Sherwin-Williams Company (The) — Earnings Quality Grade F
SHW · Basic Materials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 43 days, change +5 days YoY
AR growth 16.8% exceeds revenue growth 2.1%
Revenue 2.1%, CFFO 9.5%. Cash follows revenue
Expense Quality
Inventory 1.3% vs COGS 1.3%. Normal
CapEx growth -25.5% vs revenue 2.1%. Normal
SG&A/Gross Profit = 66.9%. Normal
Gross margin 48.8%, change +0.4pp. Stable
Cash Flow Quality
CFFO/NI = 1.34. Profits backed by cash
FCF $2.7B, FCF/NI = 1.03
Accruals ratio = -3.4%. Low accruals
Cash $0.2B covers only 2% of debt $12.9B
Balance Sheet Health
Goodwill+Intangibles $12.0B = 261% of equity. Over 50%
Debt/EBITDA = 2.9x. Healthy
Other assets 7.8% vs revenue 2.1%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 8% YoY. Normal
Manipulation Score
M-Score = -2.49 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10