Why Analysts Think PPG Industries’ 3Q Net Profit Margin Fell
As of October 11, 2016, Wall Street analysts are expecting PPG Industries (PPG) to post a net profit margin of 10.9%.
How Did H.B. Fuller Perform Compared with Its Peers in 3Q15?
H.B. Fuller was outperformed by its peers based on the net profit margin, EPS, and PBV ratio. However, H.B. Fuller is way ahead of its peers based on the PE ratio.
PPG Industries’ Stock Price Is Still Under Pressure Post-3Q16
PPG Industries’ (PPG) stock performance from November 1, 2016, to December 29, 2016, has been very mild, with a return of 1.6%.
Why Are Analysts Expecting Axalta’s Revenue to Rise in 4Q16?
Analysts are expecting Axalta (AXTA) to post revenue of $1.02 billion in 4Q16. That’s a 1.2% rise year-over-year compared to $1.01 billion in 4Q15.
David Einhorn’s Greenlight Capital: Analyzing Its 13F
On November 14, Greenlight Capital filed its 13F. In the third quarter, the company bought a fresh stake in NeuBase Therapeutics.
Valspar and Sherwin-Williams Get a Second Request
On May 11, after the Market closed, Valspar and Sherwin-Williams announced that they received a “second request” from the FTC regarding their merger.
Could Sherwin-Williams Deliver Revenue Growth in 3Q16?
Sherwin-Williams (SHW) will be reporting its 3Q16 earnings on October 25, 2016, before the market opens.
Valspar’s 3Q16 Earnings Beat Analysts’ Estimates
On September 7, 2016, Valspar (VAL) reported its 3Q16 earnings after market hours. Here’s what you need to know.
What’s the Downside in the Post Properties and Mid-America Deal?
Post Properties was trading at ~$62 per share before the deal with Mid-America was announced. If the deal breaks, it could return to those levels.
PPG Industries’ 4Q16 EPS versus Street Expectations and Forex Impact
PPG Industries (PPG) reported adjusted EPS of $1.19 in 4Q16, meeting the Wall Street analysts’ estimate of $1.19 adjusted earnings per share.
How Do RPM’s Valuations Look after Fiscal 1Q17?
As of October 6, 2016, RPM International was trading at a one-year forward PE multiple of 17.5x.
What’s the Next Big Move for David Einhorn?
Billionaire David Einhorn is prominent in the hedge fund industry for his bold investment strategies.
Porter’s 5 Forces: Lowe’s Position in a Competitive Industry
Lowe’s (LOW) operates in the home improvement industry where most products, especially building materials, are largely standardized and undifferentiated.
How Did Lowe’s Fiscal 2016 Sales Growth Stack Up against Rivals?
Lowe’s (LOW) same-store sales in fiscal 4Q16 grew 5.2% for the company overall and 5.5% in the US.
Why PPG Industries Is Trading at a Discount to Peers
At present, PPG is trading at a discount to SHW primarily due to the acquisition of Valspar (VAL).
Axalta Completed the Acquisition of Valspar’s Business
On June 1, 2017, Axalta (AXTA) announced that it completed the acquisition of Valspar’s (VAL) North American Industrial Wood Coatings business.
Why PPG Industries’ Dividend Yield Is in a Downward Trend
PPG has a better current dividend yield than its peers, with the exception of RPM.
Should RPM Increase Dividends to Maintain Better Dividend Yields?
On April 13, 2017, RPM International (RPM) stock closed at $49.94.
Axalta to Buy Valspar’s North American Industrial Wood Coatings
On April 12, 2017, Axalta Coating System (AXTA) announced that it will acquire Valspar’s North American Industrial Wood Coatings business for $420.0 million in cash.
Sherwin-Williams and Valspar Postpone Merger Date
On March 21, 2017, Sherwin-Williams (SHW) and Valspar (VAL) extended the closure date of their merger agreement to June 21 from the previously announced March 21, 2017.
Is PPG Industries’ Dividend Yield Better Than Its Peers?
On March 1, 2017, PPG stock closed at $103.29. With a 1Q17 quarterly dividend of $0.40 per share, its current dividend yield is ~1.6%.
Axalta Offers New Global Warranty for Architectural Powder Coatings
On February 20, 2017, Axalta (AXTA) came up with a global warranty program for its premium line of Alesta architectural coatings.
