Equity Analyst

Steve Zhou, CFA

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nippon-paint-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:7387:1" rel="noopener">Nippon Paint Holdings (4612 JP)</a> announced a better-than-expected 3Q23 results this week, mainly driven by a resilient China decorative paint business. </li>
<li>The company also raised 2023 operating profit guidance, expecting around 6% higher operating profit (Y168bn from Y158bn previously).</li>
<li>At 21x forward PE, the company is attractively valued given the growth profile and strong market share position in most end-markets.  </li>
</ul>



Nippon Paint Holdings (4612 JP) announced a better-than-expected 3Q23 results this week, mainly driven by a resilient China decorative paint business. 
The company also raised 2023 operating profit guidance, expecting around 6% higher operating profit (Y168bn from Y158bn previously).
At 21x forward PE, the company is attractively valued given the growth profile and strong market share position in most end-markets.  


Nippon Paint (4612 JP):  Results Beat On Resilient China 2C Business

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Sherwin-Williams had an excellent first quarter compared to the same period last year, with consolidated net sales growing by a high single-digit percentage, led by a mid-teens percentage increase in the professional architectural end markets.</li><li>Despite higher inflation in wages and other employee-related categories, the cost of goods sold was partially offset by a slight decrease in raw material costs compared to the previous year.</li><li>The margin in all three reportable segments increased year-over-year, with strong growth in diluted net income per share and EBITDA.</li></ul>

Sherwin-Williams had an excellent first quarter compared to the same period last year, with consolidated net sales growing by a high single-digit percentage, led by a mid-teens percentage increase in the professional architectural end markets.Despite higher inflation in wages and other employee-related categories, the cost of goods sold was partially offset by a slight decrease in raw material costs compared to the previous year.The margin in all three reportable segments increased year-over-year, with strong growth in diluted net income per share and EBITDA.

Sherwin-Williams Company: What Is Its True Moat Source? – Key Drivers

<ul><li>Sherwin-Williams' fourth quarter results were mixed as the company failed to meet the revenue expectations of Wall Street despite a high single-digit percentage sales growth.</li><li>The company managed an earnings beat as a result of the significant year-over-year gross margin improvement.</li><li>Sales in North and Latin America increased by double-digit percentages in the industrial sector, offsetting some of the weaker circumstances in Europe and Asia.</li></ul>

Sherwin-Williams' fourth quarter results were mixed as the company failed to meet the revenue expectations of Wall Street despite a high single-digit percentage sales growth.The company managed an earnings beat as a result of the significant year-over-year gross margin improvement.Sales in North and Latin America increased by double-digit percentages in the industrial sector, offsetting some of the weaker circumstances in Europe and Asia.

Sherwin-Williams: Acquisition Of SIC & Other Drivers

Credit

<ul><li>Sherwin-Williams is one of the largest distributors of paints and coatings in the U.S.</li><li>The company has had a decent financial performance off-late.</li><li>Their management also continues to prioritize growth initiatives, product innovation, customer solutions, pricing actions, cost control, supply chain improvements, and business optimization tasks.</li></ul>

Sherwin-Williams is one of the largest distributors of paints and coatings in the U.S.The company has had a decent financial performance off-late.Their management also continues to prioritize growth initiatives, product innovation, customer solutions, pricing actions, cost control, supply chain improvements, and business optimization tasks.

The Sherwin-Williams Company: Detailed Credit Analysis & Financial Strength Evaluation Report

<ul><li>This is our first report on Sherwin-Williams, one of the largest distributors of paints and coatings in the U.S.</li><li>The company had a stellar third quarter, with high teen sales growth leading to the first $6 billion sales quarter and significant sequential and year-over-year gross margin improvement which resulted in an all-around beat.</li><li>In contrast to China's and Europe's persistent weakness, demand is still robust in the pro-architectural and North American industrial end sectors.</li></ul>

This is our first report on Sherwin-Williams, one of the largest distributors of paints and coatings in the U.S.The company had a stellar third quarter, with high teen sales growth leading to the first $6 billion sales quarter and significant sequential and year-over-year gross margin improvement which resulted in an all-around beat.In contrast to China's and Europe's persistent weakness, demand is still robust in the pro-architectural and North American industrial end sectors.

The Sherwin-Williams Company: Initiation of Coverage – Recent Acquisitions & Key Drivers

United States

The Sherwin-Williams Company manufactures, distributes, and sells paints, coatings, and related products.  The Company's products are sold to professional, industrial, commercial, and retail customers primarily in North and South America. Sherwin Williams also has additional operations in the Caribbean region, Europe and Asia.

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Sherwin Williams Co (SHW US)

Nippon Paint (4612 JP): Results Beat On Resilient China 2C Business

Nippon Paint Holdings reported strong 3Q23 results, mainly driven by its resilient China decorative paint business. The company also raised its...

Steve Zhou, CFA

Sherwin-Williams Company: What Is Its True Moat Source? – Key Drivers

Sherwin-Williams had an excellent first quarter compared to the same period last year, with consolidated net sales growing by a high single-digit...

Baptista Research

Sherwin-Williams: Acquisition Of SIC & Other Drivers

Sherwin-Williams' fourth quarter results were mixed as the company failed to meet the revenue expectations of Wall Street despite a high...

Baptista Research

The Sherwin-Williams Company: Detailed Credit Analysis & Financial Strength Evaluation Report

Sherwin-Williams is one of the largest distributors of paints and coatings in the U.S. The company has had a decent financial performance...

Baptista Research

The Sherwin-Williams Company: Initiation of Coverage – Recent Acquisitions & Key Drivers

This is our first report on Sherwin-Williams, one of the largest distributors of paints and coatings in the U.S. The company had a stellar third...

Baptista Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Nippon Paint (4612 JP): Results Beat On Resilient China 2C Business

​Nippon Paint Holdings reported strong 3Q23 results, mainly driven by its resilient China decorative paint business. The company also raised its...

Steve Zhou, CFA

Sherwin-Williams Company: What Is Its True Moat Source? – Key Drivers

Sherwin-Williams had an excellent first quarter compared to the same period last year, with consolidated net sales growing by a high single-digit...

Baptista Research

Sherwin-Williams: Acquisition Of SIC & Other Drivers

Sherwin-Williams' fourth quarter results were mixed as the company failed to meet the revenue expectations of Wall Street despite a high...

Baptista Research

The Sherwin-Williams Company: Detailed Credit Analysis & Financial Strength Evaluation Report

Sherwin-Williams is one of the largest distributors of paints and coatings in the U.S. The company has had a decent financial performance...

Baptista Research

The Sherwin-Williams Company: Initiation of Coverage – Recent Acquisitions & Key Drivers

This is our first report on Sherwin-Williams, one of the largest distributors of paints and coatings in the U.S. The company had a stellar third...

Baptista Research

Nippon Paint Holdings reported strong 3Q23 results, mainly driven by its resilient China decorative paint business. The company also raised its...