FMP

FMP

Sherwin-Williams (NYSE:SHW) Quarterly Earnings Preview

  • Earnings per share (EPS) is estimated to be $2.12, reflecting a 1.4% increase from the previous year.
  • Projected revenues of $5.57 billion, a 4.7% rise from the same period last year.
  • The company has a price-to-earnings (P/E) ratio of approximately 33.13, indicating the price investors are willing to pay for each dollar of earnings.

Sherwin-Williams (NYSE:SHW) is a leading global company in the paint and coatings industry. It manufactures and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers. The company competes with other major players like PPG Industries and AkzoNobel. Sherwin-Williams is set to release its quarterly earnings on January 29, 2026, before the market opens.

Analysts estimate Sherwin-Williams' earnings per share (EPS) to be $2.12, reflecting a 1.4% increase from the previous year. This growth is driven by projected revenues of $5.57 billion, a 4.7% rise from the same period last year. However, the consensus EPS estimate has been adjusted downward by 1.6% over the past 30 days, indicating a reevaluation by analysts.

The market closely watches these earnings reports, as they can significantly impact the stock's price. If Sherwin-Williams surpasses the expected earnings of $2.13 per share, the stock may see an upward movement. Conversely, a miss on these expectations could lead to a decline in stock value. The sustainability of any immediate price changes will depend on management's discussion of business conditions during the earnings call.

Sherwin-Williams' financial metrics provide insight into its valuation. The company has a price-to-earnings (P/E) ratio of approximately 33.13, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio is about 3.69, reflecting the value placed on each dollar of sales. The enterprise value to sales ratio is around 4.26, showing the company's total valuation compared to its sales.

The company's enterprise value to operating cash flow ratio is approximately 30.10, suggesting how its valuation compares to cash flow from operations. The earnings yield is about 3.02%, representing the return on investment for shareholders. However, the debt-to-equity ratio of approximately 3.07 indicates a high level of debt financing relative to equity. Additionally, the current ratio of around 0.82 may suggest potential liquidity concerns, as it is below 1.