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On August 25, 2026, we delve into the DCF analysis for Sherwin-Williams Co SHW, a company that has seen mixed price performance recently. Over the past week, the stock has dipped by 0.7%, but it has gained 9.5% over the last month and 7.8% year-to-date. However, it has faced a decline of 6.1% over the past year.

DCF Earnings-based intrinsic value suggests a significant overvaluation with a margin of safety of -54.5% compared to the current price. DCF Free Cash Flow (FCF)-based intrinsic value also indicates overvaluation, with a margin of safety of -85.6%. GF Score™ of 87/100 indicates a strong overall performance, but the low predictability rank of 2/5 stars raises concerns about the reliability of the DCF inputs. What Is SHW Worth? DCF Earnings-Based Model The DCF earnings-based model for Sherwin-Williams Co utilizes a two-stage approach to estimate intrinsic value. The first stage anticipates robust growth over the next ten years, while the second stage accounts for a more modest terminal growth rate. Below are the key assumptions used in this analysis:

Parameter Value Current EPS (TTM, excl. non-recurring) $11.87 10-Year Growth Rate 12.5% 10-Year Treasury Rate 4.67% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we project that EPS will grow at 12.5% per year for the next ten years, discounted at a rate of 11%. The second stage assumes a terminal growth rate of 4% for the following ten years, also discounted at 11%. Here’s a summary of the calculations:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 12.5%, discounted at 11% $127.89 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $96.54 Intrinsic Value Growth + Terminal $224.43 Given the current price of $346.73, the intrinsic value of $224.43 indicates that the stock is significantly overvalued, with a margin of safety of -54.5%. It is important to note that GuruFocus employs EPS excluding non-recurring items, as research indicates that stock prices are more closely correlated with earnings than with free cash flow. For further analysis, visit the SHW DCF Calculator.

What Does the Free Cash Flow DCF Say? The intrinsic value calculated using the Free Cash Flow (FCF) DCF model stands at $186.84. This figure further corroborates the findings from the earnings-based model, as both indicate significant overvaluation. The margin of safety from the FCF model is even more pronounced at -85.6%, reinforcing the notion that SHW is trading at a premium compared to its intrinsic value.

How Does GF Value™ Compare to the DCF Models? According to the GF Value™, Sherwin-Williams Co is valued at $365.15, suggesting that it is 5.0% undervalued based on this proprietary measure. The GF Value™ is derived from historical trading multiples, past business growth, and future performance estimates. While the DCF models indicate significant overvaluation, GF Value™ presents a contrasting perspective, highlighting the disagreement among the valuation methods. For more insights, check the GF Value™.

What Does SHW's GF Score™ Tell Us? The GF Score™ evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. Sherwin-Williams Co has a GF Score™ of 87/100, indicating strong overall performance. However, the predictability rank of 2/5 stars suggests that the DCF model may be less reliable for this stock. Below is a summary of the GF Score™ metrics:

Metric Rating GF Score™ 87/100 Financial Strength 5/10 Profitability 9/10 Growth 8/10 Valuation 10/10 Momentum 5/10 For more details, visit the SHW stock page.

Key Assumptions and Limitations It is crucial to understand that DCF models are highly sensitive to the assumptions regarding growth rates and discount rates. Stocks with low predictability ratings, like Sherwin-Williams Co, tend to produce less reliable DCF estimates. The terminal growth rate of 4% used in this analysis is a simplifying assumption that may not fully capture the complexities of future growth.

What This Means for Investors In synthesizing the findings from the DCF earnings model, the DCF FCF model, and the GF Value™, a clear tension emerges. The earnings-based and FCF-based models both indicate that Sherwin-Williams Co is significantly overvalued, while GF Value™ suggests a slight undervaluation. Given the low predictability rank and the mixed signals from the guru ownership data—where 13 gurus hold the stock, with 5 adding and 9 trimming positions—investors should exercise caution. Additionally, the net selling by insiders over the past 12 months adds another layer of concern. For those interested in a deeper dive, the SHW DCF Calculator offers further insights into the valuation landscape.

Frequently Asked Questions What is SHW's intrinsic value based on DCF?

According to the DCF analysis, the earnings-based intrinsic value is $224.43, while the FCF-based intrinsic value is $186.84.

Is SHW overvalued or undervalued?

Both the DCF models indicate that SHW is significantly overvalued, while GF Value™ suggests it is slightly undervalued.

How reliable is the DCF model for SHW?

The reliability of the DCF model for Sherwin-Williams Co is questionable due to its low predictability rank of 2/5 stars.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Caisse de depot et placement du Quebec bought a new stake in The Sherwin-Williams Company (NYSE:SHW – Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 15,896 shares of the specialty chemicals company’s stock, valued at approximately $5,473,000.

A number of other hedge funds also recently modified their holdings of the business. BlackRock Inc. bought a new position in shares of Sherwin-Williams during the 2nd quarter valued at about $6,100,083,000. Norges Bank bought a new stake in Sherwin-Williams during the 4th quarter worth approximately $1,089,450,000. Bank of New York Mellon Corp bought a new stake in Sherwin-Williams during the 2nd quarter worth approximately $547,097,000. Legal & General Group Plc acquired a new stake in Sherwin-Williams during the 2nd quarter worth approximately $459,652,000. Finally, Viking Global Investors LP raised its holdings in Sherwin-Williams by 101.4% during the 2nd quarter. Viking Global Investors LP now owns 1,957,750 shares of the specialty chemicals company’s stock worth $672,213,000 after buying an additional 985,520 shares during the period. Institutional investors and hedge funds own 77.67% of the company’s stock.

Insiders Place Their Bets In other news, insider Karl J. Jorgenrud sold 7,886 shares of the stock in a transaction on Friday, August 7th. The stock was sold at an average price of $368.30, for a total transaction of $2,904,413.80. Following the sale, the insider directly owned 11,944 shares of the company’s stock, valued at approximately $4,398,975.20. This represents a 39.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Justin T. Binns sold 13,500 shares of the business’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $352.70, for a total transaction of $4,761,450.00. Following the completion of the transaction, the insider owned 21,937 shares of the company’s stock, valued at $7,737,179.90. The trade was a 38.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.23% of the company’s stock.

Analyst Ratings Changes Several research analysts have recently weighed in on the stock. Weiss Ratings upgraded shares of Sherwin-Williams from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday. The Goldman Sachs Group set a $420.00 price objective on shares of Sherwin-Williams in a report on Wednesday, July 29th. Berenberg Bank set a $380.00 price target on Sherwin-Williams in a research report on Monday, June 8th. Guggenheim began coverage on shares of Sherwin-Williams in a research report on Monday, August 3rd. They set a “buy” rating and a $400.00 price target on the stock. Finally, Royal Bank Of Canada reiterated an “outperform” rating and issued a $405.00 price target (up from $391.00) on shares of Sherwin-Williams in a research note on Wednesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, Sherwin-Williams has a consensus rating of “Moderate Buy” and an average price target of $386.29. View Our Latest Stock Analysis on Sherwin-Williams

Sherwin-Williams Trading Down 0.1% Shares of SHW stock opened at $344.92 on Friday. The company has a market capitalization of $83.73 billion, a PE ratio of 31.79, a price-to-earnings-growth ratio of 2.57 and a beta of 1.10. The firm has a 50 day moving average price of $342.90 and a two-hundred day moving average price of $332.31. The company has a quick ratio of 0.46, a current ratio of 0.73 and a debt-to-equity ratio of 2.16. The Sherwin-Williams Company has a 12-month low of $289.86 and a 12-month high of $377.77.

Sherwin-Williams (NYSE:SHW – Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The specialty chemicals company reported $3.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.52 by $0.18. The business had revenue of $6.79 billion during the quarter, compared to the consensus estimate of $6.60 billion. Sherwin-Williams had a return on equity of 67.97% and a net margin of 11.01%.The firm’s quarterly revenue was up 7.5% on a year-over-year basis. During the same period in the previous year, the company posted $3.38 EPS. Sherwin-Williams has set its FY 2026 guidance at 11.800-12.200 EPS. As a group, analysts predict that The Sherwin-Williams Company will post 12.08 earnings per share for the current year.

Sherwin-Williams Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Friday, September 11th. Investors of record on Friday, August 21st will be paid a $0.80 dividend. This represents a $3.20 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Friday, August 21st. Sherwin-Williams’s payout ratio is 29.49%.

(Free Report)

Sherwin-Williams (NYSE: SHW) is a global manufacturer and distributor of paints, coatings and related products. Founded in 1866 and headquartered in Cleveland, Ohio, the company supplies a broad range of coatings for residential, commercial and industrial applications. Its product offering includes architectural paints and stains, industrial and protective coatings, automotive finishes, and a variety of sundry products such as primers, sealants and specialty treatments used by professionals and consumers.

The company sells through multiple channels, including a large network of company-operated retail paint stores that serve professional contractors and do-it-yourself consumers, as well as through distributors and mass retailers.

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Allworth Financial LP bought a new stake in The Sherwin-Williams Company (NYSE:SHW – Free Report) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 5,081 shares of the specialty chemicals company’s stock, valued at approximately $1,749,000.

Other large investors have also made changes to their positions in the company. Vanguard Group Inc. grew its holdings in Sherwin-Williams by 2.7% during the 4th quarter. Vanguard Group Inc. now owns 23,237,824 shares of the specialty chemicals company’s stock valued at $7,529,752,000 after purchasing an additional 600,119 shares in the last quarter. BlackRock Inc. acquired a new position in Sherwin-Williams in the second quarter valued at approximately $6,100,083,000. State Street Corp grew its holdings in shares of Sherwin-Williams by 2.4% during the fourth quarter. State Street Corp now owns 15,638,974 shares of the specialty chemicals company’s stock valued at $5,067,497,000 after purchasing an additional 364,832 shares during the last quarter. Geode Capital Management LLC increased its stake in shares of Sherwin-Williams by 0.7% in the fourth quarter. Geode Capital Management LLC now owns 5,231,615 shares of the specialty chemicals company’s stock valued at $1,687,498,000 after purchasing an additional 37,145 shares during the period. Finally, Norges Bank acquired a new position in shares of Sherwin-Williams during the fourth quarter valued at approximately $1,089,450,000. 77.67% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets SHW has been the topic of a number of recent research reports. BMO Capital Markets restated an “outperform” rating and issued a $405.00 target price (up from $400.00) on shares of Sherwin-Williams in a research note on Wednesday, July 29th. Berenberg Bank set a $380.00 price target on Sherwin-Williams in a report on Monday, June 8th. JPMorgan Chase & Co. raised their target price on Sherwin-Williams from $365.00 to $380.00 and gave the company an “overweight” rating in a report on Wednesday, July 29th. Weiss Ratings upgraded shares of Sherwin-Williams from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, July 31st. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and set a $405.00 price objective (up from $391.00) on shares of Sherwin-Williams in a report on Wednesday, July 8th. Nine investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Sherwin-Williams currently has a consensus rating of “Moderate Buy” and an average target price of $385.44.

Get Our Latest Analysis on SHW Sherwin-Williams Stock Performance SHW stock opened at $347.02 on Friday. The Sherwin-Williams Company has a twelve month low of $289.86 and a twelve month high of $379.65. The company has a market cap of $84.24 billion, a P/E ratio of 31.98, a price-to-earnings-growth ratio of 2.58 and a beta of 1.10. The company has a quick ratio of 0.46, a current ratio of 0.73 and a debt-to-equity ratio of 2.16. The business’s fifty day moving average is $340.16 and its 200-day moving average is $332.81.

Sherwin-Williams (NYSE:SHW – Get Free Report) last posted its earnings results on Tuesday, July 28th. The specialty chemicals company reported $3.70 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.52 by $0.18. The business had revenue of $6.79 billion during the quarter, compared to analysts’ expectations of $6.60 billion. Sherwin-Williams had a return on equity of 67.97% and a net margin of 11.01%.Sherwin-Williams’s revenue for the quarter was up 7.5% compared to the same quarter last year. During the same period in the prior year, the business earned $3.38 EPS. Sherwin-Williams has set its FY 2026 guidance at 11.800-12.200 EPS. Equities research analysts forecast that The Sherwin-Williams Company will post 12.08 EPS for the current year.

