NYSE · Basic Materials

The Sherwin-Williams Company

SHW · Specialty Chemicals

$310.71

▼ -7.29 (-2.29%)

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Mr. Market is currently offering The Sherwin-Williams Company at $310.71.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability B

Gross Profit Margin 48.8%

Operating Margin 16.1%

Net Income Margin 10.9%

Fin. Health F

Years to Pay Off Debt 5.0 yrs

Working Capital vs Long-Term Debt -$10.2B

Working Capital -$913M

Valuation F

Margin of Safety 0.0%

Price-to-Book 16.67x

Cash Flow B

Free Cash Flow $2.7B

CapEx % of Net Income 31.1%

Owner Earnings $4.0B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $76.6B

Enterprise Value $92.4B

P/E (TTM) 29.88

Dividend Yield 1.00%

Exchange NYSE

Key Margins

Gross Profit 48.8%

Operating Margin 16.1%

Net Margin 10.9%

Company Info

Sector Basic Materials

Industry Specialty Chemicals

Employees 64249

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering The Sherwin-Williams Company at $310.71.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $310.71, the stock trades at a 374% premium to its Graham Number of $65.60. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About The Sherwin-Williams Company

The Sherwin-Williams Company engages in the development, manufacture, distribution, and sale of paint, coatings, and related products to professional, industrial, commercial and retail customers. The company operates through three segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group. The Paint Stores Group segment offers architectural paint and coatings; protective and marine products; and OEM product finishes and related products for architectural and industrial paint contractors, and do-it-yourself homeowners under the Sherwin-Williams brand. The Consumer Brands Group segment supplies a portfolio of branded and private-label architectural paints, stains, varnishes, industrial products, wood finishes products, wood preservatives, applicators, corrosion inhibitors, aerosols, caulks, and adhesives to retailers, including home centers and hardware stores, and dedicated dealers and distributors. The Performance Coatings Group segment develops and sells industrial coatings for wood finishing and general industrial applications; automotive refinish products; protective and marine coatings; coil coatings; packaging coatings; and performance-based resins and colorants. This segment serves retailers, dealers, jobbers, licensees, and other third-party distributors. The company operates in North America, South America, the Caribbean, Europe, Asia, and Australia. The Sherwin-Williams Company was founded in 1866 and is headquartered in Cleveland, Ohio.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	48.8% ▲	48.5%	46.7%	42.1%	N/A
Operating Margin %	16.1% ▼	16.3%	15.6%	13.5%	N/A
Net Income %	10.9% ▼	11.6%	10.4%	9.1%	N/A
Diluted EPS	10.26 ▼	10.55	9.25	7.72	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$25.9B	$23.6B	$23.0B	$22.6B	N/A
Total Debt	$12.9B ↑	$11.9B	$11.8B	$12.5B	N/A
Working Capital	-$913M ▲	-$1.4B	-$1.1B	-$53M	N/A
Years to Pay Debt	5.04	4.44	4.94	6.19	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$2.7B ▲	$2.1B	$2.6B	$1.3B	N/A
