1.43%
7.54%
1.89%
4.20%
20.10%
27.59%
96.89%

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

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

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.

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.

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.

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.

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.

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%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
IFF International Flavors & Fragrances Inc., together with its subsidiaries, manufactures and sells cosmetic active and natural health ingredients for use in various consumer products in Europe, Africa, the Middle East, …
PPG PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials worldwide. The company's Performance Coatings segment offers coatings, solvents, adhesives, sealants, sundries, and software for automotive and commercial transport/fleet …
DD DuPont de Nemours, Inc. provides technology-based materials and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through three segments: …
ECL Ecolab Inc. provides water, hygiene, and infection prevention solutions and services in the United States and internationally. The company operates through Global Industrial, Global Institutional & Specialty, and Global Healthcare …
APD Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and services worldwide. The company produces atmospheric gases, including oxygen, nitrogen, and argon; process gases, such as …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
365.55$
Current Price
365.55$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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