The Sherwin-Williams Company (SHW) AI Stock Analysis

The Sherwin-Williams Company supplies paints, coatings, and related products worldwide through three main segments: The Americas Group, Consumer Brands Group, and Performance Coatings Group. The Americas Group sells architectural paints, protective coatings, and OEM finishes through company-operated stores to contractors, industrial painters, and DIY customers. The Consumer Brands Group provides branded and private-label paints, stains, and applicators to third-party retailers and distributors. The Performance Coatings Group offers industrial, automotive refinish, marine coatings, and high-performance resins. Headquartered in Cleveland, Ohio, the company operates approximately 5,000 stores and facilities across North and South America, the Caribbean, Europe, Asia, and Australia.

Revenue increased from $19.94B in FY2021 to $23.57B in FY2025, reflecting a 5-year revenue CAGR of 5.1%. Gross margin expanded from 42.8% in FY2021 to 48.9% in FY2025, while operating margin rose from 13.4% to 16.1% over the same period. Net income grew from $1.86B ($8.14 per share) in FY2021 to $2.57B ($11.45 per share) in FY2025, although it dipped slightly from $2.68B in FY2024. For the trailing twelve months ended June 30, 2026, revenue stood at $24.41B with a net profit margin of 11.0%. In the latest quarter, revenue grew 7.5% year-over-year and earnings increased 14.3%.

As of June 30, 2026, Sherwin-Williams held $293.5M in cash and short-term investments alongside $14.22B in total debt, resulting in net debt of $13.92B. The debt-to-equity ratio was 3.69 against $3.85B in shareholders' equity, and the current ratio was 0.73. Free cash flow reached $2.65B in FY2025 on operating cash flow of $3.45B. During FY2025, the company deployed capital into $797.6M of capital expenditures, $1.66B of share buybacks, and $789.8M of dividends paid. Over the past five years, the total share count declined 6.6%.

Sherwin-Williams trades at a forward P/E of 23.8x and an EV/EBITDA of 19.7x, compared to the median of its S&P 500 Basic Materials peers of 13.6x and 14.0x, respectively. Its trailing P/E of 30.9x is slightly below the peer median of 32.2x, while its price-to-sales multiple of 3.3x sits above the peer median of 2.4x. The PEG ratio stands at 2.10. Over the past year, SHW shares delivered a 2.1% return compared to a 16.8% return for the S&P 500 (SPY), and over five years the stock returned 18.3% versus 83.0% for the index.

Sherwin-Williams pays a quarterly dividend with an annualized forward payout of $3.20 per share, yielding 0.95%. The payout ratio is 26.9%, and the company has paid consecutive dividends for 42 years. Over the past five years, the dividend grew at an annualized rate of 12.1%. The last ex-dividend date was August 21, 2026.

Wall Street coverage includes 12 Strong Buy, 3 Buy, and 14 Hold ratings, with no Sell or Strong Sell ratings. The mean price target is $383.12, which sits 14.3% above the October 16, 2026 close of $335.20. For FY2026, consensus estimates project EPS of $12.10 on revenue of $25.12B. For FY2027, 29 analysts expect EPS of $13.54 on revenue of $26.26B. Sherwin-Williams has beaten EPS estimates in each of the last 4 quarters, with next earnings scheduled for October 27, 2026.

This page is an AI-written research summary of The Sherwin-Williams Company (SHW). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: SHW income statement, SHW balance sheet, SHW key metrics, SHW analyst forecast, SHW chart. See the SHW stock overview for the latest quote and news.