Sherwin-Williams Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 11th. Investors of record on Friday, August 21st will be paid a $0.80 dividend. This represents a $3.20 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Friday, August 21st. Sherwin-Williams’s dividend payout ratio (DPR) is 29.49%.

Insider Buying and Selling In other Sherwin-Williams news, insider Karl J. Jorgenrud sold 7,886 shares of the business’s stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $368.30, for a total transaction of $2,904,413.80. Following the completion of the transaction, the insider directly owned 11,944 shares in the company, valued at $4,398,975.20. The trade was a 39.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Justin T. Binns sold 13,500 shares of the company’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $352.70, for a total value of $4,761,450.00. Following the sale, the insider owned 21,937 shares of the company’s stock, valued at $7,737,179.90. The trade was a 38.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.23% of the company’s stock.

Sherwin-Williams Profile (Free Report)

Sherwin-Williams (NYSE: SHW) is a global manufacturer and distributor of paints, coatings and related products. Founded in 1866 and headquartered in Cleveland, Ohio, the company supplies a broad range of coatings for residential, commercial and industrial applications. Its product offering includes architectural paints and stains, industrial and protective coatings, automotive finishes, and a variety of sundry products such as primers, sealants and specialty treatments used by professionals and consumers.

The company sells through multiple channels, including a large network of company-operated retail paint stores that serve professional contractors and do-it-yourself consumers, as well as through distributors and mass retailers.

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Advisors Capital Management LLC bought a new position in shares of The Sherwin-Williams Company (NYSE:SHW – Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 14,614 shares of the specialty chemicals company’s stock, valued at approximately $5,032,000.

Other hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its stake in shares of Sherwin-Williams by 2.7% during the 4th quarter. Vanguard Group Inc. now owns 23,237,824 shares of the specialty chemicals company’s stock valued at $7,529,752,000 after buying an additional 600,119 shares during the period. BlackRock Inc. acquired a new position in Sherwin-Williams in the second quarter valued at $6,100,083,000. State Street Corp boosted its holdings in Sherwin-Williams by 2.4% in the fourth quarter. State Street Corp now owns 15,638,974 shares of the specialty chemicals company’s stock valued at $5,067,497,000 after acquiring an additional 364,832 shares during the last quarter. Geode Capital Management LLC grew its position in Sherwin-Williams by 0.7% during the fourth quarter. Geode Capital Management LLC now owns 5,231,615 shares of the specialty chemicals company’s stock valued at $1,687,498,000 after acquiring an additional 37,145 shares during the period. Finally, Norges Bank purchased a new stake in Sherwin-Williams during the fourth quarter valued at about $1,089,450,000. 77.67% of the stock is owned by institutional investors and hedge funds.

Sherwin-Williams Price Performance
SHW opened at $346.60 on Friday. The Sherwin-Williams Company has a twelve month low of $289.86 and a twelve month high of $379.65. The firm has a market cap of $84.14 billion, a price-to-earnings ratio of 31.94, a PEG ratio of 2.63 and a beta of 1.10. The company has a current ratio of 0.73, a quick ratio of 0.46 and a debt-to-equity ratio of 2.16. The company has a fifty day simple moving average of $339.56 and a 200 day simple moving average of $332.71.

Sherwin-Williams (NYSE:SHW – Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The specialty chemicals company reported $3.70 EPS for the quarter, topping analysts’ consensus estimates of $3.52 by $0.18. The firm had revenue of $6.79 billion for the quarter, compared to analyst estimates of $6.60 billion. Sherwin-Williams had a net margin of 11.01% and a return on equity of 67.97%. The firm’s revenue was up 7.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $3.38 EPS. Sherwin-Williams has set its FY 2026 guidance at 11.800-12.200 EPS. Equities research analysts expect that The Sherwin-Williams Company will post 12.08 EPS for the current fiscal year.
Sherwin-Williams Announces Dividend
The firm also recently declared a quarterly dividend, which will be paid on Friday, September 11th. Investors of record on Friday, August 21st will be paid a $0.80 dividend. The ex-dividend date is Friday, August 21st. This represents a $3.20 annualized dividend and a dividend yield of 0.9%. Sherwin-Williams’s payout ratio is 29.49%.

Insider Transactions at Sherwin-Williams
In other news, insider Karl J. Jorgenrud sold 7,886 shares of the firm’s stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $368.30, for a total transaction of $2,904,413.80. Following the completion of the sale, the insider owned 11,944 shares of the company’s stock, valued at approximately $4,398,975.20. This trade represents a 39.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Justin T. Binns sold 13,500 shares of Sherwin-Williams stock in a transaction on Monday, August 17th. The stock was sold at an average price of $352.70, for a total transaction of $4,761,450.00. Following the completion of the sale, the insider owned 21,937 shares of the company’s stock, valued at approximately $7,737,179.90. This trade represents a 38.10% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.23% of the company’s stock.

Analyst Ratings Changes
A number of equities analysts have recently commented on SHW shares. Morgan Stanley restated an “overweight” rating and issued a $395.00 price objective (up from $385.00) on shares of Sherwin-Williams in a report on Wednesday, July 29th. BMO Capital Markets reissued an “outperform” rating and set a $405.00 target price (up from $400.00) on shares of Sherwin-Williams in a research report on Wednesday, July 29th. Weiss Ratings upgraded shares of Sherwin-Williams from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, July 31st. Berenberg Bank set a $380.00 price target on shares of Sherwin-Williams in a research report on Monday, June 8th. Finally, Evercore reiterated an “outperform” rating on shares of Sherwin-Williams in a research note on Friday, May 8th. Nine equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $385.44.

View Our Latest Analysis on Sherwin-Williams

Sherwin-Williams Profile
(Free Report)

Sherwin-Williams (NYSE: SHW) is a global manufacturer and distributor of paints, coatings and related products. Founded in 1866 and headquartered in Cleveland, Ohio, the company supplies a broad range of coatings for residential, commercial and industrial applications. Its product offering includes architectural paints and stains, industrial and protective coatings, automotive finishes, and a variety of sundry products such as primers, sealants and specialty treatments used by professionals and consumers.

The company sells through multiple channels, including a large network of company-operated retail paint stores that serve professional contractors and do-it-yourself consumers, as well as through distributors and mass retailers.

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Asahi Life Asset Management CO. LTD. purchased a new stake in The Sherwin-Williams Company (NYSE:SHW – Free Report) in the second quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 8,967 shares of the specialty chemicals company’s stock, valued at approximately $3,088,000. Sherwin-Williams comprises about 1.7% of Asahi Life Asset Management CO. LTD.’s portfolio, making the stock its 13th largest holding.

Several other hedge funds also recently bought and sold shares of the business. MSH Capital Advisors LLC purchased a new stake in shares of Sherwin-Williams in the second quarter valued at approximately $4,817,000. CM Wealth Advisors LLC purchased a new stake in shares of Sherwin-Williams during the second quarter worth about $836,000. Johnson Financial Group Inc. acquired a new position in shares of Sherwin-Williams during the second quarter valued at about $59,000. West Family Investments Inc. acquired a new position in shares of Sherwin-Williams during the second quarter valued at about $264,000. Finally, Tacita Capital Inc purchased a new position in shares of Sherwin-Williams in the 2nd quarter valued at approximately $30,000. Institutional investors own 77.67% of the company’s stock.

Insider Activity at Sherwin-Williams In other news, insider Karl J. Jorgenrud sold 7,886 shares of the firm’s stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $368.30, for a total value of $2,904,413.80. Following the transaction, the insider owned 11,944 shares in the company, valued at $4,398,975.20. This trade represents a 39.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Justin T. Binns sold 13,500 shares of Sherwin-Williams stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $352.70, for a total value of $4,761,450.00. Following the completion of the sale, the insider directly owned 21,937 shares in the company, valued at $7,737,179.90. This represents a 38.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.23% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In A number of research analysts have issued reports on the stock. Evercore restated an “outperform” rating on shares of Sherwin-Williams in a research note on Friday, May 8th. Jefferies Financial Group reiterated a “hold” rating and set a $375.00 price objective on shares of Sherwin-Williams in a research note on Tuesday, July 28th. Morgan Stanley reissued an “overweight” rating and set a $395.00 price objective (up from $385.00) on shares of Sherwin-Williams in a report on Wednesday, July 29th. Berenberg Bank set a $380.00 price objective on Sherwin-Williams in a research note on Monday, June 8th. Finally, UBS Group reaffirmed a “neutral” rating and set a $390.00 target price on shares of Sherwin-Williams in a report on Wednesday, July 29th. Nine investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $385.44. Read Our Latest Research Report on Sherwin-Williams

Sherwin-Williams Stock Up 2.3% Sherwin-Williams stock opened at $353.16 on Thursday. The company has a quick ratio of 0.46, a current ratio of 0.73 and a debt-to-equity ratio of 2.16. The Sherwin-Williams Company has a 52 week low of $289.86 and a 52 week high of $379.65. The business’s 50-day moving average price is $338.97 and its 200 day moving average price is $332.77. The firm has a market cap of $85.73 billion, a price-to-earnings ratio of 32.55, a price-to-earnings-growth ratio of 2.57 and a beta of 1.10.

Sherwin-Williams (NYSE:SHW – Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The specialty chemicals company reported $3.70 EPS for the quarter, topping analysts’ consensus estimates of $3.52 by $0.18. The business had revenue of $6.79 billion for the quarter, compared to analysts’ expectations of $6.60 billion. Sherwin-Williams had a net margin of 11.01% and a return on equity of 67.97%. The business’s revenue was up 7.5% on a year-over-year basis. During the same quarter last year, the company earned $3.38 EPS. Sherwin-Williams has set its FY 2026 guidance at 11.800-12.200 EPS. As a group, sell-side analysts anticipate that The Sherwin-Williams Company will post 12.08 earnings per share for the current year.

Sherwin-Williams Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Friday, September 11th. Investors of record on Friday, August 21st will be given a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Friday, August 21st. Sherwin-Williams’s dividend payout ratio is 29.49%.

(Free Report)

Sherwin-Williams (NYSE: SHW) is a global manufacturer and distributor of paints, coatings and related products. Founded in 1866 and headquartered in Cleveland, Ohio, the company supplies a broad range of coatings for residential, commercial and industrial applications. Its product offering includes architectural paints and stains, industrial and protective coatings, automotive finishes, and a variety of sundry products such as primers, sealants and specialty treatments used by professionals and consumers.

The company sells through multiple channels, including a large network of company-operated retail paint stores that serve professional contractors and do-it-yourself consumers, as well as through distributors and mass retailers.

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On August 18, 2026, we delve into the DCF analysis for Sherwin-Williams Co
SHW -0.97% 87

, a company currently priced at $349.97. The stock has shown mixed performance, with a year-to-date increase of 8.5%, but a decline of 3.3% over the past year. This context sets the stage for a deeper examination of its intrinsic value through various valuation models.

DCF Earnings-based intrinsic value of $224.43 vs current price ($349.97) indicates a margin of safety of -55.9%. DCF Free Cash Flow-based intrinsic value stands at $186.84, suggesting a second opinion that also points to overvaluation. GF Score™ of 87/100 indicates strong financial health, but with a predictability rank of 2/5 stars, the reliability of the DCF inputs is questionable. What Is SHW Worth? DCF Earnings-Based Model The DCF earnings-based model employs a two-stage approach to estimate the intrinsic value of Sherwin-Williams. The first stage anticipates robust growth over the next decade, while the second stage accounts for a more moderate growth rate thereafter. Below are the key assumptions used in this model:

Parameter Value Current EPS (TTM, excl. non-recurring) $11.87 10-Year Growth Rate 12.5% 10-Year Treasury Rate 4.74% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the two-stage model is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 12.5%, discounted at 11% $127.89 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $96.54 Intrinsic Value Growth + Terminal $224.43 When comparing the current price of $349.97 with the intrinsic value of $224.43, it is evident that the stock is significantly overvalued, with a margin of safety of -55.9%. Notably, GuruFocus uses EPS figures excluding non-recurring items, as research indicates that stock prices tend to correlate more closely with earnings than with free cash flow. For a detailed calculation, visit the SHW DCF Calculator.

