SHW Stock Analysis — Sherwin-Williams
Sector: Consumer staples
AI Verdict
Sherwin-Williams trades at 28.7x next year's earnings while analysts expect 14.2% EPS growth, so you're paying a premium the numbers don't yet support unless its contractor lock-in moat delivers sustained outperformance.
Competitive Moat
Sherwin-Williams controls a vast network of proprietary paint stores, locking in professional contractors who rely on its exclusive distribution and in-house brands. This vertical integration creates high switching costs and pricing power in a fragmented coatings market.
Summary
Sherwin-Williams stands out for its contractor-focused paint store network, which underpins its pricing power even as growth slows.
Where It Stands
Sherwin-Williams delivered a 1.17% one-year return, trades at 28.7x forward earnings versus the consumer staples median of 20x, and its RSI of 67.9 signals elevated pullback risk.
Key Metrics
- RSI: 67.9 — Near Overbought
- Trailing P/E: 32.8x
- Forward P/E: 28.7x
- PEG Ratio: 2.33
- Earnings Growth: +0.1%
- Revenue Growth: +0.0%
- Market Cap: $83.1B
- Dividend Yield: 0.01%
- 1-Year Return: 1.17%
- 52-Week High: $379.65
- 52-Week Low: $301.58
Analyst Consensus
19 Buy · 12 Hold · 0 Sell (31 analysts)
Bull Case
Analysts expect 14.2% forward EPS growth, which is robust for a consumer staples name and partially justifies the premium 28.7x forward P/E.
Bear Case
With a PEG ratio of 2.33 and an RSI of 67.9, a reversion to the sector median P/E of 20x would mean a 30% valuation drop from current levels if growth disappoints.
Catalyst to Watch
Watch for quarterly contractor sales trends — a slowdown could trigger a sharp P/E compression given the current premium.