The Sherwin-Williams Co. (SHW) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

UFP Technologies, Inc.

WD-40 Co.

PPG Industries, Inc.

RPM International, Inc.

H.B. Fuller Co.

The Sherwin-Williams Co.

Axalta Coating Systems Ltd.

Montauk Renewables, Inc.

CSW Industrials, Inc.

Olin Corp.

Chase Corp.

Why is The Sherwin-Williams Co. ?

High Management Efficiency with a high ROCE of 23.32%

Positive results in Jun 25

RAW MATERIAL COST(Y) Fallen by -1.11% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at 302.44 %
DIVIDEND PER SHARE(HY) Highest at USD 7.32

With ROCE of 25.27%, it has a expensive valuation with a 7.27 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -11.46%, its profits have risen by 11.3% ; the PEG ratio of the company is 2.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.46% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is The Sherwin-Williams Co. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

The Sherwin-Williams Co.

-9.54%

0.50

24.63%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.12%

EBIT Growth (5y)

6.57%

EBIT to Interest (avg)

8.19

Debt to EBITDA (avg)

2.60

Net Debt to Equity (avg)

2.67

Sales to Capital Employed (avg)

1.54

Tax Ratio

22.65%

Dividend Payout Ratio

30.81%

Pledged Shares

Institutional Holding

86.16%

ROCE (avg)

23.32%

ROE (avg)

71.07%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

19.30

EV to EBIT

25.53

EV to EBITDA

21.76

EV to Capital Employed

6.33

EV to Sales

4.24

PEG Ratio

4.98

Dividend Yield

2.78%

ROCE (Latest)

24.80%

ROE (Latest)

60.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.23% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 298.89 %

INVENTORY TURNOVER RATIO(HY)

Highest at 5.24 times

DIVIDEND PER SHARE(HY)

Highest at USD 8.88

-9What is not working for the Company

ROCE(HY)

Lowest at 59.39%

INTEREST COVERAGE RATIO(Q)

Lowest at 721.13

INTEREST(Q)

Highest at USD 135.8 MM

PRE-TAX PROFIT(Q)

At USD 670.9 MM has Fallen at -22.89%

NET PROFIT(Q)

At USD 500.6 MM has Fallen at -25.78%

Here's what is working for The Sherwin-Williams Co.

Debt-Equity Ratio

Lowest at 298.89 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 5.24 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at USD 8.88

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by 0.23% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 186.4 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for The Sherwin-Williams Co.

Interest

At USD 135.8 MM has Grown at 11.95%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 721.13

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 135.8 MM

in the last five periods and Increased by 11.95% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

At USD 670.9 MM has Fallen at -22.89%

over average net sales of the previous four periods of USD 870 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 500.6 MM has Fallen at -25.78%

over average net sales of the previous four periods of USD 674.45 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)