PPG INDUSTRIES INC (PPG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PPG - US6935061076 - Common Stock
107.19 USD
-0.86 (-0.8%)
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. While PPG has a great profitability rating, 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
PPG had positive earnings in the past year.
PPG had a positive operating cash flow in the past year.
PPG had positive earnings in each of the past 5 years.
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 76.83% of its industry peers.
PPG has a better Return On Equity (12.77%) than 84.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.35%, PPG is in the better half of the industry, outperforming 78.05% 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 6.10%.
| 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
PPG has a Profit Margin of 7.05%. This is in the better half of the industry: PPG outperforms 74.39% of its industry peers.
PPG's Profit Margin has declined in the last couple of years.
PPG's Operating Margin of 14.70% is fine compared to the rest 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.
With an excellent Gross Margin value of 40.46%, PPG belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PPG is destroying value.
The number of shares outstanding for PPG has been reduced compared to 1 year ago.
PPG has less shares outstanding than it did 5 years ago.
PPG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.54 indicates that PPG is not in any danger for bankruptcy at the moment.
PPG has a better Altman-Z score (3.54) than 84.15% 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.
The Debt to FCF ratio of PPG (10.09) is better than 63.41% 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 46.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 3.54 |
ROIC/WACC0.7
WACC13.29%
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 71.95% 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 40.24% 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.
The Earnings Per Share has been growing slightly by 5.46% on average over the past years.
The Revenue for PPG has decreased by -21.65% in the past year. This is quite bad
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
The Earnings Per Share is expected to grow by 5.27% on average over the next years.
PPG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.10% yearly.
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
With a Price/Earnings ratio of 13.96, PPG is valued correctly.
74.39% of the companies in the same industry are more expensive than PPG, based on the Price/Earnings ratio.
PPG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
With a Price/Forward Earnings ratio of 13.10, PPG is valued correctly.
70.73% of the companies in the same industry are more expensive than PPG, based on the Price/Forward Earnings ratio.
PPG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 13.1 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PPG.
PPG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.18 | ||
| EV/EBITDA | 11.56 |
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)2.56
EPS Next 2Y0.53%
EPS Next 3Y3.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.70%, PPG has a reasonable but not impressive dividend return.
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 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
PPG pays out 62.85% of its income as dividend. 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%
NYSE:PPG (1/13/2026, 2:44:50 PM)
107.19
-0.86 (-0.8%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners88.79%
Inst Owner Change0.25%
Ins Owners0.09%
Ins Owner Change0%
Market Cap24.05B
Revenue(TTM)14.13B
Net Income(TTM)996.00M
Analysts72.67
Price Target121.21 (13.08%)
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 | 13.96 | ||
| Fwd PE | 13.1 | ||
| P/S | 1.7 | ||
| P/FCF | 33.18 | ||
| P/OCF | 17.18 | ||
| P/B | 3.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.56 |
EPS(TTM)7.68
EY7.16%
EPS(NY)8.19
Fwd EY7.64%
FCF(TTM)3.23
FCFY3.01%
OCF(TTM)6.24
OCFY5.82%
SpS62.95
BVpS34.76
TBVpS-1.33
PEG (NY)N/A
PEG (5Y)2.56
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 | 3.54 |
F-Score5
WACC13.29%
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.