Sherwin-Williams demonstrates exceptional return on equity of 61% and has beaten earnings estimates in 3 of the last 4 quarters, but heavy debt leverage of 3.3x debt-to-equity, thin upside of only 4.8%, and a confirmed downtrend make the current risk-reward unattractive for new positions.
Thesis pillars
- Exceptional Return On Equity→Stable
- Consistent Earnings Beat Record↓Deteriorating
- Leverage Headwind Constrains Upside→Stable
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 19, 2026· older than 90 days
Sherwin-Williams Company (The) (SHW) Stock Analysis
Momentum Cont setup
Basic Materials · Specialty Chemicals
Sell if holding. Analyst target reached at $340.87 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Basic Materials): -0.1.
Sherwin-Williams develops, manufactures, and sells paint, coatings, and related products through 4,853 Paint Stores Group stores (US/Canada/Caribbean), 307 Consumer Brands Group stores in Latin America, and 317 Performance Coatings Group branches worldwide, serving professional,... Read more
Sell if holding. Analyst target reached at $340.87 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Basic Materials): -0.1. Chart setup: Trend continuation, RSI 58, MACD bullish. Score 5.2/10, high confidence.
Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 83d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
About Sherwin-Williams Company (The)
About Sherwin-Williams Company (The)
Sherwin-Williams operated 4,853 company-owned specialty paint stores under the Paint Stores Group in the United States, Canada, and the Caribbean, plus 307 Latin America stores under the Consumer Brands Group and 317 Performance Coatings Group branches worldwide at December 31, 2025. Foreign subsidiary net sales represented approximately 19.6% of total consolidated net sales in 2025, consistent with the prior two years. In October 2025, the company acquired Suvinil, Brazil's architectural paint brand with annual sales of approximately $525 million, expanding the Consumer Brands Group's Latin American footprint.
Revenue flows through three segments: the Paint Stores Group earns from professional paint contractors and do-it-yourself homeowners through company-owned stores; the Consumer Brands Group manufactures branded and private-label products for home centers and hardware retailers, with approximately 63% of the segment's 2025 sales representing intersegment transfers to the Paint Stores Group; and the Performance Coatings Group sells industrial coatings for wood finishing, automotive refinish, marine, coil, and packaging applications through 317 owned branches and a direct sales force. Raw materials — primarily petrochemical-derived resins, solvents, titanium dioxide, and additives — are derived in significant part from upstream petrochemical feedstocks, notably propylene; most are sourced regionally, though in some cases limited or single-source supply exists. No individual customer accounted for more than 10% of 2025 consolidated net sales.
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Propylene and ethylene-derived petrochemical feedstocks represent the largest variable cost driver; after two years of elevated inflation, such prices declined in 2023 and 2024, then remained flat in 2025. The 10-K notes that in some cases the company relies on limited or single-source suppliers for certain raw materials — a structural input risk for a Paint Stores Group that sources finished product from the Consumer Brands Group. Trade policy volatility, including tariffs affecting chemical imports and the ongoing Russia-Ukraine conflict, which has periodically disrupted shipping in the Red Sea and Black Sea, may affect future feedstock costs in ways the company cannot fully offset through alternative sourcing in the near term.
See also: Basic Materials · Specialty Chemicals
From Sherwin-Williams Company (The)'s most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated Nov 3, 2026Recent Developments — Sherwin-Williams Company (The)
Latest news
- NEWS Growth And Cyclical Lead Sectors Tuesday — benzinga Nov 3, 2026 neutral
- NEWS Sherwin-Williams Amends Credit Agreement to Increase Capacity — fiscal.ai Nov 2, 2026 positive
- NEWS Sherwin Williams (SHW) Stock May Trade At A Discount To Cash Flow - Yahoo Finance — Yahoo Finance Oct 28, 2026 neutral
- NEWS What Sherwin-Williams (SHW) Said on Its Q3 Earnings Call - Yahoo Finance — Yahoo Finance Oct 28, 2026 neutral
- NEWS Sherwin-Williams Co. stock underperforms Tuesday when compared to competitors - MarketWatch — MarketWatch Oct 27, 2026 negative
Latest item Nov 3, 2026 · Generated 2026-11-04T11:59:37Z.
Upcoming dated catalysts
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Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
1 floor-breaker
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $340.87 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Basic Materials): -0.1. Chart setup: Trend continuation, RSI 58, MACD bullish. Prior stop was $319.31. Score 5.2/10, high confidence.
Analyst target $336.64 reached (−1.2% from $340.87); no take-profit level is published. Prior stop was $319.31. Stop-loss: $319.31.
Analyst target reached - limited upside remaining; Sector modifier (Basic Materials): -0.1; Leverage penalty (D/E 3.7): -1.5.
Sherwin-Williams Company (The) trades at a P/E of 31.4 (forward 25.8). TrendMatrix value score: 4.2/10. Verdict: Sell.
34 analysts rate SHW, with a consensus score of 3.7/5. 24 analysts publish price targets averaging $374.
What does Sherwin-Williams Company (The) do?Sherwin-Williams develops, manufactures, and sells paint, coatings, and related products through 4,853 Paint Stores...
Sherwin-Williams develops, manufactures, and sells paint, coatings, and related products through 4,853 Paint Stores Group stores (US/Canada/Caribbean), 307 Consumer Brands Group stores in Latin America, and 317 Performance Coatings Group branches worldwide, serving professional, industrial, commercial, and retail customers. The company employed 64,249 people worldwide at December 31, 2025, with no single customer exceeding 10% of 2025 sales.