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Sherwin-Williams (SHW)

Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of paints, coatings and related products to professional, industrial, commercial, and retail customers. Sherwin-Williams manufactures products under well-known brands such as Sherwin-Williams®, Valspar®, HGTV HOME® by Sherwin-Williams, Dutch Boy®, Krylon®, Minwax®, Thompson's® Water Seal®, Cabot® and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams® branded products are sold exclusively through a chain of more than 4,900 company operated stores and facilities, while the company's other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers, and industrial distributors. The Sherwin-Williams Performance Coatings Group supplies a broad range of highly-engineered solutions for the construction, industrial, packaging and transportation markets in more than 120 countries around the world.

Company profile

Ticker
SHW
Exchange
CEO
John Morikis
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Acquire Sourcing, LLC • Comex North America, Inc. • Contract Transportation Systems Co. • CTS National Corporation • Omega Specialty Products & Services LLC • Plasti-Kote Co., Inc. • Sherwin-Williams Realty Holdings, Inc. • SWIMC LLC • Specialty Polymers, Inc. • The Sherwin-Williams Acceptance Corporation ...
IRS number
340526850

SHW stock data

Calendar

27 Jul 22
12 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 312.6M 312.6M 312.6M 312.6M 312.6M 312.6M
Cash burn (monthly) 29.5M (no burn) (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 42.27M n/a n/a n/a n/a n/a
Cash remaining 270.33M n/a n/a n/a n/a n/a
Runway (months of cash) 9.2 n/a n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
8 Jul 22 Anderson Kerrii B Common Stock Grant Acquire A Yes No 237.91 40.72 9.69K 508.95
8 Jul 22 Richard J Kramer Common Stock Grant Acquire A Yes No 237.91 157.62 37.5K 10,541.61
8 Jul 22 Poon Christine A Common Stock Grant Acquire A Yes No 237.91 34.15 8.12K 2,205.23
8 Jul 22 Michael H Thaman Common Stock Grant Acquire A Yes No 237.91 136.61 32.5K 3,726.24
8 Jul 22 Steven H Wunning Common Stock Grant Acquire A Yes No 237.91 173.39 41.25K 7,267.13
93.1% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 1315 1405 -6.4%
Opened positions 115 236 -51.3%
Closed positions 205 110 +86.4%
Increased positions 496 470 +5.5%
Reduced positions 475 463 +2.6%
13F shares Current Prev Q Change
Total value 133.23B 70.63B +88.6%
Total shares 200.31M 201.45M -0.6%
Total puts 802.64K 1.61M -50.2%
Total calls 965.24K 1.5M -35.6%
Total put/call ratio 0.8 1.1 -22.7%
Largest owners Shares Value Change
Vanguard 20.68M $5.16B +0.3%
BLK Blackrock 17.3M $4.32B +0.9%
STT State Street 10.77M $2.69B -2.3%
FMR 9.01M $2.25B -12.8%
Massachusetts Financial Services 8.65M $2.16B +6.2%
Capital International Investors 4.8M $1.2B +42.2%
TROW T. Rowe Price 4.75M $1.19B -29.3%
BAC Bank Of America 4.68M $1.17B -0.3%
Capital World Investors 4.53M $1.13B -7.3%
FSZ Fiera Capital 4.08M $1.02B -2.6%
Largest transactions Shares Bought/sold Change
CFS Investment Advisory Services 2.25M +2.24M +24917.6%
Parnassus Investments 2.2M +2.2M NEW
TROW T. Rowe Price 4.75M -1.97M -29.3%
Norges Bank 0 -1.9M EXIT
JHG Janus Henderson 2.77M -1.59M -36.5%
Capital International Investors 4.8M +1.42M +42.2%
FMR 9.01M -1.32M -12.8%
Sustainable Growth Advisers 1.11M +1.11M NEW
Manufacturers Life Insurance Company, The 219.58K -824.39K -79.0%
Castleview Partners 356 -789.23K -100.0%

