Last Updated: 3 November 2026
The Sherwin-Williams Company (NYSE: SHW) is the largest paint and coatings company in the Americas, selling mainly through its own network of 4,853 Paint Stores Group locations as well as home centres, dealers and industrial customers worldwide. FY2025 net sales rose 2.1% to a record $23,574.3m, with adjusted diluted EPS of $11.43. On 27 Oct 2026 the company reported Q3 2026 sales up 7.9% to $6,860.0m, helped by the Suvinil acquisition in Brazil, but trimmed the top of its full-year GAAP EPS range and kept its adjusted EPS midpoint at $12.00 as North American DIY and housing demand stayed weak. This refresh uses Sherwin-Williams' own releases and SEC filings.
1. Company Snapshot
| Field | Value |
|---|---|
| Company | The Sherwin-Williams Company |
| Ticker / Exchange | SHW / NYSE |
| Sector | Materials (paints and coatings) |
| CEO / Leadership | Heidi G. Petz (Chair, President & CEO); Benjamin E. Meisenzahl (SVP-Finance & CFO since 01 Jan 2026) |
| Employees | 64,249 at 31 Dec 2025, about 73% in the US (FY2025 10-K) |
| Headquarters | Cleveland, Ohio (new global HQ placed in service in Q3 2025) |
| Revenue (FY2025) | Net sales $23,574.3m (+2.1%) |
| Net income (FY2025) | $2,568.5m; GAAP diluted EPS $10.26, adjusted diluted EPS $11.43 |
| Latest quarter (Q3 2026) | Net sales $6,860.0m (+7.9%); GAAP EPS $3.38; adjusted EPS $3.63 |
| Market cap | ~$84.6bn ($352.37 close on 02 Nov 2026 × ~240.2m shares) |
| Dividend | $0.80 per quarter ($3.20 annualised); 2025 was the 47th consecutive annual increase |
2. Investment Thesis: Bull vs Bear
Bull Case
- Unmatched store network: Paint Stores Group supplied 57.7% of FY2025 sales ($13,605.9m) and $3,061.5m of segment profit through 4,853 company-operated stores serving professional painters.
- Pricing power: An 8% Paint Stores Group price increase took effect on 01 Sep 2026, and management said on the Q3 call it was tracking as planned, with full benefit expected in the first half of 2027.
- Long dividend record: 2025 marked 47 consecutive years of dividend increases, and the quarterly dividend rose to $0.80 in Jan 2026.
- Cash generation and buybacks: FY2025 operating cash flow was $3,451.6m, and in the first nine months of 2026 the company returned $2.98bn to shareholders, including $2,357.1m of share repurchases.
- Sales growth from Suvinil: Net sales rose 6.8%, 7.5% and 7.9% in the first three quarters of 2026, with the Brazilian Suvinil business (about $525m of annual sales) annualising on 01 Oct 2026.
Bear Case
- Weak end markets into 2027: Management describes North American DIY demand as muted and expects demand to stay soft into 2027, with Consumer Brands Group volume down by a mid-single-digit percentage in Q3 2026.
- Margin pressure: Q3 2026 gross margin fell to 47.8% from 49.2%, and Consumer Brands Group adjusted segment margin dropped to 18.3% from 23.3%.
- Earnings growth stalled: Q3 2026 adjusted EPS rose only 1.1% to $3.63 on 7.9% higher sales, and the top end of full-year GAAP EPS guidance was cut to $11.22 from $11.32.
- Rising debt and interest: Total debt was $11,795.1m at 30 Sep 2026, including $3,852.4m due within a year, and nine-month interest expense rose to $406.8m from $333.4m.
3. Business Segments
Sherwin-Williams reports three segments. The split below uses FY2025 net sales of $23,574.3m from the FY2025 earnings release.
| Segment | % of revenue | What it is |
|---|---|---|
| Paint Stores Group | 57.7% ($13,605.9m) | 4,853 company-operated stores in the US, Canada and the Caribbean selling Sherwin-Williams architectural paint, protective and marine coatings and supplies to contractors and DIY customers. |
| Performance Coatings Group | 28.8% ($6,795.2m) | Industrial wood, general industrial, automotive refinish, protective and marine, coil and packaging coatings sold worldwide through 317 branches. |
| Consumer Brands Group | 13.4% ($3,166.4m) | Valspar, HGTV HOME, Dutch Boy, Krylon, Minwax, Thompson's, Cabot, Purdy and Suvinil products sold through home centres, hardware stores and dealers in North America, Latin America and Europe; also runs much of the group's manufacturing and distribution. |
| Administrative | <0.1% ($6.8m) | Corporate and other items. |
Segment profit in FY2025 was $3,061.5m for Paint Stores Group, $942.7m for Performance Coatings Group and $509.6m for Consumer Brands Group.
