The Sherwin-Williams Company (SHW) Stock

The Sherwin-Williams Company trades at a P/E ratio of 32.68, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 28.99 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 3.49 indicates a premium valuation even accounting for growth.

With a beta of 1.21, The Sherwin-Williams Company is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 20.98 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

The Sherwin-Williams Company achieves a profit margin of 11.60%, meaning it retains $11.60 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 14.30% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 70.20% and ROA at 9.89%, the company generates strong returns on invested capital.

The Sherwin-Williams Company's revenue declined by 1.10% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings increased by 1.50% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against RETAIL-BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY industry averages for proper context.

The Sherwin-Williams Company offers a dividend yield of 0.91%, paying $2.94 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 5/16/2025.

The dividend sustainability can be assessed through the payout ratio - The Sherwin-Williams Company pays $2.94 per share in dividends against earnings of $10.58 per share, resulting in a payout ratio of 27.74%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for 6/6/2025.

The Sherwin-Williams Company has a market capitalization of $86.64B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 250.60M shares outstanding, the company's ownership is relatively concentrated. As a participant in the RETAIL-BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY industry, it competes with other firms in this sector.

The Sherwin-Williams Company's book value per share is $16.56, while the current stock price is $351.83, resulting in a price-to-book (P/B) ratio of 21.25. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

29 analysts cover SHW with 55% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $376.70 implies 7.1% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:5 Strong Buy, 11 Buy, 11 Hold, 1 Sell, 1 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

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