Sherwin-Williams SHW
Sherwin-Williams scores average on business quality (5.4 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Sherwin-Williams does
Sherwin-Williams manufactures and distributes paints, coatings, and related products. It sells directly to professional painters and DIY consumers through its massive branded store network.
- What it does best
Sherwin-Williams dominates architectural paint distribution through a captive store network of thousands of company-operated branches, driving a gross margin of 49% that dwarfs rivals like IFF at 38%.
- The main risk
High debt levels leave little room for error, with total debt of $11.1 billion weighing on a fragile balance sheet that scores a weak 4.4.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 16.3% and FCF margin is strong, driving an elite ROE of 62.1% that proves scale yields high returns.
A proprietary retail store network locks in professional contractors, backed by a gross margin in the top decile of its sector at the 90th percentile.
Revenue grew 2.1% to $24.4B, showing a sluggish growth pace that lands in the bottom sector half at the 38th percentile.
Debt-to-equity sits at 2.4, backed by interest coverage of 7.7x. Free cash flow reached $3.2B, but heavy debt means the balance sheet is softening.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
2 sold $7.7M outside pre-planned sales.
Our sealed record on SHW
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Sherwin-Williams scores average on the Cluenex quality check (5.4 of 10), measured against its own industry. Profitability is strong, moat strong, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: 2 sold $7.7M outside pre-planned sales.
Oct 27, 2026, before the open.
See SHW today
- Today's verdict on SHW, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Sherwin-Williams (SHW)”, https://cluenex.com/stocks/shw/, data as of Oct 10, 2026.