Sherwin-Williams SHW
Sherwin-Williams is a leading manufacturer and distributor of paints, coatings, and related products, operating through its own stores and a global distribution network for professional, industrial, and retail customers. Sherwin-Williams shows exceptional quality (ROIC 23.40%, ROE 65.12%) and positive growth (revenue +7.50%), but its valuation is demanding (P/E 30.39) and its balance sheet is leveraged (ND/EBITDA 3.13), making it vulnerable to a rising rate environment.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Sherwin-Williams is a leading manufacturer and distributor of paints, coatings, and related products, operating through its own stores and a global distribution network for professional, industrial, and retail customers. Sherwin-Williams shows exceptional quality (ROIC 23.40%, ROE 65.12%) and positive growth (revenue +7.50%), but its valuation is demanding (P/E 30.39) and its balance sheet is leveraged (ND/EBITDA 3.13), making it vulnerable to a rising rate environment.
Score by category
| Category | Score |
|---|---|
| Financial health | 3.8 |
| Quality / Moat | 7.9 |
| Valuation | 3.7 |
| Growth | 6.3 |
| Dividend | 5.3 |
| Momentum | 3.5 |
| Risk & Context | 5.4 |
OVERALL SCORE: 5.3/10
Context and risks
SHW's business is tied to the US housing and construction cycle. The rise in 10-year Treasury yields (5.17%) makes mortgages more expensive and pressures demand for professional paint, a material risk to its volume growth.
News considered in the analysis
- Sherwin-Williams 'Well-Positioned' to Deliver Volume Growth, RBC Says — El respaldo de RBC refuerza la tesis de crecimiento de volumen, pero es una opinión de analista ya parcialmente reflejada en el precio.
- Sherwin-Williams Targets Growth With Store Expansion, AI and Margin Gains — La expansión de tiendas y la inversión en IA son parte de la estrategia conocida; el impacto en beneficios futuros es positivo pero gradual.
- Should Sherwin-Williams’ (SHW) Aggressive Store Expansion and Tech Spend Require Action From Investors? — Artículo especulativo sin información nueva material.
- 3 Reasons to Avoid SHW and 1 Stock to Buy Instead — Listículo con argumentos genéricos de valoración; impacto limitado y ya descontado en la nota de valoración.
- Is Home Depot’s Dividend Safe if Housing Stays Frozen? — Noticia sobre un competidor indirecto sin implicación directa para SHW.
Verdict: Hold. The quality of the business is undeniable, but the combination of high debt and high multiples with rising rates limits the upside potential in the short term.
Main risk: The main risk is the sensitivity of the business to the US housing cycle: a sustained rise in mortgage rates could cool paint demand and pressure volume growth, just when net debt is high (ND/EBITDA 3.13).
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