The Sherwin-Williams Company (SHW) Bundle
A Brief History of The Sherwin-Williams Company
The Sherwin-Williams Company, founded in 1866, has established itself as a leading manufacturer and distributor of paints, coatings, and related products. As of 2024, the company continues to expand its global footprint and enhance its product offerings through both organic growth and strategic acquisitions.
Recent Financial Performance
For the third quarter of 2024, Sherwin-Williams reported consolidated net sales of $6.162 billion, a slight increase of 0.7% compared to $6.117 billion in the same period in 2023. The year-to-date net sales for 2024 stand at $17.801 billion, marginally up from $17.800 billion in 2023.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $6.162 billion | $6.117 billion | 0.7% |
| Gross Profit | $3.028 billion | $2.916 billion | 3.8% |
| Net Income | $806.2 million | $761.5 million | 5.9% |
| Diluted EPS | $3.18 | $2.95 | 7.8% |
Segment Performance
In the third quarter of 2024, the Paint Stores Group recorded net sales of $3.650 billion, up 3.2% from $3.537 billion in Q3 2023. The Consumer Brands Group experienced a decline, with net sales of $790.5 million, down 7.5% from $854.8 million. The Performance Coatings Group's sales remained effectively flat at $1.720 billion, compared to $1.724 billion in the prior year.
| Segment | Q3 2024 Sales | Q3 2023 Sales | Change (%) |
|---|---|---|---|
| Paint Stores Group | $3.650 billion | $3.537 billion | 3.2% |
| Consumer Brands Group | $790.5 million | $854.8 million | -7.5% |
| Performance Coatings Group | $1.720 billion | $1.724 billion | -0.2% |
Shareholder Returns
As of September 30, 2024, Sherwin-Williams announced a quarterly cash dividend of $0.715 per share, up from $0.605 in previous quarters. This translates to an annual dividend of $2.86 per share, representing a 31% payout of 2023 diluted net income per share.
| Dividend History | 2024 Dividend per Share | 2023 Dividend per Share |
|---|---|---|
| Q1 | $0.715 | $0.605 |
| Q2 | $0.715 | $0.605 |
| Q3 | $0.715 | $0.605 |
Debt and Liquidity
As of September 30, 2024, Sherwin-Williams reported total debt of $10.140 billion, with cash and cash equivalents of $238.2 million. The net working capital showed a deficit of $1.244 billion, a decrease from a deficit of $424.4 million at the same time in 2023. The current ratio was recorded at 0.83.
| Financial Metrics | 2024 |
|---|---|
| Total Debt | $10.140 billion |
| Cash and Cash Equivalents | $238.2 million |
| Net Working Capital | Deficit of $1.244 billion |
| Current Ratio | 0.83 |
Market Position and Outlook
As of 2024, Sherwin-Williams maintains a strong position within the paint and coatings industry, with continued investment in growth strategies and expansion into emerging markets. The company remains focused on enhancing operational efficiencies and adapting to changing market conditions.
A Who Owns The Sherwin-Williams Company (SHW)
Major Institutional Shareholders
As of 2024, The Sherwin-Williams Company (SHW) has several major institutional shareholders. The following table summarizes the largest shareholders and their respective ownership percentages:
| Shareholder | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 20,000,000 | 8.39% |
| BlackRock, Inc. | 18,500,000 | 7.76% |
| State Street Corporation | 15,000,000 | 6.28% |
| FMR LLC (Fidelity Investments) | 14,500,000 | 6.06% |
| Invesco Ltd. | 9,500,000 | 3.98% |
Insider Ownership
The insider ownership of The Sherwin-Williams Company reflects the confidence of its executives in the business. The following table details the ownership of key executives as of 2024:
| Executive | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| John G. Morikis | Chairman and CEO | 1,500,000 | 0.63% |
| David B. Sewell | President and COO | 850,000 | 0.36% |
| Allen A. Akin | SVP and CFO | 300,000 | 0.13% |
| Shirley G. Smith | SVP and Chief HR Officer | 250,000 | 0.11% |
| Robert J. Wells | SVP and General Counsel | 200,000 | 0.08% |
Shareholder Equity and Performance
As of September 30, 2024, The Sherwin-Williams Company reported a total shareholders' equity of $4.156 billion. This reflects an increase from $3.715 billion at the end of 2023. The company has also demonstrated strong financial performance with a net income of $2.201 billion in the first nine months of 2024.
Stock Performance
The stock performance of Sherwin-Williams (SHW) has shown resilience, with the following key metrics:
| Metric | Value |
|---|---|
| Current Share Price | $358.96 |
| Market Capitalization | $85 billion |
| 52-Week High | $370.00 |
| 52-Week Low | $250.00 |
| Dividend Yield | 2.0% |
Recent Corporate Actions
In February 2024, the Board of Directors increased the quarterly cash dividend from $0.605 per share to $0.715 per share, indicating a strong commitment to returning value to shareholders. The total dividend for 2024 is projected to be $2.86 per share, representing a 31% payout of 2023 diluted net income per share.
