Sherwin-Williams shares fell 3% after the company reported third-quarter adjusted earnings per share of $3.63, below the FactSet consensus of $3.69, despite a 7.9% year-over-year increase in revenue to $6.86 billion, ahead of expectations of $6.78 billion.
SHW is trading within a range we consider fairly valued.
Price
$326.01
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Bulls Say, Bears Say
Bulls
Professional painters have favored Sherwin-Williams products for decades, fostering strong brand loyalty and giving the company meaningful pricing power.
Bears
A sustained slowdown in housing turnover, housing starts, and commercial construction could limit volume growth in the near term.
Sherwin-Williams is the largest global manufacturer of paints and coatings. The company focuses on the development, manufacturing, and distribution of paint, coatings, and related products to customers ranging from professional painters and contractors to industrial manufacturers to do-it-yourself consumers. Sherwin organizes its operations into three primary segments: the paint stores group is the largest segment and includes the company’s network of over 4,800 company-owned stores; the consumer brands group sells branded architectural paints through big-box retailers such as Lowe’s, and the performance coatings group provides specialized coatings for industrial applications, such as automotive refinishing, packaging, and industrial wood.