PPG INDUSTRIES INC (PPG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PPG - US6935061076 - Common Stock
103.68 USD
-0.57 (-0.55%)
103.68 USD
0 (0%)
PPG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. While PPG belongs to the best of the industry regarding profitability, 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.
In the past 5 years PPG always reported a positive cash flow from operatings.
1.2 Ratios
PPG's Return On Assets of 4.50% is fine compared to the rest of the industry. PPG outperforms 77.11% of its industry peers.
The Return On Equity of PPG (12.77%) is better than 84.34% of its industry peers.
With a decent Return On Invested Capital value of 9.35%, PPG is doing good in the industry, outperforming 78.31% of the companies in the same industry.
PPG had an Average Return On Invested Capital over the past 3 years of 9.72%. This is above the industry average of 6.09%.
| 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
PPG has a better Profit Margin (7.05%) than 74.70% of its industry peers.
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 75.90% of the companies in the same industry.
In the last couple of years the Operating Margin of PPG has grown nicely.
With an excellent Gross Margin value of 40.46%, PPG belongs to the best of the industry, outperforming 83.13% 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 below the Cost of Capital (WACC), so PPG is destroying value.
Compared to 1 year ago, PPG has less shares outstanding
Compared to 5 years ago, PPG has less shares outstanding
Compared to 1 year ago, PPG has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.51 indicates that PPG is not in any danger for bankruptcy at the moment.
PPG has a Altman-Z score of 3.51. This is amongst the best in the industry. PPG outperforms 86.75% 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 Debt to FCF ratio of 10.09. This is in the better half of the industry: PPG outperforms 63.86% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that 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 46.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 3.51 |
ROIC/WACC0.71
WACC13.16%
2.3 Liquidity
A Current Ratio of 1.47 indicates that PPG should not have too much problems paying its short term obligations.
PPG has a Current ratio of 1.47. This is in the lower half of the industry: PPG underperforms 71.08% of its industry peers.
A Quick Ratio of 1.08 indicates that PPG should not have too much problems paying its short term obligations.
PPG has a Quick ratio (1.08) which is comparable to the rest of the 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.
Looking at the last year, PPG shows a very negative growth in Revenue. The Revenue has decreased by -21.65% in the last year.
The Revenue has been growing slightly by 0.91% on average over the past years.
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
The Earnings Per Share is expected to grow by 5.27% on average over the next years.
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
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
PPG is valuated correctly with a Price/Earnings ratio of 13.50.
Compared to the rest of the industry, the Price/Earnings ratio of PPG indicates a somewhat cheap valuation: PPG is cheaper than 72.29% of the companies listed in the same industry.
PPG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.77, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.67 indicates a correct valuation of PPG.
Based on the Price/Forward Earnings ratio, PPG is valued a bit cheaper than 72.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.35. PPG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 12.67 |
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.
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 | 32.09 | ||
| EV/EBITDA | 11.23 |
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)2.47
EPS Next 2Y0.53%
EPS Next 3Y3.44%
5. Dividend
5.1 Amount
PPG has a Yearly Dividend Yield of 2.74%.
PPG's Dividend Yield is a higher than the industry average which is at 2.48.
Compared to an average S&P500 Dividend Yield of 2.00, PPG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
On average, the dividend of PPG grows each year by 6.16%, which is quite nice.
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 2Y0.53%
EPS Next 3Y3.44%
103.68
-0.57 (-0.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners88.67%
Inst Owner Change0.99%
Ins Owners0.1%
Ins Owner Change0%
Market Cap23.27B
Revenue(TTM)14.13B
Net Income(TTM)996.00M
Analysts72.67
Price Target121.21 (16.91%)
Short Float %2.32%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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)-0.95%
PT rev (3m)-7.13%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-12.72%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-2.89%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.42%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 12.67 | ||
| P/S | 1.65 | ||
| P/FCF | 32.09 | ||
| P/OCF | 16.62 | ||
| P/B | 2.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.23 |
EPS(TTM)7.68
EY7.41%
EPS(NY)8.19
Fwd EY7.89%
FCF(TTM)3.23
FCFY3.12%
OCF(TTM)6.24
OCFY6.02%
SpS62.95
BVpS34.76
TBVpS-1.33
PEG (NY)N/A
PEG (5Y)2.47
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 | 3.51 |
F-Score5
WACC13.16%
ROIC/WACC0.71
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 of PPG INDUSTRIES INC (PPG) stock?
ChartMill assigns a valuation rating of 4 / 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 13.5 and the Price/Book (PB) ratio is 2.98.
What is the financial health of PPG INDUSTRIES INC (PPG) stock?
The financial health rating of PPG INDUSTRIES INC (PPG) is 5 / 10.