Sherwin-Williams CoFind Ratings Reports
SHERWIN-WILLIAMS CO's gross profit margin for the third quarter of its fiscal year 2016 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 0.86 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 63.67% 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 FY16||Q3 FY15|
|Net Sales ($mil)||3279.46||3152.29|
|Net Income ($mil)||386.73||374.49|
|Balance Sheet||Q3 FY16||Q3 FY15|
|Cash & Equiv. ($mil)||702.57||91.03|
|Total Assets ($mil)||6917.77||6102.02|
|Total Debt ($mil)||1961.72||1960.14|
|Profitability||Q3 FY16||Q3 FY15|
|Gross Profit Margin||51.41||51.49|
|Return on Assets||16.3||16.2|
|Return on Equity||70.57||101.27|
|Debt||Q3 FY16||Q3 FY15|
|Share Data||Q3 FY16||Q3 FY15|
|Shares outstanding (mil)||92.91||93.1|
|Div / share||0.84||0.67|
|Book value / share||17.2||10.49|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||986540.0||701332.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 28.69 for the Chemicals industry and a discount compared to the S&P 500 average of 25.37. For additional comparison, its price-to-book ratio of 15.49 indicates a significant premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 5.30. The current price-to-sales ratio is above the S&P 500 average, but below the industry average. The valuation analysis reveals that, SHERWIN-WILLIAMS CO seems to be trading at a discount to investment alternatives within the industry.
|SHW 22.27||Peers 28.69||SHW 16.24||Peers 14.37|
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.
|SHW 19.50||Peers 20.91||SHW 2.17||Peers 2.23|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
SHW is trading at a valuation on par with 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 15.49||Peers 5.30||SHW 14.77||Peers -9.77|
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 2.12||Peers 2.27||SHW 3.30||Peers -6.01|
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.