★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
VOL. XCIV, NO. 247
Stock Profile
The Sherwin-Williams Company (SHW) Moat Analysis
The Sherwin-Williams Company
SHW · New York Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
Request update
Spot something outdated? Send a quick note and source so we can refresh this profile.
Overview
Sherwin-Williams is a coatings manufacturer with one NYSE listing. Q2 2026 revenue shares were 57.30% Paint Stores, 14.49% Consumer Brands, 28.19% Performance Coatings and 0.03% administrative leasing. Direct ownership of 4,841 specialty stores gives Paint Stores control over inventory, tinting, service and shelf space, while controlled brands reduce selection risk for contractors. Q2 same-store sales rose 4.2%, and both price and volume increased, although segment margin fell 20 basis points. Consumer Brands has a narrower, retailer-dependent brand moat. In Performance Coatings, only automotive-refinish switching costs are retained because the protected submarket is not quantified. The 317 industrial branches lack comparative outcome evidence for a separate moat. Housing and industrial cyclicality, retailer bargaining power, raw-material inflation, customer dual-sourcing, product litigation and legacy environmental liabilities are the main risks.
Primary segment
Paint Stores Group
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
4 segments · 4 tags
Updated 2026-08-23
Segments
Paint Stores Group
Company-operated paint & coatings retail (architectural + related products)
Revenue
57.3%
Structure
Oligopoly
Pricing
strong
Share
—
Peers
Consumer Brands Group
Branded and private-label architectural paint & related DIY products sold via third-party retailers
Revenue
14.5%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Performance Coatings Group
Industrial coatings (protective, marine, coil, packaging, wood finishing, general industrial) and automotive refinish coatings
Revenue
28.2%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Administrative external leasing revenue
Incidental external leasing of corporate real estate
Revenue
0%
Structure
Competitive
Pricing
none
Share
—
Peers
—
Moat Claims
Paint Stores Group
Company-operated paint & coatings retail (architectural + related products)
Revenue share is Q2 2026 external net sales of $3,890.0m divided by consolidated net sales of $6,789.3m. Operating profit share is $957.6m divided by $1,443.8m of positive reportable-segment Income before income taxes; the loss-making Administrative function is excluded from that denominator. No individual customer represented 10% of consolidated sales, suppliers were not named, and no defensible current market-share denominator or HHI was disclosed.
Distribution Control
Supply
Distribution Control
Strength
Durability
Confidence
Evidence
A dense, company-operated specialty-store footprint gives Sherwin-Williams direct control of inventory, tinting, service, and shelf space for its controlled brands. This is difficult to replicate quickly, but the rating is held below exceptional because the company does not disclose customer retention or a comparable store-density advantage.
Distribution Control moat: definition, examples, and stocks
Erosion risks
- Big-box and online channel encroachment
- Pro contractor consolidation increasing bargaining power
- Demand cyclicality tied to housing and remodel activity
Leading indicators
- Store count and net new stores
- Same-store sales growth in Paint Stores Group
- Gross margin resilience vs raw material volatility
Counterarguments
- Contractors can multi-source and switch based on promotions/credit terms
- Home centers can compete on convenience and price
Brand Trust
Demand
Brand Trust
Strength
Durability
Confidence
Evidence
Controlled brands reduce product-selection risk for professional contractors and support repeat specification. Q2 2026 price and volume both grew, but Paint Stores segment margin fell 20 basis points as raw-material costs rose, so current evidence does not establish unconstrained pricing.
Brand Trust moat: definition, examples, and stocks
Erosion risks
- Trade-down in weak macro environments
- Brand dilution from aggressive discounting
- Negative product quality events
Leading indicators
- Mix shift between premium vs value lines
- Average selling price trends
- Warranty/quality claim rates
Counterarguments
- End consumers can view paint as a commodity and choose cheaper alternatives
- Private labels can capture value-conscious demand
Consumer Brands Group
Branded and private-label architectural paint & related DIY products sold via third-party retailers
Revenue share is Q2 2026 external net sales of $983.5m divided by consolidated net sales of $6,789.3m. Operating profit share is $212.9m divided by $1,443.8m of positive reportable-segment Income before income taxes. The October 2025 Suvinil acquisition drove 16.0 percentage points of Q2 sales growth. The 2025 Form 10-K says some customers are individually significant to this segment but does not name or quantify them.
