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. While 1PPG has a great profitability rating, there are some minor concerns on its financial health. 1PPG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- 1PPG had positive earnings in the past year.
- In the past year 1PPG had a positive cash flow from operations.
- Each year in the past 5 years 1PPG has been profitable.
- 1PPG had a positive operating cash flow in each of the past 5 years.
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.
- The Return On Equity of 1PPG (16.45%) is better than 87.50% of its industry peers.
- 1PPG has a better Return On Invested Capital (11.66%) than 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 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
- Looking at the Profit Margin, with a value of 7.04%, 1PPG is in the better half of 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.
- Looking at the Operating Margin, with a value of 14.24%, 1PPG belongs to the top of the industry, outperforming 82.81% of the companies in the same industry.
- 1PPG's Operating Margin has improved in the last couple of years.
- 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 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1PPG is still creating some value.
- 1PPG has less shares outstanding than it did 1 year ago.
- 1PPG has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, 1PPG has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.95 indicates that 1PPG is not in any danger for bankruptcy at the moment.
- The Altman-Z score of 1PPG (3.95) is better than 87.50% of its industry peers.
- 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.
- 1PPG's Debt to Equity ratio of 0.72 is on the low side compared to the rest of the industry. 1PPG is outperformed by 70.31% of its industry peers.
| 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.
- The Current ratio of 1PPG (1.31) is worse than 75.00% of its industry peers.
- A Quick Ratio of 0.94 indicates that 1PPG may have some problems paying its short term obligations.
- 1PPG has a Quick ratio (0.94) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.94 |
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.
- The Revenue has been growing slightly by 0.91% on average over the past years.
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.
- 1PPG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.42% yearly.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 12.29, 1PPG is valued correctly.
- Based on the Price/Earnings ratio, 1PPG is valued a bit cheaper than 78.13% of the companies in the same industry.
- 1PPG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.
- Based on the Price/Forward Earnings ratio of 12.62, the valuation of 1PPG can be described as correct.
- Based on the Price/Forward Earnings ratio, 1PPG is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
- 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%. Purely for dividend investing, there may be better candidates out there.
- 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
- 1PPG pays out 55.73% of its income as dividend. 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%
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%.