Sherwin-Williams’ SHW stock price hit $312.60 today, with momentum driven by upbeat analyst notes on margin stability through 2024 forecasts. Sherwin-Williams is witnessing strong domestic demand and is expanding its retail business. Auto refinishing demand is stable, with sales increasing by a mid-single-digit percentage in the latest reported quarter. As evidenced by the growing number of retail stores, the company remains focused on capturing a larger share of its end markets. In the first nine months of 2023, Paint Stores Group added 36 net new stores, including 16 in the third quarter. Paint Stores Group sales increased 3.6% in the third quarter due to consistent effective pricing. The segment margin increased by 420 basis points to 25.9%. The cost-cutting initiatives, supply chain optimization and productivity improvements implemented by Sherwin-Williams should continue to generate margin benefits. Efforts to reduce operational expenses enabled the company to produce significant net cash flows from operations of around $1.9 billion in 2022. In addition, strong cash generation enabled the company to return $1.41 billion to shareholders in dividends and share repurchases during the first nine months of 2023. The company is also focusing on restructuring, which will provide benefits in 2023. Consumer Brands Group, Performance Coatings Group and corporate business are the focal areas for this restructuring effort. Sherwin-Williams strengthened its position as the global leader in paints and coatings by acquiring Valspar and leveraging its highly complementary offerings, powerful brands and revolutionary technology. As a result of this buyout, SHW's brand portfolio and client base in North America have expanded, and the company's worldwide finish business has been strengthened. The acquisition expanded the company's global footprint to include Asia-Pacific, Europe, the Middle East and Africa, as well as new packaging and coil capabilities. The company increased its net income per share forecast for fiscal 2023. It expects full-year net income per share to be in the $9.21 to $9.41 range, up from $8.46-$8.86 previously projected. This includes an acquisition-related amortization expense of 80 cents per share and a net expense of 9 cents per share due to the Restructuring Plan. Full-year 2023 adjusted net income per share is now forecast to be in the range of $10.10 to $10.3, up from $9.30 to $9.70 expected earlier. The Pacesetter Playbook: An Executive’s Guide To Advancing Enterprise AI | Paid Program Sherwin-Williams’ SHW stock price closed at $311.85 today, buoyed by optimism in infrastructure investment bills supporting industrial coatings demand.