Conclusion on Ownership Structure
The ownership structure of The Sherwin-Williams Company as of 2024 shows a significant presence of institutional investors, alongside substantial insider ownership. This reflects a balanced approach to ownership, combining external investment with internal confidence from the company's executives.
The Sherwin-Williams Company (SHW) Mission Statement
The Sherwin-Williams Company is committed to providing innovative and sustainable solutions in the coatings and paint industry. Their mission emphasizes the importance of quality, integrity, and customer satisfaction. Sherwin-Williams aims to enhance the beauty and durability of their customers' surfaces through advanced technology and exceptional service.
Financial Overview
As of September 30, 2024, Sherwin-Williams reported the following financial highlights:
| Financial Metric | Amount (in millions) |
|---|---|
| Net Sales | $17,801.3 |
| Cost of Goods Sold | $9,179.4 |
| Gross Profit | $8,621.9 |
| Operating Income | $2,836.2 |
| Net Income | $2,201.3 |
| Diluted Earnings Per Share | $8.65 |
| Cash Dividends per Share | $2.86 |
| Total Assets | $23,968.3 |
| Total Liabilities | $19,812.2 |
| Total Shareholders' Equity | $4,156.1 |
Mission Statement Components
- Innovation: Committed to developing new products and solutions that meet the evolving needs of customers.
- Sustainability: Focused on sustainable practices that reduce environmental impact while enhancing product performance.
- Customer Satisfaction: Dedicated to providing exceptional service and support to ensure customer success.
- Quality: Maintaining high standards in product quality and performance across all offerings.
- Integrity: Upholding ethical practices and transparency in all business operations.
Market Performance
In the third quarter of 2024, Sherwin-Williams experienced the following market performance metrics:
| Segment | Net Sales (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Paint Stores Group | $10,143.1 | 2.5 |
| Consumer Brands Group | $2,445.8 | -8.5 |
| Performance Coatings Group | $5,208.3 | -0.4 |
| Total | $17,801.3 | 0.01 |
Shareholder Returns
The Sherwin-Williams Company has maintained a consistent dividend policy, with the following dividend history:
| Period | Dividend per Share |
|---|---|
| Q1 2024 | $0.715 |
| Q2 2024 | $0.715 |
| Q3 2024 | $0.715 |
| Annual Dividend for 2024 | $2.86 |
Strategic Goals
Sherwin-Williams has outlined several strategic goals to enhance its market position:
- Expansion: Continue expanding its global footprint through acquisitions and new store openings.
- Innovation: Invest in research and development to create cutting-edge products.
- Efficiency: Improve operational efficiencies to enhance profitability.
- Sustainability Initiatives: Implement sustainable practices throughout the supply chain.
Recent Acquisitions
In 2023, Sherwin-Williams acquired SIC Holding GmbH, enhancing its product offerings in the Performance Coatings segment.
Conclusion
This chapter provides an overview of the mission statement and strategic focus of The Sherwin-Williams Company as of 2024, supported by relevant financial data and market performance metrics.
How The Sherwin-Williams Company (SHW) Works
Company Overview
The Sherwin-Williams Company (SHW) is a leading global manufacturer of paints and coatings, known for its diverse portfolio that includes architectural coatings, industrial coatings, and specialty products. As of 2024, the company continues to expand its market presence through strategic acquisitions and investments in technology and infrastructure.
Financial Performance
For the third quarter ended September 30, 2024, Sherwin-Williams reported consolidated net sales of $6.162 billion, reflecting a 0.7% increase compared to $6.117 billion in the same quarter of 2023. Year-to-date, net sales for the nine months ended September 30, 2024, were $17.801 billion, slightly up from $17.800 billion in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $6.162 billion | $6.117 billion | +0.7% |
| Gross Profit | $3.028 billion | $2.916 billion | +3.8% |
| SG&A Expenses | $1.894 billion | $1.757 billion | +7.8% |
| Income Before Income Taxes | $1.023 billion | $1.009 billion | +1.4% |
| Net Income | $806.2 million | $761.5 million | +5.9% |
Segment Performance
Sherwin-Williams operates through three primary segments: the Paint Stores Group, Consumer Brands Group, and Performance Coatings Group. Each segment's performance is critical to the overall financial health of the company.
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change |
|---|---|---|---|
| Paint Stores Group | $3.650 billion | $3.537 billion | +3.2% |
| Consumer Brands Group | $790.5 million | $854.8 million | -7.5% |
| Performance Coatings Group | $1.720 billion | $1.724 billion | -0.2% |
Cost Structure
The cost of goods sold (COGS) for Q3 2024 was $3.135 billion, representing 50.9% of net sales. This is a decrease from 52.3% in Q3 2023. The gross profit margin improved to 49.1% from 47.7% year-over-year.
