Quality score · SHW · Materials

Is Sherwin-Williams a quality business?

Makes architectural and industrial coatings and sells them largely through its own network of paint stores.

6.8/ 10
Solid quality
as of October 19, 2026
Profitability
8.0 Strong
Solvency
5.2 Average
Growth
5.3 Average
Efficiency
7.1 Strong
Predictability
8.0 Strong
Strongest pillar: Profitability · Weakest: Solvency

Sherwin-Williams (SHW) scores 6.8 out of 10 as of , computed from its reported financial statements. That reads as solid quality. The reading rests on profitability, and solvency is what holds it back.

Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.

Does Sherwin-Williams have an economic moat?

Not enough data

We cannot judge Sherwin-Williams yet, because fewer than five years had both a return on capital and a cost of capital we could measure. This is not a “no”.

Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →

Why quality is the interesting question for Sherwin-Williams

Owning distribution gives pricing power that raw material costs cannot easily erode, and that is where the profitability pillar comes from. Demand follows housing and construction, so predictability is doing real work, while debt-funded buybacks make solvency worth reading on coverage rather than on equity. The pillars describe a strong operator inside a cyclical end market.

How Sherwin-Williams scores

Sherwin-Williams (SHW) has a Lemma Quality Score of 6.8 out of 10 as of October 19, 2026, which reads as solid quality. A solid reading is a respectable business with clear strengths and at least one area that falls short of the best in its field. Five pillars feed it, and every one of them is computed from what the company reported rather than from its share price.

Ranked with the 77 Materials companies Lemma publishes, the score sits at the 89th percentile, among the stronger quarter of the group. The median across the group is 4.4, and the top quarter begins at 6.2, so Sherwin-Williams is well above the typical company here.

Pillar by pillar

Profitability

Sherwin-Williams’s profitability score is 8.0 out of 10 (strong). Against a median of 4.4 among 74 Materials companies, that is well above the group and the 89th percentile. Returns and margins at this level leave room to reinvest, absorb a bad year or return cash to shareholders without straining the business.

Solvency

On solvency, Sherwin-Williams scores 5.2, an average reading. Its peers have a median of 6.7 across 66 Materials companies, which places it well below them, at the 37th percentile. Leverage in the middle of the range is rarely a problem in good years, and it is worth watching how quickly it would tighten in a weak one.

Growth

Sherwin-Williams’s growth score is 5.3 out of 10 (average). Against a median of 3.2 among 57 Materials companies, that is well above the group and the 73rd percentile. Growth near the median is neither a reason to buy nor a concern, but it does mean the quality case rests more on the other pillars.

Efficiency

On efficiency, Sherwin-Williams scores 7.1, a strong reading. Its peers have a median of 5.2 across 71 Materials companies, which places it well above them, at the 91st percentile. High efficiency means assets and earnings are being turned into cash and output better than at most peers, a sign of a well run operation.

Predictability

Sherwin-Williams’s predictability score is 8.0 out of 10 (strong). Against a median of 4.5 among 76 Materials companies, that is well above the group and the 97th percentile. High predictability means the company’s results have moved steadily from year to year, which makes the other pillars more trustworthy as a guide.

Strongest and weakest pillar

The profile is uneven. Profitability leads at 8.0 while solvency trails at 5.2, a gap of 2.8 points, so the overall averages a clear strength against a clear soft spot. Leading with profitability is the most valuable kind of strength, because margins and returns are what the other pillars ultimately feed. A solvency shortfall makes the business more exposed to rising rates and to a weak year.

What would move the score

Closing the gap on solvency would do the most for the overall. At the median of Materials companies, 6.7, Sherwin-Williams would score about 7.1 instead of 6.8. All five pillars could be scored, so the overall uses the full set of weights out of 100: profitability 25, solvency 20, growth 20, efficiency 15, predictability 20.

Sherwin-Williams and similar companies

These are the Materials companies closest to Sherwin-Williams in market value. Each has its own page scored on the same five pillars, so the comparison is like for like.

What each pillar measures

Profitability

8.0 / 10

How much profit the company generates from its capital and sales.

Solvency

5.2 / 10

The company’s ability to service debt and meet its obligations.

Growth

5.3 / 10

How fast revenue, earnings and cash flow are compounding.

Efficiency

7.1 / 10

How well assets and earnings convert into cash and output.

Predictability

8.0 / 10

How stable and consistent results have been over time.

How this score is calculated

Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.

Limitations

This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.

Educational only. Not investment advice.

FAQ

Is Sherwin-Williams a quality business?

On this reading Sherwin-Williams scores 6.8 out of 10, which reads as solid quality. Its strongest pillar is profitability, its weakest is solvency. Quality is not the same as a good investment: the score says nothing about the price you would pay.

How does Sherwin-Williams compare with other Materials companies?

Sherwin-Williams ranks at the 89th percentile of the 77 Materials companies Lemma publishes a score for. The median there is 4.4 and the top quarter starts at 6.2, against Sherwin-Williams’s 6.8.

What does the SHW quality score measure?

Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.

How current is this score?

This page last changed on October 19, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for SHW are in the app.

Does a high score mean the stock is cheap?

No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.

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Score any company, not just these.

Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.

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