Sherwin Williams Current Valuation vs. Profit Margin

SHW Stock  USD 392.07  3.25  0.82%   
Based on Sherwin Williams' profitability indicators, Sherwin Williams' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Sherwin Williams' ability to earn profits and add value for shareholders. At this time, Sherwin Williams' Price To Sales Ratio is fairly stable compared to the past year. EV To Sales is likely to climb to 4.15 in 2024, whereas Operating Cash Flow Sales Ratio is likely to drop 0.08 in 2024. At this time, Sherwin Williams' Operating Income is fairly stable compared to the past year. Income Before Tax is likely to climb to about 3.3 B in 2024, despite the fact that Total Other Income Expense Net is likely to grow to (553.7 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.350.4667
Way Down
Very volatile
Net Profit Margin0.110.1036
Notably Up
Slightly volatile
Operating Profit Margin0.080.1526
Way Down
Slightly volatile
Pretax Profit Margin0.07720.1349
Way Down
Slightly volatile
Return On Assets0.07230.1041
Way Down
Pretty Stable
Return On Equity0.680.6429
Notably Up
Slightly volatile
For Sherwin Williams profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sherwin Williams to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sherwin Williams Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sherwin Williams's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sherwin Williams Co over time as well as its relative position and ranking within its peers.
  

Sherwin Williams' Revenue Breakdown by Earning Segment

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Is Specialty Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sherwin Williams. If investors know Sherwin will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sherwin Williams listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.078
Dividend Share
2.75
Earnings Share
10.05
Revenue Per Share
91.473
Quarterly Revenue Growth
0.007
The market value of Sherwin Williams is measured differently than its book value, which is the value of Sherwin that is recorded on the company's balance sheet. Investors also form their own opinion of Sherwin Williams' value that differs from its market value or its book value, called intrinsic value, which is Sherwin Williams' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sherwin Williams' market value can be influenced by many factors that don't directly affect Sherwin Williams' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sherwin Williams' value and its price as these two are different measures arrived at by different means. Investors typically determine if Sherwin Williams is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sherwin Williams' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Sherwin Williams Profit Margin vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Sherwin Williams's current stock value. Our valuation model uses many indicators to compare Sherwin Williams value to that of its competitors to determine the firm's financial worth.
Sherwin Williams Co is rated second in current valuation category among its peers. It is rated fourth in profit margin category among its peers . The ratio of Current Valuation to Profit Margin for Sherwin Williams Co is about  1,005,310,413,463 . At this time, Sherwin Williams' Net Profit Margin is fairly stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Sherwin Williams by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Sherwin Current Valuation vs. Competition

Sherwin Williams Co is rated second in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Materials industry is at this time estimated at about 669.73 Billion. Sherwin Williams retains roughly 111.49 Billion in current valuation claiming about 17% of all equities under Materials industry.

Sherwin Profit Margin vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Sherwin Williams

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
111.49 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Sherwin Williams

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.11 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Sherwin Profit Margin Comparison

Sherwin Williams is currently under evaluation in profit margin category among its peers.

Sherwin Williams Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Sherwin Williams, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sherwin Williams will eventually generate negative long term returns. The profitability progress is the general direction of Sherwin Williams' change in net profit over the period of time. It can combine multiple indicators of Sherwin Williams, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-624.3 M-655.5 M
Operating Income3.7 B3.9 B
Income Before Tax3.1 B3.3 B
Total Other Income Expense Net-582.8 M-553.7 M
Net Income2.4 B2.5 B
Income Tax Expense721.1 M757.2 M
Net Income Applicable To Common Shares2.3 B2.4 B
Net Income From Continuing Ops2.4 B1.4 B
Non Operating Income Net Other-35.1 M-33.3 M
Interest Income25.2 M18.5 M
Net Interest Income-407.3 M-427.7 M
Change To Netincome-30.5 M-29 M
Net Income Per Share 9.35  9.82 
Income Quality 1.47  2.59 
Net Income Per E B T 0.77  0.52 

Sherwin Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Sherwin Williams. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Sherwin Williams position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Sherwin Williams' important profitability drivers and their relationship over time.

Use Sherwin Williams in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Sherwin Williams position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sherwin Williams will appreciate offsetting losses from the drop in the long position's value.

Sherwin Williams Pair Trading

Sherwin Williams Co Pair Trading Analysis

The ability to find closely correlated positions to Sherwin Williams could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sherwin Williams when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Sherwin Williams - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Sherwin Williams Co to buy it.
The correlation of Sherwin Williams is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Sherwin Williams moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sherwin Williams moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Sherwin Williams can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Sherwin Williams position

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Financials ETFs
Financials ETFs Theme
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Additional Tools for Sherwin Stock Analysis

When running Sherwin Williams' price analysis, check to measure Sherwin Williams' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sherwin Williams is operating at the current time. Most of Sherwin Williams' value examination focuses on studying past and present price action to predict the probability of Sherwin Williams' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sherwin Williams' price. Additionally, you may evaluate how the addition of Sherwin Williams to your portfolios can decrease your overall portfolio volatility.