PPG INDUSTRIES INC (1PPG.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1PPG • US6935061076
87.6 EUR
+87.6 (+Infinity%)
Last: Apr 7, 2025, 07:00 PM
Taking everything into account, 1PPG scores 6 out of 10 in our fundamental rating. 1PPG was compared to 68 industry peers in the Chemicals industry. 1PPG has an excellent profitability rating, but there are some minor concerns on its financial health. 1PPG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- 1PPG had positive earnings in the past year.
- 1PPG had a positive operating cash flow in the past year.
- 1PPG had positive earnings in each of the past 5 years.
- Each year in the past 5 years 1PPG had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.74%, 1PPG is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 16.45%, 1PPG belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 11.66%, 1PPG belongs to the top of the industry, outperforming 92.19% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1PPG is above the industry average of 6.72%.
- The 3 year average ROIC (9.72%) for 1PPG is below the current ROIC(11.66%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
- 1PPG has a Profit Margin of 7.04%. This is in the better half of the industry: 1PPG outperforms 76.56% of its industry peers.
- In the last couple of years the Profit Margin of 1PPG has declined.
- 1PPG has a Operating Margin of 14.24%. This is amongst the best in the industry. 1PPG outperforms 82.81% of its industry peers.
- 1PPG's Operating Margin has improved in the last couple of years.
- 1PPG's Gross Margin of 41.61% is fine compared to the rest 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 Rank | Sector 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1PPG is creating some value.
- The number of shares outstanding for 1PPG has been reduced compared to 1 year ago.
- The number of shares outstanding for 1PPG has been reduced compared to 5 years ago.
- 1PPG has a worse debt/assets ratio than last year.
2.2 Solvency
- 1PPG has an Altman-Z score of 3.95. This indicates that 1PPG is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 3.95, 1PPG belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- 1PPG has a debt to FCF ratio of 8.32. This is a slightly negative value and a sign of low solvency as 1PPG would need 8.32 years to pay back of 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.
- Looking at the Debt to Equity ratio, with a value of 0.72, 1PPG is doing worse than 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 8.32 | ||
| Altman-Z | 3.95 |
ROIC/WACC1.44
WACC8.1%
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.
- 1PPG has a worse Current ratio (1.31) than 75.00% of its industry peers.
- 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.
- 1PPG's Quick ratio of 0.94 is in line compared to the rest of the industry. 1PPG outperforms 42.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
- 1PPG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.61%.
- 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
- Based on estimates for the next years, 1PPG will show a small growth in Earnings Per Share. The EPS will grow by 5.19% on average per year.
- The Revenue is expected to grow by 1.42% on average over the next years.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- 1PPG is valuated correctly with a Price/Earnings ratio of 12.29.
- 1PPG's Price/Earnings ratio is a bit cheaper when compared to the industry. 1PPG is cheaper than 78.13% of the companies in the same industry.
- 1PPG is valuated cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 12.62, the valuation of 1PPG can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1PPG indicates a somewhat cheap valuation: 1PPG is cheaper than 71.88% of the companies listed in the same industry.
- 1PPG is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 12.62 |
4.2 Price Multiples
- 1PPG's Enterprise Value to EBITDA is on the same level as the industry average.
- 1PPG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.31 | ||
| EV/EBITDA | 9.8 |
4.3 Compensation for Growth
- The excellent profitability rating of 1PPG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.25
EPS Next 2Y2.88%
EPS Next 3Y5.06%
5. Dividend
5.1 Amount
- 1PPG has a Yearly Dividend Yield of 2.72%.
- Compared to an average industry Dividend Yield of 2.28, 1PPG has a dividend in line with its industry peers.
- 1PPG's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
5.2 History
- The dividend of 1PPG is nicely growing with an annual growth rate of 6.16%!
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.
- The dividend of 1PPG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP55.73%
EPS Next 2Y2.88%
EPS Next 3Y5.06%
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%.