4. Business Model & Moat
How it makes money. Sherwin-Williams makes most of its own paint and coatings and sells the majority of it directly to professional painters, contractors and property managers through its own stores, keeping both the manufacturing and the retail margin. About 63% of Consumer Brands Group's production is transferred internally, mostly for sale through the stores.
Distribution moat. A store base of 4,853 locations, which management aims to grow toward 6,000, puts product and colour-matching close to job sites, and the company offers credit, delivery and the PRO+ app to its professional customers. That network is hard for rivals that sell mainly through home centres to copy.
Capital allocation. At its 24 Sep 2026 investor meeting the company reaffirmed its mid-term targets, including capex below 2% of sales, a dividend of about 30% of prior-year GAAP EPS and a return on net assets employed rising from above 20% to the mid-20s. It has repurchased about 18% of its shares since 2017.
5. Financial Health
Annual figures come from Sherwin-Williams' 10-K filings (SEC XBRL) and year-end earnings releases. Adjusted EPS excludes Valspar acquisition amortisation, severance and restructuring and other items the company identifies. Long-term debt is the year-end balance excluding the current portion and short-term borrowings.
| Fiscal Year | Revenue ($m) | YoY % | GAAP EPS | Adjusted EPS | Dividend/share | Long-term debt (YE) |
|---|---|---|---|---|---|---|
| FY2021 | $19,944.6m | +8.6% | $6.98 | $8.15 | $2.20 | $8,590.9m |
| FY2022 | $22,148.9m | +11.1% | $7.72 | $8.73 | $2.40 | $9,591.0m |
| FY2023 | $23,051.9m | +4.1% | $9.25 | $10.35 | $2.42 | $8,377.9m |
| FY2024 | $23,098.5m | +0.2% | $10.55 | $11.33 | $2.86 | $8,176.8m |
| FY2025 | $23,574.3m | +2.1% | $10.26 | $11.43 | $3.16 | $9,320.7m |
Quarterly results, most recent first.
| Quarter / Half | Revenue | Adjusted EPS | GAAP EPS |
|---|---|---|---|
| Q3 2026 | $6,860.0m | $3.63 | $3.38 |
| Q2 2026 | $6,789.3m | $3.70 | $3.43 |
| Q1 2026 | $5,666.9m | $2.35 | $2.15 |
| Q4 2025 | $5,595.9m | $2.23 | $1.92 |
| Q3 2025 | $6,358.2m | $3.59 | $3.35 |
| Q2 2025 | $6,314.5m | $3.38 | $3.00 |
| Q1 2025 | $5,305.7m | $2.25 | $2.00 |
| FY2025 total | $23,574.3m | $11.43 | $10.26 |
Cash flow and balance sheet. FY2025 operating cash flow was $3,451.6m and capital expenditure $797.6m, giving free cash flow of $2,654.0m; depreciation was $340.3m and amortisation $336.6m ($676.9m in total). FY2025 EBITDA as reported by the company was $4,480.1m. In the first nine months of 2026 operating cash flow was $2,591.1m and capex $375.4m. At 30 Sep 2026 the company had $264.2m of cash against $2,353.6m of short-term borrowings, $1,498.8m of current long-term debt and $7,942.7m of long-term debt; shareholders' equity was $3,976.7m, and management puts net debt at 2.4x adjusted EBITDA. FY2026 guidance (27 Oct 2026) is for net sales up a mid- to high-single-digit percentage, GAAP EPS of $10.92–$11.22 and adjusted EPS of $11.85–$12.15. Follow the shares on ChartsView Live Charts.
6. Valuation
Raw metrics, November 2026. Not opinions on whether the stock is cheap or expensive.