What Does the Free Cash Flow DCF Say? The free cash flow (FCF)-based intrinsic value for Sherwin-Williams is calculated at $186.84. This figure, when compared to the earnings-based intrinsic value of $224.43, reinforces the notion of overvaluation. Both models disagree, with the FCF model suggesting a more conservative valuation. The margin of safety here is -87.3%, further indicating that the stock is significantly overvalued.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for Sherwin-Williams stands at $364.66, which suggests a slight undervaluation of 4.0%. This proprietary measure from GuruFocus is derived from historical trading multiples, past business growth, and future performance estimates. The divergence among the three models—DCF earnings, DCF FCF, and GF Value™—highlights the complexity of accurately assessing the stock's value. For more insights, check the GF Value™.

What Does SHW's GF Score™ Tell Us? The GF Score™ evaluates a company's financial health and growth potential. Sherwin-Williams boasts a GF Score™ of 87/100, reflecting strong fundamentals. However, the predictability rank of 2/5 stars suggests that the DCF model may not be as reliable for this stock due to its lower predictability. Below is a summary of the GF Score™ metrics:

Metric Rating GF Score™ 87/100 Financial Strength 5/10 Profitability 9/10 Growth 8/10 Valuation 9/10 Momentum 5/10 For further details, visit the SHW stock page.

Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to the assumptions made regarding growth and discount rates. Stocks with low predictability ratings, such as Sherwin-Williams, yield less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not accurately reflect future performance.

What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—it is clear that Sherwin-Williams is currently overvalued. The significant discrepancies between the earnings-based and FCF-based intrinsic values suggest caution. Additionally, the guru ownership signal shows that 13 gurus currently hold the stock, with 5 adding and 9 trimming their positions, while insiders have sold $5.1M worth of shares over the past year. This mixed sentiment among institutional investors and insiders adds another layer of complexity to the valuation. For a comprehensive analysis, explore the SHW DCF Calculator.

Frequently Asked Questions What is SHW's intrinsic value based on DCF?

Answer: earnings-based $224.43, FCF-based $186.84.

Is SHW overvalued or undervalued?

Answer: Both DCF models indicate overvaluation, while GF Value™ suggests slight undervaluation.

How reliable is the DCF model for SHW?

Answer: The predictability rank of 2/5 indicates that the DCF model is less reliable for this stock.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Baxter Bros Inc. bought a new stake in The Sherwin-Williams Company (NYSE: SHW) during the undefined quarter, according to its most recent filing with the Securities and Exchange Commission. The fund bought 19,352 shares of the specialty chemicals company's stock, valued at approximately $6,663,000. Other hedge funds have also made changes to their

Karl J. Jorgenrud, President, Glob. Industrial at The Sherwin-Williams Company (SHW -0.68%), sold 7,886 shares of common stock on Aug. 7, 2026, following a derivative exercise SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$2.9 millionShares sold (directly held)7,886Post-transaction shares (total)13,195Post-transaction shares (directly held)11,943Post-transaction shares (indirectly held)1,252Post-transaction value$4.88 millionTransaction value based on SEC Form 4 weighted average sale price ($368.30); post-transaction value based on Aug. 07, 2026, market close ($369.73).

Key questionsWhat were the mechanical details of the transaction?
The sale was a "cashless" exercise of 7,886 stock options originally granted in October 2017 at an exercise price of $127.98. All shares resulting from the exercise were immediately sold at a weighted average price of $368.30 per share.How does the current market price compare to the execution level?
The shares were disposed of at $368.30, while the stock was priced at $362.71 as of the Aug. 10, 2026, market close, reflecting a 1.52% decline from the insider's execution price.What is the nature of the insider's remaining indirect holdings?
The 1,252 shares are held indirectly through Jorgenrud’s participation in the company’s 401(k) plan, as reported in the most recent trustee statement dated June 30, 2026.What equity compensation remains outstanding for the executive?
Following this transaction, Jorgenrud still holds 4,260 derivative securities in the form of stock options, in addition to the shares held in his direct and indirect accounts.Company OverviewMetricValueShare Price (as of market close 2026-08-10)$362.71Market Capitalization$88.1 billionRevenue (TTM)$24.4 billionNet Income (TTM)$2.7 billionCompany SnapshotThe Sherwin-Williams Company develops, manufactures, and distributes architectural paints, coatings, protective and marine products, and OEM product finishes across professional, industrial, commercial, and retail customer segments.The company operates a vertically integrated business model through three primary segments--Paint Stores Group, Consumer Brands Group, and Performance Coatings Group--generating revenue through direct-to-consumer retail channels, wholesale distribution, and industrial supply partnerships.The company serves professional contractors, industrial manufacturers, commercial enterprises, and retail consumers, positioning itself as a comprehensive coatings solutions provider across architectural, protective, marine, and specialty application markets.Sherwin-Williams is a leading specialty chemicals manufacturer with a $88.1 billion market capitalization and TTM revenues of $24.4 billion, reflecting its dominant position in the global coatings industry. The company leverages its integrated distribution network and diversified product portfolio to maintain competitive advantages in both professional and consumer segments. With 64,249 employees and operations spanning multiple customer verticals, Sherwin-Williams demonstrates substantial scale and operational complexity in the specialty coatings market.

What this transaction means for investorsWhen evaluating a stock, investors should always turn to fundamentals first. That's because other events, like insider transactions, can occur for many reasons. Therefore, it's always best to stick to the basics. With that in mind, let's have a look at Sherwin-Williams (SHW) stock.

To start, SHW stock has underperformed the broader market over the last five years. Since 2021, the stock has delivered a total return of 24%, equating to a compound annual growth rate (CAGR) of 4.4%. The S&P 500, meanwhile, has generated a total return of 87% over this same period, with a CAGR of 13.3%.

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Despite the subpar performance, Sherwin-Williams' underlying fundamentals appear solid. Take operating margin, for example. It currently stands at 16.5%, which is very close to its five-year high of 16.7%. In addition, it's up significantly from its five-year low of 12% in 2022. What's more, management recently announced an 8% price increase, effective Sept. 1, 2026. The increase is designed to offset higher input costs and should further stabilize or widen the company's margins. As for valuation, Sherwin-Williams' price-to-earnings (P/E) multiple is 33x, hovering right around its five-year average of 34x, indicating that the stock is probably fairly priced.

To sum up, SHW stock has lagged the benchmark S&P 500 index over the last five years. However, the company's fundamentals still indicate a strong, well-run business, even as the overall U.S. housing market remains lackluster. Investors seeking exposure to the housing or remodeling market may want to consider SHW stock, particularly if the stock dips in the near future.

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Stock to Watch: Sherwin-Williams (SHW - Free Report) Founded in 1866 and headquartered in Cleveland, OH, The Sherwin-Williams Company is into manufacturing and sales of paints, coatings and related products, primarily in the North and South America. It also has operations in the Caribbean region, Europe and Asia. Sherwin-Williams is one of the biggest paint companies in the United States and in the world. Its well-known brands include Dutch Boy, Minwax and Krylon. The company, on Jun 1, 2017, completed the purchase of rival paints maker Valspar in an all-cash transaction, creating a premier global paints and coatings company.

SHW is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Basic Materials stock. SHW has a Momentum Style Score of A, and shares are up 5.6% over the past four weeks.

Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.31 to $12.08 per share. SHW boasts an average earnings surprise of +4.5%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, SHW should be on investors' short list.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

The Sherwin-Williams Company (SHW) Q2 2026 Earnings Call Transcript

Key Takeaways Sherwin-Williams posted Q2 adjusted EPS of $3.70 as revenues rose 7.5% to $6.79 billion.Paint Stores sales grew 5.1%, while Consumer Brands jumped 21.5% on Suvinil and North America gains.Sherwin-Williams raised 2026 adjusted EPS guidance to $11.80-$12.20 despite expected demand softness. The Sherwin-Williams Company (SHW - Free Report) reported second-quarter 2026 adjusted earnings of $3.70 per share, up 9.5% year over year. The figure surpassed the Zacks Consensus Estimate of $3.56 by 3.9%.

Revenues increased 7.5% year over year to $6.79 billion and beat the consensus mark of $6.62 billion by 2.6%. Growth across all three reportable segments, including contributions from the Suvinil acquisition, supported results.

Selling, general and administrative expenses increased to $2.10 billion from $2.01 billion. As a percentage of sales, SG&A expenses improved to 31% from 31.9%. Higher employee-related costs, expenses related to Suvinil acquisition and costs associated with the company’s new headquarters and technology center affected the quarter.

Segmental ReviewPaint Stores Group sales increased 5.1% year over year to $3.89 billion. The improvement reflected mid-single-digit selling price increases and low-single-digit volume growth. Paint Stores Group same-store sales rose 4.2%.Sales rose across all professional customer markets, led by double-digit growth in protective and marine, high-single-digit growth in commercial and mid-single-digit growth in residential repaint.Paint Stores Group profit rose 4.5% to $957.6 million from $916.5 million.

Consumer Brands Group sales jumped 21.5% to $983.5 million from $809.4 million. Growth was driven primarily by the Suvinil acquisition, increased sales in North America and a 1.6% favorable foreign currency translation impact. Consumer Brands Group profit climbed 29.7% to $212.9 million. The increase reflected higher sales, favorable product mix, supply-chain efficiencies and currency transaction benefits, partly offset by raw material inflation and incremental Suvinil-related SG&A costs. Reported margin improved to 21.6% from 20.3%.

Performance Coatings Group sales advanced 6.3% to $1.91 billion. Low-single-digit gains in price and volume, along with a 2% favorable currency translation impact, aided results. General Industrial and Automotive Refinish recorded high-single-digit growth, while Packaging, Industrial Wood and Coil posted mid-single-digit gains. Performance Coatings Group profit increased 11.5% to $273.3 million. Higher sales more than offset raw material and employee-related cost increases. Reported segment margin expanded to 14.3% from 13.6%.

Sherwin-Williams Cash Returns & Balance SheetSherwin-Williams generated $1.49 billion in net operating cash flow during the first six months of 2026. The company returned $2.23 billion to shareholders through dividends and repurchases of 5.6 million common shares.

As of June 30, 2026, cash and cash equivalents were $293.5 million. Short-term borrowings totaled $2.25 billion, while long-term debt was $8.33 billion. The company had authorization to repurchase 24 million shares remaining through open-market transactions.

SHW’s Q3 & 2026 OutlookFor the third quarter of 2026, Sherwin-Williams expects consolidated net sales to increase by a mid to high-single-digit percentage year over year. Management expects demand softness to continue during the second half based on customer sentiment and the leading indicators it monitors.

For full-year 2026, the company raised its net sales growth forecast in the mid- to high-single-digit range. It also increased reported earnings guidance to $10.92-$11.32 per share from $10.70-$11.10.

Adjusted earnings are projected at $11.80-$12.20 per share, up from the prior guidance of $11.50-$11.90.

SHW’s Price PerformanceShares of Sherwin-Williams have lost 2.8% over the past year against the industry’s 2.8% growth.

Image Source: Zacks Investment Research

SHW’s Zacks Rank & Other Key PicksSHW currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , Kronos Worldwide, Inc. (KRO - Free Report) and Avient Corporation (AVNT - Free Report) .

Carpenter Technology is slated to report fourth-quarter fiscal 2026 results on July 30. The Zacks Consensus Estimate for earnings is pegged at $10.58 per share, indicating a 41.44% year-over-year improvement. CRS sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

Kronos is scheduled to report second-quarter 2026 results on Aug. 5. The Zacks Consensus Estimate for KRO’s second-quarter loss per share is pegged at 33 cents, indicating a 65.63% year-over-year growth. KRO flaunts a Zacks Rank #1 at present.

Avient is slated to report second-quarter 2026 results on Aug. 6. The consensus estimate for AVNT’s earnings per share is pegged at $3.08. AVNT presently carries a Zacks Rank #2.

There's no shortage of market drama today.

The earnings season is in full swing. Chip stocks are plunging amid concerns about AI infrastructure spending. President Trump is hosting Ukrainian President Volodymyr Zelenskiy and Israeli Prime Minister Benjamin Netanyahu at the White House for separate meetings. At the same time, Iran is negotiating an oil-shipping deal with Oman.

