The Sherwin-Williams Company


SKU: SHW Category:


This is our first report on Sherwin-Williams, one of the largest distributors of paints and coatings in the U.S. The company had a stellar third quarter, with high teen sales growth leading to the first $6 billion sales quarter and significant sequential and year-over-year gross margin improvement which resulted in an all-around beat. In contrast to China’s and Europe’s persistent weakness, demand is still robust in the pro-architectural and North American industrial end sectors. Although conditions are impenetrable and some previously mentioned specialty resins, in particular, continue to be in short supply, the industry supply chain has started to normalize. Their management also continued to prioritize growth initiatives, product innovation, customer solutions, pricing actions, cost control, supply chain improvements, and business optimization tasks throughout the quarter. Furthermore, their Consumer Brands Group experienced a significantly better quarter. Demand for DIY paint also remained subdued as inflation continued to put pressure on consumers, and ongoing alkyd resin shortages hindered their capacity to make stains and aerosols. Positively, the Pros Who Paint section once more had substantial double-digit percentage growth. We initiate coverage on the stock of The Sherwin-Williams Company with a ‘Hold’ rating.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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