PPG INDUSTRIES INC (PPG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PPG - US6935061076 - Common Stock
103.72 USD
+0.18 (+0.17%)
103.72 USD
0 (0%)
Overall PPG gets a fundamental rating of 5 out of 10. We evaluated PPG against 83 industry peers in the Chemicals industry. PPG scores excellent on profitability, but there are some minor concerns on its financial health. PPG has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
PPG had positive earnings in the past year.
PPG had a positive operating cash flow in the past year.
Each year in the past 5 years PPG has been profitable.
PPG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PPG (4.50%) is better than 78.31% of its industry peers.
PPG has a better Return On Equity (12.77%) than 85.54% of its industry peers.
PPG has a better Return On Invested Capital (9.35%) than 79.52% of its industry peers.
PPG had an Average Return On Invested Capital over the past 3 years of 9.72%. This is above the industry average of 5.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.5% | ||
| ROE | 12.77% | ||
| ROIC | 9.35% |
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
PPG has a better Profit Margin (7.05%) than 75.90% of its industry peers.
PPG's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 14.70%, PPG is in the better half of the industry, outperforming 77.11% of the companies in the same industry.
PPG's Operating Margin has improved in the last couple of years.
The Gross Margin of PPG (40.46%) is better than 83.13% of its industry peers.
PPG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.7% | ||
| PM (TTM) | 7.05% | ||
| GM | 40.46% |
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 PPG is still creating some value.
Compared to 1 year ago, PPG has less shares outstanding
The number of shares outstanding for PPG has been reduced compared to 5 years ago.
PPG has a worse debt/assets ratio than last year.
2.2 Solvency
PPG has an Altman-Z score of 3.50. This indicates that PPG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.50, PPG belongs to the best of the industry, outperforming 86.75% of the companies in the same industry.
PPG has a debt to FCF ratio of 10.09. This is a negative value and a sign of low solvency as PPG would need 10.09 years to pay back of all of its debts.
The Debt to FCF ratio of PPG (10.09) is better than 63.86% of its industry peers.
PPG has a Debt/Equity ratio of 0.76. This is a neutral value indicating PPG is somewhat dependend on debt financing.
PPG has a Debt to Equity ratio (0.76) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 3.5 |
ROIC/WACC1.14
WACC8.21%
2.3 Liquidity
A Current Ratio of 1.47 indicates that PPG should not have too much problems paying its short term obligations.
PPG has a Current ratio of 1.47. This is in the lower half of the industry: PPG underperforms 69.88% of its industry peers.
A Quick Ratio of 1.08 indicates that PPG should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.08, PPG is in line with its industry, outperforming 40.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The earnings per share for PPG have decreased by -4.24% in the last year.
The Earnings Per Share has been growing slightly by 5.46% on average over the past years.
PPG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.65%.
Measured over the past years, PPG shows a small growth in Revenue. The Revenue has been growing by 0.91% on average per year.
EPS 1Y (TTM)-4.24%
EPS 3Y6.16%
EPS 5Y5.46%
EPS Q2Q%0%
Revenue 1Y (TTM)-21.65%
Revenue growth 3Y-1.94%
Revenue growth 5Y0.91%
Sales Q2Q%-10.78%
3.2 Future
PPG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.27% yearly.
Based on estimates for the next years, PPG will show a decrease in Revenue. The Revenue will decrease by -0.10% on average per year.
EPS Next Y-4.38%
EPS Next 2Y0.67%
EPS Next 3Y3.65%
EPS Next 5Y5.27%
Revenue Next Year-11.35%
Revenue Next 2Y-4.67%
Revenue Next 3Y-2.25%
Revenue Next 5Y-0.1%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PPG is valuated correctly with a Price/Earnings ratio of 13.51.
74.70% of the companies in the same industry are more expensive than PPG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.55. PPG is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.64, PPG is valued correctly.
Based on the Price/Forward Earnings ratio, PPG is valued a bit cheaper than 69.88% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, PPG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 12.64 |
4.2 Price Multiples
PPG's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as PPG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.1 | ||
| EV/EBITDA | 11.17 |
4.3 Compensation for Growth
The decent profitability rating of PPG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.47
EPS Next 2Y0.67%
EPS Next 3Y3.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.76%, PPG has a reasonable but not impressive dividend return.
PPG's Dividend Yield is a higher than the industry average which is at 2.66.
PPG's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
5.2 History
On average, the dividend of PPG grows each year by 6.16%, which is quite nice.
PPG has paid a dividend for at least 10 years, which is a reliable track record.
PPG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.16%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
PPG pays out 62.85% of its income as dividend. This is not a sustainable payout ratio.