Market indexes are moving in different directions. The Dow Jones Industrial Average (^DJI +1.07%) is up 1.2% and gaining roughly 520 points. The S&P 500 (^GSPC +0.22%) looks cautiously optimistic with a 0.4% rise. The Nasdaq Composite (^IXIC -0.22%) index is dead flat at negative 0%, but that's kind of impressive considering it was down 1.3% in the morning session.

The Invesco S&P 500 Equal Weight ETF (RSP +1.04%) is up 1.1%, significantly outperforming the cap-weighted index's gain. This divergence shows that mega-cap technology stocks are creating most of today's drag.

^DJI data by YCharts

Wall Street feels it when Asian markets panic Semiconductor stocks are experiencing their sharpest decline of the year following overnight panic selling in Asian markets. Micron Technology (MU -9.00%) is down 8.1% and SK Hynix (SKHY -9.29%) is down 6.8%. The memory chip panic started with a volatility-based trading halt in the South Korean market long before the American markets opened. After last week's massive capital expenditure guidance from Alphabet and Tesla, Korean investors are asking the same question as Wall Street: How long can AI infrastructure spending continue at current levels?

The same concerns are weighing on U.S. markets. The damage spread across the entire chip sector. Intel (INTC -6.04%) is down by 8%, AMD (AMD -7.83%) fell 10%, and Sandisk (SNDK -15.16%) plunged 17%. Even mighty Nvidia (NVDA +0.28%) caught a cold, dropping 1%.

Image source: Getty Images.

Sandisk is now down 50% from its June peak, which is wild considering it's still the best-performing S&P 500 stock this year with gains over 360%.

Meanwhile, boring old industrial and consumer stocks are carrying the Dow upward. Sherwin-Williams (SHW +8.53%) is up 8.3% after beating earnings expectations. Paint seems more exciting than AI chips today. Caterpillar (CAT -4.64%) is the Dow's biggest drag, down 3.8% or roughly 200 Dow points, but that's the downside of this construction equipment giant's connection to AI data center projects.

Oil prices are extending their retreat from last week's $100-per-barrel spike. Brent crude is trading near $84 per barrel, down roughly 2.2%. The decline follows reports that the U.S. has paused air strikes against Iran to pursue another round of diplomatic talks.

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The rotation continues Investors are rotating out of expensive tech stocks and into traditional economy sectors at a pace not seen in years.

The Nasdaq-100 index is flirting with correction territory, down about 10% from its record high. Memory chip stocks, which absolutely soared in the first half of 2026 on AI hype, are experiencing whiplash-inducing volatility.

The next few days will be critical. Microsoft and Meta Platforms report earnings Wednesday, followed by Apple (AAPL +0.45%) and Amazon on Thursday. That's a lot of Magnificent 7 reporting in just two days. Apple isn't splurging on AI data centers, but the other three are already targeting capital expenditure budgets around $200 billion in 2026. Their capex guidance and infrastructure plans will surely move the markets, both immediately and over the next quarter.

Anders Bylund has positions in Alphabet, Amazon, Intel, Invesco S&P 500 Equal Weight ETF, Micron Technology, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Caterpillar, Intel, Meta Platforms, Micron Technology, Microsoft, Nvidia, and Tesla. The Motley Fool recommends Sherwin-Williams. The Motley Fool has a disclosure policy.

Key Takeaways FOMC Meeting Starts Today, Likely to Hold on RatesTrade Balance & Inventories Within RangeBA Misses; KO, UPS & SHW Beat on Q2 Earnings Tuesday, July 28th, 2026

Pre-market futures are mixed at this hour, continuing Monday’s trading narrative of rotating out of the tech-heavy Nasdaq and into the blue-chip Dow. The Dow, with strong Q2 results from Coke and elsewhere, is up +413 points at present; the Nasdaq — with microchips once again bring sold — is -270 points. The S&P 500 splits the difference: -7 points, while the small-cap Russell 2000 is +2 points currently.

A third-straight quiet day in Iran may be fostering some goodwill toward reconnection for a peace agreement. (Then again, it may not.) Oil prices have definitely cooled since late last week: $81 per barrel (/bbl) on WTI and $87/bbl on Brent, as sentiment gain tacks toward a peaceful resolution. Bond yields have also settled down somewhat: +4.63% on the 10-year T-bill and +4.30% on the 2-year.

The Fed Starts 2-Day Meeting Today
Today is the first day of the fifth Federal Open Market Committee (FOMC) meeting of 2026 so far (of eight total meetings per year), and the last until mid-September. Rates have not moved since December’s quarter-point cut to a range of +3.50-3.75%, and they are not expected to go anywhere today, either.

Monthly inflation reports have depicted stubborn high costs that are not presently spiraling out of control. This suggests that, while odds now favor a rate hike for the next move at the FOMC, they likely won’t be in any rush to do so. That said, we have seen PCE inflation increase by 30 basis points (bps) or higher month over month since March, reaching +4.1% in June. CPI for June, on the other hand, saw a big drop to +3.5% in its latest report. Most likely, the Fed stays in “wait and see” mode.

Trade Balance, Inventories Come in Slightly Lighter
Headline U.S. Trade Balance for June was slightly deeper than estimates but improved month over month: -$101.5 billion from a revised improvement to -$105 billion in May. That print was still the deepest deficit since the all-time record -$159 billion in March of 2025, which directly preceded “Liberation Day” tariffs, which lasted one week at the start of April.

Advanced Retail Inventories fell back to 0.0% from +0.4% projected, and from the downwardly revised +0.5% for the previous month. This is the lowest since the flat read back in February of this year. Preliminary Wholesale Inventories matched the prior month’s +0.3%, 10 bps lower than expected. More relatively modest prints on the economy, writ-large. More reasons for the Fed to hold its cards today too.

Q2 Roundup: BA, KO & More
Boeing (BA - Free Report) posted its third earnings miss in its last four quarters: -$0.76 vs. -$0.34 per share, for a nasty -123.5% negative surprise. Revenues, on the other hand, beat estimates in Q2: $24.56 billion versus $24.05 billion expected, with commercial airplane sales up +14% year over year. Shares are helping boost the Dow this morning, +1.3%.

Coca-Cola (KO - Free Report) reported earnings that beat consensus by a solid nickel: +$0.97 per share versus $0.92 estimated. Revenues of $13.37 billion easily surpassed expectations by +2.44%. Shares are up +4% in pre-market trading, also assisting the blue-chip index, and adding to the +20% gains in the shares year to date. For more on KO’s earnings, click here.

UPS (UPS - Free Report) made easy work of its Q2 results this morning, posting a +6.67% positive surprise with earnings of $1.76 per share on $22.83 billion in revenues, which beat estimates by nearly +5%. Shares are flagging after a move higher immediately following the Q2 news; shares had been +7.8% over the past month. For more on UPS’ earnings, click here.

Sherwin-Williams (SHW - Free Report) posted strong results for its Q2 report ahead of today’s open, with earnings of $3.70 per share nicely above the $3.56 in the Zacks consensus (and $3.38 per share a year ago). Revenues of $6.79 billion outperformed forecasts by +2.58%, and well higher than the $6.31 billion from a year ago. The paints and coatings giant raised guidance above earlier estimates, and shares are trading +7% higher ahead of the bell. For more on SHW’s earnings, click here.

Questions or comments about this article and/or author? Click here>>

28.7.2026 16:15, KO, UPS, BA, PYPL

Index Dow Jones +0,86 % na 52659,78 b., S&P 500 -0,28 % na 7392,46 b., Nasdaq Composite -1,33 % na 24600,91 b.

Americké akcie zahájily úterní seanci smíšeně. Index Dow Jones posiluje, zatímco širší index S&P 500 mírně oslabuje a technologický Nasdaq Composite klesá výrazněji pod tlakem polovodičových titulů. Akcie výrobce paměťových čipů Micron odepisují přibližně 12 %, zatímco akcie společností Sandisk a Western Digital klesají o 17 %, respektive 15 %. Negativní sentiment navazuje na pondělní výprodej technologických titulů a prohloubil jej také 11% propad jihokorejského indexu KOSPI.

Investoři také vyhodnocují další várku kvartálních výsledků.

Jedním z reportujících je americká logistická společnost UPS. Ta zveřejnila výsledky hospodaření za druhé čtvrtletí roku 2026. Tržby i očištěný zisk na akcii překonaly odhady analytiků a společnost zvýšila celoroční výhled tržeb. UPS zároveň oznámila, že úspěšně dokončila postupné omezování objemů od Amazonu. Akcie UPS -5,6 %.

Dále také reportovala své výsledky za druhé čtvrtletí roku 2026 americká platební společnost PayPal. Očištěný zisk na akcii překonal průměrný odhad analytiků, stejně jako výnosy a objem zpracovaných plateb. Očištěný provozní zisk i marže však meziročně klesly. Akcie PayPal +4,5 %.

Americká nápojářská společnost Coca-Cola rovněž reportovala výsledky hospodaření za druhý kvartál roku 2026. Porovnatelný zisk na akcii i očištěné organické tržby překonaly očekávání analytiků. Společnost zaznamenala také silnější než očekávaný růst objemu prodejů a zvýšila celoroční výhled organických tržeb i porovnatelného zisku na akcii. Akcie Coca-Cola +6,8 %.

Také americký výrobce letadel Boeing reportoval výsledky hospodaření za druhý kvartál roku 2026. Tržby i provozní hotovostní tok překonaly očekávání analytiků. Výnosy segmentů Komerční letadla a Obrana, vesmír a bezpečnost rostly meziročně a překonaly konsensus. Jádrová ztráta na akcii byla naopak vyšší, než analytici očekávali. Akcie Boeing +3,8 %.

Index S&P 500 -0,28 % na 7392,46 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Nezbytná spotřeba +3,9 % Informační technologie -2,7 % Zdravotní péče +2,9 % Průmysl -0,5 % Základní materiály +2,4 % Zbytná spotřeba +0,4 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna IQVIA Holdings (IQV) +14 % Corning (GLW) -19 % Sherwin-Williams (SHW) +8,6 % Sandisk Corp (SNDK) -17 % Charles River Laboratories International (CRL) +7,8 % Dell Technologies (DELL) -15 % Gartner (IT) +7,4 % Coherent Corp (COHR) -15 % Solventum Corp (SOLV) +7,2 % Lumentum Holdings (LITE) -14 %
Zdroj: Bloomberg

Marek Krejčiřík
Fio banka, a.s.
Prohlášení

Sherwin-Williams (SHW - Free Report) came out with quarterly earnings of $3.7 per share, beating the Zacks Consensus Estimate of $3.56 per share. This compares to earnings of $3.38 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +3.93%. A quarter ago, it was expected that this paint and coatings maker would post earnings of $2.24 per share when it actually produced earnings of $2.35, delivering a surprise of +4.91%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Sherwin-Williams, which belongs to the Zacks Chemical - Specialty industry, posted revenues of $6.79 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.58%. This compares to year-ago revenues of $6.31 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Sherwin-Williams shares have added about 1% since the beginning of the year versus the S&P 500's gain of 8.3%.

What's Next for Sherwin-Williams?While Sherwin-Williams has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Sherwin-Williams was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.58 on $6.64 billion in revenues for the coming quarter and $11.78 on $24.69 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Specialty is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Orion (OEC - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.

This producer of the chemcial additive carbon black is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -65.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Orion's revenues are expected to be $474.5 million, up 1.7% from the year-ago quarter.

, /PRNewswire/ -- The Sherwin-Williams Company (NYSE: SHW) announced its financial results for the second quarter ended June 30, 2026. All comparisons are to the second quarter of the prior year, unless otherwise noted.