Analysts’ Latest Recommendations for Sherwin-Williams
As of February 27, 21 brokerage firms were actively tracking Sherwin-Williams stock—57% gave it a “buy,” 38% gave it a “hold,” and 5% gave it a “sell.”
Why Is Sherwin-Williams’ Dividend Yield Falling?
The fall in Sherwin-Williams’ dividend yield is primarily due to an increase in its share price. Sherwin-Williams’ share price outpaced its dividend growth.
Chemical News: Axalta Will Buy Century Industrial Coatings
On February 1, 2017, Axalta (AXTA) announced that it entered into an agreement to acquire Century Industrial Coatings.
PPG Extends Its Presence in EMEA Region with DEUTEK Acquisition
On January 5, 2017, PPG Industries (PPG) announced that it had completed the acquisition of DEUTEK, a leading Romanian paint and architectural coatings manufacturer.
Axalta to Take Over Ellis Paint Company for an Undisclosed Amount
On January 6, 2017, Axalta (AXTA) announced that it had acquired Ellis Paint Company. Axalta didn’t disclose the financial terms of the deal.
What Does Wall Street Think about Valspar?
As of December 20, 2016, 13 brokerage firms are actively tracking Valspar (VAL)) stock. About 15.0% of those analysts have recommended a “buy” for the stock.
Why Valspar’s Paints Segment Sales Fell in 4Q16
In 4Q16, Valspar’s Paints segment reported revenue of $421.1 million, or 38.0% of the company’s total revenue. That revenue was ~7.0% lower than 4Q15.
Why Valspar Missed Analysts’ 4Q16 Revenue Estimates
Valspar (VAL) not only missed analysts’ 4Q16 earnings estimates, but it also missed analysts’ revenue estimates. Its total reported revenue was $1.1 billion.
Here’s Valspar’s 4Q16 Earnings: Beat or Miss?
On Tuesday, December 20, 2016, Valspar (VAL) reported its 4Q16 earnings before the market opened. It reported adjusted EPS (earnings per share) of $1.37.
Axalta’s Stock Price Spikes as It Plans a Rapid Expansion
On December 6, 2016, Axalta (AXTA) introduced its new Procor HP line in Mexico and Central America.
Why Valuations for Sherwin-Williams Are Higher Than Its Peers
As of December 2, 2016, Sherwin-Williams’s one-year forward EV-to-EBITDA stood at 11.9x, while PPG’s was 10.4x.
Sherwin-Williams Stock Outperformed Broader Market in November
Sherwin-Williams (SHW) stock had a strong performance in November, closing at $268.67 and rising a whopping 9.7%.
PPG Completed Its Stake Sale in PFG Fiberglass Joint Venture
On September 22, PPG Industries (PPG) reached an agreement to sell its 50% stake in its two PFG fiber glass joint ventures to Nan Ya Plastics.
PPG Industries Now Completely Owns PPG Univer
On November 11, PPG Industries announced that it had bought the remaining 50% ownership in PPG Univer from Univer Italiana, its partner in the joint venture.
AXTA Bats for Environment, Announces Houston Plant Modernization
In a move to support a clean environment, Axalta (AXTA) has announced the modernization of its powder manufacturing facility in Houston, Texas.
Could Sherwin-Williams Continue to Trade at a Premium?
Sherwin-Williams’s valuation The forward PE (price-to-earnings) multiple indicates how much investors would be paying per dollar of expected earnings in the next 12 months. Using PE multiples, investors can compare two or more companies in the same industry and decide whether stocks are overvalued or undervalued. As of October 12, 2016, Sherwin-Williams was trading at a one-year […]
Could Sherwin-Williams Surprise Investors?
Analysts’ expectations Wall Street analysts are expecting Sherwin-Williams (SHW) to post adjusted EPS (earnings per share) of $4.33 in 3Q16, compared with $3.98 in 3Q15. The projected adjusted EPS for 3Q16 implies a growth of 8.8% on a year-over-year basis. Peer Valspar (VAL) reported adjusted EPS of $1.15 in 3Q16. For Valspar’s complete 3Q16 earnings, […]
Axalta’s New Metallic Color Gives More Options to Customers
On October 5, 2016, Axalta announced the introduction of its new architectural-grade Alesta AR400 champagne metallic color.
Why Did RPM’s Fiscal 1Q17 Revenues Miss Analyst Estimates?
