PPG INDUSTRIES INC (1PPG.MI) Stock Fundamental Analysis

BIT:1PPG • US6935061076

87.6 EUR
+87.6 (+Infinity%)
Last: Apr 7, 2025, 07:00 PM
Fundamental Rating

6

Taking everything into account, 1PPG scores 6 out of 10 in our fundamental rating. 1PPG was compared to 69 industry peers in the Chemicals industry. 1PPG has an excellent profitability rating, but there are some minor concerns on its financial health. 1PPG has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year 1PPG was profitable.
  • 1PPG had a positive operating cash flow in the past year.
  • 1PPG had positive earnings in each of the past 5 years.
  • 1PPG had a positive operating cash flow in each of the past 5 years.
1PPG.MI Yearly Net Income VS EBIT VS OCF VS FCF1PPG.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

1.2 Ratios

  • 1PPG's Return On Assets of 5.74% is fine compared to the rest of the industry. 1PPG outperforms 75.00% of its industry peers.
  • 1PPG's Return On Equity of 16.45% is amongst the best of the industry. 1PPG outperforms 87.50% of its industry peers.
  • 1PPG has a Return On Invested Capital of 11.66%. This is amongst the best in the industry. 1PPG outperforms 92.19% of its industry peers.
  • 1PPG had an Average Return On Invested Capital over the past 3 years of 9.72%. This is above the industry average of 7.10%.
  • The 3 year average ROIC (9.72%) for 1PPG is below the current ROIC(11.66%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.74%
ROE 16.45%
ROIC 11.66%
ROA(3y)5.52%
ROA(5y)5.74%
ROE(3y)16.08%
ROE(5y)17.95%
ROIC(3y)9.72%
ROIC(5y)9.04%
1PPG.MI Yearly ROA, ROE, ROIC1PPG.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

  • With a decent Profit Margin value of 7.04%, 1PPG is doing good in the industry, outperforming 76.56% of the companies in the same industry.
  • In the last couple of years the Profit Margin of 1PPG has declined.
  • 1PPG has a better Operating Margin (14.24%) than 82.81% of its industry peers.
  • In the last couple of years the Operating Margin of 1PPG has grown nicely.
  • 1PPG has a Gross Margin of 41.61%. This is in the better half of the industry: 1PPG outperforms 67.19% of its industry peers.
  • In the last couple of years the Gross Margin of 1PPG has remained more or less at the same level.
Industry RankSector Rank
OM 14.24%
PM (TTM) 7.04%
GM 41.61%
OM growth 3Y12.52%
OM growth 5Y2.91%
PM growth 3Y-6.31%
PM growth 5Y-3.01%
GM growth 3Y2.4%
GM growth 5Y-0.56%
1PPG.MI Yearly Profit, Operating, Gross Margins1PPG.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

5

2. Health

2.1 Basic Checks

  • 1PPG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, 1PPG has less shares outstanding
  • 1PPG has less shares outstanding than it did 5 years ago.
  • 1PPG has a worse debt/assets ratio than last year.
1PPG.MI Yearly Shares Outstanding1PPG.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
1PPG.MI Yearly Total Debt VS Total Assets1PPG.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

  • An Altman-Z score of 3.95 indicates that 1PPG is not in any danger for bankruptcy at the moment.
  • 1PPG's Altman-Z score of 3.95 is amongst the best of the industry. 1PPG outperforms 87.50% of its industry peers.
  • The Debt to FCF ratio of 1PPG is 8.32, which is on the high side as it means it would take 1PPG, 8.32 years of fcf income to pay off all of its debts.
  • 1PPG has a Debt to FCF ratio of 8.32. This is in the better half of the industry: 1PPG outperforms 62.50% of its industry peers.
  • A Debt/Equity ratio of 0.72 indicates that 1PPG is somewhat dependend on debt financing.
  • The Debt to Equity ratio of 1PPG (0.72) is worse than 70.31% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 8.32
Altman-Z 3.95
ROIC/WACC1.44
WACC8.1%
1PPG.MI Yearly LT Debt VS Equity VS FCF1PPG.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.3 Liquidity

  • 1PPG has a Current Ratio of 1.31. This is a normal value and indicates that 1PPG is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.31, 1PPG is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
  • 1PPG has a Quick Ratio of 1.31. This is a bad value and indicates that 1PPG is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 0.94, 1PPG is in line with its industry, outperforming 42.19% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.31
Quick Ratio 0.94
1PPG.MI Yearly Current Assets VS Current Liabilites1PPG.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