| Metric | Value |
|---|---|
| Market cap | ~$84.6bn ($352.37 close on 02 Nov 2026 × ~240.2m shares outstanding) |
| Trailing P/E (GAAP) | ~32.4x ($352.37 / TTM GAAP EPS $10.88, Q4 2025 to Q3 2026). On TTM adjusted EPS of $11.91 the multiple is ~29.6x. |
| P/E (forward) | ~29.4x ($352.37 / $12.00, the midpoint of 2026 adjusted EPS guidance of $11.85–$12.15); ~31.8x on the GAAP guidance midpoint of $11.07 |
| P/S (TTM) | ~3.40x (~$84.6bn / TTM net sales $24,912.1m) |
| Enterprise value | ~$96.2bn (market cap ~$84.6bn + total debt ~$11.8bn [short-term borrowings $2,353.6m + current LT debt $1,498.8m + LT debt $7,942.7m] − cash ~$0.3bn, per 30 Sep 2026 balance sheet) |
| EV/EBITDA (TTM) | ~20.1x (EV ~$96.2bn / TTM EBITDA ~$4.78bn; EBITDA = TTM pre-tax income plus net interest, ~$4.03bn, + TTM depreciation and amortisation ~$0.75bn). On FY2025 company-reported EBITDA of $4,480.1m it is ~21.5x. |
| P/FCF | ~27.5x (~$84.6bn / TTM FCF ~$3.08bn; FCF = TTM operating CF $3,683.6m − capex $605.8m). On FY2025 FCF of $2,654.0m it is ~31.9x. |
| Dividend yield | ~0.9% ($3.20 annualised / $352.37) |
| 52-week high | $377.77 |
| 52-week low | $289.86 |
| Short interest (% of float) | 2.92% (6.59m shares, latest report, Finviz) |
| Days to cover | 3.9 |
7. What Are They Building
- Store expansion: 57 gross new stores opened in the first nine months of 2026, offset by targeted closures. Management expects net additions of 80–100 stores a year to resume from 2027, toward a milestone of 6,000 locations.
- Manufacturing capacity: The expanded Statesville, North Carolina plant opened on 30 Sep 2026 as the company's largest in North America, with automation and four new rail spurs.
- New headquarters and R&D centre: The Cleveland global headquarters (under an $800m sale-leaseback) and the Global Technology Center in Brecksville are now in use.
- Suvinil integration: The Brazilian decorative paint business bought from BASF for about $1.15bn in Oct 2025 is being integrated into Consumer Brands Group.
- Bolt-on deals: In June 2026 the company bought a paint manufacturing business for about $75m, adding the Majic and Shur-Line brands and a plant in Cary, Illinois as part of an expanded partnership with Do it Best.
- Digital and AI tools: The internal "Ask Henry" AI assistant for sales staff, an AI-assisted Color Expert app, the PRO+ app for painters and AI-based demand planning.
- Cost programme: Restructuring actions are expected to save about $25m in 2026 and about $75m in 2027.
8. Peer Comparison
| Peer | Market cap (Nov 2026) | Key 2025 metric |
|---|---|---|
| PPG Industries (PPG) | ~$27.6bn | FY2025 net sales about $15.9bn, flat; adjusted EPS $7.58 (Q4 2025 release) |
| Masco (MAS), owner of Behr | ~$16.1bn | FY2025 net sales $7,562m (−3%) (Q4 2025 release) |
| RPM International (RPM) | ~$13.8bn | Fiscal 2025 net sales $7.37bn (+0.5%), year to 31 May 2025 (8-K release) |
| Akzo Nobel (AKZA, Amsterdam) | ~€10.6bn | FY2025 revenue €10,158m (−5%) (Q4 2025 release) |
| Axalta Coating Systems (AXTA) | ~$7.7bn | FY2025 net sales $5,117m (−3%) (Q4 2025 release) |
Market caps at the 2 Nov 2026 close. AkzoNobel and Axalta are merging in an all-share deal announced on 18 Nov 2025; shareholders of both approved it on 05 Aug 2026 and it awaits regulatory clearance. Earlier in 2026 AkzoNobel rejected joint cash offers from Sherwin-Williams and Nippon Paint, and both ended their pursuit on 03 Jun 2026.
9. Insider Activity
Chair, President and CEO Heidi Petz made no open-market purchases or sales in 2026; her filings were tax withholding on vested shares and an annual option grant. No insider bought shares in the open market in 2026, and none of the 2026 sales was made under a 10b5-1 plan. Transactions from Form 4 filings:
| Name | Date | Type | Shares | Price | Value | Plan Type |
|---|---|---|---|---|---|---|
| Heidi Petz (Chair, President & CEO) | 20 Oct 2026 | Option grant | 47,640 options | $335.04 strike | n/a (award) | Annual equity award |
| Justin Binns (President, Global Architectural) | 17 Aug 2026 | Option exercise & sale | 13,500 | $352.70 | ~$4.76m | Not under a 10b5-1 plan |
| Karl Jorgenrud (President, Global Industrial) | 07 Aug 2026 | Sale | 7,886 | $368.30 | ~$2.90m | Not under a 10b5-1 plan |
| Bryan Young (SVP, Corporate Strategy & Development) | 24 Feb 2026 | Sale | 2,513 | $364.47 | ~$0.92m | Not under a 10b5-1 plan |
| Heidi Petz (Chair, President & CEO) | 17 Feb 2026 | Shares withheld for tax on vesting | 7,494 | $368.59 | ~$2.76m | Tax withholding (not discretionary) |
| Colin Davie (President & GM, Global Supply Chain) | 02 Feb 2026 | Option exercise & sale | 2,976 | $359.50 | ~$1.07m | Not under a 10b5-1 plan |
On 02 Nov 2026 Chief Legal Officer Mary Garceau filed a Form 144 notice of a proposed sale of 3,891 shares from vested restricted stock.
