PPG INDUSTRIES INC (PPG) Stock Fundamental Analysis
NYSE:PPG - New York Stock Exchange, Inc. - US6935061076 - Common Stock - Currency: USD
Taking everything into account, PPG scores 5 out of 10 in our fundamental rating. PPG was compared to 85 industry peers in the Chemicals industry. While PPG has a great profitability rating, 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.
In the past year PPG had a positive cash flow from operations.
Each year in the past 5 years PPG has been profitable.
In the past 5 years PPG always reported a positive cash flow from operatings.
1.2 Ratios
PPG has a better Return On Assets (5.15%) than 76.47% of its industry peers.
Looking at the Return On Equity, with a value of 15.72%, PPG belongs to the top of the industry, outperforming 85.88% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.65%, PPG belongs to the top of the industry, outperforming 87.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PPG is above the industry average of 6.84%.
The last Return On Invested Capital (10.65%) for PPG is above the 3 year average (9.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.15% | ||
| ROE | 15.72% | ||
| ROIC | 10.65% |
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 7.16%, PPG is in the better half of the industry, outperforming 77.65% of the companies in the same industry.
In the last couple of years the Profit Margin of PPG has declined.
PPG's Operating Margin of 14.38% is fine compared to the rest of the industry. PPG outperforms 75.29% of its industry peers.
PPG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 41.19%, PPG belongs to the top of the industry, outperforming 85.88% 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 | 14.38% | ||
| PM (TTM) | 7.16% | ||
| GM | 41.19% |
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), PPG is creating some value.
PPG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PPG has less shares outstanding
PPG has a worse debt/assets ratio than last year.
2.2 Solvency
PPG has an Altman-Z score of 3.77. This indicates that PPG is financially healthy and has little risk of bankruptcy at the moment.
PPG has a Altman-Z score of 3.77. This is amongst the best in the industry. PPG outperforms 82.35% of its industry peers.
The Debt to FCF ratio of PPG is 9.22, which is on the high side as it means it would take PPG, 9.22 years of fcf income to pay off all of its debts.
PPG has a better Debt to FCF ratio (9.22) than 64.71% of its industry peers.
PPG has a Debt/Equity ratio of 0.81. This is a neutral value indicating PPG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.81, PPG is in line with its industry, outperforming 42.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 9.22 | ||
| Altman-Z | 3.77 |
ROIC/WACC1.25
WACC8.52%
2.3 Liquidity
A Current Ratio of 1.35 indicates that PPG should not have too much problems paying its short term obligations.
PPG's Current ratio of 1.35 is on the low side compared to the rest of the industry. PPG is outperformed by 75.29% of its industry peers.
A Quick Ratio of 0.99 indicates that PPG may have some problems paying its short term obligations.
PPG's Quick ratio of 0.99 is on the low side compared to the rest of the industry. PPG is outperformed by 61.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
PPG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.24%.
PPG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.46% yearly.
PPG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.28%.
The Revenue has been growing slightly by 0.91% on average over the past years.
EPS 1Y (TTM)3.24%
EPS 3Y6.16%
EPS 5Y5.46%
EPS Q2Q%-7.53%
Revenue 1Y (TTM)-16.28%
Revenue growth 3Y-1.94%
Revenue growth 5Y0.91%
Sales Q2Q%-14.54%
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 6.45% on average per year.
Based on estimates for the next years, PPG will show a decrease in Revenue. The Revenue will decrease by -0.32% on average per year.
EPS Next Y-1.39%
EPS Next 2Y3.5%
EPS Next 3Y5.46%
EPS Next 5Y6.45%
Revenue Next Year-11.33%
Revenue Next 2Y-4.35%
Revenue Next 3Y-1.91%
Revenue Next 5Y-0.32%
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.
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
With a Price/Earnings ratio of 14.52, PPG is valued correctly.
71.76% 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 27.41. PPG is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.32, the valuation of PPG can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PPG indicates a somewhat cheap valuation: PPG is cheaper than 63.53% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, PPG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 13.32 |
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 | 33.3 | ||
| EV/EBITDA | 12 |
4.3 Compensation for Growth
PPG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.66
EPS Next 2Y3.5%
EPS Next 3Y5.46%
5. Dividend
5.1 Amount
PPG has a Yearly Dividend Yield of 2.28%.
