(PPG) PPG Industries - Overview
Sector: Basic Materials | Industry: Specialty Chemicals | Exchange: NYSE (USA) | Market Cap: 23.105m USD | Total Return: 9.2% in 12m
Industry Rotation: +9.2
Avg Turnover: 202M USD
Peers RS (IBD): 44.3
EPS Trend: 35.7%
Qual. Beats: 0
Rev. Trend: -39.4%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
PPG Industries Inc. manufactures and distributes paints, coatings, and specialty materials globally. The company operates through three segments: Global Architectural Coatings, Performance Coatings, and Industrial Coatings.
The Global Architectural Coatings segment provides decorative coatings, adhesives, and related chemicals. This segment serves consumer retail markets, a common distribution channel for architectural coatings.
The Performance Coatings segment supplies aerospace, automotive refinishing, protective, marine, and traffic solutions. These products are crucial for maintaining infrastructure and vehicles.
The Industrial Coatings segment offers automotive OEM, industrial, and packaging coatings, alongside specialty products like optical monomers. This segment serves manufacturing companies directly.
PPG distributes its products through various channels, including company-owned stores, home centers, independent distributors, and direct sales to manufacturers. Further research on ValueRay can provide more in-depth analysis of PPGs financial performance.
- Global construction spending impacts architectural coatings demand
- Automotive production volumes drive industrial and refinish coatings sales
- Raw material price fluctuations affect manufacturing costs
- Currency exchange rates influence international revenue and profitability
- Regulatory changes in environmental standards increase compliance expenses
| Net Income: 1.58b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA 11.04 > 1.0 |
| NWC/Revenue: 19.27% < 20% (prev 10.09%; Δ 9.18% < -1%) |
| CFO/TA 0.24 > 3% & CFO 1.94b > Net Income 1.58b |
| Net Debt (5.28b) to EBITDA (2.81b): 1.88 < 3 |
| Current Ratio: 1.62 > 1.5 & < 3 |
| Outstanding Shares: last quarter (225.2m) vs 12m ago -3.88% < -2% |
| Gross Margin: 40.47% > 18% (prev 0.41%; Δ 4.01k% > 0.5%) |
| Asset Turnover: 115.9% > 50% (prev 78.66%; Δ 37.25% > 0%) |
| Interest Coverage Ratio: 9.49 > 6 (EBITDA TTM 2.81b / Interest Expense TTM 241.0m) |
| A: 0.38 (Total Current Assets 7.96b - Total Current Liabilities 4.90b) / Total Assets 7.96b |
| B: 2.88 (Retained Earnings 22.94b / Total Assets 7.96b) |
| C: 0.17 (EBIT TTM 2.29b / Avg Total Assets 13.70b) |
| D: 2.08 (Book Value of Equity 23.91b / Total Liabilities 11.50b) |
| Altman-Z'' Score: 15.22 = AAA |
| DSRI: 1.08 (Receivables 3.34b/2.98b, Revenue 15.88b/15.29b) |
| GMI: 1.02 (GM 40.47% / 41.33%) |
| AQI: -1.28 (AQ_t -0.58 / AQ_t-1 0.45) |
| SGI: 1.04 (Revenue 15.88b / 15.29b) |
| TATA: -0.05 (NI 1.58b - CFO 1.94b) / TA 7.96b) |
| Beneish M-Score: -4.31 (Cap -4..+1) = AAA |
Over the past week, the price has changed by +6.26%, over one month by +1.34%, over three months by +2.72% and over the past year by +9.20%.
