Sherwin-Williams CoWBO:SHWW +3.03%83 Operating Margin % is 14.16% as of Mar. 2026, which is 1% above its 10-year median of 14.00. GuruFocus rates WBO:SHWW with a GF Score™ of 83/100 and a GF Value™ of €315.56 (Fairly Valued). Among 1,584 Chemicals companies, Sherwin-Williams Co ranks better than 85.1% on this metric.
Sherwin-Williams Co (WBO:SHWW) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Sherwin-Williams Co Operating Margin % Related Terms
Sherwin-Williams Co Operating Margin % Historical Data
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The historical data trend for Sherwin-Williams Co's Operating Margin % 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.
WBO:SHWW vs ECL, APD, PPG: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Sherwin-Williams Co's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sherwin-Williams Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sherwin-Williams Co's Operating Margin % falls into.
Sherwin-Williams Co Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Sherwin-Williams Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Sherwin-Williams Co (WBO:SHWW) has a Operating Margin % of 14.16% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sherwin-Williams Co and its competitors. This is near median its historical median of 14.00. Over the past decade, Sherwin-Williams Co's Operating Margin % has ranged from 10.78 to 16.29. According to the industry distribution chart, Sherwin-Williams Co ranks #236 out of 1584 companies in the Chemicals industry, placing it in the top 14.9%.
Is Sherwin-Williams Co's Operating Margin % too high?
Sherwin-Williams Co's current Operating Margin % of 14.16% is near median its 10-year median of 14.00. Over the past 10 years, this metric has ranged from a low of 10.78 to a high of 16.29. The Chemicals industry median Operating Margin % is 6.03. Sherwin-Williams Co's value of 14.16% is 135% above this industry median. Based on the distribution chart, Sherwin-Williams Co ranks #236 out of 1584 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Sherwin-Williams Co has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sherwin-Williams Co's Operating Margin % compare to ECL and APD?
According to the Chemicals industry distribution chart, Sherwin-Williams Co ranks #236 out of 1584 companies for Operating Margin %. This places Sherwin-Williams Co in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.03. Sherwin-Williams Co's value of 14.16% is 135% above this benchmark. Historically, Sherwin-Williams Co's own Operating Margin % has ranged from 10.78 to 16.29 over the past decade. While the company's 10-year median is 14.00 vs. the industry median of 6.03, Sherwin-Williams Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Chemicals company?
The median Operating Margin % among Chemicals companies is 6.03, based on 1,584 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sherwin-Williams Co's current Operating Margin % of 14.16% is 135% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Sherwin-Williams Co and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sherwin-Williams Co's current Operating Margin % is 14.16%, which is near median its own 10-year median of 14.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sherwin-Williams Co stock overvalued right now?
Based on GuruFocus' analysis, Sherwin-Williams Co (WBO:SHWW) is currently considered Fairly Valued. The stock's GF Value™ is €315.56, compared to a current price of €296.30 — trading 6.1% below its estimated fair value. The current Operating Margin % is 14.16%, which is near median its 10-year median of 14.00 and 135% above the Chemicals industry median of 6.03. Sherwin-Williams Co's overall GF Score™ is 83/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Sherwin-Williams Co (WBO:SHWW), the current Operating Margin % is 14.16% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sherwin-Williams Co (WBO:SHWW) Overvalued in 2026?
Based on GuruFocus' analysis, Sherwin-Williams Co stock appears to be undervalued.
The current stock price of €296.30 is trading 6.1% below its estimated GF Value™ of €315.56.
GuruFocus considers Sherwin-Williams Co to be Fairly Valued.
Key valuation signals for WBO:SHWW:
Operating Margin %: 14.16% (near median its 10-year median of 14.00)
GF Value™: €315.56 vs. price of €296.30 (6.1% below fair value)
Industry Position: 135% above the Chemicals median (#236 of 1584)
No single metric tells the full story. See the WBO:SHWW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sherwin-Williams is the largest global manufacturer of paints and coatings. The company focuses on the development, manufacturing, and distribution of paint, coatings, and related products to customers ranging from professional painters and contractors to industrial manufacturers to do-it-yourself consumers. Sherwin organizes its operations into three primary segments: the paint stores group is the largest segment and includes the company's network of over 4,800 company-owned stores; the consumer brands group sells branded architectural paints through big-box retailers such as Lowe's, and the performance coatings group provides specialized coatings for industrial applications, such as automotive refinishing, packaging, and industrial wood.
83GF Score
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