SHW · NYSE · STOCK
Sherwin-Williams (SHW) Stock Analysis
$335.65
52W $289.86 – $377.77
55/100
$77.73B
29.2
1.08
Is SHW Bullish or Bearish?
Mixed.
Innellis AI committee rates Sherwin-Williams Company (SHW) Watch with a composite score of 55/100
, based on 6 analysts with 50% agreement.
Last updated October 14, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +5.18 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Reduce
- Requires the score to fall below 40.0 — -14.82 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Growth Analyst sees a compelling case — 4 consecutive earnings beats -- consistent execution. Risk Analyst remains cautious — high leverage (debt-to-equity 2.41) amplifies downside in a stress scenario. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- ROE of 62.1% shows genuine earnings power backing the valuation — Value
- 4 consecutive earnings beats -- consistent execution — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- MACD histogram positive -- bullish momentum — Technical
- Weekly trend (downtrend) confirms the daily trend -- multi-timeframe agreement — Technical
Bear Case
- P/E of 29.0 is moderate-to-rich — Value
- Price-to-book of 17.5x prices in significant intangible value — Value
- Debt-to-equity of 2.41 adds balance-sheet risk to the value case — Value
- Price structure making lower highs and lower lows — Technical
- High leverage (debt-to-equity 2.41) amplifies downside in a stress scenario — Risk
- Current ratio of 0.87 is tight -- limited short-term liquidity cushion — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 14, 2026
Overall Committee Score
55/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 64%
of 99 Basic Materials peers
Value Analyst
neutral
45
/ 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 62.1% shows genuine earnings power backing the valuation
− P/E of 29.0 is moderate-to-rich
Growth Analyst
bullish
68
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ 4 consecutive earnings beats -- consistent execution
Technical Analyst
neutral
56
/ 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
− Price structure making lower highs and lower lows
Risk Analyst
bearish
32
/ 100 · Moderate confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 2.41) amplifies downside in a stress scenario
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
bullish
62
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
Portfolio Manager
bearish
35
/ 100 · Low confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− 2 existing position pair(s) are highly correlated already
Investment Thesis Evolution
Committee score moved marginally from 54.9 to 54.8.
- Bullish support removed: 2 signal(s) disappeared.
- Bearish pressure eased: 3 signal(s) disappeared.
- Analyst(s) changed stance: News Analyst.
Analyst-level changes:
- Macro Analyst: score 80->65 (-15).
- News Analyst: stance neutral->bullish; score 51->62 (+11).
- Portfolio Manager: score 30->35 (+5).
- Technical Analyst: score 53->56 (+3).
Comparing 2026-10-13 to 2026-10-14 (1 day apart).
Technical Analysis
RSI (14)
55.4
Neutral
MACD Histogram
0.828
Bullish Momentum
Trend Direction
Downtrend
Weekly: Downtrend
Market Structure
Mixed
Support
$319.56
Resistance
$350.44
Bollinger %B
0.59
Inside Bands
Price vs Moving Averages
EMA 9
$321.98
Above
EMA 21
$323.85
Above
EMA 50
$328.68
Above
EMA 200
$332.85
Above
Fundamental Analysis
Valuation
14
Growth
82
Profitability
82
Financial Health
0
Cash Flow
70
Valuation
P/E Ratio
29.2×
P/B Ratio
20.34×
PEG Ratio
3.98
Dividend Yield
1.00%
52W High
$377.77
52W Low
$289.86
Quality & Growth
ROE
5585.8%
ROA
991.6%
Gross Margin
4906.7%
Operating Margin
1635.9%
Revenue Growth YoY
—
Debt / Equity
3.69
AI Fundamental Assessment
P/E ratio of 29.2 (moderate relative to a 15-40x range); Price-to-book of 20.3x; PEG ratio of 4.0 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 55.9%; Return on assets of 9.9%; Net margin of 11.0%; Gross margin of 49.1%; Current ratio of 0.73 (tight short-term liquidity); Debt-to-equity of 3.69; Free cash flow per share is positive (13.13); Most recent quarter beat estimates by 4.1%; 4 consecutive earnings beats; EPS growth accelerating (+5.4% -> +57.4% QoQ); Analyst estimates rising over recent quarters
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