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Sherwin-Williams Co SHW

Morningstar Rating
$303.80 +1.75 (0.58%)
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Company Report

Sherwin-Williams Earnings: Resilient Residential Repaint Offsets Industrial Headwinds

Wide-moat Sherwin-Williams reported first-quarter earnings that came with few surprises as the company navigated challenging architectural end markets in the US. Weakness in industrial end markets has continued to weigh on Sherwin’s performance coatings business, a trend that could persist through the remainder of the year. Nevertheless, we expect Sherwin to maintain strong momentum in residential repaint while growth in single family housing starts should drive additional sales. As such, we've increased our fair value estimate to $219 from $214 per share.

Price vs Fair Value

SHW is trading within a range we consider fairly valued.
Price
$303.80
Fair Value
$413.00
Uncertainty
Medium
1-Star Price
$715.77
5-Star Price
$192.80
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Professional painters have favored Sherwin products for decades, leading to strong brand loyalty and pricing power.

Bears

Residential repainting surged during the COVID-19 pandemic, which could result in a near-term glut.

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News

Trading Information

Previous Close Price
$302.05
Day Range
$300.82304.62
52-Week Range
$227.20348.37
Bid/Ask
$304.00 / $306.00
Market Cap
$77.03 Bil
Volume/Avg
6.1 Mil / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
28.91
Price/Sales
3.40
Dividend Yield (Trailing)
0.87%
Dividend Yield (Forward)
0.94%
Total Yield
3.06%

Company Profile

Sherwin-Williams is the largest provider of architectural paint in the United States. The company has over 5,000 stores and sells premium paint at higher price points than most competitors. Sherwin-Williams also sells paint-related products in big-box stores and provides coatings for original equipment manufacturers.
Sector
Basic Materials
Industry
Specialty Chemicals
Stock Style Box
Large Core
Total Number of Employees
64,088

Competitors

Valuation

Metric
SHW
MAS
PPG
Price/Earnings (Normalized)
28.9117.3117.05
Price/Book Value
21.983.88
Price/Sales
3.401.941.71
Price/Cash Flow
20.9912.7814.99
Price/Earnings
SHW
MAS
PPG

Financial Strength

Metric
SHW
MAS
PPG
Quick Ratio
0.401.020.96
Current Ratio
0.781.741.47
Interest Coverage
8.5612.987.51
Quick Ratio
SHW
MAS
PPG

Profitability

Metric
SHW
MAS
PPG
Return on Assets (Normalized)
11.01%16.54%8.42%
Return on Equity (Normalized)
71.59%24.67%
Return on Invested Capital (Normalized)
17.88%28.32%12.67%
Return on Assets
SHW
MAS
PPG
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