10. Key Risks
- Housing and DIY demand (Macro): Single-family completions fell by a high-single-digit percentage in Q3 2026, and management expects demand to stay soft into 2027 with few positive catalysts.
- Raw-material and cost inflation (Operational): Management expects low- to mid-single-digit raw-material inflation in 2027, heaviest in the first half, on top of rising wage, healthcare and software costs.
- Leverage and refinancing (Financial): $11.8bn of total debt, with $3.85bn due within a year, leaves the company reliant on credit markets; the 24 Sep 2026 term loan carries a 3.75x leverage covenant against 2.4x reported net leverage.
- Lead pigment litigation (Legal): Wisconsin cases (Gibson, Valoe and Beal) remain active, liability under Wisconsin risk-contribution law can be joint and several, and no amounts are accrued.
- Tariffs and trade (Regulatory): The 10-K cites trade-policy shifts and tariffs on imported raw materials as risks to costs; the company has not quantified the impact.
- Large-deal appetite (Strategic): The failed 2026 bid for parts of AkzoNobel shows willingness to pursue big acquisitions, which could add debt and integration risk.
11. Recent Developments
- 02 Nov 2026 — Credit facility amended. An 8-K disclosed Amendment No. 2 to the company's credit agreement, adding $75m of commitments maturing on 20 Dec 2031.
- 27 Oct 2026 — Q3 2026 results. Net sales rose 7.9% to $6,860.0m, GAAP EPS rose 0.9% to $3.38 and adjusted EPS rose 1.1% to $3.63. Gross margin fell to 47.8%. Full-year GAAP EPS guidance was cut at the top to $10.92–$11.22 and adjusted guidance narrowed to $11.85–$12.15.
- 21 Oct 2026 — Dividend declared. The board declared a quarterly dividend of $0.80, payable on 04 Dec 2026 to holders of record on 13 Nov 2026.
- 30 Sep 2026 — Statesville expansion opens. The upgraded North Carolina plant became the company's largest in North America.
- 24 Sep 2026 — Investor meeting reaffirms targets. Management reaffirmed its mid-term financial targets and store growth plans in Cleveland, and the company signed a new $750m 364-day term loan.
- 01 Sep 2026 — Price increase takes effect. An 8% Paint Stores Group price increase announced with Q2 results came into force.
12. Key Dates
- 13 Nov 2026 — Record date (and ex-dividend date) for the $0.80 quarterly dividend
- 04 Dec 2026 — Quarterly dividend paid
- 15 Dec 2026 — Discovery deadline in the Gibson lead pigment case (federal court, Wisconsin)
- Expected Jan 2027 — Q4 and full-year 2026 results and 2027 outlook (FY2025 results were released on 29 Jan 2026; date not yet announced)
- Expected Apr 2027 — Q1 2027 results and annual meeting
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Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.
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13. Thesis Verdict
The central thesis. Sherwin-Williams makes paint and coatings and sells most of them directly to professional painters through 4,853 company-operated Paint Stores Group locations, alongside consumer brands sold through retailers and industrial coatings sold worldwide. FY2025 net sales rose 2.1% to a record $23,574.3m with adjusted EPS of $11.43, and 2026 guidance calls for sales up a mid- to high-single-digit percentage and adjusted EPS of $11.85–$12.15. The main near-term driver is the 8% Paint Stores Group price increase that took effect on 01 Sep 2026, with the full benefit expected in the first half of 2027.
What would confirm or break it. The case would be confirmed by the price increase sticking, gross margin recovering and net store growth resuming in 2027. It would be undermined by housing and DIY demand staying weak for longer, raw-material inflation squeezing margins further, or rising interest costs on $11.8bn of debt.
Watchpoints
- ConfirmsSubsequent earnings and filings reinforcing the figures presented in this report.
- ConfirmsEvidence supporting the "Unmatched store network:" thesis continuing to build across subsequent filings.
- InvalidatesMaterialisation of the "Housing and DIY demand (Macro):" risk, or any disclosure that fundamentally alters the capital-return or growth profile stated by management.
Diagnostic grid
Generated by ChartsView research tooling. Thesis strength measures how well the evidence in this report supports the company's stated thesis — it is NOT a buy/sell rating or price target. ChartsView is not authorised by the FCA to provide regulated investment advice. Generated 3 Nov 2026.
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