# The Sherwin-Williams Company (SHW) — Stock CV

The Sherwin-Williams Company is a $77.5B consumer company. Revenue grew 5.8% over the last year, it keeps 11¢ of every dollar of sales as profit, and its net debt equals ~3.2 years of free cash flow. It trades at 28.8× earnings — near the lowest of its own history.

> Sherwin-Williams is the largest global manufacturer of paints and coatings. The company focuses on the development, manufacturing, and distribution of paint, coatings, and related products to customers ranging from professional painters and contractors to industrial manufacturers to do-it-yourself consumers.

## Identity

- **Ticker**: SHW
- **Sector**: Consumer Cyclical
- **Industry**: Retail-Building Materials, Hardware, Garden Supply
- **Headquarters**: CLEVELAND, OH
- **Employees**: 64 249
- **Website**: https://www.sherwin-williams.com
- **Market cap**: $77.5B
- **Last price**: $319.36
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $24.4B
- **Net income**: $2.69B
- **Free cash flow**: $3.21B
- **Net debt**: $10.3B
- **P/E**: 28.8
- **Revenue growth (YoY)**: 5.8%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 69 |
| Growth | 50 |
| Profitability | 77 |
| Health | 47 |
| Quality | 77 |
| Moat | 88 |

## Qualifications (beginner checklist) — 11 of 11 passed

- [x] Revenue growing — +5.8% YoY
- [x] Profitable — $2.69B TTM
- [x] Profit growing — +9.9% YoY
- [x] Generates cash — $3.21B TTM
- [x] Debt under control — ~3.2y of cash flow to repay
- [x] Established company — $77.5B market cap
- [x] Not printing shares — -9.2% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [x] Financially stable — Altman Z 2.7 — grey
- [x] Pays a dividend — yield 1.01%
- [x] Valuation not extreme — P/E 28.8

## Experience (career milestones)

- **FY2024** — Best year on record: $2.68B net income
- **2023** — Sherwin-Williams has created more than 35,000 color names for paint over its history
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $10B: $11.9B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2016** — Sherwin-Williams acquired the Valspar Corporation for $11.3 billion
- **2016** — The first paint registered as microbicidal with the United States Environmental Protection Agency was…
- **2012** — Sherwin-Williams acquired Geocel Holdings Corp for an undisclosed amount
- **Jul 6, 2011** — Sherwin-Williams acquired Leighs Paints, based in Bolton UK, manufacturers of intumescent and high…
- **2007** — Sherwin-Williams announced that it had completed an acquisition of M.A
- **2004** — Sherwin-Williams acquired Paint Sundry Brands for $295 million and Duron Inc
- **1941** — Sherwin-Williams introduced Kem-Tone, a water-based fast-drying interior paint and the Sherwin-Williams…
- **1884** — Sherwin-Williams was incorporated in Ohio on July 16, 1884, two years after Osborn sold his interest in the company…
- **1873** — For its first factory, in 1873 the company acquired a cooperage in Cleveland from Standard Oil

## Strengths

- High gross margin (49.0%)
- Interest covered 7.6× by operating earnings
- High returns on invested capital (ROIC 17.2%)

## Watch-outs

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $19.9B | $1.86B | $1.87B |
| FY2022 | $22.1B | $2.02B | $1.28B |
| FY2023 | $23.1B | $2.39B | $2.63B |
| FY2024 | $23.1B | $2.68B | $2.08B |
| FY2025 | $23.6B | $2.57B | $2.65B |

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Source: https://stockcv.com/SHW — derived from company filings; may be delayed or incomplete. Information, not investment advice.