Sherwin-Williams Company (The) SHW

Competitive advantage analysis · basic-materials

Corporate Default
Overall moat score
74/100
Moderate

About Sherwin-Williams Company (The)

The Sherwin-Williams Company engages in the development, manufacture, distribution, and sale of paint, coatings, and related products to professional, industrial, commercial and retail customers. The company operates through three segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group. The Paint Stores Group segment offers architectural paint and coatings; protective and marine products; and OEM product finishes and related … Full SHW analysis →

Competitive advantage assessment

Key strengths

  • Margins Consistently Above Peers Gross margin at 48.8% (top 9%) and operating margin at 16.1% (top 14%) indicate strong pricing power.
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.83), demonstrating pricing resilience across cycles.

Key risks

  • Liquidity Concerns Liquidity is concerning (score 0.02), raising questions about short-term obligations.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
86

Where SHW ranks in Specialty Chemicals

Sherwin-Williams Company (The) ranks #6 of 56 scored companies in Specialty Chemicals by moat score — the top 11%. The widest moat in the group is WD-40 Company (WDFC) at 81/100.

Moat scores for companies ranked near SHW in Specialty Chemicals
# Company Moat score Rating
2 Balchem Corporation BCPC 80/100 Strong
3 Linde plc LIN 80/100 Strong
4 NewMarket Corp NEU 80/100 Strong
5 Ecolab Inc. ECL 75/100 Moderate
6 Sherwin-Williams Company (The) SHW 74/100 Moderate
7 Oil-Dri Corporation Of America ODC 74/100 Moderate
8 Axalta Coating Systems Ltd. AXTA 72/100 Moderate
9 Cabot Corporation CBT 72/100 Moderate
10 RPM International Inc. RPM 71/100 Moderate

See every General Corporate company ranked by moat score →

How SHW scores on the Corporate Default defenses

Pricing Power

Score 86 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 51 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 85 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 86 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 48 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 83 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding SHW's moat

What is Sherwin-Williams Company (The)'s moat score?

Sherwin-Williams Company (The) (SHW) scores 74 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #6 of 56 scored companies in Specialty Chemicals, the top 11%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 56 companies in Specialty Chemicals. Its strongest defense is Pricing Power (86/100) and its weakest is Resilience (48/100).

How does Sherwin-Williams Company (The) compare with other Specialty Chemicals companies?

Sherwin-Williams Company (The) ranks #6 of 56 scored companies in Specialty Chemicals by moat score. The widest moat in Specialty Chemicals is WD-40 Company (WDFC) at 81/100. The companies ranked closest are Ecolab Inc. (ECL) at 75 just above it and Oil-Dri Corporation Of America (ODC) at 74 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 56 companies in Specialty Chemicals. The defenses are then weighted to produce the overall score out of 100.

Why is Sherwin-Williams Company (The) scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Sherwin-Williams Company (The)?

The Corporate Default template measures 6 defenses, and SHW scores: Pricing Power (86), Cost Advantage (51), Customer Stickiness (85), Capital Efficiency (86), Resilience (48), Scale & Market Position (83). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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