PPG INDUSTRIES INC (PPG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PPG - US6935061076 - Common Stock
110.07 USD
+1.5 (+1.38%)
110.07 USD
0 (0%)
Taking everything into account, PPG scores 5 out of 10 in our fundamental rating. PPG was compared to 82 industry peers in the Chemicals industry. PPG has an excellent profitability rating, but there are some minor concerns on its financial health. PPG has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
- In the past 5 years PPG has always been profitable.
- Each year in the past 5 years PPG had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of PPG (4.50%) is better than 76.83% of its industry peers.
- PPG has a Return On Equity of 12.77%. This is amongst the best in the industry. PPG outperforms 84.15% of its industry peers.
- PPG has a better Return On Invested Capital (9.35%) than 78.05% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PPG is above the industry average of 6.10%.
| 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
- With a decent Profit Margin value of 7.05%, PPG is doing good in the industry, outperforming 74.39% of the companies in the same industry.
- In the last couple of years the Profit Margin of PPG has declined.
- PPG has a Operating Margin of 14.70%. This is in the better half of the industry: PPG outperforms 75.61% of its industry peers.
- In the last couple of years the Operating Margin of PPG has grown nicely.
- The Gross Margin of PPG (40.46%) is better than 82.93% of its industry peers.
- 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 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.
- The number of shares outstanding for PPG has been reduced compared to 1 year ago.
- 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 3.55. This indicates that PPG is financially healthy and has little risk of bankruptcy at the moment.
- PPG has a Altman-Z score of 3.55. This is amongst the best in the industry. PPG outperforms 84.15% of its industry peers.
- 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.
- With a decent Debt to FCF ratio value of 10.09, PPG is doing good in the industry, outperforming 63.41% of the companies in the same industry.
- PPG has a Debt/Equity ratio of 0.76. This is a neutral value indicating PPG is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.76, PPG is in line with its industry, outperforming 46.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 3.55 |
ROIC/WACC0.7
WACC13.3%
2.3 Liquidity
- PPG has a Current Ratio of 1.47. 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 Current ratio, with a value of 1.47, PPG is doing worse than 71.95% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 1.08, PPG is in line with its industry, outperforming 40.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
- The earnings per share for PPG have decreased by -4.24% in the last year.
- PPG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.46% yearly.
- 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
- Based on estimates for the next years, PPG will show a small growth in Earnings Per Share. The EPS will grow by 5.27% on average per year.
- Based on estimates for the next years, PPG will show a decrease in Revenue. The Revenue will decrease by -0.10% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.33, 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 75.61% of the companies in the same industry.
- PPG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.54.
- With a Price/Forward Earnings ratio of 13.45, PPG is valued correctly.
- Based on the Price/Forward Earnings ratio, PPG is valued a bit cheaper than the industry average as 71.95% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of PPG to the average of the S&P500 Index (24.31), we can say PPG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.33 | ||
| Fwd PE | 13.45 |
4.2 Price Multiples
- PPG's Enterprise Value to EBITDA is on the same level as the industry average.
- 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 | 34.07 | ||
| EV/EBITDA | 11.61 |
4.3 Compensation for Growth
- The decent profitability rating of PPG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.63
EPS Next 2Y0.53%
EPS Next 3Y3.44%
5. Dividend
5.1 Amount
- PPG has a Yearly Dividend Yield of 2.70%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.34, 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
5.2 History
- The dividend of PPG is nicely growing with an annual growth rate of 6.16%!
- 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)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.
- The dividend of PPG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP62.85%
EPS Next 2Y0.53%
EPS Next 3Y3.44%
110.07
+1.5 (+1.38%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)10-28 2025-10-28/amc
Earnings (Next)01-27 2026-01-27/amc
Inst Owners88.79%
Inst Owner Change0.25%
Ins Owners0.09%
Ins Owner Change0%
Market Cap24.70B
Revenue(TTM)14.13B
Net Income(TTM)996.00M
Analysts72.67
Price Target121.21 (10.12%)
Short Float %2.32%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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%
PT rev (3m)-7.07%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-12.59%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-2.89%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.4%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.33 | ||
| Fwd PE | 13.45 | ||
| P/S | 1.75 | ||
| P/FCF | 34.07 | ||
| P/OCF | 17.64 | ||
| P/B | 3.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.61 |
EPS(TTM)7.68
EY6.98%
EPS(NY)8.19
Fwd EY7.44%
FCF(TTM)3.23
FCFY2.94%
OCF(TTM)6.24
OCFY5.67%
SpS62.95
BVpS34.76
TBVpS-1.33
PEG (NY)N/A
PEG (5Y)2.63
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 | 3.55 |
F-Score5
WACC13.3%
ROIC/WACC0.7
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.