Sherwin-Williams Co (SHW, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With a current share price of $337.63, despite a daily loss of 2%, Sherwin-Williams Co has shown a promising three-month growth of 11.8%. A detailed analysis, supported by the GF Score, indicates that Sherwin-Williams Co is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks across five key dimensions of valuation. This system has proven to be predictive of long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Sherwin-Williams Co boasts a GF Score of 92, reflecting its strong potential for market leadership.
- Financial strength rank: 5/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 8/10
Understanding Sherwin-Williams Co Business
Sherwin-Williams Co, with a market cap of $85.17 billion and annual sales of $22.98 billion, stands as the largest provider of architectural paint in the United States. The company operates over 5,000 stores and distinguishes itself by selling premium paints at higher price points compared to competitors. Additionally, Sherwin-Williams Co also markets paint-related products in big-box stores and supplies coatings for original equipment manufacturers.
Profitability Rank Breakdown
Sherwin-Williams Co's Operating Margin has impressively increased over the past five years, showcasing a growth from 13.50% in 2019 to 15.74% in 2023. Similarly, the company's Gross Margin has also shown a consistent upward trend, highlighting its efficiency in converting revenue into profit. These metrics, coupled with a strong Piotroski F-Score and a Predictability Rank of 5 stars, underline Sherwin-Williams Co's robust financial health and operational efficiency.
Growth Rank Breakdown
Sherwin-Williams Co has demonstrated a strong commitment to growth, as evidenced by its high Growth rank. The company's 3-Year Revenue Growth Rate of 10.3% surpasses 57.84% of its peers in the Chemicals industry. Additionally, its EBITDA growth rates over the past three and five years further confirm its capability to expand and scale effectively.
Conclusion
Considering Sherwin-Williams Co's strong financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