SUMMARY

The Sherwin-Williams Company Reports 2026 Second Quarter Financial Results Consolidated Net sales increased 7.5% to $6.79 billion in the quarter Net sales from stores in the Paint Stores Group open more than twelve calendar months increased 4.2% in the quarter Diluted net income per share increased 14.3% to $3.43 per share in the quarter compared to $3.00 per share in the second quarter of 2025 Adjusted diluted net income per share increased 9.5% to $3.70 per share in the quarter compared to $3.38 per share in the second quarter of 2025 Net income increased 11.8% in the quarter to $843.6 million, or 12.4% of Net sales Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in the quarter increased 13.8% to $1.43 billion, or 21.1% of Net sales Increasing full year 2026 diluted net income per share guidance in the range of $10.92 to $11.32 per share, including Valspar acquisition-related amortization expense of $0.81 per share and severance and other restructuring expenses of $0.07 per share Increasing full year 2026 adjusted diluted net income per share guidance in the range of $11.80 to $12.20 per share CEO REMARKS

"Sherwin-Williams delivered strong second quarter results and continued to outperform the market despite ongoing global uncertainty and no meaningful improvement in demand," said Chair, President and Chief Executive Officer, Heidi G. Petz. "Sales improvement was driven by continued growth investments, new account wins and increased share of wallet, and exceeded guidance on a consolidated basis and across all three reportable segments. We also implemented pricing actions to offset raw material inflation that pressured our gross margin in the quarter. Adjusted EBITDA and diluted earnings per share rose approximately 10% year over year, and adjusted EBITDA margin grew 60 basis points to 21.5%. Net operating cash improved by 21% in the quarter, and free cash flow conversion in the quarter was 86%. We returned $1.46 billion to shareholders through dividends and share repurchases. Our team remains focused on executing our customer-centered strategy while controlling what we can control amidst a challenging macro-economic backdrop."

SECOND QUARTER CONSOLIDATED RESULTS
(in millions, except per share data)

Three Months Ended June 30,

2026

2025

$ Change

% Change

Net sales

$       6,789.3

$      6,314.5

$          474.8

7.5 %

Income before income taxes

$       1,112.5

$         985.7

$          126.8

12.9 %

Percent to Net sales

16.4 %

15.6 %

Net income per share - diluted

$           3.43

$           3.00

$            0.43

14.3 %

Adjusted net income per share - diluted

$           3.70

$           3.38

$            0.32

9.5 %

Consolidated Net sales increased primarily due to higher Net sales in all reportable segments, inclusive of the October 2025 acquisition of Suvinil.

Income before income taxes increased primarily due to higher Net sales, partially offset by a moderate rise in raw material costs, an increase in employee-related costs, incremental selling, general and administrative (SG&A) expenses associated with Suvinil, higher costs in the Administrative function related to the new global headquarters and technology center and additional interest expense attributable to an increase in short-term borrowings and long-term debt.

Diluted net income per share included a charge of $0.20 per share for Valspar acquisition-related amortization expense in the second quarter of 2026 and 2025. In the second quarter of 2026 and 2025, diluted net income per share also included a charge of $0.07 and $0.18 per share, respectively, related to severance and other restructuring expenses.

SECOND QUARTER SEGMENT RESULTS
(in millions)Paint Stores Group (PSG)

Three Months Ended June 30,

2026

2025

$ Change

% Change

Net sales

$        3,890.0

$        3,702.2

$          187.8

5.1 %

Same-store sales (1)

4.2 %

0.8 %

Segment profit

$          957.6

$          916.5

$            41.1

4.5 %

Reported segment margin

24.6 %

24.8 %

(1)Same-store sales represents Net sales from stores open more than twelve calendar months.

Net sales in PSG increased primarily due to selling price increases, which impacted Net sales by a mid-single digit percentage, as well as low-single digit percentage sales volume growth. Net sales increased in all professional customer end markets, led by a double-digit percentage increase in protective and marine, a high-single digit percentage increase in commercial and a mid-single digit percentage increase in residential repaint. Segment profit increased primarily due to higher Net sales, partially offset by a moderate rise in raw material costs and increased costs to support higher sales, including investments in additional sales reps and stores.

Consumer Brands Group (CBG)

Three Months Ended June 30,

2026

2025

$ Change

% Change

Net sales

$          983.5

$          809.4

$          174.1

21.5 %

Segment profit

$          212.9

$          164.2

$            48.7

29.7 %

Reported segment margin

21.6 %

20.3 %

Adjusted segment profit (1)

$          241.4

$          181.4

$            60.0

33.1 %

Adjusted segment margin

24.5 %

22.4 %

(1)

Adjusted segment profit equals Segment profit excluding the impact of Valspar acquisition-related amortization expense and severance and other restructuring expenses. In CBG, Valspar acquisition-related amortization expense was $15.6 million and $15.5 million in the second quarter of 2026 and 2025, respectively, and severance and other restructuring expenses were $12.9 million and $1.7 million in the second quarter of 2026 and 2025, respectively.

Net sales in CBG increased primarily as a result of the acquisition of Suvinil, increased Net sales in North America and a 1.6% impact from favorable foreign currency translation. Segment profit increased primarily due to higher Net sales, favorable mix, supply chain efficiencies and benefits from foreign currency transaction gains and losses, partially offset by a moderate rise in raw material costs and incremental SG&A expenses associated with the Suvinil acquisition. Adjusted segment profit increased for these same reasons, including an increase in the expenses associated with targeted restructuring actions in the second quarter of 2026.

Valspar acquisition-related amortization expense reduced Segment profit as a percent of Net sales by 160 and 190 basis points in the second quarter of 2026 and 2025, respectively. Severance and other restructuring expenses reduced Segment profit as a percent of Net sales by 130 and 20 basis points in the second quarter of 2026 and 2025, respectively.

Performance Coatings Group (PCG)

Three Months Ended June 30,

2026

2025

$ Change

% Change

Net sales

$        1,913.8

$        1,801.1

$          112.7

6.3 %

Segment profit

$          273.3

$          245.1

$            28.2

11.5 %

Reported segment margin

14.3 %

13.6 %

Adjusted segment profit (1)

$          332.0

$          302.3

$            29.7

9.8 %

Adjusted segment margin

17.3 %

16.8 %

(1)

Adjusted segment profit equals Segment profit excluding the impact of Valspar acquisition-related amortization expense and severance and other restructuring expenses. In PCG, Valspar acquisition-related amortization expense was $49.9 million and $49.0 million in the second quarter of 2026 and 2025, respectively, and severance and other restructuring expenses were $8.8 million and $8.2 million in the second quarter of 2026 and 2025, respectively.

Net sales in PCG increased primarily due to selling price increases, mainly attributable to product mix, which impacted Net sales by a low-single digit percentage, low-single digit percentage sales volume growth and a 2.0% impact from favorable foreign currency translation. Net sales increased in all businesses, led by General Industrial and Automotive Refinish, which each increased by a high-single digit percentage, and Packaging, Industrial Wood and Coil, which each increased by a mid-single digit percentage. Segment profit increased primarily due to higher Net sales, partially offset by a moderate rise in raw material costs and an increase in employee-related costs to support higher sales. Adjusted segment profit increased for these same reasons, including a modest increase in the expenses associated with targeted restructuring actions in the second quarter of 2026.

Valspar acquisition-related amortization expense reduced Segment profit as a percent of Net sales by 260 and 270 basis points in the second quarter of 2026 and 2025, respectively. Severance and other restructuring expenses reduced Segment profit as a percent of Net sales by 40 and 50 basis points in the second quarter of 2026 and 2025, respectively.

LIQUIDITY AND CASH FLOW

The Company generated $1.49 billion in Net operating cash and returned cash of $2.23 billion to our shareholders in the form of dividends and repurchases of 5.6 million shares of its common stock during the first six months of 2026. At June 30, 2026, the Company had remaining authorization to purchase 24.0 million shares of its common stock through open market purchases.

2026 GUIDANCE

Third Quarter

Full Year

2026

2026

Net sales

Up mid to high-single digit %

Up mid to high-single digit %

Effective tax rate

Low twenty percent

Diluted net income per share

$10.92

-

$11.32

Adjusted diluted net income per share (1)

$11.80

-

$12.20

(1)

Excludes $0.81 per share of Valspar acquisition-related amortization expense and $0.07 per share of severance and other restructuring expenses.

"Our better than expected second quarter results reflect the power of our differentiated model, our focus on the customer and the decisive actions our teams are taking to grow share, manage costs and respond to this dynamic environment," said Ms. Petz. "While customer sentiment and the leading indicators we track point to continued demand softness in the second half, we remain focused on the actions within our control. Our deep and experienced team is executing with urgency, driving share gains, improving productivity and maintaining discipline across the enterprise.

"During the second quarter, we took restructuring actions that are expected to generate approximately $17 million of annual savings, and we see additional opportunities to leverage our competitive advantages, simplify the business, improve execution and deliver greater value to our customers. At the same time, broad-based cost inflation continues across raw materials, energy, logistics and packaging, and we are responding with pricing actions across our businesses, including an announced 8% price increase in Paint Stores Group effective September 1.

"Against this backdrop, we expect third quarter 2026 consolidated Net sales to be up a mid to high-single digit percentage compared to the third quarter of 2025. We are raising our full year 2026 guidance, with consolidated Net sales expected to be up a mid to high-single digit percentage compared to full year 2025. Diluted net income per share is expected to be in the range of $10.92 to $11.32 per share, including acquisition-related amortization expense of $0.81 per share and severance and other restructuring expenses of $0.07 per share, compared to $10.26 per share in 2025. Full year 2026 adjusted diluted net income per share is expected to be in the range of $11.80 to $12.20 per share compared to $11.43 per share in 2025.

"We are pleased with our first-half performance and the momentum we are carrying into the second half of the year. Our updated outlook remains appropriately disciplined given the uncertain environment, but our confidence is grounded in the strength of our team, our customer relationships, our differentiated model and our proven ability to deliver."

CONFERENCE CALL INFORMATION

The Company will host a conference call to discuss its financial results for the second quarter, and its outlook for the third quarter and full year 2026, at 10:00 a.m. EDT on Tuesday, July 28, 2026. Heidi G. Petz, Sherwin-Williams' Chair, President and Chief Executive Officer, along with other senior executives, will participate on the call.

The conference call will be webcast simultaneously in listen only mode. To listen to the webcast on the Sherwin-Williams website, click on https://investors.sherwin-williams.com/financials/quarterly-results/, then click on the webcast icon following the reference to the Q2 webcast. An archived replay of the webcast will be available at https://investors.sherwin-williams.com/financials/quarterly-results/ beginning approximately two hours after the call ends.

ABOUT THE SHERWIN-WILLIAMS COMPANY

Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of paint, coatings and related products to professional, industrial, commercial and retail customers. The Company manufactures products under well-known brands such as Sherwin-Williams®, Valspar®, HGTV HOME® by Sherwin-Williams, Dutch Boy®, Krylon®, Minwax®, Thompson's® WaterSeal®, Cabot®, Suvinil® and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams® branded products are sold exclusively through a chain of more than 5,400 Company-operated stores and branches, while the Company's other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers and industrial distributors. The Sherwin-Williams Performance Coatings Group supplies a broad range of highly-engineered solutions for the construction, industrial, packaging and transportation markets in more than 120 countries around the world. Sherwin-Williams shares are traded on the New York Stock Exchange (symbol: SHW). For more information, visit www.sherwin.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Certain statements contained in this press release constitute "forward-looking statements" within the meaning of federal securities laws. These forward-looking statements are based upon management's current expectations, predictions, estimates, assumptions and beliefs concerning future events and conditions and may relate to, among other things, anticipated future performance (including sales and earnings), expected growth, and future business plans. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "anticipate," "aspire," "believe," "could," "estimate," "expect," "goal," "intend," "may," "plan," "potential," "project," "seek," "should," "strive," "target," "will," or "would" or the negative thereof or comparable terminology.

Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside our control, that could cause actual results to differ materially from such statements and from our historical results, performance and experience. These risks, uncertainties and other factors include such things as: general business and economic conditions in the United States and worldwide; inflation rates, interest rates, unemployment rates, labor costs, healthcare costs, recessionary conditions, geopolitical conditions, terrorist activity, armed conflicts and wars, public health crises, pandemics, outbreaks of disease and supply chain disruptions; shifts in consumer behavior driven by economic downturns in cyclical segments of the economy; shortages and increases in the cost of raw materials and energy; catastrophic events, adverse weather conditions and natural disasters (including those that may be related to climate change); disruptions to our information technology systems, including due to digitization efforts or cybersecurity incidents; our ability to attract, retain, develop and progress a qualified global workforce; the loss of any of our largest customers; increased competition or failure to keep pace with developments in key competitive areas of our business; our ability to successfully integrate past and future acquisitions, into our existing operations; risks and uncertainties associated with our expansion into and our operations in South America, Asia, Europe and other foreign markets; policy changes affecting international trade, including import/export restrictions and tariffs; our ability to achieve our strategies or expectations relating to sustainability considerations, including as a result of evolving legal, regulatory and other standards, processes and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite suppliers, energy sources, or financing and changes in carbon markets and carbon accounting rules; damage to our business, reputation, image or brands due to negative publicity; the infringement or loss of our intellectual property rights or the theft or unauthorized use of our trade secrets or other confidential business information; a weakening of global credit markets or changes to our credit ratings; our ability to generate cash to service our indebtedness; fluctuations in foreign currency exchange rates and changing monetary policies; our ability to comply with a variety of complex U.S. and non-U.S. laws, rules and regulations; increases in tax rates, or changes in tax laws or regulations; our ability to comply with numerous, complex and increasingly stringent domestic and foreign health, safety and environmental laws, regulations and requirements; our liability related to environmental investigation and remediation activities at some of our currently- and formerly-owned sites; the nature, cost, quantity and outcome of pending and future litigation, including lead pigment and lead-based paint litigation; and the other risk factors discussed in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 and our other reports filed with the SEC.

Readers are cautioned that it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results and that the above list should not be considered a complete list. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as otherwise required by law.

INVESTOR RELATIONS CONTACTS:

Jim Jaye                                                                             
Senior Vice President, Investor Relations & Corporate Communications                                         
Direct: 216.515.8682
[email protected]

Eric Swanson
Vice President, Investor Relations
Direct: 216.566.2766                                                        
[email protected]                                                  

MEDIA CONTACT:

Julie Young
Vice President, Global Corporate Communications
Direct: 216.515.8849
[email protected]

The Sherwin-Williams Company and Subsidiaries

Statements of Consolidated Income (Unaudited)

(in millions, except per share data)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net sales

$       6,789.3

$       6,314.5

$     12,456.2

$     11,620.2

Cost of goods sold

3,451.3

3,196.2

6,337.7

5,942.8

Gross profit

3,338.0

3,118.3

6,118.5

5,677.4

Percent to Net sales

49.2 %

49.4 %

49.1 %

48.9 %

Selling, general and administrative expenses

2,103.7

2,011.6

4,073.3

3,805.4

Percent to Net sales

31.0 %

31.9 %

32.7 %

32.7 %

Other general expense - net

3.4

6.3

9.7

15.2

Interest expense

135.9

112.4

267.5

216.2

Interest income

(5.4)

(2.4)

(8.2)

(5.7)

Other (income) expense - net

(12.1)

4.7

(16.1)

7.6

Income before income taxes

1,112.5

985.7

1,792.3

1,638.7

Income taxes

268.9

231.0

414.0

380.1

Net income

$         843.6

$         754.7

$       1,378.3

$       1,258.6

Net income per common share:

Basic

$          3.46

$          3.04

$          5.63

$          5.06

Diluted

$          3.43

$          3.00

$          5.58

$          5.00

Weighted average shares outstanding:

Basic

243.9

248.4

244.8

248.9

Diluted

246.0

251.3

247.1

251.9

The Sherwin-Williams Company and Subsidiaries

Business Segments (Unaudited)

(millions of dollars)

2026

2025

Net

Segment

Net

Segment

Sales

Profit (Loss)

Sales

Profit (Loss)

Three Months Ended June 30:

Paint Stores Group

$       3,890.0

$          957.6

$        3,702.2

$          916.5

Consumer Brands Group

983.5

212.9

809.4

164.2

Performance Coatings Group

1,913.8

273.3

1,801.1

245.1

Administrative

2.0

(331.3)

1.8

(340.1)

Consolidated totals

$       6,789.3

$       1,112.5

$        6,314.5

$          985.7

Six Months Ended June 30:

Paint Stores Group

$       6,939.9

$       1,516.4

$        6,642.0

$        1,457.7

Consumer Brands Group

1,891.8

410.1

1,571.6

296.1

Performance Coatings Group

3,619.6

505.7

3,403.1

457.8

Administrative

4.9

(639.9)

3.5

(572.9)

Consolidated totals

$      12,456.2

$       1,792.3

$      11,620.2

$        1,638.7

The Sherwin-Williams Company and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(millions of dollars)

June 30,

2026

2025

Assets

Current assets:

Cash and cash equivalents

$          293.5

$          269.8

Accounts receivable, net

3,571.2

3,111.9

Inventories

2,529.7

2,484.6

Other current assets

604.8

559.0

Total current assets

6,999.2

6,425.3

Property, plant and equipment, net

4,219.4

3,805.9

Goodwill

8,023.2

7,807.6

Intangible assets

3,803.7

3,543.4

Operating lease right-of-use assets

2,059.9

2,011.3

Other assets

1,846.0

1,770.1

Total assets

$      26,951.4

$      25,363.6

Liabilities and Shareholders' Equity

Current liabilities:

Short-term borrowings

$       2,246.4

$        1,706.7

Accounts payable

2,826.4

2,570.0

Compensation and taxes withheld

768.4

688.9

Accrued taxes

405.4

255.8

Current portion of long-term debt

1,498.4

1,150.7

Current portion of operating lease liabilities

486.5

480.7

Other accruals

1,395.5

1,343.6

Total current liabilities

9,627.0

8,196.4

Long-term debt

8,327.3

7,828.9

Postretirement benefits other than pensions

133.4

120.7

Deferred income taxes

757.2

560.9

Long-term operating lease liabilities

1,656.8

1,603.2

Other long-term liabilities

2,595.0

2,652.6

Shareholders' equity

3,854.7

4,400.9

Total liabilities and shareholders' equity

$      26,951.4

$      25,363.6

Reconciliation of Non-GAAP Financial Measures

Management of the Company utilizes certain financial measures that are not in accordance with U.S. generally accepted accounting principles (US GAAP) to analyze and manage the performance of the business. Management provides non-GAAP information in reporting its financial results to give investors additional data to evaluate the Company's operations. Management does not, nor does it suggest investors should, consider such non-GAAP measures in isolation from, or in substitution for, financial information prepared in accordance with US GAAP.

Management believes that investors' understanding of the Company's operating performance is enhanced by the disclosure of diluted net income per share excluding Valspar acquisition-related amortization and certain other adjustments. Valspar acquisition-related amortization expense is excluded from diluted net income per share due to its significance as a result of the purchase price assigned to finite-lived intangible assets at the date of acquisition and the related impact on underlying business performance and trends. While these intangible assets contribute to the Company's revenue generation, the related revenue is not excluded. This adjusted diluted earnings per share measurement is not in accordance with US GAAP. It should not be considered a substitute for diluted earnings per share computed in accordance with US GAAP and may not be comparable to similarly titled measures reported by other companies. The following tables reconcile diluted net income per share computed in accordance with US GAAP to adjusted diluted net income per share.

Year Ending

Three Months Ended

Six Months Ended

December 31, 2026

June 30, 2026

June 30, 2026

(after-tax guidance)

Pre-Tax

Tax

Effect (1)

After-Tax

Pre-Tax

Tax

Effect (1)

After-Tax

Low

High

Diluted net income per share

$   3.43

$   5.58

$  10.92

$  11.32

Acquisition-related amortization expense (2)

$    .27

$    .07

.20

$    .53

$    .13

.40

.81

.81

Severance and other restructuring expenses

.10

.03

.07

.10

.03

.07

.07

.07

Adjusted diluted net income per share

$   3.70

$   6.05

$  11.80

$  12.20

Three Months Ended

Six Months Ended

Year Ended

June 30, 2025

June 30, 2025

December 31, 2025

Pre-Tax

Tax

Effect (1)

After-Tax

Pre-Tax

Tax

Effect (1)

After-Tax

Pre-Tax

Tax

Effect (1)

After-Tax

Diluted net income per share

$   3.00

$   5.00

$ 10.26

Acquisition-related amortization expense (2)

$    .26

$    .06

.20

$    .51

$    .13

.38

$   1.03

$    .25

.78

Severance and other restructuring expenses

.23

.05

.18

.31

.07

.24

.44

.10

.34

Trademark impairment

—

—

—

—

—

—

.07

.02

.05

Adjusted diluted net income per share

$   3.38

$   5.62

$ 11.43

(1)

The tax effect is calculated based on the statutory rate and the nature of the item, unless otherwise noted.

(2)

Acquisition-related amortization expense, which is included within Selling, general and administrative expenses, consists of the amortization of intangible assets related to the Valspar acquisition. These intangible assets are primarily customer relationships and intellectual property and are being amortized over their remaining useful lives.

Management believes that investors' understanding of the Company's operating performance is enhanced by the disclosure of EBITDA, which is a non-GAAP financial measure defined as Net income before Interest expense, Income taxes, depreciation and amortization, as well as Adjusted EBITDA, which is a non-GAAP financial measure that excludes certain adjustments that management further believes enhances investors' understanding of the Company's operating performance. The reader is cautioned that the Company's EBITDA and Adjusted EBITDA should not be compared to other entities unknowingly. Further, EBITDA and Adjusted EBITDA should not be considered alternatives to Net income as an indicator of operating performance. The following table reconciles Net income computed in accordance with US GAAP to EBITDA and Adjusted EBITDA, as applicable.

(millions of dollars)

Three Months

Three Months

Six Months

Ended

Ended

Ended

March 31, 2026

June 30, 2026

June 30, 2026

Net income

$          534.7

$            843.6

$          1,378.3

Interest expense

131.6

135.9

267.5

Income taxes

145.1

268.9

414.0

Depreciation

98.3

98.5

196.8

Amortization

88.5

87.9

176.4

EBITDA

$          998.2

$          1,434.8

$          2,433.0

Severance and other restructuring expenses

—

23.8

23.8

Adjusted EBITDA

$          998.2

$          1,458.6

$          2,456.8

Three Months

Three Months

Six Months

Ended

Ended

Ended

March 31, 2025

June 30, 2025

June 30, 2025

Net income

$          503.9

$            754.7

$          1,258.6

Interest expense

103.8

112.4

216.2

Income taxes

149.1

231.0

380.1

Depreciation

79.9

79.3

159.2

Amortization

81.0

83.4

164.4

EBITDA

$          917.7

$          1,260.8

$          2,178.5

Severance and other restructuring expenses

19.3

59.0

78.3

Adjusted EBITDA

$          937.0

$          1,319.8

$          2,256.8

Management believes that investors' understanding of the Company's operating performance and ability to generate shareholder value is enhanced by the disclosure of free cash flow conversion. Free cash flow, which is a non-GAAP financial measure, is defined as Net operating cash less Capital expenditures. Free cash flow conversion, which is a non-GAAP financial measure, is defined as free cash flow divided by EBITDA, another non-GAAP financial measure discussed and reconciled above. The reader is cautioned that free cash flow and free cash flow conversion should not be compared to other entities unknowingly. Further, free cash flow and free cash flow conversion should not be considered alternatives to Net operating cash as determined in accordance with GAAP. The following table reconciles Net operating cash computed in accordance with US GAAP to free cash flow and free cash flow conversion.

(millions of dollars)

Three Months

Ended

June 30, 2026

Net operating cash

$        1,347.5

Capital expenditures

(108.4)

Free cash flow

$        1,239.1

EBITDA

$        1,434.8

Free cash flow conversion

86 %

The Sherwin-Williams Company and Subsidiaries

Selected Information (Unaudited)

(millions of dollars, except store count data)

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Depreciation

$        98.5

$        79.3

$      196.8

$      159.2

Capital expenditures

108.4

181.5

246.7

370.8

Cash dividends

197.5

197.9

394.6

398.3

Amortization of intangibles

87.9

83.4

176.4

164.4

Significant components of Other general expense - net:

Provisions for environmental related matters - net

$         3.3

$         0.4

$         3.4

$         3.5

Loss (gain) on sale or disposition of assets

0.1

(1.3)

(1.8)

(3.4)

Other

—

7.2

8.1

15.1

Significant components of Other (income) expense - net:

Investment gains

$        (9.7)

$        (6.3)

$        (6.4)

$        (9.5)

Foreign currency transaction related losses (gains) - net

0.3

13.1

(5.5)

23.1

Other (1)

(2.7)

(2.1)

(4.2)

(6.0)

Store Count Data:

Paint Stores Group - net new stores

(6)

20

(12)

38

Paint Stores Group - total stores

4,841

4,811

4,841

4,811

Consumer Brands Group - net new stores

—

(28)

1

(22)

Consumer Brands Group - total stores

308

312

308

312

Performance Coatings Group - net new branches

—

—

—

—

Performance Coatings Group - total branches

317

324

317

324

(1) Consists of items of revenue, gains, expenses and losses unrelated to the primary business purpose of the Company.

