This allows Fastenal and its customers to see what parts are being used, when, and by whom. Inventory is better managed and updated and workflows can be improved using a team approach. It’s a win-win, noting that Fastenal becomes increasingly difficult to replace the further it gets integrated into a company’s processes. Overall, the dividend looks like it may have been a bit high, which explains why it has now been cut.

The company has a long dividend track record, but it doesn’t look great with cuts in the past. The dividend has gone from an annual total of $0.80 in 2013 to the most recent total annual payment of $4.55. This implies that the company grew its distributions at a yearly rate of about 19% over that duration. Despite the rapid growth in the dividend over the past number of years, we have seen the payments go down the past as well, so that makes us cautious. For the full fiscal year, the company said to expect between $500 million and $506 million in revenue, a range that contains the Wall Street estimate of $501.8 million.

Sherwin-Williams Declares Dividend of $0.605 per Common Share

Style is calculated by combining value and growth scores, which are first individually calculated. Essentially, the company has been shifting from selling products through a store network to operating within its customers’ businesses. That includes a variety of systems, like vending machines, that are digitally connected.

Notably, its total locations increased from 2,988 to 3,334 over that span. And, over the last five years, the company’s revenue increased at an annualized rate of roughly 10% with earnings per share expanding at a clip of around 13%. So not only is it executing its strategic shift, but it is growing its business while it is doing it. Weighed down by temporary market forces, now may be the time to consider buying low on these two dividend growth stocks. All investments involve risk, and not all risks are suitable for every investor.

Sherwin-Williams Q1 highlights: Selling Price Bump Helps Tops Q1 Estimates, Reiterates Outlook

That said, Sherwin continued to flex its pricing power, with increases in all three segments. Higher operating costs were somewhat offset by moderating materials costs, but both will likely remain a concern for the foreseeable future. Consolidated operating margins expanded almost 300 basis points from a year ago to 13.2%, largely driven by strong pricing. Demand held-up well in the first quarter, but near-term pressure remains amid heightened economic uncertainty.

Get this delivered to your inbox, and more info about our products and services. Upgrade to MarketBeat All Access to add more stocks to your watchlist. If, as Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio) argue, simple businesses are the best, then what should investors make of Sherwin-Williams Company ( SHW , Financial), … Higher selling prices in all segments and increased architectural sales volumes in the Paint Stores Group drive Sherwin-Williams’ (SHW) Q1 top line.

The company reported 20 cents in earnings per share excluding items, above the 17 cents expected by analysts. Revenue also beat expectations at $111 million compared with a $110.1 million forecast. Adjusted EBITDA came in at $48.9 million, ahead of the $45.7 consensus estimate.

We are maintaining our fair value estimate of $201 per share. In 2017, Fastenal had 2,383 stores and 605 “onsite” locations, which is what https://business-oppurtunities.com/online-marketing/ it calls an operation within a customer’s business. At the end of the first quarter of 2023, it had 1,660 stores and 1,674 onsites.

Looking forward, earnings per share is forecast to fall by 31.0% over the next year. Assuming the dividend continues along recent trends, we believe the payout ratio could reach 104%, which could put the dividend under pressure if earnings don’t start to improve. Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes. Data may be intentionally delayed pursuant to supplier requirements. Shares of Sherwin-Williams Co. tumbled Thursday, after the paint and coatings maker warned of a big 2023 profit and sales miss, as demand is expected to weaken as the housing market remains pressured …

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We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. During Fastenal’s first-quarter 2023 earnings conference call, management made a point of highlighting that it is seeing some weakness in its end markets. That’s exactly what you want to hear, especially given the success that has been achieved to date. Target traded more than 2% lower in the premarket after the retailer reported total revenue of $25.32 billion for the first quarter, which represented year-over-year growth of just 1%. To be sure, that revenue figure, along with the company’s earnings per share, exceeded analyst expectations.

Sherwin-Williams (SHW) believes that its resources can be better allocated to other areas in order to provide more growth, higher returns and cash flow. Sherwin-Williams (SHW) came out with quarterly earnings of $2.04 per share, beating the Zacks Consensus Estimate of $1.84 per share. SHW’s beta can be found in Trading Information at the top of this page. A stock’s beta measures how closely tied its price movements have been to the performance of the overall market. Style is an investment factor that has a meaningful impact on investment risk and returns.

