Sherwin-williams Company Stock Fair Value Calculator – Sherwin-Williams Achieves Balance of Pricing and Raw Material Costs
December 29, 2023
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SHERWIN-WILLIAMS ($NYSE:SHW): The company is committed to managing pricing and moderating raw material costs to ensure the company remains competitive in the marketplace. Through their commitment to pricing, Sherwin-Williams has achieved a balance between product pricing and raw material costs, allowing them to continue to provide cost effective solutions to their customers. The company has developed pricing models that factor in price increases from raw material suppliers in order to ensure their customers can purchase their products for an affordable price. They have also implemented cost saving measures such as inventory management and supply chain optimization in order to minimize their overhead costs.
These efforts have allowed Sherwin-Williams to remain competitive in the marketplace while still staying true to their commitment to providing quality products. The company’s commitment to pricing and moderating raw material costs has been instrumental in their success. By taking a proactive approach to their pricing and supply chain, Sherwin-Williams has been able to keep their pricing competitive and minimize their overhead costs, allowing them to continue to provide affordable solutions to their customers.
Share Price
The stock opened at $313.1 and closed at $312.8, showing a decrease of 0.1% from the prior closing price of $313.3. This minor dip reflects the company’s successful ability to maintain an equilibrium of pricing and raw material costs, allowing them to remain competitive while avoiding any major revenue fluctuation. This marks a significant accomplishment for the company, as it allows them to sustain their current level of success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sherwin-williams Company. More…
| Total Revenues | Net Income | Net Margin |
| 23.03k | 2.42k | 10.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sherwin-williams Company. More…
| Operations | Investing | Financing |
| 3.24k | -1.07k | -1.8k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sherwin-williams Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 23k | 19.22k | 14.7 |
Key Ratios Snapshot
Some of the financial key ratios for Sherwin-williams Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.6% | 9.1% | 15.5% |
| FCF Margin | ROE | ROA |
| 10.6% | 60.1% | 9.7% |
Analysis – Sherwin-williams Company Stock Fair Value Calculator
At GoodWhale, we recently conducted an analysis of SHERWIN-WILLIAMS COMPANY‘s financials. After careful evaluation of the company’s performance, we determined that its intrinsic value is approximately $290.5, as calculated by our proprietary Valuation Line. Currently, SHERWIN-WILLIAMS COMPANY stock is traded at $312.8, a fair price that is slightly overvalued by 7.7%. Investors considering the stock should be aware that while it may be a good investment, it should not be purchased at its current price as there is a slight premium. More…
Peers
In the paint and coatings industry, there is intense competition between Sherwin-Williams Co and its three main competitors: PPG Industries Inc, RPM International Inc, and MOP Environmental Solutions Inc. All four companies are striving to develop the best products and gain market share.
– PPG Industries Inc ($NYSE:PPG)
PPG Industries Inc, with a market cap of 26.94B as of 2022, is a company that produces and supplies coatings, optical and specialty materials, and glass products. The company has a Return on Equity of 15.07%.
– RPM International Inc ($NYSE:RPM)
RPM International Inc is a holding company that owns subsidiaries that are engaged in the manufacture, marketing, and sale of coatings and related products. The company operates in two segments: Industrial and Consumer. The Industrial segment provides coatings and sealants for industrial, commercial, and institutional applications. The Consumer segment offers paints, primers, and other house paint products for retail, do-it-yourself, and original equipment manufacturer markets.
Summary
Sherwin-Williams Company is a leading global paints and coatings company. It has a solid financial foundation and solid credit metrics, which has enabled it to successfully manage its exposure to raw material costs. The company’s pricing strategy and cost moderation efforts have been key to achieving consistent and sustainable profits. By carefully monitoring raw material costs, Sherwin-Williams has been able to implement cost-effective strategies to ensure profitability. The company has also implemented a comprehensive risk management program to protect against unexpected price movements.
In addition, Sherwin-Williams has achieved a strong balance sheet position and increased liquidity through the sale of non-core assets and debt reduction. Lastly, the company continues to maintain a disciplined approach to capital investments and dividend payments, which are expected to provide continued returns in the future.
