Sherwin Story

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SHW -- USA Stock  

USD 697.45  11.55  1.68%

It appears Sherwin Williams will continue to recover much faster as its share price surged up 1.28% today. The entity's current daily volatility is 1.7 percent, with a beta of 0.65 and an alpha of 0.25 over DOW. As many millenniums are trying to avoid macroaxis picks, it makes sense to focus on Sherwin Williams a little further and try to understand its current market patterns. We will analyze why Sherwin Williams investors may still consider a stake in the business.
Published over a month ago
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Is Sherwin Williams (NYSE:SHW) way too risky for millennials?
Sherwin Williams has roughly 238.5 M in cash with 2.41 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.62. The company has 11.51 B in debt with debt to equity (D/E) ratio of 3.5, meaning that Sherwin Williams heavily relies on borrowing funds for operations. Sherwin Williams has a current ratio of 0.92, suggesting that it has not enough short term capital to pay financial commitments when the payables are due.
Investing in Sherwin Williams, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Sherwin Williams along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is Sherwin Williams's Liquidity

Sherwin Williams financial leverage refers to using borrowed capital as a funding source to finance Sherwin Williams ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Sherwin Williams financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Sherwin Williams's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Sherwin Williams, but it might be worth checking our own buy vs. sell analysis

Sherwin Williams Correlation with Peers

Investors in Sherwin can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Sherwin Williams. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Sherwin Williams and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Sherwin is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Sherwin for more details

Another Outlook On Sherwin Williams

Sherwin Williams appears to be very steady, given 1 month investment horizon. Sherwin Williams owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.16, which indicates the firm had 0.16% of return per unit of risk over the last month. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Sherwin Williams, which you can use to evaluate future volatility of the company. Please operate Sherwin Williams Semi Deviation of 1.49, risk adjusted performance of 0.3377, and Coefficient Of Variation of 501.65 to confirm if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Sherwin showing direct evidence of lower volatility

Downside deviation is down to 1.76. It may cause a possible volatility slide. Sherwin Williams has relatively low volatility with skewness of -0.09 and kurtosis of 2.58. However, we advise all investors to independently investigate Sherwin Williams to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Bottom Line On Sherwin Williams

While some other companies within the specialty chemicals industry are still a little expensive, even after the recent corrections, Sherwin Williams may offer a potential longer-term growth to sophisticated investors. All things considered, as of the 28th of July 2020, we believe that at this point, Sherwin Williams is undervalued with low probability of financial unrest within the next 2 years. Our present buy-or-sell advice on the venture is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Sherwin Williams. Please refer to our Terms of Use for any information regarding our disclosure principles.

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