Sherwin-Williams Co (BSP:S1HW34) Beneish M-Score : -2.76 (As of Apr. 29, 2024)

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What is Sherwin-Williams Co Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.76 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Sherwin-Williams Co's Beneish M-Score or its related term are showing as below:

BSP:S1HW34' s Beneish M-Score Range Over the Past 10 Years
Min: -2.87 Med: -2.61 Max: -1.46
Current: -2.76

During the past 13 years, the highest Beneish M-Score of Sherwin-Williams Co was -1.46. The lowest was -2.87. And the median was -2.61.

Sherwin-Williams Co Beneish M-Score Historical Data

The historical data trend for Sherwin-Williams Co's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sherwin-Williams Co Beneish M-Score Chart

Sherwin-Williams Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.60

-2.84

-2.42

-2.36

-2.76

Sherwin-Williams Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.39	-2.49	-2.66	-2.76	-

Competitive Comparison of Sherwin-Williams Co's Beneish M-Score

For the Specialty Chemicals subindustry, Sherwin-Williams Co's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Sherwin-Williams Co's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sherwin-Williams Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Sherwin-Williams Co's Beneish M-Score falls into.

Sherwin-Williams Co Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Sherwin-Williams Co for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.8921

0.528 * 0.903

0.404 * 0.9925

0.892 * 1.0081

0.115 * 1.0376

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0694

4.679 * -0.043522

0.327 * 0.9526

-2.82

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was R$12,092 Mil.
Revenue was 25734.73 + 30208.546 + 30290 + 28347.285 = R$114,581 Mil.
Gross Profit was 12488.12 + 14402.237 + 13941.283 + 12609.5 = R$53,441 Mil.
Total Current Assets was R$27,012 Mil.
Total Assets was R$112,472 Mil.
Property, Plant and Equipment(Net PPE) was R$23,148 Mil.
Depreciation, Depletion and Amortization(DDA) was R$3,096 Mil.
Selling, General, & Admin. Expense(SGA) was R$35,053 Mil.
Total Current Liabilities was R$32,470 Mil.
Long-Term Debt & Capital Lease Obligation was R$48,446 Mil.
Net Income was 1745.309 + 3760.82 + 3852.382 + 2486.586 = R$11,845 Mil.
Non Operating Income was -573.277 + -33.583 + 33.491 + 34.377 = R$-539 Mil.
Cash Flow from Operations was 4500.956 + 6463.277 + 5855.504 + 459.399 = R$17,279 Mil.

Total Receivables was R$13,447 Mil.
Revenue was 27436.065 + 31710.147 + 29641.609 + 24875.531 = R$113,663 Mil.
Gross Profit was 11717.175 + 13577.778 + 12361.817 + 10216.052 = R$47,873 Mil.
Total Current Assets was R$30,988 Mil.
Total Assets was R$118,515 Mil.
Property, Plant and Equipment(Net PPE) was R$21,369 Mil.
Depreciation, Depletion and Amortization(DDA) was R$2,981 Mil.
Selling, General, & Admin. Expense(SGA) was R$32,514 Mil.
Total Current Liabilities was R$31,266 Mil.
Long-Term Debt & Capital Lease Obligation was R$58,244 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(12092.216 / 114580.561)	/	(13447.107 / 113663.352)
	=	0.105535	/	0.118306
	=	0.8921

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(47872.822 / 113663.352)	/	(53441.14 / 114580.561)
	=	0.421181	/	0.466407
	=	0.903

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (27012.107 + 23147.635) / 112471.969)	/	(1 - (30988.25 + 21368.711) / 118514.568)
	=	0.554025	/	0.558223
	=	0.9925

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	114580.561	/	113663.352
	=	1.0081

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(2980.907 / (2980.907 + 21368.711))	/	(3096.44 / (3096.44 + 23147.635))
	=	0.122421	/	0.117986
	=	1.0376

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(35052.524 / 114580.561)	/	(32513.972 / 113663.352)
	=	0.30592	/	0.286055
	=	1.0694

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((48446.283 + 32470.485) / 112471.969)	/	((58244.397 + 31266.256) / 118514.568)
	=	0.719439	/	0.755271
	=	0.9526

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(11845.097 - -538.992	-	17279.136)	/	112471.969
	=	-0.043522

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Sherwin-Williams Co has a M-score of -2.82 suggests that the company is unlikely to be a manipulator.

Sherwin-Williams Co Beneish M-Score Related Terms

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Sherwin-Williams Co (BSP:S1HW34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Sherwin-Williams Co (BSP:S1HW34) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

SHW:USA SHW:Mexico 1SHW:Italy SJ3:Germany

Address

101 West Prospect Avenue, Cleveland, OH, USA, 44115-1075

Website

https://www.sherwin-williams.com

Sherwin-Williams is the largest provider of architectural paint in the United States. The company has over 4,900 stores and sells premium paint at higher price points than most competitors. Sherwin-Williams also sells paint-related products in big-box stores and provides coatings for original equipment manufacturers.

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