PPG INDUSTRIES INC (PPG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PPG - US6935061076 - Common Stock
108.05 USD
+0.64 (+0.6%)
108.05 USD
0 (0%)
Overall PPG gets a fundamental rating of 5 out of 10. We evaluated PPG 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year PPG was profitable.
In the past year PPG had a positive cash flow from operations.
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 has a better Return On Assets (4.50%) than 76.83% of its industry peers.
With an excellent Return On Equity value of 12.77%, PPG belongs to the best 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.
PPG has a better Operating Margin (14.70%) than 75.61% of its industry peers.
In the last couple of years the Operating Margin of PPG has grown nicely.
PPG's Gross Margin of 40.46% is amongst the best of the industry. PPG outperforms 82.93% 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 below the Cost of Capital (WACC), which means it is destroying value.
PPG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PPG has been reduced compared to 5 years ago.
Compared to 1 year ago, PPG has a worse debt to assets ratio.
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 Altman-Z score of 3.54. This is amongst the best in the industry. PPG outperforms 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.
With a decent Debt to FCF ratio value of 10.09, PPG is doing good in the industry, outperforming 63.41% of the companies in the same industry.
PPG has a Debt/Equity ratio of 0.76. This is a neutral value indicating PPG is somewhat dependend on debt financing.
The Debt to Equity ratio of PPG (0.76) is comparable to the rest of the industry.
| 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.
The Quick ratio of PPG (1.08) 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.
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.
The Revenue for PPG has decreased by -21.65% in the past year. This is quite bad
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
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-4.52%
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
A Price/Earnings ratio of 14.07 indicates a correct valuation of PPG.
PPG's Price/Earnings ratio is a bit cheaper when compared to the industry. PPG is cheaper than 74.39% of the companies in the same industry.
PPG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
Based on the Price/Forward Earnings ratio of 13.20, the valuation of PPG can be described as correct.
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 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.07 | ||
| Fwd PE | 13.2 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PPG.
The rest of the industry has a similar Price/Free Cash Flow ratio as PPG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.44 | ||
| 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)2.58
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.
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%
108.05
+0.64 (+0.6%)
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 Cap24.25B
Revenue(TTM)14.13B
Net Income(TTM)996.00M
Analysts72.67
Price Target121.21 (12.18%)
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 | 14.07 | ||
| Fwd PE | 13.2 | ||
| P/S | 1.72 | ||
| P/FCF | 33.44 | ||
| P/OCF | 17.32 | ||
| P/B | 3.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.56 |
EPS(TTM)7.68
EY7.11%
EPS(NY)8.19
Fwd EY7.58%
FCF(TTM)3.23
FCFY2.99%
OCF(TTM)6.24
OCFY5.77%
SpS62.95
BVpS34.76
TBVpS-1.33
PEG (NY)N/A
PEG (5Y)2.58
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.