PPG INDUSTRIES INC (PPG) Stock Fundamental Analysis
USA - NYSE:PPG - US6935061076 - Common Stock
101.7 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.
In the past 5 years PPG has always been profitable.
Each year in the past 5 years PPG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.57%, PPG is in the better half of the industry, outperforming 78.31% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.34%, PPG belongs to the top of the industry, outperforming 83.13% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.60%, PPG belongs to the top of the industry, outperforming 83.13% of the companies in the same industry.
PPG had an Average Return On Invested Capital over the past 3 years of 9.72%. This is above the industry average of 6.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.57% | ||
| ROE | 13.34% | ||
| ROIC | 9.6% |
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
With a decent Profit Margin value of 6.92%, PPG is doing good in the industry, outperforming 74.70% of the companies in the same industry.
In the last couple of years the Profit Margin of PPG has declined.
With a decent Operating Margin value of 14.41%, PPG is doing good in the industry, outperforming 77.11% of the companies in the same industry.
In the last couple of years the Operating Margin of PPG has grown nicely.
PPG has a Gross Margin of 40.85%. This is amongst the best in the industry. PPG outperforms 85.54% of its industry peers.
In the last couple of years the Gross Margin of PPG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.41% | ||
| PM (TTM) | 6.92% | ||
| GM | 40.85% |
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.
PPG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PPG has been reduced compared to 5 years ago.
The debt/assets ratio for PPG is higher compared to a year ago.
2.2 Solvency
PPG has an Altman-Z score of 3.48. This indicates that PPG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.48, PPG belongs to the best of the industry, outperforming 83.13% of the companies in the same industry.
The Debt to FCF ratio of PPG is 9.09, which is on the high side as it means it would take PPG, 9.09 years of fcf income to pay off all of its debts.
PPG's Debt to FCF ratio of 9.09 is fine compared to the rest of the industry. PPG outperforms 67.47% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that PPG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.78, PPG is in line with its industry, outperforming 46.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 9.09 | ||
| Altman-Z | 3.48 |
ROIC/WACC1.15
WACC8.33%
2.3 Liquidity
PPG has a Current Ratio of 1.42. This is a normal value and indicates that PPG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PPG (1.42) is worse than 75.90% of its industry peers.
PPG has a Quick Ratio of 1.04. This is a normal value and indicates that PPG is financially healthy and should not expect problems in meeting its short term obligations.
PPG has a worse Quick ratio (1.04) than 67.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The earnings per share for PPG have decreased by -3.52% in the last year.
PPG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.46% yearly.
The Revenue for PPG has decreased by -19.23% in the past year. This is quite bad
PPG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.91% yearly.
EPS 1Y (TTM)-3.52%
EPS 3Y6.16%
EPS 5Y5.46%
EPS Q2Q%-11.2%
Revenue 1Y (TTM)-19.23%
Revenue growth 3Y-1.94%
Revenue growth 5Y0.91%
Sales Q2Q%-12.49%
3.2 Future
Based on estimates for the next years, PPG will show a small growth in Earnings Per Share. The EPS will grow by 6.79% on average per year.
Based on estimates for the next years, PPG will show a decrease in Revenue. The Revenue will decrease by -0.12% on average per year.
EPS Next Y-1.68%
EPS Next 2Y3.48%
EPS Next 3Y5.44%
EPS Next 5Y6.79%
Revenue Next Year-11.21%
Revenue Next 2Y-4.32%
Revenue Next 3Y-1.92%
Revenue Next 5Y-0.12%
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 accelerating.
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
Based on the Price/Earnings ratio of 13.24, the valuation of PPG can be described as correct.
75.90% of the companies in the same industry are more expensive than PPG, based on the Price/Earnings ratio.
PPG is valuated cheaply when we compare the Price/Earnings ratio to 27.76, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.73, which indicates a very decent valuation of PPG.
Based on the Price/Forward Earnings ratio, PPG is valued a bit cheaper than the industry average as 73.49% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.21. PPG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.24 | ||
| Fwd PE | 11.73 |
4.2 Price Multiples
PPG's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PPG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.44 | ||
| EV/EBITDA | 11.09 |
4.3 Compensation for Growth
The decent profitability rating of PPG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.43
EPS Next 2Y3.48%
EPS Next 3Y5.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.72%, PPG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.61, PPG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, PPG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
5.2 History
On average, the dividend of PPG grows each year by 6.16%, which is quite nice.
