PPG INDUSTRIES INC (PPG) Fundamental Analysis & Valuation

NYSE:PPG • US6935061076

Current stock price

103.86 USD
+0.41 (+0.4%)
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

  • In the past year PPG was profitable.
  • In the past year PPG had a positive cash flow from operations.
  • PPG had positive earnings in each of the past 5 years.
  • Each year in the past 5 years PPG had a positive operating cash flow.
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

  • With an excellent Return On Assets value of 7.13%, PPG belongs to the best of the industry, outperforming 86.75% of the companies in the same industry.
  • PPG has a better Return On Equity (19.85%) than 91.57% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 9.50%, PPG belongs to the top of the industry, outperforming 80.72% of the companies in the same industry.
  • PPG had an Average Return On Invested Capital over the past 3 years of 10.47%. This is above the industry average of 6.47%.
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

  • The Profit Margin of PPG (9.93%) is better than 86.75% of its industry peers.
  • PPG's Profit Margin has improved in the last couple of years.
  • PPG has a Operating Margin of 13.55%. This is in the better half of the industry: PPG outperforms 73.49% of its industry peers.
  • In the last couple of years the Operating Margin of PPG has grown nicely.
  • Looking at the Gross Margin, with a value of 41.32%, PPG belongs to the top of the industry, outperforming 86.75% 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

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PPG is still creating some value.
  • PPG has less shares outstanding than it did 1 year ago.
  • PPG has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, PPG has a worse debt to assets ratio.
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 3.64. This indicates that PPG is financially healthy and has little risk of bankruptcy at the moment.
  • PPG has a Altman-Z score of 3.64. This is amongst the best in the industry. PPG outperforms 84.34% of its industry peers.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 6.28, PPG is in the better half of the industry, outperforming 73.49% of the companies in the same industry.
  • A Debt/Equity ratio of 0.83 indicates that PPG is somewhat dependend on debt financing.
  • PPG's Debt to Equity ratio of 0.83 is on the low side compared to the rest of the industry. PPG is outperformed by 60.24% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF 6.28
Altman-Z 3.64
ROIC/WACC1.22
WACC7.8%
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

  • A Current Ratio of 1.62 indicates that PPG should not have too much problems paying its short term obligations.
  • The Current ratio of PPG (1.62) is worse than 65.06% of its industry peers.
  • PPG has a Quick Ratio of 1.22. This is a normal value and indicates that PPG is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Quick ratio value of 1.22, PPG perfoms like the industry average, outperforming 45.78% of the companies in the same industry.
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 -6.42%.
  • 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.
  • The Revenue has been growing slightly by 0.19% in the past year.
  • The Revenue has been growing slightly by 2.79% on average over the past years.
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

  • Based on estimates for the next years, PPG will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.62% on average per year.
  • The Revenue is expected to grow by 4.30% on average over the next years.
EPS Next Y6.73%
EPS Next 2Y7.6%
EPS Next 3Y8.36%
EPS Next 5Y8.62%
Revenue Next Year4.18%
Revenue Next 2Y3.54%
Revenue Next 3Y3.49%
Revenue Next 5Y4.3%

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 accelerating.
  • 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

  • With a Price/Earnings ratio of 13.70, PPG is valued correctly.
  • Based on the Price/Earnings ratio, PPG is valued a bit cheaper than 78.31% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.96. PPG is valued slightly cheaper when compared to this.
  • With a Price/Forward Earnings ratio of 12.84, PPG is valued correctly.
  • Based on the Price/Forward Earnings ratio, PPG is valued a bit cheaper than the industry average as 74.70% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of PPG to the average of the S&P500 Index (24.04), we can say PPG is valued slightly cheaper.
Industry RankSector Rank
PE 13.7
Fwd PE 12.84
PPG Price Earnings VS Forward Price EarningsPPG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • PPG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PPG is cheaper than 60.24% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, PPG is valued a bit cheaper than 68.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 19.96
EV/EBITDA 10.51
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.
  • PPG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.03
PEG (5Y)2.34
EPS Next 2Y7.6%
EPS Next 3Y8.36%

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7

5. PPG Dividend Analysis

5.1 Amount

  • PPG has a Yearly Dividend Yield of 2.82%.
  • PPG's Dividend Yield is a higher than the industry average which is at 2.08.
  • PPG's Dividend Yield is a higher than the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 2.82%

5.2 History

  • The dividend of PPG has a limited annual growth rate of 5.73%.
  • 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)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.
  • The dividend of PPG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.85%
EPS Next 2Y7.6%
EPS Next 3Y8.36%
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 (3/17/2026, 2:20:07 PM)

103.86

+0.41 (+0.4%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)01-27
Earnings (Next)04-27
Inst Owners91.83%
Inst Owner Change2.68%
Ins Owners0.1%
Ins Owner Change-0.5%
Market Cap23.21B
Revenue(TTM)15.88B
Net Income(TTM)1.58B
Analysts72.26
Price Target126.93 (22.21%)
Short Float %3.15%
Short Ratio3.1
Dividend
Industry RankSector Rank
Dividend Yield 2.82%
Yearly Dividend2.77
Dividend Growth(5Y)5.73%
DP39.85%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-20
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)0.97%
PT rev (3m)4.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.89%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-1.44%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)1.6%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)1.71%
Valuation
Industry RankSector Rank
PE 13.7
Fwd PE 12.84
P/S 1.46
P/FCF 19.96
P/OCF 11.96
P/B 2.92
P/tB N/A
EV/EBITDA 10.51
EPS(TTM)7.58
EY7.3%
EPS(NY)8.09
Fwd EY7.79%
FCF(TTM)5.2
FCFY5.01%
OCF(TTM)8.68
OCFY8.36%
SpS71.03
BVpS35.53
TBVpS-0.8
PEG (NY)2.03
PEG (5Y)2.34
Graham Number77.85
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 3.64
F-Score6
WACC7.8%
ROIC/WACC1.22
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)-6.42%
EPS 3Y7.75%
EPS 5Y5.87%
EPS Q2Q%-6.21%
EPS Next Y6.73%
EPS Next 2Y7.6%
EPS Next 3Y8.36%
EPS Next 5Y8.62%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y0.55%
Revenue growth 5Y2.79%
Sales Q2Q%4.96%
Revenue Next Year4.18%
Revenue Next 2Y3.54%
Revenue Next 3Y3.49%
Revenue Next 5Y4.3%
EBIT growth 1Y-4.7%
EBIT growth 3Y9.17%
EBIT growth 5Y4.57%
EBIT Next Year25.47%
EBIT Next 3Y12.14%
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.


Can you provide the profitability details for PPG INDUSTRIES INC?

PPG INDUSTRIES INC (PPG) has a profitability rating of 8 / 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 grow by 6.73% in the next year.