4

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 5.61% over the past year.
  • The Earnings Per Share has been growing slightly by 5.46% on average over the past years.
  • Looking at the last year, 1PPG shows a very negative growth in Revenue. The Revenue has decreased by -13.16% in the last year.
  • 1PPG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.91% yearly.
EPS 1Y (TTM)5.61%
EPS 3Y6.16%
EPS 5Y5.46%
EPS Q2Q%5.23%
Revenue 1Y (TTM)-13.16%
Revenue growth 3Y-1.94%
Revenue growth 5Y0.91%
Sales Q2Q%-14.28%

3.2 Future

  • The Earnings Per Share is expected to grow by 5.19% on average over the next years.
  • Based on estimates for the next years, 1PPG will show a small growth in Revenue. The Revenue will grow by 1.42% on average per year.
EPS Next Y-2.67%
EPS Next 2Y2.88%
EPS Next 3Y5.06%
EPS Next 5Y5.19%
Revenue Next Year-11.49%
Revenue Next 2Y-4.48%
Revenue Next 3Y-1.81%
Revenue Next 5Y1.42%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
1PPG.MI Yearly Revenue VS Estimates1PPG.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5B 10B 15B 20B
1PPG.MI Yearly EPS VS Estimates1PPG.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6 8 10

5

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 12.29, the valuation of 1PPG can be described as correct.
  • Based on the Price/Earnings ratio, 1PPG is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 27.10. 1PPG is valued rather cheaply when compared to this.
  • 1PPG is valuated correctly with a Price/Forward Earnings ratio of 12.62.
  • Based on the Price/Forward Earnings ratio, 1PPG is valued a bit cheaper than 71.88% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 28.06. 1PPG is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 12.29
Fwd PE 12.62
1PPG.MI Price Earnings VS Forward Price Earnings1PPG.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 1PPG's Enterprise Value to EBITDA ratio is in line with the industry average.
  • 1PPG's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 32.31
EV/EBITDA 9.8
1PPG.MI Per share data1PPG.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • 1PPG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.25
EPS Next 2Y2.88%
EPS Next 3Y5.06%

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.72%, 1PPG has a reasonable but not impressive dividend return.
  • 1PPG's Dividend Yield is comparable with the industry average which is at 2.23.
  • 1PPG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 2.72%

5.2 History

  • On average, the dividend of 1PPG grows each year by 6.16%, which is quite nice.
Dividend Growth(5Y)6.16%
Div Incr YearsN/A
Div Non Decr YearsN/A

5.3 Sustainability

  • 55.73% of the earnings are spent on dividend by 1PPG. This is a bit on the high side, but may be sustainable.
  • 1PPG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP55.73%
EPS Next 2Y2.88%
EPS Next 3Y5.06%
1PPG.MI Yearly Income VS Free CF VS Dividend1PPG.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
1PPG.MI Dividend Payout.1PPG.MI Dividend Payout, showing the Payout Ratio.1PPG.MI Dividend Payout.PayoutRetained Earnings

PPG INDUSTRIES INC

BIT:1PPG (4/7/2025, 7:00:00 PM)

