PPG INDUSTRIES INC (PPG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PPG - US6935061076 - Common Stock
101.03 USD
+0.36 (+0.36%)
101.03 USD
0 (0%)
PPG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 81 industry peers in the Chemicals industry. PPG scores excellent on profitability, but there are some minor concerns on its financial health. PPG has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PPG had positive earnings in the past year.
PPG had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 4.50%, PPG is in the better half of the industry, outperforming 76.54% of the companies in the same industry.
The Return On Equity of PPG (12.77%) is better than 83.95% of its industry peers.
PPG has a Return On Invested Capital of 9.35%. This is in the better half of the industry: PPG outperforms 79.01% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PPG is above the industry average of 6.15%.
| 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
Looking at the Profit Margin, with a value of 7.05%, PPG is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
In the last couple of years the Profit Margin of PPG has declined.
With a decent Operating Margin value of 14.70%, PPG is doing good in the industry, outperforming 76.54% 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 82.72% 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 just above the Cost of Capital (WACC), which means it is creating some value.
PPG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PPG has less shares outstanding
PPG has a worse debt/assets ratio than last year.
2.2 Solvency
PPG has an Altman-Z score of 3.48. This indicates that PPG is financially healthy and has little risk of bankruptcy at the moment.
PPG has a better Altman-Z score (3.48) than 86.42% 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 62.96% 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 | 3.48 |
ROIC/WACC1.13
WACC8.27%
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 72.84% 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.
The Quick ratio of PPG (1.08) is worse than 60.49% 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%.
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
PPG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.27% yearly.
The Revenue is expected to decrease by -0.10% on average over the next years.
EPS Next Y-4.38%
EPS Next 2Y0.67%
EPS Next 3Y3.65%
EPS Next 5Y5.27%
Revenue Next Year-11.35%
Revenue Next 2Y-4.67%
Revenue Next 3Y-2.25%
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.
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 13.15, 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 74.07% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PPG to the average of the S&P500 Index (26.46), we can say PPG is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.31, PPG is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PPG indicates a somewhat cheap valuation: PPG is cheaper than 69.14% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, PPG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 12.31 |
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.
PPG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.27 | ||
| EV/EBITDA | 10.94 |
4.3 Compensation for Growth
PPG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.41
EPS Next 2Y0.67%
EPS Next 3Y3.65%
5. Dividend
5.1 Amount
PPG has a Yearly Dividend Yield of 2.82%.
Compared to an average industry Dividend Yield of 3.97, 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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 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
PPG pays out 62.85% of its income as dividend. 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 2Y0.67%
EPS Next 3Y3.65%
101.03
+0.36 (+0.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners88.67%
Inst Owner Change0.95%
Ins Owners0.1%
Ins Owner Change0%
Market Cap22.67B
Revenue(TTM)14.13B
Net Income(TTM)996.00M
Analysts72.67
Price Target121.21 (19.97%)
Short Float %2.14%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
Yearly Dividend2.67
Dividend Growth(5Y)6.16%
DP62.85%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)-5.07%
PT rev (3m)-7.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.54%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-2.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.39%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 12.31 | ||
| P/S | 1.6 | ||
| P/FCF | 31.27 | ||
| P/OCF | 16.19 | ||
| P/B | 2.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.94 |
EPS(TTM)7.68
EY7.6%
EPS(NY)8.21
Fwd EY8.12%
FCF(TTM)3.23
FCFY3.2%
OCF(TTM)6.24
OCFY6.18%
SpS62.95
BVpS34.76
TBVpS-1.33
PEG (NY)N/A
PEG (5Y)2.41
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 | 3.48 |
F-Score5
WACC8.27%
ROIC/WACC1.13
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-4.38%
EPS Next 2Y0.67%
EPS Next 3Y3.65%
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-11.35%
Revenue Next 2Y-4.67%
Revenue Next 3Y-2.25%
Revenue Next 5Y-0.1%
EBIT growth 1Y-10.25%
EBIT growth 3Y10.34%
EBIT growth 5Y3.84%
EBIT Next Year9.68%
EBIT Next 3Y6.56%
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 of PPG INDUSTRIES INC (PPG) stock?
ChartMill assigns a valuation rating of 5 / 10 to PPG INDUSTRIES INC (PPG). This can be considered as Fairly Valued.
What is the profitability of PPG stock?
PPG INDUSTRIES INC (PPG) has a profitability rating of 7 / 10.
What are the PE and PB ratios of PPG INDUSTRIES INC (PPG) stock?
The Price/Earnings (PE) ratio for PPG INDUSTRIES INC (PPG) is 13.15 and the Price/Book (PB) ratio is 2.91.
What is the financial health of PPG INDUSTRIES INC (PPG) stock?
The financial health rating of PPG INDUSTRIES INC (PPG) is 5 / 10.