Sherwin-Williams Company Stock Buy Recommendation Reiterated (SHW)
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- SHERWIN-WILLIAMS CO has improved earnings per share by 16.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SHERWIN-WILLIAMS CO increased its bottom line by earning $6.01 versus $4.14 in the prior year. This year, the market expects an improvement in earnings ($7.85 versus $6.01).
- Despite its growing revenue, the company underperformed as compared with the industry average of 1.5%. Since the same quarter one year prior, revenues slightly increased by 1.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Chemicals industry and the overall market, SHERWIN-WILLIAMS CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
- 46.60% is the gross profit margin for SHERWIN-WILLIAMS CO which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, SHW's net profit margin of 5.36% significantly trails the industry average.
- Net operating cash flow has increased to -$91.13 million or 41.14% when compared to the same quarter last year. Despite an increase in cash flow, SHERWIN-WILLIAMS CO's cash flow growth rate is still lower than the industry average growth rate of 67.57%.
--Written by a member of TheStreet Ratings Staff. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
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