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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Sherwin-Williams (SHW) ten years ago? It may not have been easy to hold on to SHW for all that time, but if you did, how much would your investment be worth today?
Sherwin-Williams' Business In-Depth
With that in mind, let's take a look at Sherwin-Williams' main business drivers.
Founded in 1866 and headquartered in Cleveland, OH, The Sherwin-Williams Company is into manufacturing and sales of paints, coatings and related products, primarily in the North and South America. It also has operations in the Caribbean region, Europe and Asia. Sherwin-Williams is one of the biggest paint companies in the United States and in the world. Its well-known brands include Dutch Boy, Minwax and Krylon. The company, on Jun 1, 2017, completed the purchase of rival paints maker Valspar in an all-cash transaction, creating a premier global paints and coatings company.
Sherwin-Williams made changes to its reporting structure, effective Jan 1, 2023, to manage and report the Latin America architectural paint business within the Consumer Brands Group. The Latin America business was earlier part of The Americas Group, which has now become the Paint Stores Group as a result of this change. The company started reporting segment results for the newly realigned Paint Stores Group and Consumer Brands Group starting with the first quarter of 2023.
The Paint Stores Group: The group produces and sells a wide array of industrial coatings, architectural paint and related products across North America through dedicated dealers and company-operated stores. The segment accounted for around 53% of Sherwin-Williams’ first-quarter 2023 sales.
The Consumer Brands Group: The division includes the company’s Consumer Group and Valspar's Consumer Paints segment as well as the Latin America architectural paint business. The segment operates highly efficient supply chain for paints and coatings related products across the globe. The segment accounted for around 16% of Sherwin-Williams’ first-quarter 2023 sales.
The Performance Coatings Group: The unit includes the company’s Global Finishes Group and Valspar's Coatings Group coupled with Valspar's Automotive Refinishes products business. It sells a wide array of industrial coatings and finishes for industrial wood, general industrial, protective and marine, packaging and automotive, coil and extrusion customers. The segment accounted for around 31% of Sherwin-Williams’ first-quarter 2023 sales.