PPG INDUSTRIES INC (PPG) Stock Fundamental Analysis
NYSE:PPG - New York Stock Exchange, Inc. - US6935061076 - Common Stock - Currency: USD
PPG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. While PPG has a great profitability rating, 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
In the past year PPG was profitable.
PPG had a positive operating cash flow in the past year.
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 Return On Assets of 5.15%. This is in the better half of the industry: PPG outperforms 77.65% 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.
PPG has a better Return On Invested Capital (10.65%) than 87.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PPG is above the industry average of 6.77%.
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
With a decent Profit Margin value of 7.16%, PPG is doing good in the industry, outperforming 78.82% of the companies in the same industry.
In the last couple of years the Profit Margin of PPG has declined.
PPG has a better Operating Margin (14.38%) than 75.29% of its industry peers.
PPG's Operating Margin has improved in the last couple of years.
The Gross Margin of PPG (41.19%) is better than 85.88% of its industry peers.
PPG's Gross Margin has been stable in the last couple of years.
| 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
PPG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 3.65. This indicates that PPG is financially healthy and has little risk of bankruptcy at the moment.
PPG's Altman-Z score of 3.65 is amongst the best of the industry. PPG outperforms 85.88% 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.
The Debt to FCF ratio of PPG (9.22) is better than 64.71% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that PPG is somewhat dependend on debt financing.
PPG has a Debt to Equity ratio of 0.81. This is comparable to the rest of the industry: PPG outperforms 43.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 9.22 | ||
| Altman-Z | 3.65 |
ROIC/WACC1.29
WACC8.27%
2.3 Liquidity
PPG has a Current Ratio of 1.35. 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 (1.35) is worse than 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 has a Quick ratio of 0.99. This is in the lower half of the industry: PPG underperforms 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The earnings per share for PPG have decreased by -3.52% in the last year.
The Earnings Per Share has been growing slightly by 5.46% on average over the past years.
Looking at the last year, PPG shows a decrease in Revenue. The Revenue has decreased by -2.44% in the last year.
The Revenue has been growing slightly by 0.91% on average over the past years.
EPS 1Y (TTM)-3.52%
EPS 3Y6.16%
EPS 5Y5.46%
EPS Q2Q%-11.2%
Revenue 1Y (TTM)-2.44%
Revenue growth 3Y-1.94%
Revenue growth 5Y0.91%
Sales Q2Q%-12.49%
3.2 Future
PPG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.45% yearly.
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-11.28%
Revenue Next 2Y-4.38%
Revenue Next 3Y-1.94%
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
PPG is valuated correctly with a Price/Earnings ratio of 13.70.
Compared to the rest of the industry, the Price/Earnings ratio of PPG indicates a somewhat cheap valuation: PPG is cheaper than 76.47% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.82, PPG is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.13, the valuation of PPG can be described as correct.
62.35% of the companies in the same industry are more expensive than PPG, based on the Price/Forward Earnings ratio.
PPG is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 12.13 |
4.2 Price Multiples
PPG's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as PPG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.31 | ||
| EV/EBITDA | 10.9 |
4.3 Compensation for Growth
The excellent profitability rating of PPG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.51
EPS Next 2Y3.5%
EPS Next 3Y5.46%
5. Dividend
5.1 Amount
PPG has a Yearly Dividend Yield of 2.72%.
PPG's Dividend Yield is a higher than the industry average which is at 3.70.
PPG's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
5.2 History
The dividend of PPG is nicely growing with an annual growth rate of 6.16%!
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
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 (8/4/2025, 1:39:33 PM)
105.229
+0.79 (+0.76%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.14%
Inst Owner Change-0.25%
Ins Owners0.12%
Ins Owner Change1.17%
Market Cap23.89B
Analysts71.61
Price Target132.92 (26.31%)
Short Float %1.92%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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)1.48%
PT rev (3m)2.93%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)-0.83%
EPS NY rev (1m)0.24%
EPS NY rev (3m)1.32%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 12.13 | ||
| P/S | 1.57 | ||
| P/FCF | 30.31 | ||
| P/OCF | 16.34 | ||
| P/B | 3.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.9 |
EPS(TTM)7.68
EY7.3%
EPS(NY)8.68
Fwd EY8.25%
FCF(TTM)3.47
FCFY3.3%
OCF(TTM)6.44
OCFY6.12%
SpS67.04
BVpS30.52
TBVpS-3.66
PEG (NY)N/A
PEG (5Y)2.51
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 | 3.65 |
F-Score5
WACC8.27%
ROIC/WACC1.29
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-1.39%
EPS Next 2Y3.5%
EPS Next 3Y5.46%
EPS Next 5Y6.45%
Revenue 1Y (TTM)-2.44%
Revenue growth 3Y-1.94%
Revenue growth 5Y0.91%
Sales Q2Q%-12.49%
Revenue Next Year-11.28%
Revenue Next 2Y-4.38%
Revenue Next 3Y-1.94%
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%