SOURCE The Sherwin-Williams Company

Posted by Defense World Staff on Jul 24th, 2026

Bank of Nova Scotia lifted its position in shares of The Sherwin-Williams Company (NYSE:SHW – Free Report) by 37.6% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 305,135 shares of the specialty chemicals company’s stock after buying an additional 83,370 shares during the quarter. Bank of Nova Scotia owned approximately 0.12% of Sherwin-Williams worth $97,814,000 at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. Vanguard Group Inc. boosted its stake in shares of Sherwin-Williams by 2.7% during the fourth quarter. Vanguard Group Inc. now owns 23,237,824 shares of the specialty chemicals company’s stock valued at $7,529,752,000 after purchasing an additional 600,119 shares in the last quarter. State Street Corp lifted its holdings in Sherwin-Williams by 2.4% during the fourth quarter. State Street Corp now owns 15,638,974 shares of the specialty chemicals company’s stock worth $5,067,497,000 after buying an additional 364,832 shares during the period. Geode Capital Management LLC lifted its holdings in Sherwin-Williams by 0.7% during the fourth quarter. Geode Capital Management LLC now owns 5,231,615 shares of the specialty chemicals company’s stock worth $1,687,498,000 after buying an additional 37,145 shares during the period. Norges Bank bought a new stake in Sherwin-Williams during the 4th quarter valued at $1,089,450,000. Finally, Viking Global Investors LP increased its holdings in shares of Sherwin-Williams by 10.1% in the 4th quarter. Viking Global Investors LP now owns 3,172,308 shares of the specialty chemicals company’s stock valued at $1,027,923,000 after acquiring an additional 291,217 shares during the period. Hedge funds and other institutional investors own 77.67% of the company’s stock.

Wall Street Analyst Weigh In A number of equities research analysts recently weighed in on SHW shares. Weiss Ratings cut Sherwin-Williams from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, July 17th. Bank of America cut their target price on Sherwin-Williams from $370.00 to $365.00 and set a “neutral” rating on the stock in a research note on Tuesday, April 21st. Citigroup assumed coverage on shares of Sherwin-Williams in a research report on Wednesday, June 24th. They issued an “overweight” rating on the stock. Wells Fargo & Company decreased their target price on shares of Sherwin-Williams from $365.00 to $350.00 and set an “equal weight” rating for the company in a research report on Wednesday, April 29th. Finally, BMO Capital Markets raised their target price on shares of Sherwin-Williams from $355.00 to $400.00 and gave the company an “outperform” rating in a research note on Monday, July 6th. Seven investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat.com, Sherwin-Williams presently has a consensus rating of “Moderate Buy” and a consensus price target of $373.92.

Get Our Latest Stock Analysis on Sherwin-Williams

Sherwin-Williams Trading Down 3.0% Shares of NYSE:SHW opened at $310.39 on Friday. The business’s 50-day moving average is $320.37 and its 200 day moving average is $332.32. The company has a debt-to-equity ratio of 2.10, a current ratio of 0.86 and a quick ratio of 0.53. The Sherwin-Williams Company has a 1 year low of $289.86 and a 1 year high of $379.65. The firm has a market capitalization of $76.56 billion, a P/E ratio of 29.79, a P/E/G ratio of 2.48 and a beta of 1.10.

Sherwin-Williams (NYSE:SHW – Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The specialty chemicals company reported $2.35 earnings per share for the quarter, topping the consensus estimate of $2.27 by $0.08. Sherwin-Williams had a return on equity of 64.55% and a net margin of 10.86%.The business had revenue of $5.67 billion during the quarter, compared to the consensus estimate of $5.56 billion. During the same quarter last year, the company earned $2.25 earnings per share. The company’s quarterly revenue was up 6.9% on a year-over-year basis. Sherwin-Williams has set its FY 2026 guidance at 11.500-11.900 EPS. On average, research analysts predict that The Sherwin-Williams Company will post 11.78 earnings per share for the current fiscal year.

Sherwin-Williams Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Friday, September 11th. Shareholders of record on Friday, August 21st will be given a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Friday, August 21st. Sherwin-Williams’s payout ratio is currently 30.71%.

About Sherwin-Williams (Free Report)

Sherwin-Williams (NYSE: SHW) is a global manufacturer and distributor of paints, coatings and related products. Founded in 1866 and headquartered in Cleveland, Ohio, the company supplies a broad range of coatings for residential, commercial and industrial applications. Its product offering includes architectural paints and stains, industrial and protective coatings, automotive finishes, and a variety of sundry products such as primers, sealants and specialty treatments used by professionals and consumers.

The company sells through multiple channels, including a large network of company-operated retail paint stores that serve professional contractors and do-it-yourself consumers, as well as through distributors and mass retailers.

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CLEVELAND, July 22, 2026 /PRNewswire/ -- The Board of Directors of The Sherwin-Williams Company (NYSE: SHW) today announced a regular quarterly dividend of $0.80 per common share, payable on September 11, 2026, to shareholders of record on August 21, 2026.

Investor Relations Contacts:

Media Contact: 

Jim Jaye

Julie Young

Senior Vice President, Investor Relations &

Vice President, Global Corporate

Corporate Communications

 Communications

Sherwin-Williams

Sherwin-Williams

Direct:  216.515.8682

Direct:  216.515.8849

[email protected]

[email protected] 

Eric Swanson

Vice President, Investor Relations

Sherwin-Williams

Direct:  216.566.2766

[email protected] 

SOURCE The Sherwin-Williams Company

Posted by Defense World Staff on Jul 21st, 2026

Bessemer Group Inc. cut its position in shares of The Sherwin-Williams Company (NYSE:SHW – Free Report) by 97.3% during the 1st quarter, according to the company in its most recent filing with the SEC. The firm owned 16,519 shares of the specialty chemicals company’s stock after selling 592,553 shares during the quarter. Bessemer Group Inc.’s holdings in Sherwin-Williams were worth $5,297,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors also recently modified their holdings of SHW. Norges Bank bought a new position in Sherwin-Williams during the fourth quarter valued at about $1,089,450,000. Viking Global Investors LP raised its position in Sherwin-Williams by 101.4% in the second quarter. Viking Global Investors LP now owns 1,957,750 shares of the specialty chemicals company’s stock worth $672,213,000 after acquiring an additional 985,520 shares in the last quarter. Balyasny Asset Management L.P. lifted its holdings in Sherwin-Williams by 53,827.1% in the 4th quarter. Balyasny Asset Management L.P. now owns 662,225 shares of the specialty chemicals company’s stock valued at $214,581,000 after acquiring an additional 660,997 shares during the last quarter. Vanguard Group Inc. lifted its holdings in Sherwin-Williams by 2.7% in the 4th quarter. Vanguard Group Inc. now owns 23,237,824 shares of the specialty chemicals company’s stock valued at $7,529,752,000 after acquiring an additional 600,119 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Sherwin-Williams by 34.0% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,023,949 shares of the specialty chemicals company’s stock valued at $655,820,000 after purchasing an additional 513,126 shares in the last quarter. Institutional investors own 77.67% of the company’s stock.

Wall Street Analysts Forecast Growth Several analysts recently commented on SHW shares. Weiss Ratings lowered shares of Sherwin-Williams from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday. JPMorgan Chase & Co. dropped their price target on Sherwin-Williams from $385.00 to $365.00 and set an “overweight” rating on the stock in a report on Wednesday, April 29th. Zacks Research upgraded Sherwin-Williams from a “strong sell” rating to a “hold” rating in a research report on Tuesday, March 31st. UBS Group lowered Sherwin-Williams from a “buy” rating to a “neutral” rating and reduced their price objective for the stock from $385.00 to $330.00 in a research note on Tuesday, June 2nd. Finally, Royal Bank Of Canada restated an “outperform” rating and issued a $405.00 target price (up from $391.00) on shares of Sherwin-Williams in a report on Wednesday, July 8th. Eight research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $374.38.

View Our Latest Analysis on SHW

Sherwin-Williams Stock Down 2.2% SHW stock opened at $323.98 on Tuesday. The company has a debt-to-equity ratio of 2.10, a current ratio of 0.86 and a quick ratio of 0.53. The firm has a market capitalization of $79.91 billion, a P/E ratio of 31.09, a P/E/G ratio of 2.86 and a beta of 1.10. The Sherwin-Williams Company has a 52-week low of $289.86 and a 52-week high of $379.65. The company’s 50 day simple moving average is $319.95 and its 200-day simple moving average is $332.52.

Sherwin-Williams (NYSE:SHW – Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The specialty chemicals company reported $2.35 earnings per share for the quarter, topping the consensus estimate of $2.27 by $0.08. Sherwin-Williams had a net margin of 10.86% and a return on equity of 64.55%. The firm had revenue of $5.67 billion for the quarter, compared to analysts’ expectations of $5.56 billion. During the same period in the previous year, the company posted $2.25 EPS. The company’s quarterly revenue was up 6.9% compared to the same quarter last year. Sherwin-Williams has set its FY 2026 guidance at 11.500-11.900 EPS. As a group, equities research analysts anticipate that The Sherwin-Williams Company will post 11.78 EPS for the current year.

Sherwin-Williams Announces Dividend The firm also recently declared a quarterly dividend, which was paid on Friday, June 5th. Investors of record on Friday, May 22nd were given a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend was Friday, May 22nd. Sherwin-Williams’s payout ratio is presently 30.71%.

Sherwin-Williams Profile (Free Report)

Sherwin-Williams (NYSE: SHW) is a global manufacturer and distributor of paints, coatings and related products. Founded in 1866 and headquartered in Cleveland, Ohio, the company supplies a broad range of coatings for residential, commercial and industrial applications. Its product offering includes architectural paints and stains, industrial and protective coatings, automotive finishes, and a variety of sundry products such as primers, sealants and specialty treatments used by professionals and consumers.

The company sells through multiple channels, including a large network of company-operated retail paint stores that serve professional contractors and do-it-yourself consumers, as well as through distributors and mass retailers.

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Posted by Defense World Staff on Jul 19th, 2026

Copeland Capital Management LLC trimmed its position in The Sherwin-Williams Company (NYSE:SHW – Free Report) by 97.3% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,027 shares of the specialty chemicals company’s stock after selling 36,415 shares during the quarter. Copeland Capital Management LLC’s holdings in Sherwin-Williams were worth $329,000 as of its most recent SEC filing.

Several other hedge funds have also made changes to their positions in SHW. Assetmark Inc. grew its position in Sherwin-Williams by 0.7% in the first quarter. Assetmark Inc. now owns 33,178 shares of the specialty chemicals company’s stock worth $10,635,000 after acquiring an additional 232 shares during the period. Angeles Wealth Management LLC increased its stake in Sherwin-Williams by 0.4% during the first quarter. Angeles Wealth Management LLC now owns 12,152 shares of the specialty chemicals company’s stock worth $3,895,000 after acquiring an additional 46 shares during the last quarter. Allspring Global Investments Holdings LLC raised its position in Sherwin-Williams by 22.6% in the first quarter. Allspring Global Investments Holdings LLC now owns 263,709 shares of the specialty chemicals company’s stock valued at $85,890,000 after purchasing an additional 48,540 shares during the period. Independent Financial Group LLC purchased a new stake in Sherwin-Williams in the first quarter valued at $1,535,000. Finally, Aware Super Pty Ltd as trustee of Aware Super acquired a new position in shares of Sherwin-Williams in the 1st quarter valued at $20,087,000. Hedge funds and other institutional investors own 77.67% of the company’s stock.

