Latest news with #SherwinWilliams
Reuters
3 days ago
- Business
- Reuters
BASF initiates sale of coatings business at about $6.8 billion valuation, Bloomberg News reports
May 30 (Reuters) - German chemicals maker BASF SE ( opens new tab has in recent weeks sent out information to potential suitors for a sale of its coatings business at a valuation of about 6 billion euros ($6.81 billion), Bloomberg News reported on Friday. Carlyle Group (CG.O), opens new tab, along with paint-maker Sherwin-Williams (SHW.N), opens new tab, are considering bidding for the BASF's coatings unit, the report said. The business has also attracted early interest from CVC Capital Partners ( opens new tab and Lone Star Funds, Bloomberg added. Reuters couldn't immediately verify the report. ($1 = 0.8812 euros)
Bloomberg
3 days ago
- Business
- Bloomberg
BASF Kicks Off €6 Billion Sale of Coatings Business
BASF SE has kicked off a sale of its coatings business, in a process that could value the unit at about €6 billion ($6.8 billion) and attract bids from large buyout firms, according to people familiar with the matter. The German chemical company has sent out information on the business to potential suitors in recent weeks, the people said, asking not to be identified as the matter is private. Carlyle Group Inc. is considering bidding for the coatings business together with paint-maker Sherwin-Williams Co., the people said. It's also attracting early interest from CVC Capital Partners Plc and Lone Star Funds, the people said.
Yahoo
3 days ago
- Business
- Yahoo
1 Dow Jones Stock with Exciting Potential and 2 to Turn Down
While the Dow Jones (^DJI) represents industry leaders, not every stock in the index is a safe bet. Some are facing headwinds like declining demand, rising costs, or disruptive new competitors. Just because a company is in the Dow Jones doesn't mean it's a great investment, and StockStory is here to help you separate winners from laggards. That said, here is one Dow Jones stock that will likely remain a market leader and two that may struggle. Market Cap: $88.97 billion Widely known for its success in the paint industry, Sherwin-Williams (NYSE:SHW) is a manufacturer of paints, coatings, and related products. Why Does SHW Fall Short? Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth Demand will likely be soft over the next 12 months as Wall Street's estimates imply tepid growth of 2.5% Free cash flow margin dropped by 8.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up At $355 per share, Sherwin-Williams trades at 29x forward P/E. Check out our free in-depth research report to learn more about why SHW doesn't pass our bar. Market Cap: $182.7 billion Formed in 1984 as Bell Atlantic after the breakup of Bell System into seven companies, Verizon (NYSE:VZ) is a telecom giant providing a range of communications and internet services. Why Do We Steer Clear of VZ? Customer additions have disappointed over the past two years, indicating the company's value proposition may not be resonating Projected 2.2 percentage point decline in its free cash flow margin next year reflects the company's plans to increase its investments to defend its market position Eroding returns on capital from an already low base indicate that management's recent investments are destroying value Verizon is trading at $43.35 per share, or 9.2x forward P/E. To fully understand why you should be careful with VZ, check out our full research report (it's free). Market Cap: $3.40 trillion Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ:NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets. Why Is NVDA a Good Business? Annual revenue growth of 140% over the last two years was superb and indicates its market share increased during this cycle Share repurchases over the last five years enabled its annual earnings per share growth of 80.2% to outpace its revenue gains Robust free cash flow margin of 48.8% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy Nvidia's stock price of $137.81 implies a valuation ratio of 29.5x forward P/E. Is now the right time to buy? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as ServiceNow (+178% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
4 days ago
- Business
- Forbes
Is SHW Stock Trading Too High?"
