NASDAQ · STOCK
Sherwin-Williams Company
$340.76
52W $289.86 – $379.65
54/100
$82.74B
31.1
1.10
Is SHW Bullish or Bearish?
Mixed.
Innellis AI committee rates Sherwin-Williams Company (SHW) Watch with a composite score of 54/100
, based on 7 analysts with 57% agreement.
Last updated August 01, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +5.88 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 — -14.12 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. Macro Analyst sees a compelling case — market regime is bullish (bull market -- normal position sizing). 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
- Market regime is bullish (Bull market -- normal position sizing) — Macro
Bear Case
- P/E of 30.8 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
- 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 August 01, 2026
Overall Committee Score
54/100
Agreement
57%
Analysts
7
Conviction
Contested
Sector Rank
Top 59%
of 54 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 30.8 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
58
/ 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
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
70
/ 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst
neutral
60
/ 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager
neutral
45
/ 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 2535.03)
Investment Thesis Evolution
Committee score moved marginally from 52.6 to 54.1.
- New bearish signals: 2 appeared.
- Bearish pressure eased: 2 signal(s) disappeared.
- Analyst(s) changed stance: Macro Analyst, News Analyst.
Analyst-level changes:
- Macro Analyst: stance neutral->bullish; score 58->70 (+12).
- News Analyst: stance bullish->neutral.
- Portfolio Manager: +2 bearish signal(s).
Comparing 2026-07-31 to 2026-08-01 (1 day apart).
Technical Analysis
RSI (14)
56.9
Neutral
MACD Histogram
1.415
Bullish Momentum
Trend Direction
Sideways
Weekly: Downtrend
Market Structure
Mixed
Support
$329.30
Resistance
$350.44
Bollinger %B
0.69
Inside Bands
Price vs Moving Averages
EMA 9
$336.15
Above
EMA 21
$332.48
Above
EMA 50
$328.07
Above
EMA 200
$331.99
Above
Fundamental Analysis
Valuation
12
Growth
82
Profitability
1
Financial Health
0
Cash Flow
37
Valuation
P/E Ratio
31.1×
P/B Ratio
21.65×
PEG Ratio
4.23
Dividend Yield
0.01%
52W High
$379.65
52W Low
$289.86
Quality & Growth
ROE
55.9%
ROA
9.9%
Gross Margin
49.1%
Operating Margin
16.4%
Revenue Growth YoY
—
Debt / Equity
3.90
AI Fundamental Assessment
P/E ratio of 31.1 (rich relative to a 15-40x range); Price-to-book of 21.6x; PEG ratio of 4.2 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 0.6%; Return on assets of 0.1%; Net margin of 0.1%; Gross margin of 0.5%; Current ratio of 0.73 (tight short-term liquidity); Debt-to-equity of 3.90; Free cash flow margin of 0.8% (thin cash generation); 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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