The Sherwin-Williams Company

Read together, the filings show a business with steady top-line growth, cash generation that has run ahead of reported earnings, and a balance sheet that is carrying more debt. The Beneish M-Score is -2.497, which is below the -1.78 threshold and is labeled not in the elevated zone. That means this screen does not flag an earnings-manipulation pattern, though it is a statistical screen and not an audit conclusion. The Piotroski F-Score is 5 of 8 computable signals, meaning five of the eight signals that could be computed from the data were positive. It summarizes profitability, leverage, liquidity and efficiency trends and is not a grade. Operating cash flow divided by net income is 1.34 for 2025, meaning the company generated $1.34 of operating cash for each dollar of net income. That is a positive sign that earnings are backed by cash, though it does not rule out timing effects. The Altman Z-Score and Fog Index are not on file in this data set, so no values are given for them. Balance-sheet detail matters here. Total assets rose to $25.9 billion from $23.63 billion, and equity rose to $4.6 billion from $4.05 billion. Long-term debt reached $9.32 billion, about 2.0 times equity on the figures provided, compared with $8.18 billion a year earlier. The 10-K risk factors describe exposure to construction, housing and oil-related segments, to petrochemical-derived raw materials such as resins, latex and solvents, and to titanium dioxide. They also state the company may not always be able to offset higher input costs in a timely manner, and that its facilities are not fully redundant. The 10-Q Item 2 table shows 1,600,000 shares repurchased in the first quarter of 2026 under a program with no expiration date, and Item 5 reports no Rule 10b5-1 trading arrangements adopted, modified or terminated by directors or officers in the quarter. Readers may want to look at the full 2026 10-Q and MD&A for the management explanation of results that this excerpt does not include.

Catalyst.The data provided shows 2025 revenue of $23.57 billion, up 2.1% from $23.1 billion in 2024, while net income fell to $2.57 billion from $2.68 billion. Operating cash flow rose to $3.45 billion from $3.15 billion. The MD&A excerpt supplied does not contain the results narrative, so management's explanation for these figures is not available here. The 10-Q excerpt does describe an active share repurchase program: 1,600,000 shares were bought in the first quarter of 2026 under the publicly announced plan, with 28,025,000 shares remaining under it at March 31, 2026.

Hidden risk.The 10-K risk factors tie demand to housing and mortgage rates. They state the company has not seen meaningful positive demand effects from the 2025 Federal Reserve rate cuts and expects high rates and inflation to keep weighing on customers in 2026. Raw material risk is also concrete: some inputs are single-sourced, and supply may come from regions the filing describes as less politically stable, including areas affected by the Russia-Ukraine conflict. Meanwhile, long-term debt rose to $9.32 billion from $8.18 billion, a $1.14 billion increase, against equity of $4.6 billion. The 10-Q states there were no material changes to these risk factors, so a reader may want to look at how that debt load is managed if demand softens.