Owner Earnings	$4.0B	$4.4B	$3.9B	$3.2B	N/A
CapEx % of Net Income	31.1%	39.9%	37.2%	31.9%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	-4,458	14,027	-25,311	-8,812
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	4,499,400	4,428,600	4,259,000	3,586,000
Total Unusual Items	-19,300	62,900	-109,100	-41,000
Total Unusual Items Excluding Goodwill	-19,300	62,900	-109,100	-41,000
Net Income From Continuing Operation Net Minority Interest	2,568,500	2,681,400	2,388,800	2,020,100
Reconciled Depreciation	676,900	624,000	622,500	581,100
Reconciled Cost Of Revenue	12,058,800	11,903,400	12,293,800	12,823,800
EBITDA	4,480,100	4,491,500	4,149,900	3,545,000
EBIT	3,803,200	3,867,500	3,527,400	2,963,900
Net Interest Income	-470,200	-420,400	-407,300	-395,000
Interest Expense	465,000	415,700	417,500	390,800
Interest Income	11,200	11,000	25,200	8,000
Normalized Income	2,583,342	2,632,527	2,472,589	2,052,288
Net Income From Continuing And Discontinued Operation	2,568,500	2,681,400	2,388,800	2,020,100
Total Expenses	19,777,600	19,336,600	19,445,500	19,148,300
Diluted Average Shares	250,400	254,100	258,300	261,800
Basic Average Shares	247,600	251,000	255,400	258,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	2,568,500	2,681,400	2,388,800	2,020,100
Net Income Common Stockholders	2,568,500	2,681,400	2,388,800	2,020,100
Net Income	2,568,500	2,681,400	2,388,800	2,020,100
Net Income Including Noncontrolling Interests	2,568,500	2,681,400	2,388,800	2,020,100
Net Income Continuous Operations	2,568,500	2,681,400	2,388,800	2,020,100
Tax Provision	769,700	770,400	721,100	553,000
Pretax Income	3,338,200	3,451,800	3,109,900	2,573,100
Other Income Expense	11,700	110,300	-89,200	-32,500
Other Non Operating Income Expenses	31,000	47,400	19,900	8,500
Special Income Charges	16,200	49,900	-51,500	2,300
Gain On Sale Of Ppe	34,000	49,900	-900	17,800
Gain On Sale Of Business	0	0	20,100	0
Other Special Charges			12,800		-1,400
Write Off		0	57,900	15,500
Impairment Of Capital Assets	17,800	0	57,900	15,500
Gain On Sale Of Security	-35,500	13,000	-57,600	-43,300
Net Non Operating Interest Income Expense	-470,200	-420,400	-407,300	-395,000
Total Other Finance Cost	16,400	15,700	15,000	12,200
Interest Expense Non Operating	465,000	415,700	417,500	390,800
Interest Income Non Operating	11,200	11,000	25,200	8,000
Operating Income	3,796,700	3,761,900	3,606,400	3,000,600
Operating Expense	7,718,800	7,433,200	7,151,700	6,324,500
Other Operating Expenses	15,300	-1,300	80,700	-7,100
Depreciation Amortization Depletion Income Statement				317,100	309,500
Depreciation And Amortization In Income Statement				317,100	309,500
Amortization				317,100	309,500
Amortization Of Intangibles Income Statement				317,100	309,500
Selling General And Administration	7,703,500	7,434,500	7,071,000	6,331,600
General And Administrative Expense	7,703,500	7,434,500	7,071,000	6,331,600
Other Gand A	7,703,500	7,434,500	7,071,000	6,331,600
Salaries And Wages			-21,100	4,000	4,400
Gross Profit	11,515,500	11,195,100	10,758,100	9,325,100
Cost Of Revenue	12,058,800	11,903,400	12,293,800	12,823,800
Total Revenue	23,574,300	23,098,500	23,051,900	22,148,900
Operating Revenue	23,574,300	23,098,500	23,051,900	22,148,900

