8. The Sherwin-Williams Company (NYSE:SHW)
Number of Hedge Fund Holders as of Q4: 74
XN Exponent Advisors LLC’s Equity Stake: $129.80 Million
The Sherwin-Williams Company (NYSE:SHW), a leading global paints and coatings company, continues to refine its operations and workforce structure while maintaining strong financial performance. Sherwin-Williams reported record financial results for 2024, with consolidated net sales reaching $23.10 billion, reflecting stable growth in its Paint Stores Group and key industrial segments. The company achieved a 14.1% increase in diluted net income per share to $10.55, with an adjusted figure of $11.33, marking a 9.5% rise year-over-year. Fourth-quarter earnings saw even stronger gains, with a 36.7% increase in diluted net income per share to $1.90 and a 15.5% rise in adjusted earnings to $2.09. Gross margin expanded by 180 basis points to 48.5%, supported by a high-single-digit increase in residential repaint sales and above-market growth in new residential projects. Industrial coatings also performed well, with double-digit growth in packaging coatings and positive momentum in coil coatings.
The Sherwin-Williams Company (NYSE:SHW) continues to prioritize shareholder value, generating $3.15 billion in net operating cash and returning $2.46 billion to shareholders through dividends and share repurchases. With authorization remaining to repurchase 34.4 million shares, the company remains committed to strengthening its financial position while investing in growth opportunities. Looking ahead, The Sherwin-Williams Company (NYSE:SHW) forecasts 2025 diluted net income per share in the range of $10.70 to $11.10, with an adjusted range of $11.65 to $12.05. CEO Heidi G. Petz emphasized the company’s resilience in navigating demand fluctuations and reaffirmed its strategy of driving above-market growth while maintaining financial discipline.
In a strategic move to streamline management and improve efficiency, The Sherwin-Williams Company (NYSE:SHW) recently announced a voluntary buyout program for select employees. This initiative follows broader organizational changes aimed at simplifying corporate structures and optimizing the supervisor-to-employee ratio. The company’s leadership emphasized that these changes are part of an ongoing effort to reduce complexity and enhance operational effectiveness.
With a continued focus on operational efficiency, financial strength, and strategic investments, The Sherwin-Williams Company (NYSE:SHW) is well-positioned for long-term success and is a top stock to buy according to XN Exponent Advisors LLC.
Aoris Investment Management stated the following regarding The Sherwin-Williams Company (NYSE:SHW) in its Q4 2024 investor letter:
“Lastly, we bought The Sherwin-Williams Company (NYSE:SHW), which is the world’s largest paint and coatings company. Yes, paint does sound dull, but Sherwin-Williams excels at serving demanding customers with often highly technical products. In the US market for professional painters, Sherwin-Williams has a share around 10x the size of its closest peer. It also has exclusive supply arrangements with 23 of the 25 largest home builders in the US. Remarkably, given its dominant position, its market share continues to rise.”
