SHWSHW
US • —
$347.35
P/E
33.34
PEG
—
FCF Yield
—
Rev Growth YoY
+3.9% YoY
Gross Margin
49.0%
Health Score
5/10
D/E Ratio
2.41
Confidence
MEDIUM
Business Snapshot
Sherwin-Williams is a leading manufacturer, distributor, and retailer of paints, coatings, and related products. The company operates primarily through its Paint Stores Group, Consumer Brands Group, and Performance Coatings Group segments, serving professional, industrial, commercial, and do-it-yourself customers. It holds a dominant position in the North American paint market, driven by an extensive network of company-operated stores and brand recognition. The company’s defining characteristic is its vertically integrated store network, which provides a competitive moat in serving professional contractors. While market cap and TTM revenue figures are unavailable in the payload, the company is a large-cap industry leader with a significant scale of operations.
Financial Health
Gross margin stands at 49.0%, with net margin at 10.9%, though no prior-year comparison is available for gross margin to assess trend direction. The balance sheet is stretched, with a debt-to-equity ratio of 2.41x indicating high leverage, and a current ratio of 0.87x suggesting potential short-term liquidity risk...
Risk Assessment
- VALUATION — P/E of 33.34x is elevated versus the sector average of 22x, implying a premium that may not be justified by current growth.
- EARNINGS QUALITY — Earnings growth declined 1.4% year-over-year, contradicting the modest 3.9% revenue growth and pointing to margin pressure.
- DEBT / LIQUIDITY — Debt/equity of 2.41x is highly leveraged, and the current ratio of 0.87x indicates potential liquidity constraints.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin stands at 49.0%, with net margin at 10.9%, though no prior-year comparison is available for gross margin to assess trend direction. The balance sheet is stretched, with a debt-to-equity ratio of 2.41x indicating high leverage, and a current ratio of 0.87x suggesting potential short-term liquidity risk. Return on equity is an exceptionally high 58.2%, which can be a sign of strong profitability but is also amplified by the high debt levels. Free cash flow and FCF yield are N/A, limiting the ability to assess cash generation. Overall, profitability metrics are solid, but the high debt burden and lack of FCF data introduce meaningful financial risk for investors.
- VALUATION — P/E of 33.34x is elevated versus the sector average of 22x, implying a premium that may not be justified by current growth. - EARNINGS QUALITY — Earnings growth declined 1.4% year-over-year, contradicting the modest 3.9% revenue growth and pointing to margin pressure. - DEBT / LIQUIDITY — Debt/equity of 2.41x is highly leveraged, and the current ratio of 0.87x indicates potential liquidity constraints. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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