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	1,065	25,688	20,435	14,717
Ordinary Shares Number	247,701	251,291	254,543	258,876
Share Issued	248,767	276,979	274,978	273,593
Net Debt	10,664,100	9,678,000	9,574,100	10,370,900
Total Debt	12,942,600	11,913,300	11,809,700	12,507,900
Tangible Book Value	-7,404,400	-7,062,100	-7,790,700	-8,483,100
Invested Capital	15,469,600	13,939,600	13,566,700	13,671,800
Working Capital	-912,900	-1,407,900	-1,114,000	-53,000
Net Tangible Assets	-7,404,400	-7,062,100	-7,790,700	-8,483,100
Capital Lease Obligations	2,071,300	2,024,900	1,958,800	1,938,200
Common Stock Equity	4,598,300	4,051,200	3,715,800	3,102,100
Total Capitalization	13,919,000	12,228,000	12,093,700	12,693,100
Total Equity Gross Minority Interest	4,598,300	4,051,200	3,715,800	3,102,100
Stockholders Equity	4,598,300	4,051,200	3,715,800	3,102,100
Other Equity Interest				3,963,900	3,793,000
Gains Losses Not Affecting Retained Earnings	-634,400	-875,200	-624,300	-700,600
Other Equity Adjustments	-634,400	-875,200	-624,300	-700,600
Foreign Currency Translation Adjustments				-810,800	-702,100
Minimum Pension Liabilities				78,300	-32,200
Treasury Stock	84,300	6,988,600	5,233,600	3,775,600
Retained Earnings	1,029,400	7,246,300	5,288,300	3,523,200
Additional Paid In Capital	4,204,500	4,576,200	4,193,600	3,963,900
Capital Stock	83,100	92,500	91,800	91,200
Common Stock	83,100	92,500	91,800	91,200
Total Liabilities Net Minority Interest	21,303,400	19,581,400	19,238,600	19,491,900
Total Non Current Liabilities Net Minority Interest	14,383,100	12,772,700	12,611,700	13,531,200
Other Non Current Liabilities	2,575,800	2,309,400	1,908,000	1,606,400
Employee Benefits	129,800	120,700	133,200	139,300
Non Current Pension And Other Postretirement Benefit Plans	129,800	120,700	133,200	139,300
Non Current Accrued Expenses				240,200	277,400
Non Current Deferred Liabilities	765,300	607,500	683,100	681,600
Non Current Deferred Taxes Liabilities	765,300	607,500	683,100	681,600
Long Term Debt And Capital Lease Obligation	10,912,200	9,735,100	9,887,400	11,103,900
Long Term Capital Lease Obligation	1,591,500	1,558,300	1,509,500	1,512,900
Long Term Debt	9,320,700	8,176,800	8,377,900	9,591,000
Current Liabilities	6,920,300	6,808,700	6,626,900	5,960,700
Current Debt And Capital Lease Obligation	2,030,400	2,178,200	1,922,300	1,404,000
Current Capital Lease Obligation	479,800	466,600	449,300	425,300
Current Debt	1,550,600	1,711,600	1,473,000	978,700
Other Current Borrowings	350,100	1,049,200	1,098,800	600
Line Of Credit	919,100	6,800	26,500	39,600
Commercial Paper	281,400	655,600	347,700	938,500
Pensionand Other Post Retirement Benefit Plans Current					716,600
Payables And Accrued Expenses	4,889,900	4,630,500	4,704,600	4,556,700
Current Accrued Expenses	1,508,900	1,360,200	1,329,500	1,138,300
Payables	3,381,000	3,270,300	3,375,100	3,418,400
Total Tax Payable	1,026,800	1,017,100	1,060,100	981,900
Accounts Payable	2,354,200	2,253,200	2,315,000	2,436,500
Total Assets	25,901,700	23,632,600	22,954,400	22,594,000
Total Non Current Assets	19,894,300	18,231,800	17,441,500	16,686,300
Other Non Current Assets	1,759,000	1,631,500	1,210,800	1,027,300
Goodwill And Other Intangible Assets	12,002,700	11,113,300	11,506,500	11,585,200
Other Intangible Assets	3,966,100	3,533,200	3,880,500	4,002,000
Goodwill	8,036,600	7,580,100	7,626,000	7,583,200
Net PPE	6,132,600	5,487,000	4,724,200	4,073,800
Accumulated Depreciation	-3,249,100	-3,190,200	-3,040,200	-2,981,600
Gross PPE	9,381,700	8,677,200	7,764,400	7,055,400
Construction In Progress	520,000	1,598,100	1,111,000	496,100
Other Properties	1,995,200	1,953,800	1,887,400	1,866,800
Machinery Furniture Equipment	3,885,100	3,689,500	3,459,800	3,230,200
Buildings And Improvements	2,667,300	1,175,900	1,048,700	1,199,300
Land And Improvements	314,100	259,900	257,500	263,000
Current Assets	6,007,400	5,400,800	5,512,900	5,907,700
Other Current Assets	690,800	513,500	438,400	518,800
Inventory	2,318,200	2,288,100	2,329,800	2,626,500
Finished Goods	1,784,200	1,751,900	1,810,900	1,957,700
Work In Process	534,000	536,200	518,900	668,800
Receivables	2,791,200	2,388,800	2,467,900	2,563,600
Accounts Receivable	2,791,200	2,388,800	2,467,900	2,563,600
Allowance For Doubtful Accounts Receivable	-62,500	-60,400	-59,600	-56,600
Gross Accounts Receivable	2,853,700	2,449,200	2,527,500	2,620,200
Cash Cash Equivalents And Short Term Investments	207,200	210,400	276,800	198,800
Cash And Cash Equivalents	207,200	210,400	276,800	198,800

