1. Introduction
Founded in 1866, Sherwin Williams is the largest architectural paint and
industrial coatings manufacturer in North America, with its global
footprints in emerging markets, such as Asia and South America.
Sherwin Williams is a high-quality company with consistent sales
growth, sustainable long-term prospect, impressive ROE, and
responsible management team.
Sherwin Williams provides paint and coatings to 116 countries through
more than 4,000 company-operated paint stores around the world, as
well as third party retailers such as leading home centers, mass
merchandisers, independent paint dealers, and automotive retailers.

2.  Makes 80% of its revenue from North America
 Significant exposure to contractors
 Pricing power through its company-operated stores
Strength

3.  If new housing starts and construction trend in the U.S market
begin to slow down, it would negatively impact Sherwin Williams
revenues and profit margins, and the share price is likely to
decrease as a result.
 As demand in Europe and Asia show signs of weakness, this could
lead to lower revenues (the company’s limited exposure to Europe
and Asia indicates that this should not be a serious threat)
Threats

4.  TTM P/E: 28.7
 Forward P/E: 18.48
Don’t Shop till Drop
Change in Share Price Comparison in Recent Critical Moments
SHW S&P 500 PPG
Akzo
Nobel
DuPont
1/1/2002 26.6 1145.6 50.21 32.05 43.02
7/30/2007 (before U.S coating industry demand starts
to drop)
69.06 1433.06 76.28 60.59 46.05
Change 160% 25% 52% 89% 7%
3/2/2009 (U.S coating industry demand hit trough) 42.98 683.38 29.42 27.94 16.87
Change -38% -52% -61% -54% -63%
8/20/12 (U.S coating industry demand shows signs of
rebound)
142 1411.13 109 45.29 50.35
Change 230% 106% 270% 62% 198%