cash flow (from $3.45B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does The Sherwin-Williams Company pay a dividend, and is it safe?
Yes, The Sherwin-Williams Company pays a regular dividend. Here are the key metrics:
- Dividend Yield: 0.9%
- Payout Ratio: 30.8%
- Consecutive Years Paid: 42
- 5-Year Dividend Growth: -18.3%
- FairValueLabs Safety Grade: A
Is The Sherwin-Williams Company at risk of going bankrupt?
The Sherwin-Williams Company's Altman Z-Score is 3.75, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does The Sherwin-Williams Company have a durable competitive advantage?
The Sherwin-Williams Company scores 3.7/5 stars (Solid moat · eroding) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is SHW's return on equity (ROE)?
The Sherwin-Williams Company's return on equity is 59.4%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy SHW stock?
SHW shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol SHW
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is SHW a value stock or speculative?
FairValueLabs classifies The Sherwin-Williams Company as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of The Sherwin-Williams Company?
The current CEO of The Sherwin-Williams Company is Ms. Heidi G. Petz.
What is SHW's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $10.26
- Forward EPS (next 12 months est.): $13.36
- Analyst consensus EPS (this year): $11.76
- Analyst consensus EPS (next year): $13.37
Other Basic Materials companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
SHW analysis methodology: How we calculate fair value, Z-Scores, and moat ratings