Aureus
AExcellent

Sherwin-Williams Company (The)(SHW)

A

Financial data as of Dec 31, 2025Improving · Materials

FCF Margin11.3%Free Cash Flow / Revenue
Cash Conversion134.4%Operating CF / Net Income
Free Cash Flow$2.7B
Revenue$23.6B
Net Cash-$12.7BNet debt position
Debt / FCF4.9xElevated debt burden
Current Ratio0.87Tight short-term liquidity
YoY FCF Growth+35.9%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
-1Current ratio below 1.0 (0.87)
→
+1Strong YoY FCF growth (35.9% YoY)
→
FinalA

Analysis Summary

Strengths

  • Healthy FCF margin (11.3%)
  • Excellent cash conversion (134%)
  • Strong YoY FCF growth (+35.9%)

Concerns

  • Net debt position ($12.7B) — 4.9x FCF, manageable
  • Current ratio below 1.0 — tight short-term liquidity

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin11.3%
Net Margin10.9%
Operating CF Margin14.6%
CapEx Ratio3.4%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$12.7BNet debt position
Debt / FCF4.9xElevated debt burden
Current Ratio0.87Tight liquidity
Debt / Equity2.81High leverage

Quarterly FCF Trend

+35.9% YoYImproving (+35.9%)

Free cash flow per quarter

Sector Comparison — Materials

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameSherwin-Williams Company (The)
SectorMaterials
Free Cash Flow$2.7B
Revenue$23.6B
Net Income$2.6B
Operating Cash Flow$3.5B
Capital Expenditure$797.6M
FCF Margin11.3%
Cash Conversion Rate134.4%
Net Margin10.9%
Total Debt$12.9B
Total Cash$207.2M
Net Cash-$12.7B
Current Ratio0.87
Debt / Equity2.81
Debt / FCF4.9x
YoY FCF Growth+35.9%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance