SHW:NYSE

Sherwin-Williams Company (The)

Data as of 2026-03-10 - not real-time

$333.40

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

The stock is trading below its 20‑day, 50‑day and 200‑day moving averages, with the RSI lingering in the low‑30s and a bearish MACD histogram, indicating short‑term pressure but also room for a technical bounce from the nearby support level. Volume remains stable and the broader market sentiment is in an "Extreme Greed" mode, which could add upward bias if earnings continue to beat expectations.
Fundamentally, the company delivers solid top‑line growth, high gross margins near 50% and an operating margin in the mid‑teens, while generating robust cash flow that comfortably covers its modest dividend payout. However, an elevated debt‑to‑equity ratio and a DCF‑derived fair value far below the current price signal a valuation stretch, even as analysts maintain a buy consensus and price targets suggest upside potential.

Trading Recommendations

Short Term

< 1 year
hold
Conviction: 6/10

Key Factors

  • price hovering just above multi‑month support
  • bearish MACD momentum offset by low RSI
  • stable trading volume amid elevated market greed

Medium Term

1–3 years
buy
Conviction: 8/10

Key Factors

  • analyst consensus remains buy with target price upside
  • consistent earnings growth and strong cash generation
  • modest dividend payout supported by cash flow

Long Term

> 3 years
buy
Conviction: 7/10

Key Factors

  • market‑leading brand and extensive distribution network
  • exceptionally high ROE despite leverage
  • sustainable dividend and resilient demand for specialty coatings

Key Metrics & Analysis

Financial Health

Revenue Growth5.60%
Profit Margin10.90%
P/E Ratio32.5
ROE59.39%
ROA9.61%
Debt/Equity306.06
P/B Ratio17.9
Op. Cash Flow$3.5B
Free Cash Flow$1.9B

Technical Analysis

TrendBullish
RSI33.9
Support$321.36
Resistance$377.77
MA 20$357.32
MA 50$350.88
MA 200$346.67
MACDBearish
VolumeStable
Fear & Greed Index75.89

Valuation

Fair Value$81.02
Target Price$388.14
Upside/Downside16.42%
GradeOvervalued
TypeBlend
Dividend Yield0.97%

Risk Assessment

Beta0.67
Volatility22.30%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies. Not financial advice. Always do your own research before making any investment decisions.