AI Spotlight on SHW
Company Description
The Sherwin-Williams Company develops, manufactures, distributes, and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers.It operates through three segments: The Americas Group, Consumer Brands Group, and Performance Coatings Group.The Americas Group segment offers architectural paints and coatings, and protective and marine products, as well as OEM product finishes and related products for architectural and industrial paint contractors, and do-it-yourself homeowners.
The Consumer Brands Group segment supplies a portfolio of branded and private-label architectural paints, stains, varnishes, industrial products, wood finishes products, wood preservatives, applicators, corrosion inhibitors, aerosols, caulks, and adhesives to retailers and distributors.The Performance Coatings Group segment develops and sells industrial coatings for wood finishing and general industrial applications, automotive refinish products, protective and marine coatings, coil coatings, packaging coatings, and performance-based resins and colorants.It serves retailers, dealers, jobbers, licensees, and other third-party distributors through its branches and direct sales staff, as well as through outside sales representatives.
The company has operations primarily in the North and South America, the Caribbean, Europe, Asia, and Australia.As of February 17, 2022, it operated approximately 5,000 company-operated stores and facilities.The Sherwin-Williams Company was founded in 1866 and is headquartered in Cleveland, Ohio.
Market Data
Last Price | 365.55 |
Change Percentage | 1.43% |
Open | 362.33 |
Previous Close | 360.41 |
Market Cap ( Millions) | 92065 |
Volume | 3403843 |
Year High | 400.42 |
Year Low | 282.09 |
M A 50 | 362.92 |
M A 200 | 345.04 |
Financial Ratios
FCF Yield | 2.22% |
Dividend Yield | 0.78% |
ROE | 30.61% |
Debt / Equity | 50.41% |
Net Debt / EBIDTA | 275.41% |
Price To Book | 3.86 |
Price Earnings Ratio | 34.05 |
Price To FCF | 44.96 |
Price To sales | 3.99 |
EV / EBITDA | 24.42 |
News
- Jan -30 - The Sherwin-Williams Company (SHW) Q4 2024 Earnings Call Transcript
- Jan -30 - Sherwin-Williams Q4 Earnings Beat Estimates, Revenues Lag
- Jan -30 - Compared to Estimates, Sherwin-Williams (SHW) Q4 Earnings: A Look at Key Metrics
- Jan -30 - Sherwin-Williams Results Mixed in Q4
- Jan -30 - Sherwin-Williams (SHW) Tops Q4 Earnings Estimates
- Jan -30 - Sherwin-Williams' sales fall short of estimates in choppy market, sending stock lower
- Jan -30 - The Sherwin-Williams Company Reports 2024 Year-End and Fourth Quarter Financial Results
- Jan -28 - What's in Store for Sherwin-Williams Stock in Q4 Earnings?
- Jan -17 - 3-Stock Lunch: Intel, Sherwin-Williams & Novo Nordisk
- Jan -15 - Sherwin-Williams: This SWAN Is As Boring As Watching Paint Dry
- Jan -03 - All 12 Dividend Aristocrats That Raised Their Dividends 10% or More in 2024
- Jan -02 - Sherwin-Williams: Too Rich For Me At Its Current Price
- Dec -31 - Sherwin-Williams to Announce Fourth Quarter and Full Year 2024 Financial Results on January 30, 2025
- Dec -24 - 2 Dividend Stocks and 1 ETF Up Between 8% and 11% That Are Screaming Buys Before the New Year
- Dec -15 - 3 Lessons Dividend Stock Investors Can Benefit From in 2025
- Dec -13 - 2 Dow Jones Stocks to Buy Before a Potential Housing Rebound in 2025
- Dec -10 - 3 Dow Jones Stocks Billionaires Were Piling Into This Year
- Nov -25 - Dow Jones Leader Sherwin-Williams Is Breaking Out Today: Deckers, Cloudflare In Or Near Buy Zones
- Nov -14 - Sherwin-Williams Executive Chairman John Morikis to Retire; President and CEO Heidi Petz Elected Chair
- Nov -09 - 3 Ways Stock-Split Stocks Nvidia and Sherwin-Williams Are Modernizing the Dow Jones Industrial Average
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> Paint Stores
Expected Growth : 4.5 %
What the company do ?
The Paint Stores segment of The Sherwin-Williams Company operates a chain of retail stores that sell paint, coatings, and related products to professional and DIY customers.
Why we expect these perspectives ?