RPM International (RPM) reported fiscal 1Q17 revenues of $1.25 billion, which missed analysts’ expectation of $1.30 billion.
RPM International’s Fiscal 1Q17 Earnings Beat Analysts’ Estimates
RPM International reported adjusted EPS (or earnings per share) of $0.83, which beat analysts’ estimate of $0.80.
A Quick Look into RPM International’s Leverage and Credit Ratings
The coating industry has a high debt ratio. A high debt-to-equity ratio shows aggressive growth rates, but high debt also affects credit ratings.
Inside RPM International’s Cost of Sales and SG&A Trends
In 2011, cost of sales represented 58.6% of the RPM International’s (RPM) total revenue.
An Overview of RPM International’s Specialty Segment
In fiscal 2016, RPM International’s new Specialty segmented accounted for $732 million, or 15.2%, of the company’s total revenue.
RPM International’s Revenue Rides on the Industrial Segment
RPM International’s largest contribution comes from the Industrial Segment, which contributed 50.7%, or ~$2.4 billion, of the company’s total revenue.
Inside RPM International’s Revenue Segments
Until the fiscal 1Q16, RPM was reporting under two segments, Consumer and Industrial. Now it has combined two sub-segments and reports under three.
A Glimpse into RPM’s Stock Price Movement, Past to Present
From September 1, 2008, to Jan 31, 2009—the peak time of the crisis—RPM’s stock price fell 43.2%.
Why Did H.B. Fuller Miss 3Q16 Revenue Estimates?
Analysts had estimated that H.B. Fuller’s (FUL) 3Q16 revenue would be $534.8 million, but it came in at $512.9 million.
Chemours Inaugurates New TiO2 Production Line at Altamira in Mexico
On September 22, Chemours inaugurated its new Tio2, which is used as raw material for coatings and paints, production line at its Altamira plant in Mexico.
Axalta Coating Systems Prices Its 450 Million Euro Senior Notes
On September 13, Axalta Coating Systems (AXTA) announced that its wholly owned subsidiary, Axalta Coating Systems Dutch Holding BBV, has priced its offering of 450 million euro senior notes. With a 3.75% coupon rate, the notes are being offered to qualified institutional buyers, and the offer is expected to close on September 27.
PPG Displayed Marine Coatings Technology at Industry Conference
PPG Industries’ (PPG) protective and marine coatings business displayed premium marine coatings solutions at the SMM event that took place in Hamburg, Germany, September 6–9, 2016.
Valspar’s Paint Segment Performed Marginally Better in 3Q16
In 3Q16, Valspar’s (VAL) Paints segment reported revenue of $445.4 million, representing 39% of Valspar’s total revenue.
Why Did Valspar’s Coatings Segment Revenue Fall in 3Q16?
Valspar (VAL) reports its revenue under two segments, namely: the coatings segment and paints segment.
Why Did Valspar Miss 3Q16 Analyst Revenue Estimates?
Valspar’s (VAL) 3Q16 earnings beat analysts’ estimates but missed analysts’ revenue estimates.
Sherwin-Williams Chooses Poised Taupe as 2017 Color of the Year
Sherwin-Williams (SHW), in a press release on August 29, 2016, announced Poised Taupe (SW 6039) as its 2017 color of the year.
Inside PPG Industries’ Industrial Coatings Segment
PPG Industries’ (PPG) industrial coatings segment is the company’s second-largest revenue generator, contributing 36% of PPG’s total revenue in 2015.
How PPG’s Valuations Compare to Its Peers
As of August 26, 2016, PPG Industries was trading at a one-year forward PE multiple of 16.0x compared to Sherwin-Williams and Valspar at 21.20x and 20.30x, respectively.
How PPG Industries Manages Its Costs and SGA Expenses
In the past five years, PPG Industries’ SG&A expenses have grown at a CAGR of 4.3%, while its sales grew at a CAGR of 2.7%.
Exploring PPG Industries’ Performance Coating Segment
PPG Industries’ (PPG) biggest chunk of revenue comes from the performance coatings segment.
Reviewing PPG’s Stock Price Rebound since the Subprime Crisis
The subprime crisis that began in September 2008 shook the financial world and pushed the global economy into recession. PPG was no exception, and the stock suffered.
