Sherwin-Williams (SHW) 10-K Red Flags
Risk signals extracted deterministically from Sherwin-Williams’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (17)
- Gross margin compression: Gross margin contracted +6.9%pp (from 78.7% to 71.8%). This may reflect input cost inflation, pricing pressure, or product mix shift toward lower-margin segments.
- NEW: Going concern doubt in latest filing: The term "going concern" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 1 filing(s).
- Material weakness in internal controls: The term "material weakness" appears in 19 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
- Restatement of financial statements: The term "restate" "financial statements" appears in 5 recent filing(s) (vs 1 in the prior period). This risk language is ongoing.
- Operating cash flow exceeds net income: OCF is 1.47x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- Goodwill is 30% of total assets: Goodwill of $8.00B represents a large share of the balance sheet. If acquired businesses underperform, a non-cash impairment charge could materially impact earnings. Monitor segment performance and acquisition integration metrics.
- Endogenous analysis: 4 risk signal(s) detected versus 1 positive signal(s). The balance of evidence suggests elevated filing-specific risk that warrants monitoring in subsequent filings.
- 1 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- 1 new risk-language term(s) detected in filing text: Going concern doubt.
- Ongoing high-severity risk language: Material weakness in internal controls, Restatement of financial statements.
- Return on equity **77.01%**, ROA 10.41%, ROIC 0.00%.
- Net income up ▲ +18.3% YoY.
- Composite risk: Elevated.
- Leverage debt/equity 2.10 (high).
- Gross margin compression: Gross margin contracted +6.9%pp (from 78.7% to 71.8%). This may reflect input cost inflation, pricing pressure, or product mix shift toward lower-margin segments.
- NEW: Going concern doubt in latest filing: The term "going concern" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 1 filing(s).
Filings & ownership
- Latest annual report (10-K) filed Feb 19, 2026.
- Latest quarterly report (10-Q) filed Apr 28, 2026.
- 16 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 0 sell transactions.
- ~10,000+ recent 13F-HR filings reference Sherwin-Williams; broad institutional reporting.
- Recent filers include WRIGHT JACKSON W JR TRUSTEE, WRIGHT JACKSON W JR TRUSTEE, WRIGHT JACKSON W JR TRUSTEE.
- 20 recent 13G passive institutional ownership notices.
Full SHW analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
View full report →Not investment advice. FilingSight is an automated analytical research tool, not a registered investment advisor. Ratings and scores are quantitative analytical classifications, not buy or sell recommendations. Nothing here is personalized to your circumstances. Investing involves risk of loss — consult a licensed professional. See full disclosures.