Sherwin-Williams' Paint Stores segment growth of 4.5% is driven by increasing demand for DIY home improvement projects, expansion of e-commerce capabilities, and strategic pricing initiatives. Additionally, the company's focus on customer loyalty programs, store remodels, and targeted marketing efforts contribute to the segment's growth.
Segment nΒ°2 -> Performance Coatings
Expected Growth : 3.8 %
What the company do ?
Performance Coatings from The Sherwin-Williams Company provides protective and decorative coatings for industrial, transportation, and consumer electronics markets.
Why we expect these perspectives ?
The 3.8% growth in Performance Coatings at Sherwin-Williams is driven by increasing demand for industrial coatings, growth in the global automotive market, and rising adoption of eco-friendly coatings. Additionally, strategic acquisitions, expansion into emerging markets, and innovative product offerings have contributed to the segment's growth.
Segment nΒ°3 -> Consumer Brands
Expected Growth : 4.2 %
What the company do ?
Consumer Brands from The Sherwin-Williams Company includes popular paint brands like Valspar, HGTV Home, and more, offering a range of paints and coatings for DIYers and professionals.
Why we expect these perspectives ?
Sherwin-Williams' Consumer Brands segment growth of 4.2% is driven by increasing demand for DIY home improvement projects, expansion of e-commerce platforms, and strategic partnerships with key retailers. Additionally, the company's focus on innovative product offerings, such as eco-friendly paints, and targeted marketing campaigns have contributed to the segment's growth.
Segment nΒ°4 -> Administrative
Expected Growth : 3.5 %
What the company do ?
The Administrative segment from The Sherwin-Williams Company provides administrative support services to the company's operations, including human resources, finance, and IT.
Why we expect these perspectives ?
Administrative segment growth of 3.5% at The Sherwin-Williams Company is driven by increasing demand for paint and coatings, strategic pricing initiatives, and cost savings from operational efficiencies. Additionally, investments in digital capabilities and e-commerce platforms are expected to enhance customer experience and drive sales growth.
The Sherwin-Williams Company Products
Product Range | What is it ? |
---|---|
Architectural Coatings | A wide range of paints, coatings, and stains for residential and commercial buildings, including interior and exterior paints, primers, and specialty coatings. |
Industrial Coatings | Specialized coatings for industrial applications, including protective coatings, powder coatings, and coil coatings. |
Automotive Finishes | High-performance coatings for the automotive industry, including refinish coatings, collision repair coatings, and OEM coatings. |
Marine Coatings | Specialized coatings for the marine industry, including antifouling coatings, epoxy coatings, and polyurethane coatings. |
Aerospace Coatings | High-performance coatings for the aerospace industry, including coatings for aircraft, spacecraft, and missiles. |
Product Finishes | Specialized coatings for the product finishing industry, including coatings for furniture, appliances, and other manufactured goods. |
Resinous Flooring | Epoxy, polyurethane, and acrylic flooring systems for industrial, commercial, and institutional facilities. |
Powder Coatings | Environmentally friendly, powder-based coatings for a wide range of applications, including furniture, appliances, and architectural metal. |
The Sherwin-Williams Company's Porter Forces
Threat Of Substitutes
The threat of substitutes for The Sherwin-Williams Company is medium due to the presence of alternative products and services in the market. While the company has a strong brand presence, customers may still opt for substitutes such as DIY painting or other decorative products.
Bargaining Power Of Customers
The bargaining power of customers for The Sherwin-Williams Company is low due to the company's strong brand presence and wide distribution network. Customers have limited bargaining power as they are dependent on the company's products and services.
Bargaining Power Of Suppliers
The bargaining power of suppliers for The Sherwin-Williams Company is medium due to the presence of multiple suppliers in the market. While the company has some bargaining power, suppliers also have some leverage due to the importance of their products in the company's operations.
Threat Of New Entrants
The threat of new entrants for The Sherwin-Williams Company is low due to the high barriers to entry in the market. New entrants would need significant resources and investment to compete with the company's established brand and distribution network.
Intensity Of Rivalry
The intensity of rivalry for The Sherwin-Williams Company is high due to the presence of several established competitors in the market. The company faces intense competition from other paint and coatings manufacturers, which drives innovation and pricing strategies.
Strength
Capital Structure
Value | |
---|---|
Debt Weight | 73.49% |
Debt Cost | 4.60% |
Equity Weight | 26.51% |
Equity Cost | 9.84% |
WACC | 5.99% |
Leverage | 277.20% |
The Sherwin-Williams Company : Quality Control
The Sherwin-Williams Company passed 5 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
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