Aureus
BGood

Sherwin-Williams Company (The)(SHW)

B

Financial data as of Dec 31, 2025Improving · Materials

FCF Margin10.7%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 / FCF5.1xElevated debt burden
Current Ratio0.87Tight short-term liquidity
YoY FCF Growth+89.6%3 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
-0.5Elevated debt-to-FCF ratio (5.1x)
→
-1Current ratio below 1.0 (0.87)
→
+1Strong YoY FCF growth (89.6% YoY)
→
-0.5Highly volatile FCF (consistency: 1.09)
→
FinalB

Analysis Summary

Strengths

  • Healthy FCF margin (10.7%)
  • Excellent cash conversion (134%)
  • Strong YoY FCF growth (+89.6%)

Concerns

  • Heavy debt position ($12.7B net debt, 5.1x FCF)
  • High debt-to-FCF ratio (5.1x)
  • Current ratio below 1.0 — tight short-term liquidity
  • Only 3 positive FCF quarters recently
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin10.7%
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 / FCF5.1xElevated debt burden
Current Ratio0.87Tight liquidity
Debt / Equity2.81High leverage

Quarterly FCF Trend

+89.6% YoYImproving (+89.6%)

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 Margin10.7%
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 / FCF5.1x
YoY FCF Growth+89.6%
Positive Quarters3 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeB
Data SourceYahoo Finance