Business Analysis of Sherwin Williams

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Sherwin Williams

SHERWIN WILLIAMS

Business Overview

The Sherwin-Williams Company develops, manufactures, distributes, and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers primarily in North and South America, the Caribbean, Europe, and Asia. The company operates in four segments: Paint Stores Group, Consumer Group, Global Finishes Group, and Latin America Coatings Group. It offers architectural paint and coatings, protective and marine products, automotive finishes and refinish products, original equipment manufacturer product finishes, and related items under the Sherwin-Williams brand. The company also licenses technology and trade names. As of December 31, 2016, its Paint Stores Group segment operated 4,180 company-operated specialty paint stores; Global Finishes Group segment operated 288 company-operated branches; and Latin America Coatings Group segment operated 339 company-operated stores. The company also sells its products through direct sales staff and outside sales representatives to retailers, dealers, jobbers, licensees, and other third party distributors. The Sherwin-Williams Company was founded in 1866 and is headquartered in Cleveland, Ohio.

Sherwin Williams

Sherwin Williams


R&P Rank: 239
Sector: Basic Materials
Industry:Chemicals
H.Q Location:Ohio
Website: www.sherwin-williams.com
Company Address:
101 PROSPECT AVE NW, CLEVELAND OH 44115
Ph:216-566-2200

Business Analysis of Sherwin Williams

The Basic Materials Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Sherwin Williams compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Sherwin Williams to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Sherwin Williams with an interactive chart.

  1. Revenue Growth: Sherwin Williams reported a revenue growth of 4.6% year-on-year during 2016. Chemicals Industry grew at -4.1% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Sherwin Williams spent 50.1% of its total revenues on COGS. Chemicals industry average (COGS share of revenue) in the same period was 70.2%
  3. R&D share of Revenues: Sherwin Williams R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Sherwin Williams spent 35.2% of its total revenues on Sales, Marketing, and General Administration (SG&A). Chemicals industry average SG&A spending in the same period was 13.0%
  5. Inventory share of Revenues: As a percentage of revenue, Sherwin Williams spent 9.0% of its total revenues on Inventories. Chemicals industry average Inventory spending in the same period was 14.6%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Sherwin Williams invested 8.7% of its total revenues on Accounts Payable (A/P) Chemicals industry average Accounts Payable investment in the same period was 12.6%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Sherwin Williams invested 10.4% of its total revenues on Accounts Receivable (A/R). Chemicals industry average Accounts Receivable investment in the same period was 16.8%
  8. PP&E share of Revenues: As a percentage of revenue, Sherwin Williams invested 9.2% of its total revenues on Property, Plants, and Equipments (PP&E). Chemicals industry average PPE investment in the same period was 52.9%
  9. Intangibles share of Revenues: As a percentage of revenue, Sherwin Williams invested 11.7% of its total revenues on Intangibles. Chemicals industry average Intangibles investment in the same period was 31.4%
  10. Net Margins: Sherwin Williams Net Margins in the year 2016 were 9.6%. Chemicals industry average Net Margins in the same period were 8.1%

Sector and Industry Association of Sherwin Williams

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Sherwin Williams is associated with Basic Materials Sector and Chemicals Industry.

Basic Materials sector is comprised of the following industries: Metal Mining; Coal Mining; Chemicals. The definitions for each of the industries is as follows:

  • Metal Mining industry includes companies primarily engaged in mining, developing mines, or exploring for precious metals such as Gold, Silver, Platinum and base metals such as Iron, Copper, Aluminum, Lead, and Zinc. It also includes companies that manufacture alloys such as steel.
  • Coal Mining industry includes companies engaged in the exploration for and/or mining of coal.
  • Chemicals industry includes companies that produce and/or distribute commodity and specialty chemicals. The companies manufacture three general classes of products: (1) basic chemicals, such as acids, alkalies, salts, and organic chemicals; (2) chemical products to be used in further manufacture, such as synthetic fibers, plastics materials, dry colors, and pigments; and (3) finished chemical products to be used as materials or supplies in other industries, such as paints, fertilizers, and explosives.

Industry Ranking of Sherwin Williams

With $11.9 billion revenues, Sherwin Williams ranked number 6 of all the companies in the US Chemicals industry. There were a total of 66 public companies in the US Chemicals industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Chemicals industry by revenues during 2016 were:

  1. Dow Chemical ($48.2 billion)
  2. Lyondellbasell Industries ($29.2 billion)
  3. DuPont ($24.6 billion)
  4. PPG Industries ($14.8 billion)
  5. Monsanto ($13.5 billion)
  6. Sherwin Williams ($11.9 billion)
  7. Praxair ($10.5 billion)
  8. Huntsman ($9.7 billion)
  9. Air Products ($9.5 billion)
  10. Eastman ($9 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Sherwin Williamsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of sherwin-williams

DuPont (DD) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Dupont E I De Nemours & Co with $25 billion revenues in the year 2016 was the number 3 Chemicals company. Read this report to know the top competitors of DuPont and identify growth and cost optimization opportunities of DuPont

PPG Industries (PPG) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

PPG Industries Inc with $15 billion revenues in the year 2016 was the number 4 Chemicals company. Read this report to know the top competitors of PPG Industries and identify growth and cost optimization opportunities of PPG Industries

Monsanto (MON) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Monsanto Co with $14 billion revenues in the year 2016 was the number 5 Chemicals company. Read this report to know the top competitors of Monsanto and identify growth and cost optimization opportunities of Monsanto

Praxair (PX) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Praxair Inc with $11 billion revenues in the year 2016 was the number 7 Chemicals company. Read this report to know the top competitors of Praxair and identify growth and cost optimization opportunities of Praxair

Huntsman (HUN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Huntsman Corp with $10 billion revenues in the year 2016 was the number 8 Chemicals company. Read this report to know the top competitors of Huntsman and identify growth and cost optimization opportunities of Huntsman

Air Products (APD) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Air Products & Chemicals Inc with $10 billion revenues in the year 2016 was the number 9 Chemicals company. Read this report to know the top competitors of Air Products and identify growth and cost optimization opportunities of Air Products

Revenues Analysis

Sherwin Williams (SHW) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Sherwin Williams Co (SHW) from 2012 to 2016. Sherwin Williams generated a total of $11.9 billion revenues during 2016. Sherwin Williams reported a revenue growth of 4.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Sherwin Williams (SHW) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Sherwin Williams Co (SHW) from 2002 to 2016. Sherwin Williams generated a total of $11.9 billion revenues during 2016. Sherwin Williams reported a revenue growth of 4.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Sherwin Williams (SHW) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Sherwin Williams Co (SHW) revenue growth with Chemicals industry growth during the last five years from 2012 to 2016. Sherwin Williams reported a revenue growth of 4.6% year-over-year during 2016. The Chemicals industry growth was -4.1% year-over-year during 2016. Sherwin Williams growth was faster than the industry during 2016.

Profit Analysis

Sherwin Williams (SHW) Net Profit And Net Margin From 2012 To...

This report provides the last five years net profit and net margin of Sherwin Williams Co (SHW) from 2012 to 2016. Sherwin Williams reported a total net income of $1.1 billion during 2016. Sherwin Williams generated a total of $11.9 billion revenues during 2016. Sherwin Williams net profit margin was 9.6% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.