ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Sherwin-Williams Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 11.38%.
As of today (2026-06-26), Sherwin-Williams Co's WACC % is 10.52%. Sherwin-Williams Co's ROC % is 13.30% (calculated using TTM income statement data).
Sherwin-Williams Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Sherwin-Williams Co (MIL:1SHW) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Sherwin-Williams Co's WACC % is 10.52%. Sherwin-Williams Co's ROC % is 13.30% (calculated using TTM income statement data).
Sherwin-Williams Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Sherwin-Williams Co ROC % Related Terms
Sherwin-Williams Co ROC % Historical Data
* Premium members only.
The historical data trend for Sherwin-Williams Co's ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 (MIL:1SHW) has a ROC % of 11.38% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Sherwin-Williams Co and its competitors.
Is Sherwin-Williams Co's ROC % too high?
Sherwin-Williams Co's current ROC % is 11.38%. The Chemicals industry median ROC % is 4.46. Sherwin-Williams Co's value of 11.38% is 155.4% above this industry median. Overall, Sherwin-Williams Co has a GF Score™ of 62/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sherwin-Williams Co's ROC % compare to ECL and APD?
Sherwin-Williams Co's ROC % of 11.38% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.46. Sherwin-Williams Co's value of 11.38% is 155.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Chemicals company?
The median ROC % among Chemicals companies is 4.46, based on 1,586 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sherwin-Williams Co's current ROC % of 11.38% is 155.4% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Sherwin-Williams Co and its competitors. For the Chemicals industry, the median ROC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sherwin-Williams Co's current ROC % is 11.38%. 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 (MIL:1SHW) is currently considered Fairly Valued. The stock's GF Value™ is €301.02, compared to a current price of €287.70 — trading 4.4% below its estimated fair value. The current ROC % is 11.38% and 155.4% above the Chemicals industry median of 4.46. Sherwin-Williams Co's overall GF Score™ is 62/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Sherwin-Williams Co (MIL:1SHW), the current ROC % is 11.38% 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 (MIL:1SHW) Overvalued in 2026?
Based on GuruFocus' analysis, Sherwin-Williams Co stock appears to be undervalued.
The current stock price of €287.70 is trading 4.4% below its estimated GF Value™ of €301.02.
GuruFocus considers Sherwin-Williams Co to be Fairly Valued.
Key valuation signals for MIL:1SHW:
ROC %: 11.38%
GF Value™: €301.02 vs. price of €287.70 (4.4% below fair value)
Industry Position: 155.4% above the Chemicals median
No single metric tells the full story. See the MIL:1SHW 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.
62GF Score
Get the complete analysis for MIL:1SHW
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MIL:1SHW has been successfully added to your 
