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Sherwin-Williams supplies paint and coatings to contractors, homeowners and manufacturers. Its own stores in the United States, Canada and the Caribbean generate most sales, serving contractors and do-it-yourself homeowners with Sherwin-Williams paints and related supplies. The Consumer Brands business makes most of the products these stores sell and also sells branded and private-label products to retailers and distributors for resale.
Industrial coatings are the other substantial business. Manufacturers buy them to finish products such as wood furniture, metal parts and packaging; other customers use them for vehicle refinishing and protection of structures and ships. Sherwin-Williams reaches these customers through direct sales, its own branches and distributors. No single customer dominates company-wide sales, although some customers are important to Consumer Brands’ sales and profitability.
Demand depends on construction, housing and manufacturing activity. Production depends on raw materials such as petrochemical-derived resins and solvents, whose availability and cost affect the business. Chemicals and environmental rules also constrain materials and operations and can require changes to products and packaging.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
Sherwin-Williams also faces important global coatings competition from AkzoNobel, which is absent from this list.
PPG competes with Sherwin-Williams for paint purchases by contractors and homeowners, as well as industrial, protective and automotive refinish coatings customers. Watch PPG’s architectural and industrial coatings sales for signs of competitive pressure in these overlapping markets.
RPM International, Inc. competes with Sherwin-Williams for consumer and industrial coatings purchases through Rust-Oleum, Zinsser and its industrial protective coatings. Watch pricing and new products in those lines: RPM says competition can force price cuts or higher spending to defend market share.
Masco’s BEHR paints compete with Sherwin-Williams’ architectural paints and stains for homeowners’ improvement spending. Watch Masco’s Decorative Architectural Products sales, which normally strengthen in the second and third calendar quarters as repair and remodeling activity peaks.
Axalta competes with Sherwin-Williams to sell automotive repair paints to body shops and industrial coatings to manufacturers. Watch Axalta’s color-matching technology, which helps repair shops recreate vehicle paint colors and is one way it competes for their business.
Lowe’s and Sherwin-Williams both depend on U.S. home repair and remodeling spending: Lowe’s sells project supplies to homeowners and professionals who also buy Sherwin-Williams paints. Watch Lowe’s sales to small- and medium-sized repair and remodeling professionals for clues to demand from this shared customer group.
Home Depot and Sherwin-Williams share exposure to North American home repair and remodeling spending: homeowners and contractors buy renovation supplies from Home Depot and paint from Sherwin-Williams for their projects. Watch Home Depot’s sales to homeowners and remodeling contractors for clues to the project demand behind Sherwin-Williams’ paint sales.
Housing Starts (Sep)
These readings track new homes being built or sold, which can bring contractors and homeowners to Sherwin-Williams stores to buy paint and related products.
Expected1.31MLast release1.275M
If it comes in above expectations
If the reading is above the 1.31M estimate, it is above the previous 1.275M. More building or sales than expected could mean more projects for contractors and more purchases by homeowners, lifting demand at Sherwin-Williams stores.
If it comes in below expectations
Less building or sales than expected could mean fewer contractor projects and less homeowner buying, reducing demand at Sherwin-Williams stores.
EIA Crude Oil Stocks Change (Oct/16)
The EIA’s weekly stock figures track crude oil and fuel held in the United States; tighter oil supply can raise energy and petrochemical feedstock costs, including pressure on inputs used by Sherwin-Williams.
Rising crude or fuel stocks point to looser supply that may ease energy and petrochemical input costs; falling stocks point to tighter supply and possible cost pressure for Sherwin-Williams.
The Sherwin-Williams Company earningsThis company
Sherwin-Williams sells paint through its stores to contractors and homeowners, and this report will show whether sales growth comes from volume, pricing or both—and whether margins hold up.
Read Paint Stores sales growth alongside volume and price changes and that business’s margin. Rising volume with a steady or higher margin would mean contractors and homeowners are buying more without pricing or costs eroding the business. If sales growth relies mainly on higher prices while volume falls, or the margin weakens, demand may be soft or costs and product mix may be squeezing profit.
PPG Industries, Inc. earningsPPG
PPG competes with Sherwin-Williams for contractors, homeowners and industrial coatings customers, and its report will show whether demand or pricing is under pressure in those shared markets.
Read PPG’s architectural and industrial coatings sales alongside the margins for those businesses. Steady or rising sales and margins would suggest demand and pricing remain supported in markets the companies share. Weakening sales or margins would point to softer demand or tougher competition that could also challenge Sherwin-Williams’ sales and pricing, but would not prove customers switched to PPG.
Fed Interest Rate Decision
The Fed’s policy rate sets the baseline for borrowing costs, and because high rates weigh on housing, construction and manufacturing customers, it can affect demand for Sherwin-Williams’ paints and coatings.
Expected4.0%Last release4.0%
If it comes in above expectations
If the rate is above expectations, more expensive borrowing may further restrain housing and manufacturing customers, reducing demand for Sherwin-Williams products.
If it comes in below expectations
If the rate is below expectations, cheaper borrowing may ease pressure on housing and manufacturing customers, supporting demand for Sherwin-Williams products.
Axalta Coating Systems Ltd. earningsAXTA
Axalta sells automotive refinish coatings to body shops and competes with Sherwin-Williams there; its report can show whether repair-shop demand is holding up in that shared market.
Read Axalta’s automotive refinish sales alongside what it says about color-matching technology helping body shops win work. Steady or rising sales would suggest demand for repair coatings is supported; weaker sales could signal softer repair demand or tougher competition, a harder setting for Sherwin-Williams’ business serving similar customers.
Industrial Production MoM (Oct)
Factory output and the share of industrial capacity in use show how active Sherwin-Williams’ manufacturing customers are, influencing their purchases of Performance Coatings’ industrial coatings.
Rising factory output or capacity use points to stronger activity that may support customers’ purchases of Performance Coatings; falling readings point to weaker activity and potential pressure on those sales.
Lowe's Companies Inc. earningsLOW
Lowe’s sells project supplies to small and medium-sized repair and remodeling professionals, and its report can show whether these customers who also buy Sherwin-Williams paint are still purchasing for projects.
Watch Lowe’s sales to small and medium-sized repair and remodeling professionals. Steady or rising sales would suggest these customers shared with Sherwin-Williams are still buying project supplies and project demand may be holding up. A decline would point to less activity that could also weigh on Sherwin-Williams’ paint sales to similar customers, but Lowe’s figures are not a measure of Sherwin-Williams’ sales.
