PPG INDUSTRIES INC (PPG) Fundamental Analysis & Valuation

NYSE:PPG • US6935061076

Current stock price

108.7 USD
+0.2 (+0.18%)
Last:

This PPG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. PPG Profitability Analysis

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.
PPG Yearly Net Income VS EBIT VS OCF VS FCFPPG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

1.2 Ratios

  • The Return On Assets of PPG (7.13%) is better than 86.59% of its industry peers.
  • Looking at the Return On Equity, with a value of 19.85%, PPG belongs to the top of the industry, outperforming 91.46% of the companies in the same industry.
  • PPG's Return On Invested Capital of 9.50% is amongst the best of the industry. PPG outperforms 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 6.49%.
Industry RankSector Rank
ROA 7.13%
ROE 19.85%
ROIC 9.5%
ROA(3y)6.25%
ROA(5y)6.09%
ROE(3y)17.5%
ROE(5y)18.19%
ROIC(3y)10.47%
ROIC(5y)9.39%
PPG Yearly ROA, ROE, ROICPPG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • Looking at the Profit Margin, with a value of 9.93%, PPG belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
  • In the last couple of years the Profit Margin of PPG has grown nicely.
  • With a decent Operating Margin value of 13.55%, PPG is doing good in the industry, outperforming 74.39% of the companies in the same industry.
  • PPG's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 41.32%, PPG belongs to the top 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 RankSector Rank
OM 13.55%
PM (TTM) 9.93%
GM 41.32%
OM growth 3Y8.57%
OM growth 5Y1.73%
PM growth 3Y14.75%
PM growth 5Y5.34%
GM growth 3Y4.59%
GM growth 5Y-1.12%
PPG Yearly Profit, Operating, Gross MarginsPPG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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5

2. PPG Health Analysis

2.1 Basic Checks

  • PPG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, PPG has less shares outstanding
  • 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.
PPG Yearly Shares OutstandingPPG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
PPG Yearly Total Debt VS Total AssetsPPG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • PPG has an Altman-Z score of 3.69. This indicates that PPG is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.69, PPG belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
  • The Debt to FCF ratio of PPG is 6.28, which is on the high side as it means it would take PPG, 6.28 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of PPG (6.28) is better than 73.17% of its industry peers.
  • PPG has a Debt/Equity ratio of 0.83. This is a neutral value indicating PPG is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.83, PPG is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF 6.28
Altman-Z 3.69
ROIC/WACC0.72
WACC13.13%
PPG Yearly LT Debt VS Equity VS FCFPPG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

  • PPG has a Current Ratio of 1.62. 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 Current ratio of 1.62. This is in the lower half of the industry: PPG underperforms 64.63% of its industry peers.
  • A Quick Ratio of 1.22 indicates that PPG should not have too much problems paying its short term obligations.
  • PPG's Quick ratio of 1.22 is in line compared to the rest of the industry. PPG outperforms 47.56% of its industry peers.
Industry RankSector Rank
Current Ratio 1.62
Quick Ratio 1.22
PPG Yearly Current Assets VS Current LiabilitesPPG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. PPG Growth Analysis

3.1 Past

  • PPG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.39%.
  • Measured over the past 5 years, PPG shows a small growth in Earnings Per Share. The EPS has been growing by 5.87% on average per year.
  • PPG shows a small growth in Revenue. In the last year, the Revenue has grown by 0.19%.
  • PPG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.79% yearly.
EPS 1Y (TTM)-3.39%
EPS 3Y7.75%
EPS 5Y5.87%
EPS Q2Q%6.4%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y0.55%
Revenue growth 5Y2.79%
Sales Q2Q%6.68%

3.2 Future

  • PPG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.62% yearly.
  • Based on estimates for the next years, PPG will show a small growth in Revenue. The Revenue will grow by 4.30% on average per year.
EPS Next Y4.92%
EPS Next 2Y6.65%
EPS Next 3Y7.76%
EPS Next 5Y8.62%
Revenue Next Year4.23%
Revenue Next 2Y3.62%
Revenue Next 3Y3.45%
Revenue Next 5Y4.3%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
PPG Yearly Revenue VS EstimatesPPG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B
PPG Yearly EPS VS EstimatesPPG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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5

