The Sherwin-Williams Co.Find Ratings Reports
SHERWIN-WILLIAMS CO's gross profit margin for the first quarter of its fiscal year 2018 has decreased 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 0.57 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 greatly increased by 78.66% 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||Q1 FY18||Q1 FY17|
|Net Sales ($mil)||3965.01||2761.39|
|Net Income ($mil)||250.13||239.15|
|Balance Sheet||Q1 FY18||Q1 FY17|
|Cash & Equiv. ($mil)||158.61||1017.81|
|Total Assets ($mil)||20367.69||6988.9|
|Total Debt ($mil)||10812.21||1954.21|
|Profitability||Q1 FY18||Q1 FY17|
|Gross Profit Margin||44.35||50.25|
|Return on Assets||8.75||17.26|
|Return on Equity||49.45||58.43|
|Debt||Q1 FY18||Q1 FY17|
|Share Data||Q1 FY18||Q1 FY17|
|Shares outstanding (mil)||93.55||93.13|
|Div / share||0.86||0.85|
|Book value / share||39.45||22.18|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||720313.0||623329.0|
BUY. The current P/E ratio indicates a significant discount compared to an average of 56.40 for the Chemicals industry and a discount compared to the S&P 500 average of 25.32. For additional comparison, its price-to-book ratio of 10.17 indicates a significant premium versus the S&P 500 average of 3.29 and a significant premium versus the industry average of 4.02. The current price-to-sales ratio is similar to the S&P 500 average, but it is below the industry average, indicating a discount. The valuation analysis reveals that, SHERWIN-WILLIAMS CO seems to be trading at a discount to investment alternatives within the industry.
|SHW 20.96||Peers 56.40||SHW 22.27||Peers 19.48|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
SHW is trading at a significant discount to its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
SHW is trading at a premium to its peers.
|SHW 18.24||Peers 18.04||SHW NM||Peers 0.97|
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 premium to its peers.
Neutral. 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's negative PEG ratio makes this valuation measure meaningless.
|SHW 10.17||Peers 4.02||SHW 50.11||Peers 29.90|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
SHW is expected to have an earnings growth rate that significantly exceeds its peers.
|SHW 2.32||Peers 2.43||SHW 34.41||Peers 22.93|
Average. 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 valuation on par with 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.