PPG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.85%
EPS Next 2Y0.67%
EPS Next 3Y3.65%
103.72
+0.18 (+0.17%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners88.67%
Inst Owner Change0.99%
Ins Owners0.1%
Ins Owner Change0%
Market Cap23.27B
Revenue(TTM)14.13B
Net Income(TTM)996.00M
Analysts72.67
Price Target121.21 (16.86%)
Short Float %2.14%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Yearly Dividend2.67
Dividend Growth(5Y)6.16%
DP62.85%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.24%
Min EPS beat(2)-1.41%
Max EPS beat(2)0.93%
EPS beat(4)2
Avg EPS beat(4)0.31%
Min EPS beat(4)-3.35%
Max EPS beat(4)5.06%
EPS beat(8)3
Avg EPS beat(8)-0.09%
EPS beat(12)7
Avg EPS beat(12)2.84%
EPS beat(16)10
Avg EPS beat(16)4.1%
Revenue beat(2)0
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)-0.12%
Revenue beat(4)0
Avg Revenue beat(4)-2.44%
Min Revenue beat(4)-8.85%
Max Revenue beat(4)-0.12%
Revenue beat(8)1
Avg Revenue beat(8)-2.35%
Revenue beat(12)2
Avg Revenue beat(12)-1.68%
Revenue beat(16)4
Avg Revenue beat(16)-1.09%
PT rev (1m)-5.07%
PT rev (3m)-7.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.54%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-2.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.39%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 12.64 | ||
| P/S | 1.65 | ||
| P/FCF | 32.1 | ||
| P/OCF | 16.62 | ||
| P/B | 2.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.17 |
EPS(TTM)7.68
EY7.4%
EPS(NY)8.21
Fwd EY7.91%
FCF(TTM)3.23
FCFY3.11%
OCF(TTM)6.24
OCFY6.02%
SpS62.95
BVpS34.76
TBVpS-1.33
PEG (NY)N/A
PEG (5Y)2.47
Graham Number77.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.5% | ||
| ROE | 12.77% | ||
| ROCE | 12.56% | ||
| ROIC | 9.35% | ||
| ROICexc | 10.57% | ||
| ROICexgc | 23.69% | ||
| OM | 14.7% | ||
| PM (TTM) | 7.05% | ||
| GM | 40.46% | ||
| FCFM | 5.13% |
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-Score5
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 10.09 | ||
| Debt/EBITDA | 2.31 | ||
| Cap/Depr | 140.04% | ||
| Cap/Sales | 4.78% | ||
| Interest Coverage | 9.39 | ||
| Cash Conversion | 54.73% | ||
| Profit Quality | 72.79% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 3.5 |
F-Score5
WACC8.21%
ROIC/WACC1.14
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)-4.24%
EPS 3Y6.16%
EPS 5Y5.46%
EPS Q2Q%0%
EPS Next Y-4.38%
EPS Next 2Y0.67%
EPS Next 3Y3.65%
EPS Next 5Y5.27%
Revenue 1Y (TTM)-21.65%
Revenue growth 3Y-1.94%
Revenue growth 5Y0.91%
Sales Q2Q%-10.78%
Revenue Next Year-11.35%
Revenue Next 2Y-4.67%
Revenue Next 3Y-2.25%
Revenue Next 5Y-0.1%
EBIT growth 1Y-10.25%
EBIT growth 3Y10.34%
EBIT growth 5Y3.84%
EBIT Next Year9.68%
EBIT Next 3Y6.56%
EBIT Next 5Y5.72%
FCF growth 1Y-53.79%
FCF growth 3Y-16.27%
FCF growth 5Y-15.96%
OCF growth 1Y-33.33%
OCF growth 3Y-3.13%
OCF growth 5Y-7.35%
PPG INDUSTRIES INC / PPG FAQ
What is the fundamental rating for PPG stock?
ChartMill assigns a fundamental rating of 5 / 10 to PPG.
What is the valuation status of PPG INDUSTRIES INC (PPG) stock?
ChartMill assigns a valuation rating of 4 / 10 to PPG INDUSTRIES INC (PPG). This can be considered as Fairly Valued.
What is the profitability of PPG stock?
PPG INDUSTRIES INC (PPG) has a profitability rating of 7 / 10.
What are the PE and PB ratios of PPG INDUSTRIES INC (PPG) stock?
The Price/Earnings (PE) ratio for PPG INDUSTRIES INC (PPG) is 13.51 and the Price/Book (PB) ratio is 2.98.
What is the financial health of PPG INDUSTRIES INC (PPG) stock?
The financial health rating of PPG INDUSTRIES INC (PPG) is 5 / 10.