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	2,654,000	2,083,200	2,633,500	1,275,400
Repurchase Of Capital Stock	-1,656,400	-1,738,800	-1,432,000	-883,200
Repayment Of Debt	-1,063,500	-1,108,600	-740,300	-267,600
Issuance Of Debt	2,077,300	1,381,500	306,500	1,421,400
Issuance Of Capital Stock		0	0	22,000	11,700
Capital Expenditure	-797,600	-1,070,000	-888,400	-644,500
Interest Paid Supplemental Data	453,000	406,900	416,500	371,100
Income Tax Paid Supplemental Data	592,700	779,800	816,700	580,100
End Cash Position	207,200	210,400	276,800	198,800
Beginning Cash Position	210,400	276,800	198,800	165,700
Effect Of Exchange Rate Changes	-9,900	-6,200	20,000	3,200
Changes In Cash	6,700	-60,200	58,000	29,900
Financing Cash Flow	-1,378,600	-2,017,100	-2,424,600	-282,400
Cash Flow From Continuing Financing Activities	-1,378,600	-2,017,100	-2,424,600	-282,400
Net Other Financing Charges	-86,800	-69,800	-46,700	-23,800
Proceeds From Stock Option Exercised	140,600	242,000	111,600	67,300
Cash Dividends Paid	-789,800	-723,400	-623,700	-618,500
Common Stock Dividend Paid	-789,800	-723,400	-623,700	-618,500
Net Common Stock Issuance	-1,656,400	-1,738,800	-1,432,000	-861,200
Common Stock Payments	-1,656,400	-1,738,800	-1,432,000	-883,200
Common Stock Issuance		0	0	22,000	11,700
Net Issuance Payments Of Debt	1,013,800	272,900	-433,800	1,153,800
Net Short Term Debt Issuance	523,900	280,000	-603,900	207,100
Short Term Debt Payments	-13,500	-8,600	-603,900	-7,300
Short Term Debt Issuance	537,400	288,600		214,400	763,900
Net Long Term Debt Issuance	489,900	-7,100	170,100	946,700
Long Term Debt Payments	-1,050,000	-1,100,000	-136,400	-260,300
Long Term Debt Issuance	1,539,900	1,092,900	306,500	1,207,000
Investing Cash Flow	-2,066,300	-1,196,300	-1,039,300	-1,607,600
Cash Flow From Continuing Investing Activities	-2,066,300	-1,196,300	-1,039,300	-1,607,600
Net Other Investing Changes	-57,400	-47,400	10,100	40,000
Net Business Purchase And Sale	-1,211,300	-78,900	-161,000	-1,003,100
Sale Of Business	0	0	103,700	0
Purchase Of Business	-1,211,300	-78,900	-264,700	-1,003,100
Capital Expenditure Reported	-797,600	-1,070,000	-888,400	-644,500
Operating Cash Flow	3,451,600	3,153,200	3,521,900	1,919,900
Cash Flow From Continuing Operating Activities	3,451,600	3,153,200	3,521,900	1,919,900
Change In Working Capital	-636,300	-503,900	-192,900	-1,150,300
Change In Other Working Capital	-25,900	-7,900	75,700	65,800
Change In Other Current Liabilities	-503,700	-460,700	-453,400	-405,300
Change In Payables And Accrued Expense	-60,300	7,500	-250,000	8,500
Change In Payable	-60,300	7,500	-250,000	8,500
Change In Account Payable	-37,800	21,800	-241,100	46,600
Change In Tax Payable	-22,500	-14,300	-8,900	-38,100
Change In Income Tax Payable	-22,500	-14,300	-8,900	-38,100
Change In Inventory	132,500	-32,900	323,400	-666,700
Change In Receivables	-178,900	-9,900	111,400	-152,600
Changes In Account Receivables	-162,800	-10,700	85,600	-200,200
Other Non Cash Items	338,500	264,700	463,600	432,200
Stock Based Compensation	123,500	138,100	115,900	99,700
Provisionand Write Offof Assets	126,300	-1,300	96,000	40,200
Asset Impairment Charge	17,800	0	57,900	15,500
Amortization Of Securities	104,000	75,000	65,400	38,500
Deferred Tax	153,200	-74,900	-88,900	-144,800
Deferred Income Tax	153,200	-74,900	-88,900	-144,800
Depreciation Amortization Depletion	676,900	624,000	622,500	581,100
Depreciation And Amortization	676,900	624,000	622,500	581,100
Amortization Cash Flow	336,600	326,600	330,200	317,100
Amortization Of Intangibles	336,600	326,600	330,200	317,100
Depreciation	340,300	297,400	292,300	264,000
Operating Gains Losses	-20,800	-49,900	-6,400	-12,300
Pension And Employee Benefit Expense		-17,000	-15,800	-1,600	-3,900
Gain Loss On Investment Securities					53,600
Gain Loss On Sale Of Business	0	0	-20,100	0
Net Income From Continuing Operations	2,568,500	2,681,400	2,388,800	2,020,100

