Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A+ . The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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Highlights from the ratings report include:
- SHW's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 4.8%. 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. When compared to other companies in the Chemicals industry and the overall market, SHERWIN-WILLIAMS CO's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- 45.90% 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. Along with this, the net profit margin of 9.02% is above that of the industry average.
- Net operating cash flow has slightly increased to $367.15 million or 8.69% when compared to the same quarter last year. In addition, SHERWIN-WILLIAMS CO has also modestly surpassed the industry average cash flow growth rate of 6.10%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 30.6% when compared to the same quarter one year prior, rising from $179.88 million to $234.95 million.
The Sherwin-Williams Company engages in the development, manufacture, distribution, and sale of paints, coatings, and related products to professional, industrial, commercial, and retail customers primarily in North and South America, the Caribbean region, Europe, and Asia. Sherwin-Williams has a market cap of $16.99 billion and is part of the basic materials sector and chemicals industry. The company has a P/E ratio of 29.8, above the S&P 500 P/E ratio of 17.7. Shares are up 6.4% year to date as of the close of trading on Thursday.
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--Written by a member of TheStreet Ratings Staff.
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