Financial report summary

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Risks
  • The COVID-19 pandemic has adversely impacted our business, results of operations, cash flow and financial condition, and the continuing effects of the COVID-19 pandemic remain highly unpredictable and could adversely impact our business, results of operations, cash flow, liquidity and financial condition in the future.
  • Adverse changes in general business and economic conditions in the United States and worldwide may adversely affect our results of operations, cash flow, liquidity or financial condition.
  • Protracted duration of economic downturns in cyclical segments of the economy may depress the demand for some of our products and adversely affect our sales, earnings, cash flow or financial condition.
  • A weakening of global credit markets could adversely affect our results of operations, cash flow, liquidity or financial condition.
  • We require a significant amount of cash to service the substantial amount of debt we have outstanding. Our ability to generate cash depends on many factors beyond our control. We also depend on the business of our subsidiaries to satisfy our cash needs. If we cannot generate the required cash, we may not be able to make the necessary payments required under our indebtedness.
  • Fluctuations in foreign currency exchange rates could adversely affect our results of operations, cash flow, liquidity or financial condition.
  • Adverse weather conditions and natural disasters, including due to the impacts of climate change, may temporarily reduce the demand for some of our products, impact our ability to meet the demand for our products or cause supply chain disruptions and increased costs, and could have a negative effect on our sales, earnings or cash flow.
  • Unexpected shortages and increases in the cost of raw materials and energy may adversely affect our earnings or cash flow.
  • Although we have an extensive customer base, the loss of any of our largest customers could adversely affect our sales, earnings or cash flow.
  • Increased competition or failure to keep pace with developments in key competitive areas of our business may reduce our sales, earnings or cash flow performance.
  • Our results of operations, cash flow or financial condition may be negatively impacted if we do not successfully integrate future acquisitions into our existing operations and if the performance of the businesses we acquire do not meet our expectations.
  • Risks and uncertainties associated with our expansion into and our operations in Asia, Europe, South America and other foreign markets could adversely affect our results of operations, cash flow, liquidity or financial condition.
  • Policy changes affecting international trade could adversely impact the demand for our products and our competitive position.
  • Cybersecurity incidents and other disruptions to our information technology systems could interfere with our operations, result in the compromise or loss of critical and confidential information and severely harm our business.
  • Our ability to attract, retain, develop and progress a qualified workforce could adversely impact our business and impair our ability to meet our strategic objectives and the needs of our customers.
  • Inability to protect or enforce our material trademarks and other intellectual property rights could have an adverse effect on our business.
  • We are subject to a wide variety of complex domestic and foreign laws, rules and regulations, for which compliance could adversely affect our results of operations, cash flow or financial condition.
  • We are required to comply with, and may become subject to additional, numerous complex and increasingly stringent domestic and foreign health, safety and environmental (including related to climate change) laws, regulations and requirements, the cost of which is likely to increase and may adversely affect our results of operations, cash flow or financial condition.
  • We are involved with environmental investigation and remediation activities at some of our currently- and formerly-owned sites, as well as a number of third-party sites, for which our ultimate liability may exceed the current amount we have accrued.
  • The nature, cost, quantity and outcome of pending and future litigation, such as litigation arising from the historical manufacture and sale of lead pigments and lead-based paint, could have a material adverse effect on our results of operations, cash flow, liquidity and financial condition.
Management Discussion
  • The Company has historically experienced, and expects to continue to experience, variability in quarterly results. The results of operations for the three and six months ended June 30, 2022 are not indicative of the results to be expected for the full year as business is seasonal in nature with the majority of Net sales for the Reportable Segments traditionally occurring during the second and third quarters. However, periods of economic uncertainty can alter the Company's seasonal patterns.
  • Consolidated net sales increased in the second quarter of 2022 primarily due to selling price increases in all segments, higher professional architectural sales volume in North America paint stores and higher sales volumes in our Packaging and Coil businesses within the Performance Coatings Group. These increases were partially offset by lower protective and marine sales volume in North America paint stores and lower sales volumes outside of North America in the the Consumer Brands and Performance Coatings Groups primarily due to challenging prior year comparisons. Currency translation rate changes decreased consolidated net sales by 1.4% in the second quarter. Net sales of all consolidated foreign subsidiaries increased 1.7% to $1.121 billion in the second quarter compared to $1.102 billion in the same period last year. The increase in net sales for all consolidated foreign subsidiaries in the second quarter was due primarily to higher sales volumes in most end markets and selling price increases in the Performance Coatings Group, partially offset by lower sales in the Consumer Brands Group as well as unfavorable currency translation. Net sales of all operations other than consolidated foreign subsidiaries increased 11.1% to $4.752 billion in the second quarter compared to $4.278 billion in the same period last year.
  • Net sales in The Americas Group increased in the second quarter due primarily to selling price increases and higher professional contractor architectural sales volume in North America paint stores, partially offset by lower sales volumes in protective and marine and DIY end markets. Net sales from stores open for more than twelve calendar months in the U.S. and Canada increased 6.4% in the second quarter compared to last year’s comparable period. Sales of non-paint products decreased 1.5% compared to last year's second quarter. A discussion of changes in volume versus pricing for sales of products other than paint is not pertinent due to the wide assortment of general merchandise sold.

Content analysis

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Positive
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Legalese
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Readability
H.S. sophomore Avg
New words: addressing, APAC, China, freight, immaterial, inflationary, input, marine, meaningful, momentum, original, progressed, repay, responded, softer, strength, transportation
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