PPG INDUSTRIES INC (PPG)
US6935061076 - Common Stock
Overall PPG gets a fundamental rating of 6 out of 10. We evaluated PPG against 83 industry peers in the Chemicals industry. PPG scores excellent on profitability, but there are some minor concerns on its financial health. PPG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PPG was profitable.
In the past year PPG had a positive cash flow from operations.
Each year in the past 5 years PPG has been profitable.
PPG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 6.65%, PPG belongs to the best of the industry, outperforming 80.72% of the companies in the same industry.
PPG has a better Return On Equity (18.59%) than 86.75% of its industry peers.
The Return On Invested Capital of PPG (10.48%) is better than 87.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PPG is in line with the industry average of 6.66%.
The last Return On Invested Capital (10.48%) for PPG is above the 3 year average (8.56%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.65% | ||
| ROE | 18.59% | ||
| ROIC | 10.48% |
ROA(3y)5.85%
ROA(5y)6%
ROE(3y)18.22%
ROE(5y)19.36%
ROIC(3y)8.56%
ROIC(5y)8.98%
1.3 Margins
PPG has a better Profit Margin (7.98%) than 75.90% of its industry peers.
In the last couple of years the Profit Margin of PPG has declined.
Looking at the Operating Margin, with a value of 12.64%, PPG is in the better half of the industry, outperforming 74.70% of the companies in the same industry.
In the last couple of years the Operating Margin of PPG has remained more or less at the same level.
With an excellent Gross Margin value of 42.20%, PPG belongs to the best of the industry, outperforming 85.54% 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 | 12.64% | ||
| PM (TTM) | 7.98% | ||
| GM | 42.2% |
OM growth 3Y-0.16%
OM growth 5Y1.14%
PM growth 3Y-3.12%
PM growth 5Y-4.41%
GM growth 3Y-2.06%
GM growth 5Y-0.04%
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.
The number of shares outstanding for PPG remains at a similar level compared to 1 year ago.
PPG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PPG has been reduced compared to a year ago.
2.2 Solvency
PPG has an Altman-Z score of 4.02. This indicates that PPG is financially healthy and has little risk of bankruptcy at the moment.
PPG's Altman-Z score of 4.02 is amongst the best of the industry. PPG outperforms 87.95% of its industry peers.
The Debt to FCF ratio of PPG is 4.53, which is a neutral value as it means it would take PPG, 4.53 years of fcf income to pay off all of its debts.
PPG's Debt to FCF ratio of 4.53 is fine compared to the rest of the industry. PPG outperforms 69.88% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that PPG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.74, PPG is in line with its industry, outperforming 45.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.53 | ||
| Altman-Z | 4.02 |
ROIC/WACC1.35
WACC7.78%
2.3 Liquidity
A Current Ratio of 1.49 indicates that PPG should not have too much problems paying its short term obligations.
PPG has a Current ratio of 1.49. This is in the lower half of the industry: PPG underperforms 77.11% of its industry peers.
PPG has a Quick Ratio of 1.05. This is a normal value and indicates that PPG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.05, PPG is doing worse than 62.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
PPG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.53%, which is quite good.
The Earnings Per Share has been growing slightly by 5.42% on average over the past years.
PPG shows a small growth in Revenue. In the last year, the Revenue has grown by 1.08%.
The Revenue has been growing slightly by 3.48% on average over the past years.
EPS 1Y (TTM)14.53%
EPS 3Y10.4%
EPS 5Y5.42%
EPS Q2Q%11.11%
Revenue 1Y (TTM)1.08%
Revenue growth 3Y9.67%
Revenue growth 5Y3.48%
Sales Q2Q%-1.6%
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 6.13% on average per year.
The Revenue is expected to grow by 3.14% on average over the next years.
EPS Next Y11.14%
EPS Next 2Y10.8%
EPS Next 3Y10.28%
EPS Next 5Y6.13%
Revenue Next Year1.8%
Revenue Next 2Y2.58%
Revenue Next 3Y3.07%
Revenue Next 5Y3.14%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.02 indicates a correct valuation of PPG.
Based on the Price/Earnings ratio, PPG is valued a bit cheaper than the industry average as 71.08% of the companies are valued more expensively.
PPG is valuated rather cheaply when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.54, PPG is valued correctly.
Based on the Price/Forward Earnings ratio, PPG is valued a bit cheaper than 61.45% of the companies in the same industry.
PPG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 13.54 |
4.2 Price Multiples
PPG's Enterprise Value to EBITDA ratio is in line with the industry average.
PPG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.23 | ||
| EV/EBITDA | 12.18 |
4.3 Compensation for Growth
PPG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PPG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.44
PEG (5Y)2.95
EPS Next 2Y10.8%
EPS Next 3Y10.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.17%, PPG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.07, PPG pays a bit more dividend than its industry peers.
PPG's Dividend Yield is comparable with the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
The dividend of PPG is nicely growing with an annual growth rate of 6.45%!
PPG has paid a dividend for at least 10 years, which is a reliable track record.
PPG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.45%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
42.31% 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, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP42.31%
EPS Next 2Y10.8%
EPS Next 3Y10.28%
PPG INDUSTRIES INC
NYSE:PPG (7/26/2024, 7:04:00 PM)
After market: 127.55 0 (0%)127.55
+1.61 (+1.28%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap30.02B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 13.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.44
PEG (5Y)2.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.65% | ||
| ROE | 18.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.64% | ||
| PM (TTM) | 7.98% | ||
| GM | 42.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.53%
EPS 3Y10.4%
EPS 5Y
EPS Q2Q%
EPS Next Y11.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.08%
Revenue growth 3Y9.67%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y