SHWCAUTIOUS

Return on Equity (ROE)

60.7%

Updated 320h ago

Sector Performance

92th percentile

SHW

60.7%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how effectively a company generates profit from every dollar of shareholders' equity; a 60.7% ROE means SHW earned over 60 cents of profit for each dollar of equity invested.

This figure far exceeds the sector median of 13.9%, placing SHW in the 91st percentile among its peers. No year-over-year, quarter-over-quarter, or eight-quarter trend data is available, so the stability or direction of this ROE cannot be assessed. The combination of an extremely high current level with no trend information leaves uncertainty — the metric suggests exceptional current efficiency, but without historical context, investors cannot tell if this is sustainable. This strong ROE directly contradicts the overall CAUTIOUS verdict, as a 60.7% return against a 13.9% median typically signals a well-performing company, not one warranting caution.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about SHW?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are SHW's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.