PPG has been paying a dividend for at least 10 years, so it has 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
61.82% of the earnings are spent on dividend by PPG. This is not a sustainable payout ratio.
The dividend of PPG is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP61.82%
EPS Next 2Y3.48%
EPS Next 3Y5.44%
NYSE:PPG (10/8/2025, 12:16:47 PM)
101.7
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners88.35%
Inst Owner Change0.21%
Ins Owners0.12%
Ins Owner Change0.3%
Market Cap22.95B
Analysts72
Price Target130.44 (28.26%)
Short Float %2.02%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Yearly Dividend2.67
Dividend Growth(5Y)6.16%
DP61.82%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.82%
Min EPS beat(2)-1.41%
Max EPS beat(2)5.06%
EPS beat(4)1
Avg EPS beat(4)-0.38%
Min EPS beat(4)-3.35%
Max EPS beat(4)5.06%
EPS beat(8)3
Avg EPS beat(8)0.53%
EPS beat(12)6
Avg EPS beat(12)2.75%
EPS beat(16)10
Avg EPS beat(16)4.43%
Revenue beat(2)0
Avg Revenue beat(2)-0.4%
Min Revenue beat(2)-0.54%
Max Revenue beat(2)-0.26%
Revenue beat(4)0
Avg Revenue beat(4)-3.05%
Min Revenue beat(4)-8.85%
Max Revenue beat(4)-0.26%
Revenue beat(8)1
Avg Revenue beat(8)-2.43%
Revenue beat(12)2
Avg Revenue beat(12)-1.7%
Revenue beat(16)5
Avg Revenue beat(16)-0.96%
PT rev (1m)-0.07%
PT rev (3m)-0.42%
EPS NQ rev (1m)-1.11%
EPS NQ rev (3m)-0.89%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.24 | ||
| Fwd PE | 11.73 | ||
| P/S | 1.57 | ||
| P/FCF | 28.44 | ||
| P/OCF | 15.47 | ||
| P/B | 3.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.09 |
EPS(TTM)7.68
EY7.55%
EPS(NY)8.67
Fwd EY8.53%
FCF(TTM)3.58
FCFY3.52%
OCF(TTM)6.58
OCFY6.47%
SpS64.77
BVpS33.57
TBVpS-2.48
PEG (NY)N/A
PEG (5Y)2.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.57% | ||
| ROE | 13.34% | ||
| ROCE | 12.89% | ||
| ROIC | 9.6% | ||
| ROICexc | 10.66% | ||
| ROICexgc | 23.85% | ||
| OM | 14.41% | ||
| PM (TTM) | 6.92% | ||
| GM | 40.85% | ||
| FCFM | 5.52% |
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%
ROICexcg growth 3Y16.9%
ROICexcg 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-Score4
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 9.09 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 143.13% | ||
| Cap/Sales | 4.63% | ||
| Interest Coverage | 9.16 | ||
| Cash Conversion | 57.54% | ||
| Profit Quality | 79.82% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 3.48 |
F-Score4
WACC8.33%
ROIC/WACC1.15
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)-3.52%
EPS 3Y6.16%
EPS 5Y5.46%
EPS Q2Q%-11.2%
EPS Next Y-1.68%
EPS Next 2Y3.48%
EPS Next 3Y5.44%
EPS Next 5Y6.79%
Revenue 1Y (TTM)-19.23%
Revenue growth 3Y-1.94%
Revenue growth 5Y0.91%
Sales Q2Q%-12.49%
Revenue Next Year-11.21%
Revenue Next 2Y-4.32%
Revenue Next 3Y-1.92%
Revenue Next 5Y-0.12%
EBIT growth 1Y-7.95%
EBIT growth 3Y10.34%
EBIT growth 5Y3.84%
EBIT Next Year12.14%
EBIT Next 3Y7.85%
EBIT Next 5Y7.39%
FCF growth 1Y-34.07%
FCF growth 3Y-16.27%
FCF growth 5Y-15.96%
OCF growth 1Y-13.72%
OCF growth 3Y-3.13%
OCF growth 5Y-7.35%