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