4. PPG Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 14.14, the valuation of PPG can be described as correct.
  • Based on the Price/Earnings ratio, PPG is valued cheaply inside the industry as 81.71% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 26.77. PPG is valued slightly cheaper when compared to this.
  • PPG is valuated correctly with a Price/Forward Earnings ratio of 12.61.
  • 78.05% 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 21.75, PPG is valued a bit cheaper.
Industry RankSector Rank
PE 14.14
Fwd PE 12.61
PPG Price Earnings VS Forward Price EarningsPPG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • PPG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PPG is cheaper than 62.20% of the companies in the same industry.
  • 71.95% of the companies in the same industry are more expensive than PPG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 20.92
EV/EBITDA 10.94
PPG Per share dataPPG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of PPG may justify a higher PE ratio.
PEG (NY)2.87
PEG (5Y)2.41
EPS Next 2Y6.65%
EPS Next 3Y7.76%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. PPG Dividend Analysis

5.1 Amount

  • PPG has a Yearly Dividend Yield of 2.71%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.01, PPG pays a bit more dividend than its industry peers.
  • PPG's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.71%

5.2 History

  • The dividend of PPG has a limited annual growth rate of 5.73%.
  • 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)5.73%
Div Incr Years34
Div Non Decr Years34
PPG Yearly Dividends per sharePPG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • 39.85% of the earnings are spent on dividend by PPG. This is a low number and sustainable payout ratio.
  • PPG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.85%
EPS Next 2Y6.65%
EPS Next 3Y7.76%
PPG Yearly Income VS Free CF VS DividendPPG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
PPG Dividend Payout.PPG Dividend Payout, showing the Payout Ratio.PPG Dividend Payout.PayoutRetained Earnings

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PPG Fundamentals: All Metrics, Ratios and Statistics

PPG INDUSTRIES INC

NYSE:PPG (5/1/2026, 11:13:40 AM)