PPG's Dividend Yield is a higher than the industry average which is at 3.53.
PPG's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
5.2 History
The dividend of PPG is nicely growing with an annual growth rate of 6.16%!
PPG has paid a dividend for at least 10 years, which is a reliable track record.
PPG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.16%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
57.21% of the earnings are spent on dividend by PPG. This is a bit on the high side, but may be sustainable.
The dividend of PPG is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP57.21%
EPS Next 2Y3.5%
EPS Next 3Y5.46%
NYSE:PPG (7/14/2025, 10:30:08 AM)
115.59
-1.71 (-1.46%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.14%
Inst Owner Change0%
Ins Owners0.12%
Ins Owner Change1.17%
Market Cap26.24B
Analysts71.61
Price Target130.98 (13.31%)
Short Float %1.66%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
Yearly Dividend2.67
Dividend Growth(5Y)6.16%
DP57.21%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.86%
Min EPS beat(2)-3.35%
Max EPS beat(2)5.06%
EPS beat(4)1
Avg EPS beat(4)-0.1%
Min EPS beat(4)-3.35%
Max EPS beat(4)5.06%
EPS beat(8)4
Avg EPS beat(8)1.24%
EPS beat(12)7
Avg EPS beat(12)3.14%
EPS beat(16)10
Avg EPS beat(16)3.74%
Revenue beat(2)0
Avg Revenue beat(2)-4.69%
Min Revenue beat(2)-8.85%
Max Revenue beat(2)-0.54%
Revenue beat(4)0
Avg Revenue beat(4)-3.89%
Min Revenue beat(4)-8.85%
Max Revenue beat(4)-0.54%
Revenue beat(8)1
Avg Revenue beat(8)-2.45%
Revenue beat(12)2
Avg Revenue beat(12)-1.72%
Revenue beat(16)5
Avg Revenue beat(16)-0.97%
PT rev (1m)0.5%
PT rev (3m)-3.85%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-2.1%
EPS NY rev (1m)0.33%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 13.32 | ||
| P/S | 1.72 | ||
| P/FCF | 33.3 | ||
| P/OCF | 17.95 | ||
| P/B | 3.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12 |
EPS(TTM)7.96
EY6.89%
EPS(NY)8.68
Fwd EY7.51%
FCF(TTM)3.47
FCFY3%
OCF(TTM)6.44
OCFY5.57%
SpS67.04
BVpS30.52
TBVpS-3.66
PEG (NY)N/A
PEG (5Y)2.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.15% | ||
| ROE | 15.72% | ||
| ROCE | 14.3% | ||
| ROIC | 10.65% | ||
| ROICexc | 12.15% | ||
| ROICexgc | 28.79% | ||
| OM | 14.38% | ||
| PM (TTM) | 7.16% | ||
| GM | 41.19% | ||
| FCFM | 5.18% |
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-Score5
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 9.22 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 142.8% | ||
| Cap/Sales | 4.43% | ||
| Interest Coverage | 9.28 | ||
| Cash Conversion | 54.94% | ||
| Profit Quality | 72.36% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 3.77 |
F-Score5
WACC8.52%
ROIC/WACC1.25
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)3.24%
EPS 3Y6.16%
EPS 5Y5.46%
EPS Q2Q%-7.53%
EPS Next Y-1.39%
EPS Next 2Y3.5%
EPS Next 3Y5.46%
EPS Next 5Y6.45%
Revenue 1Y (TTM)-16.28%
Revenue growth 3Y-1.94%
Revenue growth 5Y0.91%
Sales Q2Q%-14.54%
Revenue Next Year-11.33%
Revenue Next 2Y-4.35%
Revenue Next 3Y-1.91%
Revenue Next 5Y-0.32%
EBIT growth 1Y-2.93%
EBIT growth 3Y10.34%
EBIT growth 5Y3.84%
EBIT Next Year12.07%
EBIT Next 3Y7.72%
EBIT Next 5Y7.23%
FCF growth 1Y-13.22%
FCF growth 3Y-16.27%
FCF growth 5Y-15.96%
OCF growth 1Y8.14%
OCF growth 3Y-3.13%
OCF growth 5Y-7.35%