Assessing Sherwin-Williams: Insights From 6 Financial Analysts

Sherwin-Williams SHW underwent analysis by 6 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $325.83, with a high estimate of $378.00 and a low estimate of $300.00. Observing a 10.08% increase, the current average has risen from the previous average price target of $296.00.

Understanding Analyst Ratings: A Comprehensive Breakdown

The analysis of recent analyst actions sheds light on the perception of Sherwin-Williams by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Sherwin-Williams. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Sherwin-Williams compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

To gain a panoramic view of Sherwin-Williams's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Sherwin-Williams analyst ratings.

Unveiling the Story Behind Sherwin-Williams

Sherwin-Williams is the largest provider of architectural paint in the United States. The company has over 4,900 stores and sells premium paint at higher price points than most competitors. Sherwin-Williams also sells paint-related products in big-box stores and provides coatings for original equipment manufacturers.

Sherwin-Williams's Financial Performance

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Sherwin-Williams's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 1.15%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Materials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 12.45%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Sherwin-Williams's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 20.55%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.3%, the company showcases effective utilization of assets.

Debt Management: Sherwin-Williams's debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.14, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.