Healthy demand in domestic markets and aggressive cost control are expected to have aided Sherwin-Williams’ (SHW) Q4 performance amid headwinds from high raw material and labor costs. Shares of paint manufacturer Sherwin-Williams declined after the company expressed uncertainties about the housing market and other demand conditions. While the debate will certainly rage over which ideas legitimately rank as the greatest blue-chip stocks to buy of all time, for right now, certain enterprises stand out for a combination of their rel… Although the revenue and EPS for Sherwin-Williams (SHW) give a sense of how its business performed in the quarter ended March 2023, it might be worth considering how some key metrics compare with Wall…

Home prices in China fell, with prices 0.2% lower year-on-year, compared to a 0.8% decline seen in the previous month, according to Reuters’ calculations. The pan-European Stoxx 600 index was down 0.2% at the start of the session, with most sectors and major bourses trading in negative territory. Financial services made the biggest losses, down 1.3%, followed by autos, which dropped 0.9%. Concerns over the potential of default weighed on investors in Tuesday’s regular session. The Dow led the major indexes down with a 1% drop, followed by the S&P 500 and Nasdaq Composite with respective losses of about 0.6% and 0.2%. Learn how to know if a stock is overvalued, the criteria to look for in an overvalued stock, and a list of three overvalued stocks in the U.S stock market this year.

That’s incredibly low and suggests that there’s room for acquisitions and capital investment plans, and still ample room for adversity before the dividend would be at risk. The company also covers its trailing-12-month interest expenses by roughly 100 times, which is an astoundingly strong number. So while the dividend payout ratio has historically trended between 60% and 75%, that is completely reasonable given the company’s broader financial strength. With a relatively unstable dividend, it’s even more important to see if earnings per share is growing. Devon Energy has impressed us by growing EPS at 182% per year over the past five years. Devon Energy is clearly able to grow rapidly while still returning cash to shareholders, positioning it to become a strong dividend payer in the future.

• Shares of Sherwin-Williams Co. tumbled Thursday, after the paint and coatings maker warned of a big 2023 profit and sales miss, as demand is expected to weaken as the housing market remains pressured …
• The company reported 20 cents in earnings per share excluding items, above the 17 cents expected by analysts.
• Please read the Characteristics and Risks of Standardized Options before trading options.
• To that end, Devon Energy has 4 warning signs (and 2 which shouldn’t be ignored) we think you should know about.

A close below that level may signal a potential change toward the downside. Western Alliance shares have been on a recent upswing, up 17% over the past week – and posting a gain of 15% since this week has begun. Disappointing quarterly revenue and a lower forecast for full-year performance from Dow member Home Depot also soured investor sentiment in Tuesday’s session. On the economic front, April retail sales were weaker than anticipated by economists polled by Dow Jones. Stock futures rose Wednesday as investors awaited news of developments in the negotiations between congressional leaders and President Joe Biden on the U.S. debt ceiling. The U.S. stock market has been doing surprisingly well in 2023 despite all the negative news on the financial markets.

Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. You need to complete an options trading application and get approval on eligible accounts. Please read the Characteristics and Risks of Standardized Options before trading options. With execution like that, it shouldn’t be shocking to learn that Fastenal has increased its dividend annually for 24 consecutive years.

Sherwin-Williams (SHW) to Post Q4 Earnings: What’s in Store?

For the current quarter, the company said to expected between $2 and $2.06 in earnings per share for the current quarter, while analysts forecasted $1.96. Keysight guided revenue for the quarter to come in between $1.37 billion and $1.39 billion, a range that contains Wall Street’s consensus estimate of $1.38 billion. Impressive dividend yields are good, but this doesn’t matter much if the payments can’t be sustained. The last payment was quite easily covered by earnings, but it made up 106% of cash flows.

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Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. The Company engaged in the manufacturing, distributing and selling of paint, coatings and related products to professional, industrial, commercial and retail customers primarily in North and South America. Higher selling prices across business segments drive Q4 performance of Sherwin-Williams (SHW) amid headwinds from lower sales volume outside of North America & input cost inflation. But today, we are serving up the main course with these 11 stocks well on their way to becoming dividend kings. We have ordered this list by how many consecutive years these companies have grown their…

In its fiscal second quarter, the company reported $2.12 in earnings per share without items and $1.39 billion in revenue. By comparison, analysts polled by FactSet expected $1.96 per share and revenue to come in slightly lower at $1.38 billion. High-growth stocks tend to represent the technology, healthcare, and communications sectors.

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