PINOLE, CALIFORNIA - OCTOBER 22: A sign is posted in front of a Sherwin-Williams paint store on ... More October 22, 2024 in Pinole, California. (Photo by) Sherwin-Williams Co (NYSE: SHW) stock has increased by 18% over the past year, outperforming the S&P 500, which has risen nearly 12%. This increase prompts an important question for investors: Is SHW stock currently overpriced, and could it face a notable decline, possibly by 20-25% or even 30% down to $250? Well, here's the issue – at approximately $359 per share, SHW stock seems costly. It's trading at almost 28 times its free cash flow from the last twelve months. To provide some context, this equates to a modest cash flow yield of about 3.6%. In comparison, Nvidia, a front-runner in the AI industry with over 80% average revenue growth in recent years, trades at a multiple of 50 times cash flow. In contrast, Sherwin-Williams' revenue growth has been significantly lower, around 5% over the last three years, and an insignificant 0.2% in the past twelve months, making it challenging to justify such a high multiple. The price you pay is important. We have developed the Trefis High-Quality Portfolio to focus on relative valuation. Notably, HQ has achieved over 91% return since its inception and has outperformed the S&P, Nasdaq, and Dow — all of them. Sherwin-Williams' current valuation is based on its record consolidated net sales of $23.10 billion reported for 2024, spurred by growth in the Paint Stores Group. Diluted net income per share increased by 14.1% to $10.55, and adjusted EBITDA rose by 6.0% to $4.49 billion. The company also produced strong cash flow, with $3.15 billion in net operating cash, and returned $2.46 billion to shareholders through dividends and share repurchases. See Buy or Fear SHW stock. Moreover, Sherwin-Williams has consistently expanded its retail presence, opening new stores to capture a larger share of the market. This expansion, along with effective pricing strategies, has bolstered sales and margins in key sectors. The company has undertaken cost-saving measures, including supply chain optimization and productivity improvements, leading to enhanced margins. These initiatives have allowed Sherwin-Williams to manage market difficulties effectively. While Sherwin-Williams has experienced a healthy level of operational profitability historically, the company has recently projected lower-than-anticipated annual profits, raising concerns about short-term growth. SHW has noted weak demand in significant end markets such as housing, automotive, and aerospace. As a result, SHW should be valued more comparably to other companies achieving 5% revenue growth. That is, if it can even maintain that growth. Additionally, there is the challenge of raw material price fluctuations. The production of paints and coatings heavily depends on raw materials like titanium dioxide and petrochemical derivatives. Increases in these prices can squeeze margins. SHW may not always have the ability to pass on higher costs to consumers, particularly in competitive markets. SHW is the largest paint and coatings company in the U.S., holding a leading position in North America's professional paint sector. It operates over 5,000 company-owned stores, affording it unparalleled control over distribution and pricing. Even in cyclical downturns, long-term demand for housing, renovations, and urban development supports SHW's growth. Furthermore, the aging housing stock in the U.S. generates a constant need for repainting and maintenance. Investing in a single stock inherently involves risks. Conversely, the Trefis High Quality (HQ) Portfolio, which comprises 30 stocks, has consistently outperformed the S&P 500 over the last four-year period. Why is that? As a collection, HQ Portfolio stocks have yielded better returns with lower risk compared to the benchmark index, resulting in a less volatile experience as demonstrated in HQ Portfolio performance metrics.
CBS News
6 days ago
- General
- CBS News
Contractor fatally run over by his truck in Beaver County
A contractor was killed when he was pulled under the rear wheels of his tractor-trailer in Beaver County. The accident happened on Cleveland Street in Rostraver outside of a Sherwin-Williams facility on Tuesday. (Photo: KDKA) Police said the 71-year-old from Huron, Ohio, didn't park the tractor-trailer properly when he was undocking his truck. When the front part started to roll away and he tried to get it, police said he was pulled under the rear. "There's a lot of trucks and a lot of traffic during the day, so we try to keep the kids inside as much until after everything clears out," said neighbor Kristina Warnick. The Beaver Valley Regional Police Department called in the Pennsylvania State Police to help investigate and check the braking system. Initially, it doesn't appear that anything was wrong with the truck, police said. "What if one of the kids were outside and it went rolling? So you know, it is scary," Warnick said. The name of the man killed hasn't been released yet.
