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The Sherwin-Williams Company: A Good Buy Even At This Historic High

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EBITs And Pieces


  • Pandemic tailwinds have given SHW a strong demand boost; however, some analysts argue this won't last forever.
  • Historically, the firm is a very strong performer, market leader, and sees constant revenue and profit growth in any market conditions it faces.
  • While debt has increased significantly due to a recent acquisition, the debt level is very manageable and the acquisition has proven successful.
  • Bears say there is no value in SHW at its current price; however, they make assumptions around a change in operating conditions with no evidence of any change on the horizon.

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Investment Thesis: You Won't Find Value Here, But The Sherwin-Williams Company Is Still Good Buying

My view on The Sherwin-Williams Company (NYSE:SHW) is that while it may be difficult to create a case for value

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We believe simple reasoning underpins good investment strategy and outcomes. I write articles based on easy-to-understand and easy-to-follow reasoning and price firms based on fundamentals / peer analysis. We prefer to try and find the simplest answer(s) to the question "Is there value in this company?" Our publications should be considered general in nature and do not consider your personal circumstance. The opinions expressed are opinions only, and data referenced is sourced from third-party sources including Seeking Alpha and other publicly available sources. We make no warranties or guarantees around any of the views expressed in this article and suggest all investors consider our writing to be for interest purposes only and not considered exhaustive investment research or advice.

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Comments (2)

For the TLDR crowd I'll summarize the pitch: SHW is a well run company with a good market position, the market is strong and the stock is rising. So ignore the fact that the EV/EBITDA (currently 30x) is 4x times the historical valuation.

BTW, I gave the article a like because the author is right until he's wrong.
@Robin Heiderscheit looks like he was right for about 4 weeks
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