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If You Invested $1000 in Sherwin-Williams a Decade Ago, This is How Much It'd Be Worth Now
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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 - Free Report) 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.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Sherwin-Williams, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in November 2013 would be worth $4,272.58, or a 327.26% gain, as of November 15, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 151.07% and the price of gold went up 46.55% over the same time frame.
Looking ahead, analysts are expecting more upside for SHW.
Sherwin-Williams’ third-quarter earnings and sales beat the respective Zacks Consensus Estimate. It has strengthened its global position through the acquisition of Valspar, expanding its brand portfolio and customer relationships in North America and global finishes. The company's aggressive cost control, restructuring initiatives and focus on expanding retail operations have helped improve profitability. It is seeing favorable demand in domestic markets. Restructuring actions are expected to provide meaningful benefits in 2023. However, challenges persist with sluggish European and Chinese markets and lower demand in North America in certain segments. Also, rising energy, labor and transportation costs are expected to impact the company's profit margins in 2023.
Over the past four weeks, shares have rallied 5.34%, and there have been 8 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in Sherwin-Williams a Decade Ago, This is How Much It'd Be Worth Now
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 - Free Report) 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.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Sherwin-Williams, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in November 2013 would be worth $4,272.58, or a 327.26% gain, as of November 15, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 151.07% and the price of gold went up 46.55% over the same time frame.
Looking ahead, analysts are expecting more upside for SHW.
Sherwin-Williams’ third-quarter earnings and sales beat the respective Zacks Consensus Estimate. It has strengthened its global position through the acquisition of Valspar, expanding its brand portfolio and customer relationships in North America and global finishes. The company's aggressive cost control, restructuring initiatives and focus on expanding retail operations have helped improve profitability. It is seeing favorable demand in domestic markets. Restructuring actions are expected to provide meaningful benefits in 2023. However, challenges persist with sluggish European and Chinese markets and lower demand in North America in certain segments. Also, rising energy, labor and transportation costs are expected to impact the company's profit margins in 2023.
Over the past four weeks, shares have rallied 5.34%, and there have been 8 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.