SHERWIN-WILLIAMS CO's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. SHERWIN-WILLIAMS CO has weak liquidity. Currently, the Quick Ratio is 0.58 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 27.69% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||3150.57||2847.42|
|Net Income ($mil)||326.24||262.97|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||261.35||1035.71|
|Total Assets ($mil)||6317.01||6921.59|
|Total Debt ($mil)||1680.6||1929.65|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||48.27||47.15|
|Return on Assets||13.44||10.17|
|Return on Equity||62.81||37.68|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||97.79||101.33|
|Div / share||0.55||0.5|
|Book value / share||13.83||18.45|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||528648.0||495594.0|
BUY. SHERWIN-WILLIAMS CO's P/E ratio indicates a premium compared to an average of 22.19 for the Chemicals industry and a premium compared to the S&P 500 average of 19.25. For additional comparison, its price-to-book ratio of 16.20 indicates a significant premium versus the S&P 500 average of 2.66 and a significant premium versus the industry average of 4.51. The current price-to-sales ratio is above the S&P 500 average, but below the industry average. After reviewing these and other key valuation criteria, SHERWIN-WILLIAMS CO proves to trade at a premium to investment alternatives within the industry.
|SHW 26.14||Peers 22.19||SHW NA||Peers 14.68|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
SHW is trading at a premium to its peers.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|SHW 20.71||Peers 18.62||SHW 1.28||Peers 1.31|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
SHW is trading at a significant premium to its peers.
Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
SHW trades at a valuation on par to its peers.
|SHW 16.20||Peers 4.51||SHW 26.58||Peers 69.55|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
SHW is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, SHW is expected to significantly trail its peers on the basis of its earnings growth rate.
|SHW 1.99||Peers 2.29||SHW 10.72||Peers 3.02|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
SHW is trading at a discount to its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
SHW has a sales growth rate that significantly exceeds its peers.
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