The Sherwin-Williams Company (SHW)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am asked to judge Sherwin-Williams as a business first and a stock second. The business is a paint and coatings maker and distributor serving professional, industrial and retail customers. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $6.8B, net income $843.6M and diluted EPS $3.43; that was better than fiscal Q2 2025's $6.3B, $754.7M and $3.00. For full fiscal year 2025, revenue was $23.6B and net income $2.6B, or $10.26 per diluted share, versus FY2024 revenue $23.1B, net income $2.7B and $10.55. So sales are growing, but profits have been uneven. The paint-store distribution and professional customer base are the kind of assets that can create a durable competitive advantage, and trailing free cash flow was $3.2B. Still, FairStock's calculations show a $335.16 close on 2026-10-26 against a P/E of 30.92, P/B of 20.99, PEG of 2.64, EV/EBITDA of 20.22 and FCF yield of 3.9%. The Graham Number is $62.23, a negative margin of safety of -441.64%. Financial health is mixed: D/E is 3.90, Altman Z-Score 2.52, Piotroski 7/9, ROE 65.12% but ROCE only 9.52%; the high ROE looks leveraged. FairStock score is 47/100 and the Lynch category is CYCLICAL — Specialty Chemicals, so earnings follow the economic cycle. I see a good business, but not a Graham bargain at this price.

In plain English: Sherwin-Williams makes and sells paint and coatings to professional, industrial and retail customers. The business looks generally strong, with growing sales, positive cash flow, high returns on shareholders' money, but also high debt. At $335.16 on 2026-10-26, the price looks expensive compared with the profits it produces, its accounting value, and an asset-based fair value estimate.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer