PPG INDUSTRIES INC (PPG) Stock Fundamental Analysis
NYSE:PPG • US6935061076
129.18 USD
-2.16 (-1.64%)
At close: Feb 17, 2026
129.18 USD
0 (0%)
After Hours: 2/17/2026, 6:30:00 PM
PPG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. PPG scores excellent on profitability, but there are some minor concerns on its financial health. PPG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year PPG was profitable.
- PPG had a positive operating cash flow in the past year.
- PPG had positive earnings in each of the past 5 years.
- PPG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.50%, PPG is in the better half of the industry, outperforming 78.31% of the companies in the same industry.
- With an excellent Return On Equity value of 12.77%, PPG belongs to the best of the industry, outperforming 85.54% of the companies in the same industry.
- 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
- PPG has a Profit Margin of 7.05%. This is in the better half of the industry: PPG outperforms 75.90% of its industry peers.
- In the last couple of years the Profit Margin of PPG has grown nicely.
- Looking at the Operating Margin, with a value of 14.70%, PPG is in the better half of the industry, outperforming 77.11% of the companies in the same industry.
- 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.
- 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. 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.
- There is no outstanding debt for PPG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 3.76 indicates that PPG is not in any danger for bankruptcy at the moment.
- PPG has a Altman-Z score of 3.76. This is amongst the best in the industry. PPG outperforms 85.54% 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's Debt to FCF ratio of 10.09 is fine compared to the rest of the industry. PPG outperforms 61.45% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 3.76 |
ROIC/WACC0.71
WACC13.51%
2.3 Liquidity
- A Current Ratio of 1.47 indicates that PPG should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.47, PPG is doing worse than 69.88% of the companies in the same industry.
- A Quick Ratio of 1.08 indicates that PPG should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.08, PPG is in line with its industry, outperforming 40.96% 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 -6.42% in the last year.
- The Earnings Per Share has been growing slightly by 5.87% on average over the past years.
- 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
- 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.
- Based on estimates for the next years, PPG will show a small growth in Revenue. The Revenue will grow by 4.30% on average per year.
EPS Next Y6.89%
EPS Next 2Y7.56%
EPS Next 3Y8.35%
EPS Next 5Y8.62%
Revenue Next Year3.99%
Revenue Next 2Y3.42%
Revenue Next 3Y3.46%
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 17.04 indicates a rather expensive valuation of PPG.
- PPG's Price/Earnings ratio is a bit cheaper when compared to the industry. PPG is cheaper than 69.88% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.16, PPG is valued a bit cheaper.
- A Price/Forward Earnings ratio of 15.94 indicates a correct valuation of PPG.
- Based on the Price/Forward Earnings ratio, PPG is valued a bit cheaper than the industry average as 63.86% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.10, PPG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.04 | ||
| Fwd PE | 15.94 |
4.2 Price Multiples
- PPG's Enterprise Value to EBITDA ratio is in line with the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as PPG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.98 | ||
| EV/EBITDA | 13.6 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of PPG may justify a higher PE ratio.
PEG (NY)2.47
PEG (5Y)2.9
EPS Next 2Y7.56%
EPS Next 3Y8.35%
5. Dividend
5.1 Amount
- PPG has a Yearly Dividend Yield of 2.16%.
- PPG's Dividend Yield is a higher than the industry average which is at 2.15.
- Compared to an average S&P500 Dividend Yield of 1.82, PPG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 more than its dividend. This makes the dividend growth sustainable.
DP62.85%
EPS Next 2Y7.56%
EPS Next 3Y8.35%
129.18
-2.16 (-1.64%)
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 Owners88.79%
Inst Owner Change2.73%
Ins Owners0.09%
Ins Owner Change0%
Market Cap28.99B
Revenue(TTM)15.88B
Net Income(TTM)996.00M
Analysts72.26
Price Target125.71 (-2.69%)
Short Float %3.09%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Yearly Dividend2.67
Dividend Growth(5Y)6.16%
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)3.71%
PT rev (3m)-1.54%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-0.51%
EPS NY rev (1m)-1.02%
EPS NY rev (3m)-2.36%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)1.53%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.04 | ||
| Fwd PE | 15.94 | ||
| P/S | 2.05 | ||
| P/FCF | 39.98 | ||
| P/OCF | 20.71 | ||
| P/B | 3.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.6 |
EPS(TTM)7.58
EY5.87%
EPS(NY)8.1
Fwd EY6.27%
FCF(TTM)3.23
FCFY2.5%
OCF(TTM)6.24
OCFY4.83%
SpS62.95
BVpS34.76
TBVpS-1.33
PEG (NY)2.47
PEG (5Y)2.9
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 | 3.76 |
F-Score5
WACC13.51%
ROIC/WACC0.71
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 Year3.99%
Revenue Next 2Y3.42%
Revenue Next 3Y3.46%
Revenue Next 5Y4.3%
EBIT growth 1Y-10.25%
EBIT growth 3Y9.21%
EBIT growth 5Y4.59%
EBIT Next Year25.34%
EBIT Next 3Y13.18%
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 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 6.89% in the next year.