108.7

+0.2 (+0.18%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Industry Strength62.73
Industry Growth39.75
Earnings (Last)04-28
Earnings (Next)07-27
Inst Owners91.42%
Inst Owner Change0.17%
Ins Owners0.09%
Ins Owner Change-0.34%
Market Cap24.33B
Revenue(TTM)15.88B
Net Income(TTM)1.58B
Analysts72.67
Price Target124.7 (14.72%)
Short Float %3.01%
Short Ratio3.07
Dividend
Industry RankSector Rank
Dividend Yield 2.71%
Yearly Dividend2.77
Dividend Growth(5Y)5.73%
DP39.85%
Div Incr Years34
Div Non Decr Years34
Ex-Date05-11
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.28%
Min EPS beat(2)-5.5%
Max EPS beat(2)0.93%
EPS beat(4)2
Avg EPS beat(4)-0.23%
Min EPS beat(4)-5.5%
Max EPS beat(4)5.06%
EPS beat(8)2
Avg EPS beat(8)-0.92%
EPS beat(12)6
Avg EPS beat(12)1.78%
EPS beat(16)9
Avg EPS beat(16)3.34%
Revenue beat(2)1
Avg Revenue beat(2)1.2%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)2.51%
Revenue beat(4)1
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-0.54%
Max Revenue beat(4)2.51%
Revenue beat(8)1
Avg Revenue beat(8)-2.14%
Revenue beat(12)2
Avg Revenue beat(12)-1.57%
Revenue beat(16)4
Avg Revenue beat(16)-1.12%
PT rev (1m)-2.02%
PT rev (3m)2.49%
EPS NQ rev (1m)2.78%
EPS NQ rev (3m)-0.37%
EPS NY rev (1m)-1.7%
EPS NY rev (3m)-2.45%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)2.16%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.76%
Valuation
Industry RankSector Rank
PE 14.14
Fwd PE 12.61
P/S 1.53
P/FCF 20.92
P/OCF 12.53
P/B 3.06
P/tB N/A
EV/EBITDA 10.94
EPS(TTM)7.69
EY7.07%
EPS(NY)8.62
Fwd EY7.93%
FCF(TTM)5.2
FCFY4.78%
OCF(TTM)8.67
OCFY7.98%
SpS70.93
BVpS35.48
TBVpS-0.8
PEG (NY)2.87
PEG (5Y)2.41
Graham Number78.3541 (-27.92%)
Profitability
Industry RankSector Rank
ROA 7.13%
ROE 19.85%
ROCE 12.51%
ROIC 9.5%
ROICexc 10.91%
ROICexgc 23.81%
OM 13.55%
PM (TTM) 9.93%
GM 41.32%
FCFM 7.33%
ROA(3y)6.25%
ROA(5y)6.09%
ROE(3y)17.5%
ROE(5y)18.19%
ROIC(3y)10.47%
ROIC(5y)9.39%
ROICexc(3y)11.71%
ROICexc(5y)10.36%
ROICexgc(3y)27.1%
ROICexgc(5y)24.13%
ROCE(3y)13.79%
ROCE(5y)12.36%
ROICexgc growth 3Y6.59%
ROICexgc growth 5Y0.95%
ROICexc growth 3Y8.92%
ROICexc growth 5Y1.97%
OM growth 3Y8.57%
OM growth 5Y1.73%
PM growth 3Y14.75%
PM growth 5Y5.34%
GM growth 3Y4.59%
GM growth 5Y-1.12%
F-Score6
Asset Turnover0.72
Health
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF 6.28
Debt/EBITDA 2.47
Cap/Depr 147.35%
Cap/Sales 4.9%
Interest Coverage 10.24
Cash Conversion 72.45%
Profit Quality 73.79%
Current Ratio 1.62
Quick Ratio 1.22
Altman-Z 3.69
F-Score6
WACC13.13%
ROIC/WACC0.72
Cap/Depr(3y)130.76%
Cap/Depr(5y)110.38%
Cap/Sales(3y)4.28%
Cap/Sales(5y)3.67%
Profit Quality(3y)94.35%
Profit Quality(5y)81.84%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.39%
EPS 3Y7.75%
EPS 5Y5.87%
EPS Q2Q%6.4%
EPS Next Y4.92%
EPS Next 2Y6.65%
EPS Next 3Y7.76%
EPS Next 5Y8.62%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y0.55%
Revenue growth 5Y2.79%
Sales Q2Q%6.68%
Revenue Next Year4.23%
Revenue Next 2Y3.62%
Revenue Next 3Y3.45%
Revenue Next 5Y4.3%
EBIT growth 1Y-4.7%
EBIT growth 3Y9.17%
EBIT growth 5Y4.57%
EBIT Next Year24.36%
EBIT Next 3Y11.99%
EBIT Next 5Y10.04%
FCF growth 1Y66.38%
FCF growth 3Y37.74%
FCF growth 5Y-8.43%
OCF growth 1Y36.69%
OCF growth 3Y26.32%
OCF growth 5Y-1.66%

PPG INDUSTRIES INC / PPG Fundamental Analysis FAQ

What is the fundamental rating for PPG stock?

ChartMill assigns a fundamental rating of 6 / 10 to PPG.


What is the valuation status for PPG stock?

ChartMill assigns a valuation rating of 5 / 10 to PPG INDUSTRIES INC (PPG). This can be considered as Fairly Valued.


How profitable is PPG INDUSTRIES INC (PPG) stock?

PPG INDUSTRIES INC (PPG) has a profitability rating of 8 / 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 14.14 and the Price/Book (PB) ratio is 3.06.


Can you provide the expected EPS growth for PPG stock?

The Earnings per Share (EPS) of PPG INDUSTRIES INC (PPG) is expected to grow by 4.92% in the next year.