PPG INDUSTRIES INC (PPG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PPG - US6935061076 - Common Stock
97.16 USD
-1.54 (-1.56%)
97.16 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to PPG. PPG was compared to 81 industry peers in the Chemicals industry. PPG has an excellent profitability rating, but there are some minor concerns on its financial health. PPG has a valuation in line with the averages, 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.
PPG had positive earnings in each of the past 5 years.
Each year in the past 5 years PPG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PPG (4.50%) is better than 76.54% of its industry peers.
PPG has a better Return On Equity (12.77%) than 83.95% of its industry peers.
The Return On Invested Capital of PPG (9.35%) is better than 79.01% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PPG is above the industry average of 6.08%.
| 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
Looking at the Profit Margin, with a value of 7.05%, PPG is in the better half of the industry, outperforming 74.07% 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 14.70% is fine compared to the rest of the industry. PPG outperforms 76.54% of its industry peers.
In the last couple of years the Operating Margin of PPG has grown nicely.
PPG has a Gross Margin of 40.46%. This is amongst the best in the industry. PPG outperforms 85.19% 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.
The number of shares outstanding for PPG has been reduced compared to 1 year ago.
Compared to 5 years ago, PPG has less shares outstanding
Compared to 1 year ago, PPG has a worse debt to assets ratio.
2.2 Solvency
PPG has an Altman-Z score of 3.45. This indicates that PPG is financially healthy and has little risk of bankruptcy at the moment.
PPG has a Altman-Z score of 3.45. This is amongst the best in the industry. PPG outperforms 85.19% of its industry peers.
The Debt to FCF ratio of PPG is 10.09, which is on the high side as it means it would take PPG, 10.09 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.09, PPG is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
PPG has a Debt/Equity ratio of 0.76. This is a neutral value indicating PPG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.76, PPG perfoms like the industry average, outperforming 49.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 3.45 |
ROIC/WACC1.16
WACC8.05%
2.3 Liquidity
PPG has a Current Ratio of 1.47. This is a normal value and indicates that PPG is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.47, PPG is not doing good in the industry: 72.84% of the companies in the same industry are doing better.
PPG has a Quick Ratio of 1.08. 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 Quick ratio of 1.08. This is in the lower half of the industry: PPG underperforms 60.49% of its industry peers.
| 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.
Measured over the past 5 years, PPG shows a small growth in Earnings Per Share. The EPS has been growing by 5.46% on average per year.
The Revenue for PPG has decreased by -21.65% in the past year. This is quite bad
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
PPG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.27% yearly.
The Revenue is expected to decrease by -0.10% on average over the next years.
EPS Next Y-4.09%
EPS Next 2Y1.22%
EPS Next 3Y3.97%
EPS Next 5Y5.27%
Revenue Next Year-11.3%
Revenue Next 2Y-4.59%
Revenue Next 3Y-2.2%
Revenue Next 5Y-0.1%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
The Price/Earnings ratio is 12.65, which indicates a correct valuation of PPG.
74.07% of the companies in the same industry are more expensive than PPG, based on the Price/Earnings ratio.
PPG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.65.
A Price/Forward Earnings ratio of 11.71 indicates a reasonable valuation of PPG.
65.43% of the companies in the same industry are more expensive than PPG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, PPG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.65 | ||
| Fwd PE | 11.71 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PPG.
PPG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.25 | ||
| EV/EBITDA | 10.65 |
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)2.32
EPS Next 2Y1.22%
EPS Next 3Y3.97%
5. Dividend
5.1 Amount
PPG has a Yearly Dividend Yield of 2.98%.
PPG's Dividend Yield is a higher than the industry average which is at 4.16.
PPG's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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 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
PPG pays out 62.85% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PPG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP62.85%
EPS Next 2Y1.22%
EPS Next 3Y3.97%
97.16
-1.54 (-1.56%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners88.35%
Inst Owner Change0.95%
Ins Owners0.12%
Ins Owner Change0%
Market Cap21.93B
Revenue(TTM)14.13B
Net Income(TTM)996.00M
Analysts72.67
Price Target122.38 (25.96%)
Short Float %1.62%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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)-6.18%
PT rev (3m)-6.24%
EPS NQ rev (1m)-11.09%
EPS NQ rev (3m)-12.88%
EPS NY rev (1m)-1.66%
EPS NY rev (3m)-2.49%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.65 | ||
| Fwd PE | 11.71 | ||
| P/S | 1.55 | ||
| P/FCF | 30.25 | ||
| P/OCF | 15.66 | ||
| P/B | 2.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.65 |
EPS(TTM)7.68
EY7.9%
EPS(NY)8.3
Fwd EY8.54%
FCF(TTM)3.21
FCFY3.31%
OCF(TTM)6.2
OCFY6.38%
SpS62.59
BVpS34.56
TBVpS-1.32
PEG (NY)N/A
PEG (5Y)2.32
Graham Number77.28
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 | 3.45 |
F-Score5
WACC8.05%
ROIC/WACC1.16
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-4.09%
EPS Next 2Y1.22%
EPS Next 3Y3.97%
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-11.3%
Revenue Next 2Y-4.59%
Revenue Next 3Y-2.2%
Revenue Next 5Y-0.1%
EBIT growth 1Y-10.25%
EBIT growth 3Y10.34%
EBIT growth 5Y3.84%
EBIT Next Year12.14%
EBIT Next 3Y7.85%
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 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 12.65 and the Price/Book (PB) ratio is 2.81.
What is the financial health of PPG INDUSTRIES INC (PPG) stock?
The financial health rating of PPG INDUSTRIES INC (PPG) is 5 / 10.