$375.31
arrow_drop_down0.71%Is SHW a Buy or Sell based on AI Analysis?
Fundamental Analysis
Based on the fundamental analysis of Sherwin-Williams Co-The, several key indicators stand out. Firstly, the company has a strong revenue growth rate of 4.08%, indicating healthy business performance. This is further supported by a net margin of 10.36%, demonstrating efficient cost management and profitability. Additionally, Sherwin-Williams Co-The has a return on equity of 70.07%, reflecting the company's ability to generate impressive returns for its shareholders. The company's dividend yield of 0.85% and dividend growth rate of 5.2% indicate a commitment to rewarding shareholders and maintaining financial stability. Furthermore, Sherwin-Williams Co-The's price to earnings ratio (PE ratio) of 36.41 suggests that the stock may be slightly overvalued compared to its earnings potential. However, the company's solid operating margin of 12.66% and free cash flow margin of 11.42% indicate strong operational efficiency and cash generation capabilities. With a market capitalization of $85.7 billion and a healthy balance sheet showing assets of $22.95 billion against liabilities of $19.11 billion, Sherwin-Williams Co-The appears to be well-positioned for sustainable growth and value creation for its investors.
Positive Development
Sherwin-Williams Co. has raised its dividend by 18% to $0.715 per share, which is a positive signal for investors looking for consistent dividend income. The company has shown consistent growth over the past weeks, with an increase of 3% from 311.26 to 322.51, and another 3% from 322.51 to 335.23. The company's strong financial health is evident from its gross margin, operating margin, and EBIT per share, which are all above 0.4.
Negative Development
Despite its growth, the company has underperformed compared to its competitors on several days, which could indicate potential weakness in the market or a lack of competitive advantage. The company's long-term debt to total equity ratio is relatively high at 2.5766, indicating that the company may be over-leveraged. The company's net margin is low at 0.0678, indicating that the company is not generating significant profits from its sales.
Technical Analysis
The technical analysis for Sherwin-Williams Co (SHW) shows a neutral rating, with buy indicators including ATR and sell indicators such as CCI, WILLR, and STOCHRSI. The stock has a beta of 1.15, indicating a slightly higher volatility compared to the market. The stock's price has shown a positive increase over the past seven days, with a 4.27% price change. Additionally, the stock has seen positive price changes over the one-month, three-month, six-month, year-to-date, and five-year periods, indicating overall positive momentum in the stock price. Furthermore, the stock's technical analysis also considers key financial ratios and margins such as the peg ratio of 4.38, price to sales ratio of 3.7, and gross margin of 46.67%. The company's return on assets of 9.96% and return on equity of 70.07% reflect strong financial performance. Additionally, the stock's historical dividend yield average of 0.68% and trailing annual dividend yield of 0.85% highlight the company's commitment to rewarding shareholders. Overall, the technical analysis paints a positive picture of Sherwin-Williams Co's stock performance and financial health.
Conclusion and recommendation
Based on the data provided, Sherwin-Williams Co (SHW) appears to be a solid investment option. The company has a strong financial position, with a market capitalization of $85.7 billion and a healthy annual dividend per share of $2.42, resulting in a dividend yield of 0.85%. Additionally, Sherwin-Williams boasts impressive financial ratios, such as a return on equity of 70.07%, indicating efficient use of shareholder's equity. Furthermore, Sherwin-Williams has shown consistent growth with a five-year price change percent of 130.79% and positive price change percentages in various time frames, such as one month and three months. The company's strong market and industry scores also indicate that it is well-regarded within its sector. With a neutral analyst recommendation and a technical rating of neutral, investors may consider adding Sherwin-Williams to their portfolio for its stability and potential for long-term growth. In conclusion, Sherwin-Williams Co presents an attractive investment opportunity with its solid financial performance, strong market position, and consistent growth trajectory.