- StrongBuy: 7
- Buy: 2
- Hold: 17
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 123 | 12.1% |
P/E Forward = 13.0039
P/S = 1.4554
P/B = 2.9096
P/EG = 1.3268
Revenue TTM = 15.88b USD
EBIT TTM = 2.29b USD
EBITDA TTM = 2.81b USD
Long Term Debt = 6.60b USD (from longTermDebt, last quarter)
Short Term Debt = 844.0m USD (from shortTermDebt, last quarter)
Debt = 7.45b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 5.28b USD (from netDebt column, last quarter)
Enterprise Value = 28.39b USD (23.10b + Debt 7.45b - CCE 2.16b)
Interest Coverage Ratio = 9.49 (Ebit TTM 2.29b / Interest Expense TTM 241.0m)
EV/FCF = 24.41x (Enterprise Value 28.39b / FCF TTM 1.16b)
FCF Yield = 4.10% (FCF TTM 1.16b / Enterprise Value 28.39b)
FCF Margin = 7.33% (FCF TTM 1.16b / Revenue TTM 15.88b)
Net Margin = 9.93% (Net Income TTM 1.58b / Revenue TTM 15.88b)
Gross Margin = 40.47% ((Revenue TTM 15.88b - Cost of Revenue TTM 9.45b) / Revenue TTM)
Gross Margin QoQ = 37.40% (prev 40.57%)
Tobins Q-Ratio = 3.57 (Enterprise Value 28.39b / Total Assets 7.96b)
Interest Expense / Debt = 0.78% (Interest Expense 58.0m / Debt 7.45b)
Taxrate = 20.05% (78.0m / 389.0m)
NOPAT = 1.83b (EBIT 2.29b * (1 - 20.05%))
Current Ratio = 1.62 (Total Current Assets 7.96b / Total Current Liabilities 4.90b)
Debt / Equity = -2.10 (negative equity) (Debt 7.45b / totalStockholderEquity, last quarter -3.54b)
Debt / EBITDA = 1.88 (Net Debt 5.28b / EBITDA 2.81b)
Debt / FCF = 4.54 (Net Debt 5.28b / FCF TTM 1.16b)
Total Stockholder Equity = 4.69b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.51% (Net Income 1.58b / Total Assets 7.96b)
RoE = 33.60% (Net Income TTM 1.58b / Total Stockholder Equity 4.69b)
RoCE = 20.24% (EBIT 2.29b / Capital Employed (Equity 4.69b + L.T.Debt 6.60b))
RoIC = 12.29% (NOPAT 1.83b / Invested Capital 14.87b)
WACC = 7.02% (E(23.10b)/V(30.55b) * Re(9.08%) + D(7.45b)/V(30.55b) * Rd(0.78%) * (1-Tc(0.20)))
Discount Rate = 9.08% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -2.58%
[DCF] Terminal Value 83.63% ; FCFF base≈975.8m ; Y1≈1.10b ; Y5≈1.49b
[DCF] Fair Price = 121.5 (EV 32.47b - Net Debt 5.28b = Equity 27.19b / Shares 223.8m; r=7.02% [WACC]; 5y FCF grow 14.92% → 3.0% )
EPS Correlation: 35.72 | EPS CAGR: 2.63% | SUE: -1.73 | # QB: 0
Revenue Correlation: -39.38 | Revenue CAGR: -2.53% | SUE: 0.15 | # QB: 0
EPS next Quarter (2026-06-30): EPS=2.25 | Chg7d=-0.009 | Chg30d=-0.014 | Revisions Net=-2 | Analysts=18
EPS current Year (2026-12-31): EPS=7.86 | Chg7d=-0.077 | Chg30d=-0.149 | Revisions Net=-6 | Growth EPS=+3.7% | Growth Revenue=+3.5%
EPS next Year (2027-12-31): EPS=8.57 | Chg7d=-0.091 | Chg30d=-0.142 | Revisions Net=-3 | Growth EPS=+9.0% | Growth Revenue=+3.0%
[Analyst] Revisions Ratio: -1.00 (0 Up / 2 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = 2.4% (Discount Rate 9.1% - Earnings Yield 6.7%)
[Growth] Growth Spread = +1.0% (Analyst 3.4% - Implied 2.4%)