These metrics estimate what The Sherwin-Williams Company is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$65.60

Margin of Safety

Market Cap ÷ Company Value

3.03

P/B Ratio

16.67

Warren's Owner Earnings

$4.0B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$23.6B

vs > $1.5B revenue

❌ Strong Financial Condition

0.87x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

1.00%

vs Uninterrupted dividends

❌ Earnings Growth

+32.9% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

29.9x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

16.67x P/B (P/E×P/B: 497.9)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-62.02

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$171.04

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	31.1%	39.9%	37.2%	31.9%	N/A
Repurchase of Capital Stock	-$1.7B	-$1.7B	-$1.4B	-$883M	N/A
Free Cash Flow	$2.7B ▲	$2.1B ▼	$2.6B ▲	$1.3B •	N/A •
Warren's Owner Earnings	$4.0B	$4.4B	$3.9B	$3.2B	N/A

Peers & Industry

No auto-detected peers for Specialty Chemicals. You can manually compare SHW against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

6.30%

Moderate — some alignment with shareholders

Return on Equity (ROE)

55.9%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

9.9%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$1.7B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+8.6% YoY

Debt is roughly stable

Leadership Team

Heidi Petz

Chairman, CEO & President

Age 50

Pay: $4,204,251

0.164% of net income

Justin Binns

President of Global Architectural

Age 49

Pay: $1,579,758

0.062% of net income

Karl Jorgenrud

President of Global Industrial

Age 48

Pay: $1,763,709

0.069% of net income

Benjamin Meisenzahl

Senior VP of Finance & CFO

Age 43

James Jaye

Senior Vice President of Investor Relations & Corporate Communications

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	9.42%	23,237,824
Blackrock Inc.	7.14%	17,614,304
State Street Corporation	6.34%	15,638,974
Morgan Stanley	2.56%	6,313,220
Geode Capital Management, LLC	2.12%	5,231,615
FMR, LLC	2.10%	5,184,473
Alliancebernstein L.P.	1.51%	3,736,210
Price (T.Rowe) Associates Inc	1.47%	3,631,197

⚠️ Very high debt-to-equity — leverage risk

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

1.16

Moderate volatility — moves slightly more than market

Short Interest

2.2% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

3.30x

High leverage — significant financial risk

Current Ratio

0.86x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $301.58 Current: $310.71 High: $379.65

Currently at 12% of 52-week range

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