FCF Yield

The current FCF Yield of 3.1% means that for every dollar invested in SHW’s stock, the company generates about 3.1 cents in free cash flow (the cash left after operating and capital expenses) — a measure of how efficiently the company turns its price into cash.

That yield sits below the sector median of 4.2%, placing SHW in the 36th percentile among its peers, so most competitors offer a higher cash return. No year-over-year comparison is available, but on a quarter-over-quarter basis the yield declined by 3.1% (from 3.2% to the current 3.1%), showing recent erosion in this cash-flow metric. With a below-median level and a declining trend, the combination signals that the stock’s price is high relative to its cash generation, adding risk for investors seeking income or value. This directly supports the CAUTIOUS overall verdict, as the low and falling free cash flow yield suggests limited near-term cash return and potential overvaluation versus the sector.

Frequently Asked Questions

Closest Sector Peers