PPG INDUSTRIES INC (PPG) Stock Fundamental Analysis
USA - NYSE:PPG - US6935061076 - Common Stock
95.17 USD
-1.08 (-1.12%)
95.17 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 scores excellent on profitability, 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
PPG had positive earnings in the past year.
In the past year PPG had a positive cash flow from operations.
PPG had positive earnings in each of the past 5 years.
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 78.05% of its industry peers.
PPG has a Return On Equity of 12.77%. This is amongst the best in the industry. PPG outperforms 82.93% of its industry peers.
The Return On Invested Capital of PPG (9.35%) is better than 80.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PPG is above the industry average of 6.23%.
| 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 74.39% 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 78.05% 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 40.46%, PPG belongs to the top of the industry, outperforming 85.37% 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 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PPG is still creating some 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.
The debt/assets ratio for PPG is higher compared to a year ago.
2.2 Solvency
PPG has an Altman-Z score of 3.44. This indicates that PPG is financially healthy and has little risk of bankruptcy at the moment.
PPG has a Altman-Z score of 3.44. This is amongst the best in the industry. PPG outperforms 82.93% 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.
PPG has a Debt to FCF ratio of 10.09. This is in the better half of the industry: PPG outperforms 64.63% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that PPG is somewhat dependend on debt financing.
PPG's Debt to Equity ratio of 0.76 is in line compared to the rest of the industry. PPG outperforms 47.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 3.44 |
ROIC/WACC1.16
WACC8.05%
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.
With a Current ratio value of 1.47, PPG is not doing good in the industry: 71.95% of the companies in the same industry are doing better.
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.
PPG has a worse Quick ratio (1.08) than 60.98% 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.
Looking at the last year, PPG shows a very negative growth in Revenue. The Revenue has decreased by -21.65% in the last year.
PPG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.91% yearly.
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.
The Revenue is expected to decrease by -0.10% on average over the next years.
EPS Next Y-4.09%
EPS Next 2Y1.22%
EPS Next 3Y3.97%
EPS Next 5Y5.27%
Revenue Next Year-11.3%
Revenue Next 2Y-4.59%
Revenue Next 3Y-2.2%
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
With a Price/Earnings ratio of 12.39, PPG is valued correctly.
74.39% of the companies in the same industry are more expensive than PPG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.67, PPG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.47, the valuation of PPG can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PPG indicates a somewhat cheap valuation: PPG is cheaper than 73.17% of the companies listed in the same industry.
PPG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 31.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.39 | ||
| Fwd PE | 11.47 |
4.2 Price Multiples
PPG's Enterprise Value to EBITDA ratio is in line with 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 | 29.63 | ||
| EV/EBITDA | 10.57 |
4.3 Compensation for Growth
The decent profitability rating of PPG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.27
EPS Next 2Y1.22%
EPS Next 3Y3.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.99%, PPG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.06, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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 2Y1.22%
EPS Next 3Y3.97%
95.17
-1.08 (-1.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners88.35%
Inst Owner Change-0.58%
Ins Owners0.12%
Ins Owner Change0.11%
Market Cap21.48B
Revenue(TTM)14.13B
Net Income(TTM)996.00M
Analysts72.67
Price Target127.68 (34.16%)
Short Float %2.13%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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)-2.18%
PT rev (3m)-3.94%
EPS NQ rev (1m)-0.96%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)-0.8%
EPS NY rev (3m)-1.1%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.39 | ||
| Fwd PE | 11.47 | ||
| P/S | 1.52 | ||
| P/FCF | 29.63 | ||
| P/OCF | 15.34 | ||
| P/B | 2.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.57 |
EPS(TTM)7.68
EY8.07%
EPS(NY)8.3
Fwd EY8.72%
FCF(TTM)3.21
FCFY3.38%
OCF(TTM)6.2
OCFY6.52%
SpS62.59
BVpS34.56
TBVpS-1.32
PEG (NY)N/A
PEG (5Y)2.27
Graham Number77.28
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 | 3.44 |
F-Score5
WACC8.05%
ROIC/WACC1.16
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-4.09%
EPS Next 2Y1.22%
EPS Next 3Y3.97%
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-11.3%
Revenue Next 2Y-4.59%
Revenue Next 3Y-2.2%
Revenue Next 5Y-0.1%
EBIT growth 1Y-10.25%
EBIT growth 3Y10.34%
EBIT growth 5Y3.84%
EBIT Next Year12.14%
EBIT Next 3Y7.85%
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 12.39 and the Price/Book (PB) ratio is 2.75.
What is the financial health of PPG INDUSTRIES INC (PPG) stock?
The financial health rating of PPG INDUSTRIES INC (PPG) is 5 / 10.