PPG INDUSTRIES INC (PPG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PPG - US6935061076 - Common Stock
102.46 USD
-1.22 (-1.18%)
102.46 USD
0 (0%)
Overall PPG gets a fundamental rating of 5 out of 10. We evaluated PPG against 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 valued correctly, 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.
In the past 5 years PPG has always been profitable.
PPG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PPG has a better Return On Assets (4.50%) than 77.11% of its industry peers.
PPG has a Return On Equity of 12.77%. This is amongst the best in the industry. PPG outperforms 84.34% of its industry peers.
PPG has a better Return On Invested Capital (9.35%) than 78.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PPG is above the industry average of 6.09%.
| 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
The Profit Margin of PPG (7.05%) is better than 74.70% of its industry peers.
PPG's Profit Margin has declined in the last couple of years.
PPG has a better Operating Margin (14.70%) than 75.90% of its industry peers.
PPG's Operating Margin has improved in the last couple of years.
PPG has a Gross Margin of 40.46%. This is amongst the best in the industry. PPG outperforms 83.13% 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
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.
Compared to 1 year ago, PPG has a worse debt to assets ratio.
2.2 Solvency
PPG has an Altman-Z score of 3.49. This indicates that PPG is financially healthy and has little risk of bankruptcy at the moment.
PPG's Altman-Z score of 3.49 is amongst the best of the industry. PPG outperforms 86.75% 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.
PPG has a better Debt to FCF ratio (10.09) than 63.86% of its industry peers.
PPG has a Debt/Equity ratio of 0.76. This is a neutral value indicating 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 | 3.49 |
ROIC/WACC0.71
WACC13.15%
2.3 Liquidity
A Current Ratio of 1.47 indicates that PPG should not have too much problems paying its short term obligations.
PPG has a worse Current ratio (1.47) than 71.08% of its industry peers.
A Quick Ratio of 1.08 indicates that PPG should not have too much problems paying its short term obligations.
PPG has a Quick ratio of 1.08. This is comparable to the rest of the industry: PPG outperforms 40.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
PPG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.24%.
The Earnings Per Share has been growing slightly by 5.46% on average over the past years.
PPG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.65%.
Measured over the past years, PPG shows a small growth in Revenue. The Revenue has been growing by 0.91% on average per year.
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.
PPG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.10% yearly.
EPS Next Y-4.52%
EPS Next 2Y0.53%
EPS Next 3Y3.44%
EPS Next 5Y5.27%
Revenue Next Year-11.28%
Revenue Next 2Y-4.71%
Revenue Next 3Y-2.28%
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.
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
Based on the Price/Earnings ratio of 13.34, the valuation of PPG can be described as correct.
Based on the Price/Earnings ratio, PPG is valued a bit cheaper than the industry average as 73.49% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PPG to the average of the S&P500 Index (26.51), we can say PPG is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.52, the valuation of PPG can be described as correct.
73.49% of the companies in the same industry are more expensive than PPG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.13. PPG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 12.52 |
4.2 Price Multiples
PPG's Enterprise Value to EBITDA is on the same level as the industry average.
PPG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.71 | ||
| EV/EBITDA | 11.07 |
4.3 Compensation for Growth
The decent profitability rating of PPG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.44
EPS Next 2Y0.53%
EPS Next 3Y3.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.74%, PPG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.48, 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
On average, the dividend of PPG grows each year by 6.16%, which is quite nice.
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)6.16%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
62.85% of the earnings are spent on dividend by PPG. This is not a sustainable payout ratio.
PPG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.85%
EPS Next 2Y0.53%
EPS Next 3Y3.44%
102.46
-1.22 (-1.18%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners88.67%
Inst Owner Change0.99%
Ins Owners0.1%
Ins Owner Change0%
Market Cap22.99B
Revenue(TTM)14.13B
Net Income(TTM)996.00M
Analysts72.67
Price Target121.21 (18.3%)
Short Float %2.32%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
Yearly Dividend2.67
Dividend Growth(5Y)6.16%
DP62.85%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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)-0.95%
PT rev (3m)-7.13%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-12.72%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-2.89%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.42%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 12.52 | ||
| P/S | 1.63 | ||
| P/FCF | 31.71 | ||
| P/OCF | 16.42 | ||
| P/B | 2.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.07 |
EPS(TTM)7.68
EY7.5%
EPS(NY)8.19
Fwd EY7.99%
FCF(TTM)3.23
FCFY3.15%
OCF(TTM)6.24
OCFY6.09%
SpS62.95
BVpS34.76
TBVpS-1.33
PEG (NY)N/A
PEG (5Y)2.44
Graham Number77.5
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 | 3.49 |
F-Score5
WACC13.15%
ROIC/WACC0.71
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-4.52%
EPS Next 2Y0.53%
EPS Next 3Y3.44%
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-11.28%
Revenue Next 2Y-4.71%
Revenue Next 3Y-2.28%
Revenue Next 5Y-0.1%
EBIT growth 1Y-10.25%
EBIT growth 3Y10.34%
EBIT growth 5Y3.84%
EBIT Next Year9.22%
EBIT Next 3Y6.57%
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 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 5 / 10.
What is the earnings growth outlook for PPG INDUSTRIES INC?
The Earnings per Share (EPS) of PPG INDUSTRIES INC (PPG) is expected to decline by -4.52% in the next year.