Sherwin-Williams Company (SHW)

Over the past six months, SHW stock has experienced a decline of -6.93%, but it has shown positive returns year-to-date (+6.08%) and a modest gain over the last month (+1.27%). Key events impacting the stock price include stronger-than-expected earnings in Q2 2024, which led the company to raise its full-year outlook. The company missed Wall Street estimates for third-quarter profit in October 2024, primarily due to lower sales in segments serving the housing, automotive, and aerospace sectors, resulting in a 7.61% drop in premarket trading. In April 2025, Sherwin-Williams reported solid first-quarter results despite a choppy demand environment and reaffirmed its full-year 2025 guidance. In the first quarter of 2025, the company invested $352 million in share repurchases and increased its dividend by 10%.

Sherwin-Williams' business is seasonal, with the second and third quarters typically generating a higher proportion of sales and earnings. The company experiences prolonged increases in customer visits throughout the spring and summer, with notable upticks in May and August, likely influenced by summer relocations. The company has noted a "choppy" demand environment, which it anticipates will continue through the remainder of 2025 and into 2026. Raw material availability issues and supply chain challenges have historically impacted the company's ability to fully meet strong demand.

The Sherwin-Williams Company, founded in 1866, is a global leader in the development, manufacture, distribution, and sale of paint, coatings, and related products. The company operates primarily within the Chemicals sector, with specific industries including Paint Manufacturing, Paint Wholesaling, Paint Stores, and Automotive Coatings Manufacturing. Sherwin-Williams produces a broad portfolio of products under well-known brands such as Sherwin-Williams®, Valspar®, HGTV HOME® by Sherwin-Williams, Dutch Boy®, Krylon®, Minwax®, Thompson's® WaterSeal®, and Cabot®. Its major product categories include architectural paints and coatings, industrial coatings, protective and marine coatings, OEM product finishes, automotive and aerospace finishes, wood finishes, stains, varnishes, caulks, sealants, floorcoverings, and related equipment and supplies. The company also offers private-label products.

Sherwin-Williams has a significant global presence, with operations in over 120 countries. The company operates a controlled-distribution model, including over 5,000 company-owned stores and facilities. Specifically, it has 4,773 company-owned stores in the USA, Canada, and the Caribbean, and 334 company-owned stores in Latin America. Its products are also sold through retailers and distributors in North America, Europe, China, Australia, and New Zealand. The company's global supply chain includes 136 manufacturing and distribution facilities across five geographic regions.

Sherwin-Williams' brand reputation has faced challenges with perceived drops in paint quality and increased prices since the pandemic, with some users noting issues with paint coverage and consistency. On the positive side, the company is recognized for its portfolio of branded and private-label products and emphasizes its commitment to sustainability by developing eco-friendly products, improving energy efficiency, and minimizing waste. The company's long-term success is attributed to its consistent investment in new store expansion and its ability to make countercyclical growth investments.

The Sherwin-Williams Company is heavily dominated by institutional owners, who hold over 50% of the company's shares. Major institutional owners include Vanguard Group Inc, BlackRock, Inc., State Street Corp, Price T Rowe Associates Inc /md/, Morgan Stanley, Fmr Llc, Geode Capital Management, Llc, Alliancebernstein L.P., and The Sherwin-Williams Company 401(K) Plan.