Here’s something maybe you haven’t heard about—a paint that kills germs. It has been developed by Sherwin-Williams (SHW) and approved by the U.S. Environmental Protection Agency (EPA) as an antibacterial paint.
It’s a latex paint called Paint Shield, and the company says it is deadly to many of the germs responsible for hospital infections. They include Staph (Staphylococcus aureus), MRSA (Methicillin-resistant Staphylococcus aureus), E. coli (Escherichia coli), VRE (Vancomycin-resistant Enterococcus faecalis) and Enterobacter aerogenes.
The company says its paint will kill over 99.9% of these germs within two hours of exposure on painted surfaces. It continues to kill 90% of these bacteria even after repeated contamination on painted surfaces. The effectiveness lasts for up to four years as long as the integrity of the surface is maintained.
Sherwin-Williams CEO Chris Connor calls it “one of the most significant technological breakthroughs in our nearly 150-year history of innovation.”
Paint Shield is like any ordinary paint in that it can be applied to any interior surface with a brush or roller and comes in 590 colors. However, it sells for a premium price, as you might expect given its unique germ-killing nature.
The company, which is based in Cleveland, has been turning in some impressive financial results recently.
First-quarter net sales were up 5.1% to a record $2.57 billion (figures in U.S. dollars). Diluted earnings per share came in at $1.57, an improvement of almost 14% from $1.38 in the first quarter of 2015. Same-store sales growth was very impressive, with stores open for at least 12 months reporting growth of 9.4% compared to the year-ago period.
CEO John G. Morikis said he expects a second-quarter sales increase in the low to mid single digit range and earnings per share of $3.95 to $4.15 excluding acquisition costs. EPS in last year’s second quarter was $3.70. Wall Street’s
Best Investments Editor’s Note: SHW earned $4.06 per share for second quarter and revenues increased to $3,219.5 million.
The company has been passing on part of its gains to investors. The dividend was increased by 25% at the start of the year, to $0.84 per quarter ($3.36 per year).
The stock price has moved up sharply from $280 at the end of last month and may be a little stretched at this level with a trailing P/E ratio of 26.4. But the company is clearly on the upswing and the consensus rating of brokers who track it is Buy.
Buy under $300.
Gordon Pape, Internet Wealth Builder, www.buildingwealth.ca, 1-888-287-8229, July 17, 2016
