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The Sherwin-Williams Company
NYSE: SHW Materials Chemicals 🔎 Screen
Dow 30 S&P 500
$78.7B
Market Cap
31.6
P/E
2.76
PEG
13.9%
ROCE
59.4%
ROE
2.63
D/E
16.2%
OPM
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🌏 Global Investor Returns
Currency-adjusted total returns for SHW including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

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.

Key Ratios Snapshot
📊 Sector Averages
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding SHW
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Manager Shares Value % of Fund Period
Andreas Halvorsen Viking Global Investors 3.11M $997.8M 2.79% Mar 2026
Tiger Global Management Tiger Global Management LLC 257.1K $82.4M 0.36% Mar 2026
Steve Cohen Point72 Asset Management 57.0K $18.3M 0.02% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
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🎙 Management Tone Mixed → Stable 4 quarters Full tone analysis in Intelligence →
Good quarter Investor Presentation One-Pager? Q1 2026
Revenue
$5.67B
+6.8% YoY
Pre-tax Income
$679.8M
+4.1% YoY
Pre-tax Margin
12.0%
-0.3pp YoY
Net Income
$534.7M
+6.1% YoY
What Went Right
  • Consolidated sales exceeded guidance in all three segments; gross margin expanded 90 bps for 14th time in 15 quarters.
  • Paint Stores Group residential repaint returned to mid-single-digit growth; Protective & Marine grew double digits for seventh straight quarter.
  • Net operating cash improved $200 million; Consumer Brands adjusted segment profit up 30.8% with 23.4% margin.
What to Watch
  • Middle East conflict introduces demand and supply uncertainty; negative demand impact expected as year progresses, magnitude uncertain.
  • Raw material inflation outlook raised to low- to mid-single digits for full year; costs expected to impact P&L more materially in Q2 and second half.
  • Volume guidance lowered to low-single-digit decline (from prior low-single-digit growth) due to consumer sentiment headwinds and potential demand softness.
Management Guidance
  • Full year 2026 adjusted diluted EPS guidance reaffirmed at $11.50 to $11.90 per share.
  • Q2 2026 consolidated and segment sales expectations included in investor deck (not explicitly quoted).
  • Full year raw material inflation outlook increased to low- to mid-single digits; price mix expectation raised to high end of low-single-digit range.
Investor Lens
Sherwin-Williams continues to outperform in a tough market, with share gains across segments and strong cash flow. However, the Middle East conflict introduces raw material cost uncertainty and potential demand softness, making the second half more challenging. The company’s strategic pricing and cost actions, plus its North America focus (80% of revenue), provide a buffer. Overall, the thesis is intact but requires vigilance on inflation and volume trajectory.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Sales beat; margins expand 90bps
Revenue
Consolidated net sales increased 6.8% to $5.67 billion, exceeding guidance in all three segments. Paint Stores Group grew 3.7% (mid-single digits), Consumer Brands Group surged 19.2% (driven by Suvinil acquisition), and Performance Coatings Group rose mid-single digits.
Profitability
Net income increased 6.1% to $534.7 million. Adjusted diluted EPS rose 4.4% to $2.35, in line with prior year comparison. Adjusted EBITDA increased high single digits.
Margins
Reported gross margin expanded 90 basis points despite the dilutive Suvinil acquisition. Pre-tax margin was 12.0%, down 30 bps year-over-year due to higher SG&A from Suvinil, new building costs, and FX. Consumer Brands adjusted segment margin improved to 23.4% (vs 21.3% prior year) on global supply chain efficiencies.
Balance Sheet
Net operating cash improved $200 million. The company returned $773 million to shareholders via buybacks and dividends. Net debt-to-adjusted EBITDA stood at 2.5x.
Key Risks
Management flagged the Middle East conflict as adding complexity, with potential negative demand impact and raw material cost inflation. Raw material costs are expected to affect the P&L more materially in Q2 and the second half. Volume guidance was trimmed to a low-single-digit decline due to consumer sentiment at record lows.
Outlook
Full year adjusted EPS guidance of $11.50-$11.90 reaffirmed. Q2 2026 segment sales expectations are provided in the investor deck, but not specifically quoted in the call. The company expects raw material cost inflation to accelerate in H2 and will implement surgical pricing actions as needed.
Generated by AI · Q1 2026 results · Not investment advice
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

Forward-Looking Statements:
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