Sherwin-Williams Trading Down 1.9% Shares of NYSE SHW opened at $331.57 on Friday. The Sherwin-Williams Company has a twelve month low of $289.86 and a twelve month high of $379.65. The company has a current ratio of 0.86, a quick ratio of 0.53 and a debt-to-equity ratio of 2.10. The stock has a fifty day simple moving average of $319.72 and a 200-day simple moving average of $332.48. The stock has a market capitalization of $81.78 billion, a PE ratio of 31.82, a PEG ratio of 2.86 and a beta of 1.10.

Sherwin-Williams (NYSE:SHW – Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The specialty chemicals company reported $2.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.27 by $0.08. Sherwin-Williams had a return on equity of 64.55% and a net margin of 10.86%.The firm had revenue of $5.67 billion for the quarter, compared to the consensus estimate of $5.56 billion. During the same quarter in the previous year, the business earned $2.25 EPS. The company’s quarterly revenue was up 6.9% compared to the same quarter last year. Sherwin-Williams has set its FY 2026 guidance at 11.500-11.900 EPS. On average, equities analysts forecast that The Sherwin-Williams Company will post 11.78 earnings per share for the current year.

Sherwin-Williams Announces Dividend The firm also recently declared a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 22nd were given a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend was Friday, May 22nd. Sherwin-Williams’s dividend payout ratio is currently 30.71%.

Wall Street Analyst Weigh In A number of equities analysts have recently weighed in on SHW shares. Weiss Ratings cut Sherwin-Williams from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday. Citigroup initiated coverage on shares of Sherwin-Williams in a research report on Wednesday, June 24th. They issued an “overweight” rating on the stock. BMO Capital Markets increased their target price on shares of Sherwin-Williams from $355.00 to $400.00 and gave the stock an “outperform” rating in a research note on Monday, July 6th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $405.00 target price (up from $391.00) on shares of Sherwin-Williams in a research note on Wednesday, July 8th. Finally, UBS Group cut shares of Sherwin-Williams from a “buy” rating to a “neutral” rating and dropped their price target for the company from $385.00 to $330.00 in a research report on Tuesday, June 2nd. Eight investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, Sherwin-Williams presently has a consensus rating of “Moderate Buy” and an average target price of $374.38.

View Our Latest Stock Report on SHW

Sherwin-Williams Company Profile (Free Report)

Sherwin-Williams (NYSE: SHW) is a global manufacturer and distributor of paints, coatings and related products. Founded in 1866 and headquartered in Cleveland, Ohio, the company supplies a broad range of coatings for residential, commercial and industrial applications. Its product offering includes architectural paints and stains, industrial and protective coatings, automotive finishes, and a variety of sundry products such as primers, sealants and specialty treatments used by professionals and consumers.

The company sells through multiple channels, including a large network of company-operated retail paint stores that serve professional contractors and do-it-yourself consumers, as well as through distributors and mass retailers.

Featured Articles Five stocks we like better than Sherwin-Williams Netflix May Be Cheap Enough to Tempt Buyers After Earnings Drop Delta vs. United: Which Airline Is Better Built for Higher Fuel Costs? The Market Sold Alcoa After Earnings—But It May Be Missing the Real Story Why Intuitive Surgical’s Strong Quarter Still Spooked Investors Want to see what other hedge funds are holding SHW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Sherwin-Williams Company (NYSE:SHW – Free Report).

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Remember when the biggest market worry was whether Samsung's (SSNLF +0.00%) earnings were too good? That was Tuesday, aka ages ago. By Wednesday, investors have moved on to weightier concerns such as whether the United States and Iran are about to resume full-scale hostilities.

President Trump declared the interim cease-fire "over" at a NATO summit in Turkey, and Wall Street took the news about as well as expected. The Dow Jones Industrial Average (^DJI 1.05%) fell 1.4% by 12:27 p.m. ET, bearing the brunt of the sell-off. The S&P 500 (^GSPC 0.36%) and Nasdaq Composite (^IXIC 0.13%) indexes each declined 0.7%.

^IXIC data by YCharts

Iran escalation sends oil higher and stocks lower Oil had another good day, which means something probably caught fire again. Sure enough, the Strait of Hormuz remains a mess. Ship traffic through the critical waterway had just started recovering when Tuesday's tanker attacks and subsequent U.S. strikes threw the region back into chaos. The United States Oil Fund (USO +2.42%) jumped 4.4% as Brent crude climbed above $78 per barrel.

The Dow's underperformance relative to the tech-heavy Nasdaq reflects the composition of today's losers.

Goldman Sachs (GS 1.55%) dropped 2.8%, erasing roughly 176 points from the index by itself. Honeywell International (HON 1.53%) continued its post-spinoff slide, falling another 9.7% after losing 8.5% on Tuesday. Sherwin-Williams (SHW 3.24%), Home Depot (HD 2.45%), and American Express (AXP 4.12%) each shed more than 3%. Only six Dow stocks were trading in the green as of this writing.

Image source: Getty Images.

Meanwhile, semiconductor stocks decided they'd had enough of the doom and gloom. The iShares Semiconductor ETF (SOXX +1.87%) rose 1%, breaking a three-day losing streak. Broadcom (AVGO +5.09%) led the charge with a 3.7% gain. Micron Technology (MU +0.07%) traded flat, which counts as a stabilizing victory after losing 7% yesterday.

Alphabet (GOOGL 2.30%) and Amazon (AMZN 1.64%) weren't so lucky, falling 1.9% and 2%, respectively.

And investors lost interest in safe havens despite the turmoil in Iran. Gold (GLD 1.06%) fell 1.75%, and Bitcoin (BTC 2.79%) dropped 3%. When both gold and crypto sell off during geopolitical turmoil, it usually means investors are being extra careful with their money. Who needs a safe investment when you can just convert your assets to cash, right?

Today's Change

(

-1.05

%) $

-556.58

Current Price

$

52,368.57

What comes next? The market's attention span is remarkably short. Just yesterday, everyone was convinced AI had peaked because Samsung made too much money. Today's semiconductor bounce suggests the "peak AI" panic may have been premature. It wouldn't be the first time Wall Street jumps to conclusions, only to reverse course right away.

The situation in the Persian Gulf remains fluid. Funeral processions for Iran's Supreme Leader Khamenei are scheduled to conclude July 9, after which negotiations could theoretically resume. But Trump's comments at the NATO summit in Turkey suggest the administration has little interest in returning to the table soon. And both sides are taking military action at the moment. The ceasefire looks fragile, to be polite.

For long-term investors, days like today are noise. For everyone else, buckle up. The road ahead looks bumpy.

American Express is an advertising partner of Motley Fool Money. Anders Bylund has positions in Alphabet, Amazon, American Express, Bitcoin, and Micron Technology. The Motley Fool has positions in and recommends Alphabet, Amazon, American Express, Bitcoin, Broadcom, Goldman Sachs Group, Home Depot, Honeywell Technologies, Micron Technology, and iShares Trust-iShares Semiconductor ETF. The Motley Fool recommends Sherwin-Williams. The Motley Fool has a disclosure policy.

On June 24, 2026, we present a DCF analysis for Sherwin-Williams Co SHW , a company that has experienced a mixed price performance recently, with a year-to-date change of +0.1% and a one-year decline of -5.2%. Below are key highlights from our analysis:

DCF Earnings-based intrinsic value of $218.38 compared to current price of $322.90 (margin of safety: -47.9%) DCF FCF-based intrinsic value of $167.65 compared to current price (second opinion: -92.6% margin of safety) GF Score™ of 87/100 indicates a strong reliability of the DCF inputs What Is SHW Worth? DCF Earnings-Based Model To determine the intrinsic value of Sherwin-Williams Co SHW , we employed a two-stage DCF model. The first stage accounts for a growth phase over the next ten years, while the second stage considers a terminal phase extending an additional ten years.

Parameter Value Current EPS (TTM, excl. non-recurring) $11.55 10-Year Growth Rate 12.5% 10-Year Treasury Rate 4.49% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the growth phase (Years 1-10), we project that EPS will grow at a rate of 12.5% per year, which is then discounted at a rate of 11%. The calculated value for this growth stage is $124.44 per share. Following this, in the terminal phase (Years 11-20), we assume a slower growth rate of 4%, also discounted at 11%, yielding a terminal stage value of $93.94 per share.

Stage Description Value Growth Stage (Years 1-10) EPS growing at 12.5%, discounted at 11% $124.44 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $93.94 Intrinsic Value Growth + Terminal $218.38 With the current price at $322.90, the intrinsic value of $218.38 indicates that the stock is modestly overvalued, reflecting a margin of safety of -47.9%. It is important to note that GuruFocus uses EPS without non-recurring items, as research shows that stock prices correlate more closely with earnings than with free cash flow. For further calculations, you can visit the SHW DCF Calculator.

What Does the Free Cash Flow DCF Say? In addition to the earnings-based model, we also evaluated Sherwin-Williams using a free cash flow (FCF) DCF model. The intrinsic value derived from this approach is $167.65 per share. When comparing this FCF-based value to the earnings-based value of $218.38, we find that both models indicate the stock is modestly overvalued, with a margin of safety of -92.6% for the FCF model.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for Sherwin-Williams is $354.78, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure calculated from historical trading multiples, past business growth, and future performance estimates. While the DCF models suggest the stock is overvalued, the GF Value™ indicates it is undervalued, leading to a divergence in valuation perspectives. For more details, visit the GF Value™ page.

What Does SHW's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested from 2006 to 2021).

Metric Rating GF Score™ 87/100 Financial Strength 5/10 Profitability 9/10 Growth 8/10 Valuation 10/10 Momentum 5/10 The predictability rank for Sherwin-Williams is 2/5 stars, indicating that the DCF model may be less reliable for this stock. For more information, visit the SHW stock page.

Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Additionally, stocks with low predictability ratings tend to produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not reflect actual future growth.

What This Means for Investors In summary, the three valuation models—DCF earnings, DCF FCF, and GF Value™—present a mixed picture for Sherwin-Williams. The DCF models indicate that the stock is overvalued, while the GF Value™ suggests it is undervalued. Overall, the consensus leans towards the stock being overvalued. For the full DCF analysis, visit the SHW DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is SHW's intrinsic value based on DCF?

[Answer: earnings-based $218.38, FCF-based $167.65]

Is SHW overvalued or undervalued?

[Answer using DCF + GF Value™ consensus]

How reliable is the DCF model for SHW?

[Answer using predictability rank 2/5]

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

For the quarter ended March 2026, Sherwin-Williams (SHW - Free Report) reported revenue of $5.67 billion, up 6.8% over the same period last year. EPS came in at $2.35, compared to $2.25 in the year-ago quarter.

The reported revenue represents a surprise of +1.79% over the Zacks Consensus Estimate of $5.57 billion. With the consensus EPS estimate being $2.24, the EPS surprise was +4.91%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Sherwin-Williams performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net New Stores - Paint Stores Group: -6 versus the two-analyst average estimate of 17.Total stores - Paint Stores Group: 4,847 versus 4,870 estimated by two analysts on average.Net Sales- Paint Stores Group: $3.05 billion versus the four-analyst average estimate of $3.01 billion. The reported number represents a year-over-year change of +3.8%.Net Sales- Consumer Brands Group: $908.3 million versus $880.66 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +19.2% change.Net Sales- Performance Coatings Group: $1.71 billion versus $1.68 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +6.5% change.Net Sales- Administrative: $2.9 million compared to the $1.41 million average estimate based on three analysts. The reported number represents a change of +70.6% year over year.Segment Profit- Paint Stores Group: $558.8 million versus $563.21 million estimated by four analysts on average.Adjusted segment profit- Performance Coatings Group (PCG): $281.5 million versus $288.84 million estimated by four analysts on average.Adjusted segment profit- Consumer Brands Group (CBG): $212.8 million versus $171.48 million estimated by four analysts on average.View all Key Company Metrics for Sherwin-Williams here>>>

Shares of Sherwin-Williams have returned +6.4% over the past month versus the Zacks S&P 500 composite's +12.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

The Sherwin-Williams Company (SHW) Q1 2026 Earnings Call Transcript