Sherwin-Williams Co

Find Ratings Reports
SHW : NYSE : Basic Materials
$357.1 up 2.35 | 0.66%
Today's Range: 354.08 - 357.23
Avg. Daily Volume: 570300.0
06/23/17 - 4:04 PM ET

Financial Analysis


SHERWIN-WILLIAMS CO's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. SHERWIN-WILLIAMS CO has weak liquidity. Currently, the Quick Ratio is 0.81 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 106.36% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)2761.392574.02
EBITDA ($mil)382.71339.07
EBIT ($mil)331.93290.39
Net Income ($mil)239.15164.88


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)1017.8170.55
Total Assets ($mil)6988.96038.31
Total Debt ($mil)1954.212039.63
Equity ($mil)2065.351000.82


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin50.4850.91
EBITDA Margin13.8513.17
Operating Margin12.0211.28
Sales Turnover1.721.9
Return on Assets17.2618.0
Return on Equity58.43108.64
Debt Q1 FY17 Q1 FY16
Current Ratio1.321.28
Debt/Capital0.490.67
Interest Expense20.725.73
Interest Coverage16.0411.29


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)93.1392.5
Div / share0.850.84
EPS2.531.75
Book value / share22.1810.82
Institutional Own % n/a n/a
Avg Daily Volume558634.0725276.0

Valuation


BUY. SHERWIN-WILLIAMS CO's P/E ratio indicates a discount compared to an average of 30.71 for the Chemicals industry and a value on par with the S&P 500 average of 25.73. For additional comparison, its price-to-book ratio of 15.85 indicates a significant premium versus the S&P 500 average of 3.08 and a significant premium versus the industry average of 5.59. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SHW 27.57 Peers 30.71   SHW 20.18 Peers 16.52

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SHW is trading at a 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SHW 22.82 Peers 20.26   SHW 1.47 Peers 4.43

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.

 

Discount. 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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SHW 15.85 Peers 5.59   SHW 10.58 Peers 7.08

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SHW 2.72 Peers 2.43   SHW 5.05 Peers 3.46

Premium. 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 premium 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.

 

 

Latest Stock Upgrades/Downgrades