PPG INDUSTRIES INC (PPG) Fundamental Analysis & Valuation
NYSE:PPG • US6935061076
106.7 USD
-5.17 (-4.62%)
At close: Mar 6, 2026
106.7 USD
0 (0%)
After Hours: 3/6/2026, 8:04:00 PM
This PPG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 5 out of 10 to PPG. PPG was compared to 83 industry peers in the Chemicals industry. PPG has an excellent profitability rating, 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. 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.
- PPG had positive earnings in each of the past 5 years.
- PPG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- PPG's Return On Assets of 4.50% is fine compared to the rest of the industry. PPG outperforms 79.52% of its industry peers.
- PPG has a Return On Equity of 12.77%. This is amongst the best in the industry. PPG outperforms 85.54% of its industry peers.
- PPG has a Return On Invested Capital of 9.54%. This is amongst the best in the industry. PPG outperforms 80.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.5% | ||
| ROE | 12.77% | ||
| ROIC | 9.54% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of PPG (7.05%) is better than 77.11% of its industry peers.
- In the last couple of years the Profit Margin of PPG has grown nicely.
- PPG's Operating Margin of 14.70% is fine compared to the rest of the industry. PPG outperforms 75.90% 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 40.46%, PPG belongs to the top of the industry, outperforming 83.13% 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 | 14.7% | ||
| PM (TTM) | 7.05% | ||
| GM | 40.46% |
OM growth 3Y8.61%
OM growth 5Y1.75%
PM growth 3Y14.75%
PM growth 5Y5.34%
GM growth 3Y4.33%
GM growth 5Y-1.26%
2. PPG Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PPG is destroying value.
- PPG has less shares outstanding than it did 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
- An Altman-Z score of 3.58 indicates that PPG is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.58, PPG belongs to the top of the industry, outperforming 85.54% of the companies in the same industry.
- PPG has a debt to FCF ratio of 10.09. This is a negative value and a sign of low solvency as PPG would need 10.09 years to pay back of all of its debts.
- PPG has a Debt to FCF ratio of 10.09. This is in the better half of the industry: PPG outperforms 65.06% of its industry peers.
- A Debt/Equity ratio of 0.76 indicates that PPG is somewhat dependend on debt financing.
- PPG has a Debt to Equity ratio (0.76) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 3.58 |
ROIC/WACC0.72
WACC13.24%
2.3 Liquidity
- A Current Ratio of 1.47 indicates that PPG should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.47, PPG is not doing good in the industry: 69.88% 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.
- The Quick ratio of PPG (1.08) is worse than 60.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.08 |
3. PPG Growth Analysis
3.1 Past
- The earnings per share for PPG have decreased by -6.42% in the last year.
- The Earnings Per Share has been growing slightly by 5.87% on average over the past years.
- Looking at the last year, PPG shows a small growth in Revenue. The Revenue has grown by 0.19% in the last year.
- PPG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.79% yearly.
EPS 1Y (TTM)-6.42%
EPS 3Y7.75%
EPS 5Y5.87%
EPS Q2Q%-6.21%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y0.55%
Revenue growth 5Y2.79%
Sales Q2Q%4.96%
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.
- The Revenue is expected to grow by 4.30% on average over the next years.
EPS Next Y6.89%
EPS Next 2Y7.56%
EPS Next 3Y8.35%
EPS Next 5Y8.62%
Revenue Next Year4.2%
Revenue Next 2Y3.58%
Revenue Next 3Y3.49%
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.
4. PPG Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.08, the valuation of PPG can be described as correct.
- PPG's Price/Earnings ratio is a bit cheaper when compared to the industry. PPG is cheaper than 73.49% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.29, PPG is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 13.17, the valuation of PPG can be described as correct.
- 68.67% of the companies in the same industry are more expensive than PPG, based on the Price/Forward Earnings ratio.
- PPG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 13.17 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PPG is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PPG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.03 | ||
| EV/EBITDA | 11.9 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- PPG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.04
PEG (5Y)2.4
EPS Next 2Y7.56%
EPS Next 3Y8.35%
5. PPG Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 2.54%, PPG has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.19, PPG pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, PPG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.73%
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 earnings are growing more, so the dividend growth is sustainable.
DP62.85%
EPS Next 2Y7.56%
EPS Next 3Y8.35%
PPG Fundamentals: All Metrics, Ratios and Statistics
106.7
-5.17 (-4.62%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)01-27 2026-01-27/amc
Earnings (Next)04-27 2026-04-27/amc
Inst Owners91.83%
Inst Owner Change2.74%
Ins Owners0.1%
Ins Owner Change-0.5%
Market Cap23.85B
Revenue(TTM)15.88B
Net Income(TTM)996.00M
Analysts72.26
Price Target126.93 (18.96%)
Short Float %3.22%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
Yearly Dividend2.77
Dividend Growth(5Y)5.73%
DP62.85%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-20 2026-02-20 (0.71)
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)4.6%
PT rev (3m)3.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.51%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)-2.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)1.73%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 13.17 | ||
| P/S | 1.69 | ||
| P/FCF | 33.03 | ||
| P/OCF | 17.1 | ||
| P/B | 3.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.9 |
EPS(TTM)7.58
EY7.1%
EPS(NY)8.1
Fwd EY7.59%
FCF(TTM)3.23
FCFY3.03%
OCF(TTM)6.24
OCFY5.85%
SpS62.95
BVpS34.76
TBVpS-1.33
PEG (NY)2.04
PEG (5Y)2.4
Graham Number76.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.5% | ||
| ROE | 12.77% | ||
| ROCE | 12.56% | ||
| ROIC | 9.54% | ||
| ROICexc | 10.78% | ||
| ROICexgc | 24.16% | ||
| OM | 14.7% | ||
| PM (TTM) | 7.05% | ||
| GM | 40.46% | ||
| FCFM | 5.13% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y8.61%
OM growth 5Y1.75%
PM growth 3Y14.75%
PM growth 5Y5.34%
GM growth 3Y4.33%
GM growth 5Y-1.26%
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 | 3.58 |
F-Score5
WACC13.24%
ROIC/WACC0.72
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.42%
EPS 3Y7.75%
EPS 5Y5.87%
EPS Q2Q%-6.21%
EPS Next Y6.89%
EPS Next 2Y7.56%
EPS Next 3Y8.35%
EPS Next 5Y8.62%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y0.55%
Revenue growth 5Y2.79%
Sales Q2Q%4.96%
Revenue Next Year4.2%
Revenue Next 2Y3.58%
Revenue Next 3Y3.49%
Revenue Next 5Y4.3%
EBIT growth 1Y-10.25%
EBIT growth 3Y9.21%
EBIT growth 5Y4.59%
EBIT Next Year25.51%
EBIT Next 3Y12.14%
EBIT Next 5Y10.04%
FCF growth 1Y-43.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-29.01%
OCF growth 3YN/A
OCF growth 5YN/A
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 for PPG stock?
ChartMill assigns a valuation rating of 4 / 10 to PPG INDUSTRIES INC (PPG). This can be considered as Fairly Valued.
Can you provide the profitability details for PPG INDUSTRIES INC?
PPG INDUSTRIES INC (PPG) has a profitability rating of 7 / 10.
Can you provide the financial health for PPG stock?
The financial health rating of PPG INDUSTRIES INC (PPG) is 4 / 10.
What is the earnings growth outlook for PPG INDUSTRIES INC?
The Earnings per Share (EPS) of PPG INDUSTRIES INC (PPG) is expected to grow by 6.89% in the next year.