The Sherwin-Williams Company — Cyborg Score 7/10

Solid
Paint and Coatings Manufacturing

Strategic Profile

Sherwin-Williams manufactures products under well-known brands including Sherwin-Williams, Valspar, HGTV HOME, Dutch Boy, Krylon, Minwax, Thompson's WaterSeal, and Cabot, with Sherwin-Williams branded products sold through its chain of more than 5,400 company-operated stores and other brands sold through leading mass merchandisers and retailers. The company delivered strong fourth quarter results in 2025 with consolidated net sales at the high end of guidance and adjusted EBITDA improved by a low-teens percentage.

Cyborg Score Rationale

The company has demonstrated consistent revenue growth with a 3-year rate of 6.8% and robust profitability with an operating margin of 15.81% and net margin of 11.05%. Sherwin-Williams recently raised its dividend for the 47th year running with a 10.5% increase, putting it near Dividend King status. However, the company exhibits a significant debt-to-equity ratio of 3.07, reflecting reliance on debt financing.

Top Insights

  • 2025 consolidated net sales increased 2.1% to $23.57 billion with comparable store sales growth of 1.7%
  • Sales growth beat analyst expectations in each of the last four quarters
  • 2026 guidance projects low to mid-single digit sales growth compared to 2025, with adjusted diluted net income per share guidance of $11.50 to $11.90, a 2.4% increase at the midpoint
  • Company acquired Suvinil on October 1, 2025, expanding its Latin American presence

Named Competitors

  • PPG — Diversified coatings and specialty materials
  • Valspar — Industrial and architectural coatings
  • Benjamin Moore — Premium architectural paints and coatings

Recent Developments

  • (January 2026) Benjamin E. Meisenzahl became Chief Financial Officer effective January 1, 2026, bringing 22 years of Sherwin-Williams experience
  • (2026) Sherwin-Williams and HGTV Home announced Universal Khaki as their 2026 Color of the Year
  • (Q4 2025) Strong results driven by solid core performance including first full quarter of Suvinil acquisition

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