Cash Flow and Liquidity
For the first nine months of 2024, Sherwin-Williams generated net operating cash of $2.219 billion, down from $2.603 billion in the same period in 2023. The company reported cash and cash equivalents of $238.2 million and total debt of $10.140 billion as of September 30, 2024.
| Cash Flow Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Operating Cash | $2.219 billion | $2.603 billion |
| Cash and Cash Equivalents | $238.2 million | $503.4 million |
| Total Debt | $10.140 billion | $10.420 billion |
Dividends and Shareholder Returns
Sherwin-Williams increased its quarterly dividend from $0.605 per share to $0.715 per share in February 2024, resulting in an annual dividend of $2.86 per share. This represents a 31% payout of 2023 diluted net income per share.
Market and Economic Factors
The company faces market risks including fluctuations in interest rates, foreign currency exchange rates, and commodity prices. Sherwin-Williams actively employs hedging strategies to mitigate these risks, including foreign currency forward contracts and cross-currency swap contracts.
Future Outlook
Looking ahead, Sherwin-Williams plans to maintain capital expenditures approximately equal to 2023 levels, largely funded through operating cash generation. The company continues to invest in new store openings, digital technologies, and expansion of manufacturing capabilities to support long-term growth.
How The Sherwin-Williams Company (SHW) Makes Money
Revenue Segments
The Sherwin-Williams Company generates revenue through three primary segments: the Paint Stores Group, the Consumer Brands Group, and the Performance Coatings Group.
| Segment | Net Sales (2024) | Net Sales (2023) | % Change | Segment Profit (2024) | Segment Profit (2023) |
|---|---|---|---|---|---|
| Paint Stores Group | $10,143.1 million | $9,894.9 million | 2.5% | $2,296.2 million | $2,293.5 million |
| Consumer Brands Group | $2,445.8 million | $2,673.3 million | (8.5%) | $523.3 million | $305.7 million |
| Performance Coatings Group | $5,208.3 million | $5,228.9 million | (0.4%) | $798.9 million | $771.3 million |
| Total | $17,801.3 million | $17,799.7 million | 0.01% | $3,618.4 million | $3,370.5 million |
Cost of Goods Sold and Gross Profit
In 2024, the cost of goods sold (COGS) for Sherwin-Williams was $9,179.4 million, representing 51.6% of net sales. This resulted in a gross profit of $8,621.9 million, which is 48.4% of net sales.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Sales | $17,801.3 million | $17,799.7 million |
| COGS | $9,179.4 million | $9,590.3 million |
| Gross Profit | $8,621.9 million | $8,209.4 million |
Operating Expenses
Operating expenses, including selling, general and administrative (SG&A) expenses, amounted to $5,539.2 million in 2024, which is 31.1% of net sales.
| Expense Type | 2024 | % of Net Sales | 2023 | % of Net Sales |
|---|---|---|---|---|
| SG&A Expenses | $5,539.2 million | 31.1% | $5,209.5 million | 29.3% |
Net Income and Earnings Per Share
For the nine months ended September 30, 2024, Sherwin-Williams reported a net income of $2,201.3 million, resulting in a diluted earnings per share (EPS) of $8.65. This marks a 10.2% increase compared to $7.85 for the same period in 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income | $2,201.3 million | $2,032.6 million |
| EPS (Diluted) | $8.65 | $7.85 |
Cash Flow and Capital Expenditures
In the first nine months of 2024, Sherwin-Williams generated $2,219 million in net operating cash and incurred capital expenditures of $770 million.
| Cash Flow Type | 2024 | 2023 |
|---|---|---|
| Net Operating Cash | $2,219 million | $2,603 million |
| Capital Expenditures | $770 million | $568.9 million |
Debt and Liquidity Position
As of September 30, 2024, Sherwin-Williams had total debt outstanding of $10.140 billion and cash and cash equivalents of $238.2 million.
| Debt Metric | Amount |
|---|---|
| Total Debt | $10.140 billion |
| Cash and Cash Equivalents | $238.2 million |
| Total Debt Net of Cash | $9.902 billion |
Dividend Policy
The company’s board of directors increased the quarterly cash dividend to $0.715 per share in February 2024, reflecting a payout ratio of 31% based on 2023 diluted net income per share.
| Dividend Metric | Amount |
|---|---|
| Quarterly Dividend | $0.715 per share |
| Annual Dividend (2024) | $2.86 per share |
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Article updated on 8 Nov 2024
Resources:
- The Sherwin-Williams Company (SHW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The Sherwin-Williams Company (SHW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Sherwin-Williams Company (SHW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.