Sherwin-Williams Co. "Takeaways from Meetings with Management" (Neutral) Spector

Research evidence excerpt

Sherwin-Williams Co. "Takeaways from Meetings with Management" (Neutral) Spector

nings. Our

From To % ch Cons.

overall view on SHW stock is that the company is executing well, but an

Q1 2.35 2.35 0 2.35

uncooperative housing market remains an overhang. If rates come down or Q2E 3.69 3.68 -0 3.50

housing affordability improves, then SHW's growth and the stock could move Q3E 3.65 3.65 -0 3.58

higher. But the potential for another year of LSD-MSD% EPS growth in 2027 if Q4E 2.16 2.16 0 2.28

housing remains weak is a real possibility in our view. 12/26E 11.85 11.85 -0 11.72

12/27E 12.60 12.60 -0 13.23

Investing to gain share with a balanced view on costs/returns 12/28E 15.15 15.15 0 14.92

SHW remains confident in their ability to continue to gain share. Some of the

Joshua Spector, CFA industry changes leave a longer tail of share gain opportunities on the commercial

Analyst

side which are still playing out. SHW is still planning to grow their store count by

joshua.spector@ubs.com

80-100 stores a year, but 1Q saw net stores decline modestly. This reflects an +1-212-713 6188

optimization of the store footprint, loading up some stores and exiting less

Lucas Beaumont profitable locations, and this shows a balanced approach to how they are

managing growth and costs. We expect net store openings to be slightly below lucas.beaumont@ubs.com

the typical range in 2026 net of increased closures before returning to the typical +1-212-713 4809

range in 2027. Similar with SG&A investment, SHW has been able to shift

Christopher Perrella spending to areas of higher growth and share gains.

The company also highlighted incremental arch coatings innovation as helping christopher.perrella@ubs.com

drive share gains, while a more helpful demand backdrop in U.S. industrial +1-212-713 1443