SHWCAUTIOUS

SHW Return on Equity (ROE) Analysis

65.1%

Updated 393h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholder equity, and SHW's current 65.1% means it earns $0.651 for every $1 of equity.

Sector Performance

94th percentile

SHW

65.1%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

60.7%(Jul 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholder equity, and SHW's current 65.1% means it earns $0.651 for every $1 of equity.

This is far above the sector median of 13.3%, placing the company in the 94th percentile among peers. Trend data is unavailable: the year-over-year change is N/A and the quarter-over-quarter change is N/A, so no direction can be inferred from history. The high ROE level alone suggests efficient use of equity, but the absence of trend data removes any evidence of momentum or deterioration. This metric supports a favorable view of profitability, yet it does not contradict the overall CAUTIOUS verdict because other factors may offset this strength. The cautious stance remains justified given the lack of trend confirmation and potential risks not captured by ROE.

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: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.