PPG INDUSTRIES INC (PPG) Stock Fundamental Analysis
USA - NYSE:PPG - US6935061076 - Common Stock
97.75 USD
+0.3 (+0.31%)
97.75 USD
0 (0%)
Taking everything into account, PPG scores 5 out of 10 in our fundamental rating. PPG was compared to 82 industry peers in the Chemicals industry. PPG scores excellent on profitability, but there are some minor concerns on its financial health. PPG is valued correctly, but it does not seem to be growing.
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.
PPG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.57%, PPG is doing good in the industry, outperforming 78.05% of the companies in the same industry.
With an excellent Return On Equity value of 13.34%, PPG belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
PPG has a better Return On Invested Capital (9.60%) than 81.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PPG is above the industry average of 6.28%.
| 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
PPG has a Profit Margin of 6.92%. This is in the better half of the industry: PPG outperforms 74.39% of its industry peers.
In the last couple of years the Profit Margin of PPG has declined.
The Operating Margin of PPG (14.41%) is better than 74.39% of its industry peers.
PPG's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 40.85%, PPG belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
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.
Compared to 1 year ago, PPG has less shares outstanding
Compared to 5 years ago, PPG has less shares outstanding
PPG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.45 indicates that PPG is not in any danger for bankruptcy at the moment.
PPG has a better Altman-Z score (3.45) than 84.15% of its industry peers.
PPG has a debt to FCF ratio of 9.09. This is a negative value and a sign of low solvency as PPG would need 9.09 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.09, PPG is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
A Debt/Equity ratio of 0.78 indicates that PPG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.78, PPG perfoms like the industry average, outperforming 47.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 9.09 | ||
| Altman-Z | 3.45 |
ROIC/WACC1.19
WACC8.06%
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.
PPG's Current ratio of 1.42 is on the low side compared to the rest of the industry. PPG is outperformed by 75.61% of its industry peers.
A Quick Ratio of 1.04 indicates that PPG should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.04, PPG is doing worse than 67.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
PPG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.24%.
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%.
The Revenue has been growing slightly by 0.91% on average over the past years.
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
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.
PPG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.12% yearly.
EPS Next Y-2.47%
EPS Next 2Y2.9%
EPS Next 3Y5%
EPS Next 5Y6.79%
Revenue Next Year-11.32%
Revenue Next 2Y-4.42%
Revenue Next 3Y-1.99%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.73 indicates a correct valuation of PPG.
Based on the Price/Earnings ratio, PPG is valued a bit cheaper than 76.83% of the companies in the same industry.
PPG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.11.
With a Price/Forward Earnings ratio of 11.40, the valuation of PPG can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PPG indicates a somewhat cheap valuation: PPG is cheaper than 73.17% of the companies listed in the same industry.
PPG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.73 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PPG is on the same level as its industry peers.
PPG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.34 | ||
| EV/EBITDA | 10.74 |
4.3 Compensation for Growth
PPG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.33
EPS Next 2Y2.9%
EPS Next 3Y5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.91%, PPG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.00, PPG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, PPG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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
PPG pays out 61.82% of its income as dividend. This is not a sustainable payout ratio.
PPG's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP61.82%
EPS Next 2Y2.9%
EPS Next 3Y5%
97.75
+0.3 (+0.31%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners88.35%
Inst Owner Change-0.58%
Ins Owners0.12%
Ins Owner Change0.11%
Market Cap22.06B
Revenue(TTM)14.13B
Net Income(TTM)1.01B
Analysts72.67
Price Target127.68 (30.62%)
Short Float %2.13%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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)-2.18%
PT rev (3m)-3.94%
EPS NQ rev (1m)-0.96%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)-0.8%
EPS NY rev (3m)-1.1%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.73 | ||
| Fwd PE | 11.4 | ||
| P/S | 1.51 | ||
| P/FCF | 27.34 | ||
| P/OCF | 14.87 | ||
| P/B | 2.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.74 |
EPS(TTM)7.68
EY7.86%
EPS(NY)8.58
Fwd EY8.77%
FCF(TTM)3.58
FCFY3.66%
OCF(TTM)6.58
OCFY6.73%
SpS64.77
BVpS33.57
TBVpS-2.48
PEG (NY)N/A
PEG (5Y)2.33
Graham Number76.16
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%
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-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 | 3.45 |
F-Score4
WACC8.06%
ROIC/WACC1.19
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-2.47%
EPS Next 2Y2.9%
EPS Next 3Y5%
EPS Next 5Y6.79%
Revenue 1Y (TTM)-21.65%
Revenue growth 3Y-1.94%
Revenue growth 5Y0.91%
Sales Q2Q%-10.78%
Revenue Next Year-11.32%
Revenue Next 2Y-4.42%
Revenue Next 3Y-1.99%
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%
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 5 / 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 12.73 and the Price/Book (PB) ratio is 2.91.
What is the financial health of PPG INDUSTRIES INC (PPG) stock?
The financial health rating of PPG INDUSTRIES INC (PPG) is 5 / 10.