PPG INDUSTRIES INC (PPG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PPG - US6935061076 - Common Stock
108.57 USD
+0.98 (+0.91%)
108.57 USD
0 (0%)
PPG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 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 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.
- PPG had a positive operating cash flow in the past year.
- In the past 5 years PPG has always been profitable.
- 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 76.83% of its industry peers.
- Looking at the Return On Equity, with a value of 12.77%, PPG belongs to the top of the industry, outperforming 84.15% of the companies in the same industry.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for PPG 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.
- 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 75.61% of the companies in the same industry.
- PPG's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 40.46%, PPG belongs to the top 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
- The debt/assets ratio for PPG is higher compared to a year ago.
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.
- 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 better Debt to FCF ratio (10.09) than 63.41% 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.
- With a Debt to Equity ratio value of 0.76, PPG perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 3.54 |
ROIC/WACC0.7
WACC13.3%
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.
- PPG's Current ratio of 1.47 is on the low side compared to the rest of the industry. PPG is outperformed by 71.95% of its industry peers.
- 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 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
- PPG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.24%.
- Measured over the past 5 years, PPG shows a small growth in Earnings Per Share. The EPS has been growing by 5.46% on average per year.
- 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
- 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-4.52%
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.
- 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
- Based on the Price/Earnings ratio of 14.14, the valuation of PPG can be described as correct.
- PPG's Price/Earnings ratio is a bit cheaper when compared to the industry. PPG is cheaper than 75.61% of the companies in the same industry.
- When comparing the Price/Earnings ratio of PPG to the average of the S&P500 Index (27.33), we can say PPG is valued slightly cheaper.
- PPG is valuated correctly with a Price/Forward Earnings ratio of 13.26.
- Based on the Price/Forward Earnings ratio, PPG is valued a bit cheaper than 70.73% of the companies in the same industry.
- PPG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.14 | ||
| Fwd PE | 13.26 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.6 | ||
| EV/EBITDA | 11.52 |
4.3 Compensation for Growth
- The decent profitability rating of PPG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.59
EPS Next 2Y0.53%
EPS Next 3Y3.44%
5. Dividend
5.1 Amount
- PPG has a Yearly Dividend Yield of 2.70%.
- PPG's Dividend Yield is a higher than the industry average which is at 2.34.
- Compared to an average S&P500 Dividend Yield of 1.91, PPG pays a bit more dividend than the S&P500 average.
| 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%
108.57
+0.98 (+0.91%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)10-28 2025-10-28/amc
Earnings (Next)01-27 2026-01-27/amc
Inst Owners88.79%
Inst Owner Change0.25%
Ins Owners0.09%
Ins Owner Change0%
Market Cap24.36B
Revenue(TTM)14.13B
Net Income(TTM)996.00M
Analysts72.67
Price Target121.21 (11.64%)
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 | 14.14 | ||
| Fwd PE | 13.26 | ||
| P/S | 1.72 | ||
| P/FCF | 33.6 | ||
| P/OCF | 17.4 | ||
| P/B | 3.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.52 |
EPS(TTM)7.68
EY7.07%
EPS(NY)8.19
Fwd EY7.54%
FCF(TTM)3.23
FCFY2.98%
OCF(TTM)6.24
OCFY5.75%
SpS62.95
BVpS34.76
TBVpS-1.33
PEG (NY)N/A
PEG (5Y)2.59
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
WACC13.3%
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.