Sherwin-Williams Stock Analysis, Valuation (NYSE:SHW)

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$443.39 $1.04 (0.24%) SHW stock closing price Aug 17, 2018 (Closing)

View the Sherwin-Williams stock analysis video on Amigobulls. Our SHW analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Sherwin-Williams Co Stock Rating 3/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for SHW stock analysis. Sherwin-Williams valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Sherwin-Williams stock rating which is indicative of the company's financial performance.

Should you buy SHW stock?

  • Sherwin-Williams's revenue growth came in at 27.8% in 2018-06.
  • Sherwin-Williams's average operating margin of 11 was exceptional.
  • LTM Net margins were good at 10.8% for Sherwin-Williams.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Sherwin-Williams at 57.4.
  • The company has a good Free Cash Flow (FCF) margin of 10.

Should you sell SHW stock?

  • Sherwin-Williams has a debt/equity ratio of 2.77, which is worse than the average in the Construction sector.
  • Trading at a PE ratio of 26, SHW stock is overvalued in comparison to sector average multiple of 19.8.
  • The company is trading at a price to sales multiple of 2.4, which is overvalued in comparison to the Construction sector average multiple of 0.8.

Comments on this video and Sherwin-Williams stock

Investors can use Amigobulls Sherwin-Williams stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Company's fundamentals remain one of the key driver of SHW stock and helps investors in making good buy and sell decision.

Sherwin-Williams revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.