Stock market investment: Acquisitions boost Sherwin-Williams’ results

Sherwin-Williams Co., symbol SHW on New York, is North America’s largest paint producer. The stock market investment also operates over 3,900 paint stores, which account for half its sales. Sherwin is one of the stocks we analyze in Wall Street Stock Forecaster, our newsletter for investing in the U.S. markets. In the three months ended March 31, 2011, Sherwin’s sales rose 18.5%, to $1.9 billion from $1.6 billion a year earlier. Acquisitions and higher selling prices were the main reason for the higher sales. Earnings more than doubled, to $68.3 million or $0.63 per share, from $32.6 million or $0.30 per share. However, the year-earlier results included an $11.4-million charge related to changes in the U.S. healthcare laws. The stock market investment added seven new stores in the quarter, and plans to open at least 40 more by the end of 2011. Sherwin-Williams holds cash of $53.9 million, or $0.51 a share. Its long-term debt of $650.9 million is just 7% of its $8.9-billion market cap. You can get our in-depth analysis, including our updated buy/sell/hold advice, on Sherwin-Williams and dozens of other U.S. stocks when you subscribe to Wall Street Stock Forecaster. What’s more, you can get one month free when you subscribe today. Click here to learn how.

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Jim Bates

Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.

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