Update shared on04 Sep 2025
Sherwin-Williams faces persistent volume and demand weakness leading to downward guidance revisions and "messy" recent earnings, but ongoing investment and market share gains position the company for future recovery, with the analyst price target effectively unchanged at $379.52.
Analyst Commentary
- Volume growth remains elusive and housing-related demand is weak, leading to downward guidance revisions.
- Recent earnings were negatively impacted by non-operating items and an overall "messy" quarter, obscuring underlying stability.
- Cost headwinds are expected to moderate, with some one-time costs from Q2 not anticipated to recur.
- Strategic initiatives within the Paint Store Group and ongoing market share gains offer potential for future outperformance when market conditions recover.
- Sherwin-Williams is investing during a down market, positioning itself to benefit as conditions improve, despite near-term challenges.
What's in the News
- PNC Capital Markets LLC, U.S. Bancorp Investments, Inc., and Wells Fargo Securities, LLC were added as Co-Lead Underwriters for Sherwin-Williams's $499.83 million fixed-income offering.
- Sherwin-Williams provided Q3 2025 guidance, expecting consolidated net sales to be up or down a low-single digit percentage versus Q3 2024.
- The company repurchased 1,450,000 shares (0.58%) for $518.48 million between April 1 and June 30, 2025, bringing total buybacks under the program to 103,025,000 shares (36.63%).
- Sherwin-Williams lowered full-year 2025 guidance, now expecting net sales to be up or down low-single digit percent and adjusted diluted net income per share to be $10.11–$10.41, citing softer-than-anticipated demand.
Valuation Changes
Summary of Valuation Changes for Sherwin-Williams
- The Consensus Analyst Price Target remained effectively unchanged, at $379.52.
- The Future P/E for Sherwin-Williams remained effectively unchanged, moving only marginally from 33.27x to 33.13x.
- The Consensus Revenue Growth forecasts for Sherwin-Williams remained effectively unchanged, at 4.5% per annum.
Disclaimer
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