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Introduction The Sherwin-Williams Company, founded in 1866 and incorporated in Ohio in 1884, is engaged in the development, manufacture, distribution and sale of paint, coatings and related products to professional, industrial, commercial and retail customers primarily in North and South America with additional operations in the Caribbean region, Europe, Asia and Australia. Our principal execut…
$309.97
$1.28 (-0.41%)
Price from 7 days ago
16.21% operating margin is respectable but not wide. ROIC at 18.00%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue growth slowed to 2.1%, essentially flat. This is a business that needs a catalyst.
At 30x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Net debt of $12.93B represents 4.9x FCF, leverage limits flexibility.
29.8x earnings, 26.5x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$23.94B
▲ +2.1% YoY
Net Income (TTM)
$2.60B
▼ -4.2% YoY
Op. Margin
16.15%
▼ -0.1pp YoY
ROIC
17.44%
▼ -1.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$2.91B
▲ +27.4% YoY
Op. Cash Flow (TTM)
$3.65B
▲ +9.5% YoY
Net Debt
$13.57B
Cash & Equiv.
$217M
5Y CAGR: +5.1%
5Y CAGR: -3.1%
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