Understanding PPG’s Formation through a Review of Its History
PPG Industries (PPG) is a Fortune 500 company and the world’s largest paint and coatings company by revenue. In 2015, its coatings segment posted $14.2 billion.
Post Properties and Mid-America: Exceptions in the MAE Clause
Pretty much anything that has a material adverse effect on a company will be considered an MAE, although there are exceptions to that rule.
MAE Clause: How Mid-America Could Walk Away from the Deal
We’ll look at the MAE clause of the Post Properties and Mid-America Apartment merger agreement. We’ll see how Mid-America could walk away from the deal.
Why Is Mid-America Apartment Buying Post Properties?
Mid-America Apartment is buying Post Properties (PPS) in a $4.5 billion stock transaction to create the largest publicly traded apartment REIT.
Mid-America Apartment Buys Post Properties in a $4.5 Billion Deal
Post Properties and Mid-America Apartment announced a merger. Mid-America will purchase Post Properties for ~$4.5 billion in stock and assumed debt.
How Could TIAA Walk Away from the Deal?
We’ll look at the MAE (material adverse effect) clause of the Everbank (EVER)-TIAA merger agreement and see how TIAA could walk away from the deal.
Why FMC’s Health and Nutrition Segment’s Revenue Fell in 2Q16
In 2Q16, FMC Corporation’s (FMC) Health and Nutrition segment reported revenue of $195 million, representing 24.1% of FMC’s total revenue.
What’s the Rationale for the TIAA-Everbank Merger?
Everbank is a major player in the mortgage origination space. TIAA is looking to take some of that mortgage origination and put it on its balance sheet.
TIAA Buys Everbank to Boost Its Banking Business
On August 8, 2016, TIAA and Everbank (EVER) announced a merger in which TIAA will purchase Everbank for $19.50 per share in cash, or ~$2.5 billion.
Europe, China, and India Sales Rose, but Not Enough Not Help PPG Industries
Wall Street analysts estimated that PPG Industries’ revenue for 2Q16 would be $4.17 billion, but PPG Industries reported total revenue of $4.06 billion.
What’s the Word among Analysts on PPG Industries?
As of June 21, PPG’s consensus 12-month target price was $125, which represents a potential return of ~15% from its closing price of $108.06 on June 21.
How Will Arbs Impact the Valspar and Sherwin-Williams Deal?
If the deal closes as advertised, you’re getting a 10% plus return. If regulators demand $650 million in divestitures, you still get a 2.8% return.
What’s the Rationale for the Valspar and Sherwin-Williams Merger?
Sherwin-Williams is buying coatings manufacturer Valspar in a $11.3 billion cash transaction. The companies stress that this is a complementary transaction.
Understanding the Business Models of Specialty Chemical Companies
Companies in the specialty chemical industry have fewer intermediaries in their distribution range as they move from coatings to more specialized chemicals.
Assessing Returns in the Specialty Chemical Industry
The proprietary products and processes developed by specialty chemical firms command a premium and have enabled companies to post high returns on capital.
What You Need to Know before Investing in Paint Companies
Even when the house not for sale, the aesthetic appeal of new paint on a house is a strong motivator for repainting, making it a recurring activity.
Introducing Three Coatings Industry Regional Markets
Asia-Pacific is the largest geographical market for the coatings industry, followed by Europe and North America.
Why Paint Companies Are Posting Their Best Gross Margins
Paint companies benefit significantly when titanium dioxide prices enter recessionary cycles.
Introducing the Specialty Chemicals Industry: What You May Not Yet Know
The specialty chemicals industry caters to diverse sectors through innovative products that are tailored to the specific requirements of end markets.
RPM International’s Performance Compared to Its Peers
The peers outperformed RPM International based on EPS and the PBV ratio. RPM International is way ahead of its peers based on the current ratio and PE ratio.
Iridian slightly raises its holdings in SemGroup Corporation
In its 13G filing, Iridian Asset Management slightly increased its holdings in SemGroup (SEMG). This resulted in a passive stake of 8.2% in the company.
Iridian Asset Management ups its position in Valspar Corporation
In its 13G filing, Iridian Asset Management increased its holdings in Valspar Corporation (VAL) by 20%. The fund holds a passive stake of 6.4% in Valspar.
Iridian nearly doubles its holdings in Lexmark International
Iridian Asset Management has increased its holdings in Lexmark International, Inc. (LXK) by 49%. This represents a 10.4% passive stake in the company.