87.6

+87.6 (+Infinity%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)01-30
Earnings (Next)04-29
Inst Owners88.78%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap19.88B
Revenue(TTM)15.85B
Net Income(TTM)1.12B
Analysts71.88
Price Target123.48 (40.96%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.72%
Yearly Dividend2.35
Dividend Growth(5Y)6.16%
DP55.73%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.59%
Min EPS beat(2)-3.35%
Max EPS beat(2)-1.83%
EPS beat(4)0
Avg EPS beat(4)-1.61%
Min EPS beat(4)-3.35%
Max EPS beat(4)-0.3%
EPS beat(8)4
Avg EPS beat(8)2.78%
EPS beat(12)7
Avg EPS beat(12)4.53%
EPS beat(16)10
Avg EPS beat(16)4.61%
Revenue beat(2)0
Avg Revenue beat(2)-5.7%
Min Revenue beat(2)-8.85%
Max Revenue beat(2)-2.56%
Revenue beat(4)0
Avg Revenue beat(4)-4.68%
Min Revenue beat(4)-8.85%
Max Revenue beat(4)-2.56%
Revenue beat(8)1
Avg Revenue beat(8)-2.55%
Revenue beat(12)3
Avg Revenue beat(12)-1.63%
Revenue beat(16)6
Avg Revenue beat(16)-0.66%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 12.29
Fwd PE 12.62
P/S 1.43
P/FCF 32.31
P/OCF 15.91
P/B 3.33
P/tB N/A
EV/EBITDA 9.8
EPS(TTM)7.13
EY8.14%
EPS(NY)6.94
Fwd EY7.92%
FCF(TTM)2.71
FCFY3.09%
OCF(TTM)5.51
OCFY6.29%
SpS61.45
BVpS26.31
TBVpS-3.21
PEG (NY)N/A
PEG (5Y)2.25
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 5.74%
ROE 16.45%
ROCE 15.65%
ROIC 11.66%
ROICexc 12.87%
ROICexgc 30.82%
OM 14.24%
PM (TTM) 7.04%
GM 41.61%
FCFM 4.41%
ROA(3y)5.52%
ROA(5y)5.74%
ROE(3y)16.08%
ROE(5y)17.95%
ROIC(3y)9.72%
ROIC(5y)9.04%
ROICexc(3y)10.67%
ROICexc(5y)9.96%
ROICexgc(3y)25.22%
ROICexgc(5y)23.45%
ROCE(3y)13.06%
ROCE(5y)12.2%
ROICexgc growth 3Y16.9%
ROICexgc growth 5Y3.89%
ROICexc growth 3Y16.85%
ROICexc growth 5Y2.21%
OM growth 3Y12.52%
OM growth 5Y2.91%
PM growth 3Y-6.31%
PM growth 5Y-3.01%
GM growth 3Y2.4%
GM growth 5Y-0.56%
F-Score6
Asset Turnover0.82
Health
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 8.32
Debt/EBITDA 1.78
Cap/Depr 146.54%
Cap/Sales 4.55%
Interest Coverage 9.14
Cash Conversion 51.66%
Profit Quality 62.63%
Current Ratio 1.31
Quick Ratio 0.94
Altman-Z 3.95
F-Score6
WACC8.1%
ROIC/WACC1.44
Cap/Depr(3y)112.81%
Cap/Depr(5y)92.86%
Cap/Sales(3y)3.75%
Cap/Sales(5y)3.13%
Profit Quality(3y)84.21%
Profit Quality(5y)101.19%
High Growth Momentum
Growth
EPS 1Y (TTM)5.61%
EPS 3Y6.16%
EPS 5Y5.46%
EPS Q2Q%5.23%
EPS Next Y-2.67%
EPS Next 2Y2.88%
EPS Next 3Y5.06%
EPS Next 5Y5.19%
Revenue 1Y (TTM)-13.16%
Revenue growth 3Y-1.94%
Revenue growth 5Y0.91%
Sales Q2Q%-14.28%
Revenue Next Year-11.49%
Revenue Next 2Y-4.48%
Revenue Next 3Y-1.81%
Revenue Next 5Y1.42%
EBIT growth 1Y-0.04%
EBIT growth 3Y10.34%
EBIT growth 5Y3.84%
EBIT Next Year14.92%
EBIT Next 3Y8.81%
EBIT Next 5Y7.18%
FCF growth 1Y-62.46%
FCF growth 3Y-16.27%
FCF growth 5Y-15.96%
OCF growth 1Y-41.1%
OCF growth 3Y-3.13%
OCF growth 5Y-7.35%

PPG INDUSTRIES INC / 1PPG.MI FAQ

What is the ChartMill fundamental rating of PPG INDUSTRIES INC (1PPG.MI) stock?

ChartMill assigns a fundamental rating of 6 / 10 to 1PPG.MI.


Can you provide the valuation status for PPG INDUSTRIES INC?

ChartMill assigns a valuation rating of 5 / 10 to PPG INDUSTRIES INC (1PPG.MI). This can be considered as Fairly Valued.


Can you provide the profitability details for PPG INDUSTRIES INC?

PPG INDUSTRIES INC (1PPG.MI) has a profitability rating of 8 / 10.


How financially healthy is PPG INDUSTRIES INC?

The financial health rating of PPG INDUSTRIES INC (1PPG.MI) is 5 / 10.


How sustainable is the dividend of PPG INDUSTRIES INC (1PPG.MI) stock?

The dividend rating of PPG INDUSTRIES INC (1PPG.MI) is 4 / 10 and the dividend payout ratio is 55.73%.