Brand Trust
Demand
Brand Trust
Strength
Durability
Confidence
Evidence
Recognized Valspar, Dutch Boy, Krylon, Minwax, Cabot, Suvinil and other brands reduce buyer uncertainty, but third-party retailers control shelf access and can favor private labels. The rating therefore reflects a real but retailer-constrained brand advantage.
Brand Trust moat: definition, examples, and stocks
Erosion risks
- Retailer private-label expansion
- Shelf-space/planogram loss at key retailers
- Promotion intensity commoditizing the category
Leading indicators
- Share of shelf / distribution breadth at home centers
- Premium vs value mix within consumer brands
- Retailer contract renewals and exclusivity changes
Counterarguments
- Retailers can swap brands with limited end-user switching costs
- Retail concentration increases retailer bargaining power over pricing and terms
Performance Coatings Group
Industrial coatings (protective, marine, coil, packaging, wood finishing, general industrial) and automotive refinish coatings
Revenue share is Q2 2026 external net sales of $1,913.8m divided by consolidated net sales of $6,789.3m. Operating profit share is $273.3m divided by $1,443.8m of positive reportable-segment Income before income taxes. The 317-branch footprint is useful distribution infrastructure but is not retained as a separate moat because the filing provides no branch productivity, retention, cost, or exclusivity evidence. No single customer was material to segment profitability.
Switching Costs General
Demand
Switching Costs General
Strength
Durability
Confidence
Evidence
In automotive refinish, installed mixing and color systems, inventory, and technician familiarity can create meaningful switching costs. The claim applies only to an undisclosed portion of Performance Coatings and is not extended to its other industrial businesses.
Switching Costs General moat: definition, examples, and stocks
Erosion risks
- Standardization of color systems reducing lock-in
- Distributors pushing price-based switching
- Firetex software claims and litigation weakening trust in protective coatings
Leading indicators
- Refinish subsegment volume and retention at key distributors
- Installed base growth of mixing/color tools (where disclosed)
- Competitor promotions and distributor share shifts
Counterarguments
- Switching can still occur if a competitor subsidizes changeover
- Lock-in is submarket-specific and may not apply to all industrial coatings
Administrative external leasing revenue
Incidental external leasing of corporate real estate
Revenue share is Q2 2026 Administrative external net sales of $2.0m divided by consolidated net sales of $6,789.3m. The Administrative function recorded a $331.3m pretax loss and is excluded from positive segment-profit shares.
Evidence
These stores market and sell Sherwin-Williams and other controlled brand architectural paint and coatings.
The filing reports 4,853 company-operated Paint Stores at December 31, 2025 and identifies the channel-control mechanism.
Paint Stores Group - total stores 4,841
The current footprint was 12 stores lower than year-end, while Q2 same-store sales increased 4.2%.
Customer recognition of trademarks and trade names owned or licensed by the Company collectively contribute significantly to our sales.
Direct statement that brands/trade names materially support demand.
Net sales in CBG increased primarily as a result of the acquisition of Suvinil.
Q2 sales rose 21.5%, but acquisition impact was 16.0%, limiting evidence of organic brand-led growth.
automotive refinish
Establishes that automotive refinish is part of Sherwin-Williams' Performance Coatings Group.
Showing 5 of 7 sources.
Risks & Indicators
Erosion risks
- Big-box and online channel encroachment
- Pro contractor consolidation increasing bargaining power
- Demand cyclicality tied to housing and remodel activity
- Trade-down in weak macro environments
- Brand dilution from aggressive discounting
- Negative product quality events
Leading indicators
- Store count and net new stores
- Same-store sales growth in Paint Stores Group
- Gross margin resilience vs raw material volatility
- Mix shift between premium vs value lines
- Average selling price trends
- Warranty/quality claim rates
Research SHW elsewhere
Keep the research going
More Rankings & Systems
Quality Stocks
High quality stocks ranked by profitability, margins, free cash flow quality, durability, solvency, and accounting...
Stock rankingUndervalued Stocks
Undervalued stocks from the NA & Europe universe, ranked with a multi-measure value system and quality controls.
Stock rankingDividend Stocks
Dividend stocks ranked by payout yield, payout sustainability, dividend growth, quality, balance-sheet safety, risk...
Stock rankingDefensive Stocks
Defensive stocks ranked by low volatility, low beta, intermediate momentum, durable profitability, balance sheet...
Stock rankingMomentum Stocks
Momentum stocks ranked by total return momentum, relative momentum, trend confirmation, and risk-adjusted momentum...
Stock rankingConviction 10
A concentrated 10-stock strategy from the NA & Europe universe, ranked across quality, value, growth, momentum, and...
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.