PPG

PPG IndustriesNYSE:PPG Stock Report

Market Cap

US$34.8b

7D

-4.1%

1Y

16.7%

Updated

18 Sep, 2021

Data

Company Financials +
PPG fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance5/6
Financial Health3/6
Dividends5/6

PPG Overview

PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials worldwide.

PPG Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for PPG Industries
Historical stock prices
Current Share PriceUS$146.74
52 Week HighUS$116.95
52 Week LowUS$182.97
Beta1.12
1 Month Change-8.94%
3 Month Change-12.72%
1 Year Change16.67%
3 Year Change26.52%
5 Year Change42.09%
Change since IPO1,353.77%

Recent News & Updates

Aug 30
PPG Industries (NYSE:PPG) Seems To Use Debt Quite Sensibly

PPG Industries (NYSE:PPG) Seems To Use Debt Quite Sensibly

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Aug 17
Be Wary Of PPG Industries (NYSE:PPG) And Its Returns On Capital

Be Wary Of PPG Industries (NYSE:PPG) And Its Returns On Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'd want to...

Aug 05

PPG Industries: Hit Hard By Costs, But There Are Multiyear Growth Tailwinds

PPG Industries disappointed the Street with a weaker than expected Q2 and lower guidance, as cost inflation undermines margins despite strong recovery growth. I don't find the cost inflation pressure surprising, and thus it doesn't change my core thesis on the company, but it does create some near-term challenges for management. PPG is leveraged to near-term recoveries in end-markets like autos (OEM and aftermarket) and general industrial, growth in residential construction and packaging, and longer-term opportunities in aerospace. With good underlying growth drivers, M&A synergy opportunities and future pricing actions to offset cost, I still like PPG even though it's not a dirt-cheap stock here.

Aug 03
PPG Industries (NYSE:PPG) Is Increasing Its Dividend To US$0.59

PPG Industries (NYSE:PPG) Is Increasing Its Dividend To US$0.59

PPG Industries, Inc. ( NYSE:PPG ) has announced that it will be increasing its dividend on the 10th of September to...

Shareholder Returns

PPGUS ChemicalsUS Market
7D-4.1%-2.2%-0.6%
1Y16.7%22.2%33.8%

Return vs Industry: PPG underperformed the US Chemicals industry which returned 22.2% over the past year.

Return vs Market: PPG underperformed the US Market which returned 33.8% over the past year.

Price Volatility

Is PPG's price volatile compared to industry and market?
PPG volatility
PPG Beta1.12
Industry Beta1.14
Market Beta1

Stable Share Price: PPG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: PPG's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188346,900Michael McGarryhttps://www.ppg.com

PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials worldwide. The company’s Performance Coatings segment offers coatings, solvents, adhesives, sealants, sundries, and software for automotive and commercial transport/fleet repair and refurbishing, light industrial coatings, and specialty coatings for signs; and coatings, sealants, transparencies, transparent armor, adhesives, engineered materials, and packaging and chemical management services for commercial, military, regional jet, and general aviation aircraft. It also provides coatings and finishes for the protection of metals and structures, such as metal fabricators, heavy duty maintenance contractors, and manufacturers of ships, bridges, and rail cars; paints, wood stains, and purchased sundries for painting and maintenance contractors, and consumers for decoration and maintenance of residential and commercial building structures; and thermoplastics, pavement marking products, and other technologies for pavement marking.

Valuation

Is PPG Industries undervalued compared to its fair value and its price relative to the market?

10.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PPG ($146.74) is trading below our estimate of fair value ($163.6)

Significantly Below Fair Value: PPG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PPG is poor value based on its PE Ratio (22.9x) compared to the US Chemicals industry average (22.4x).

PE vs Market: PPG is poor value based on its PE Ratio (22.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: PPG is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: PPG is overvalued based on its PB Ratio (5.6x) compared to the US Chemicals industry average (2.7x).


Future Growth

How is PPG Industries forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPG's forecast earnings growth (15.4% per year) is above the savings rate (2%).

Earnings vs Market: PPG's earnings (15.4% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: PPG's earnings are forecast to grow, but not significantly.

Revenue vs Market: PPG's revenue (6.1% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: PPG's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PPG's Return on Equity is forecast to be high in 3 years time (29.3%)


Past Performance

How has PPG Industries performed over the past 5 years?

6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPG has high quality earnings.

Growing Profit Margin: PPG's current net profit margins (9.7%) are higher than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: PPG's earnings have grown by 6.2% per year over the past 5 years.

Accelerating Growth: PPG's earnings growth over the past year (51.8%) exceeds its 5-year average (6.2% per year).

Earnings vs Industry: PPG earnings growth over the past year (51.8%) exceeded the Chemicals industry 32.6%.


Return on Equity

High ROE: Whilst PPG's Return on Equity (24.08%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is PPG Industries's financial position?


Financial Position Analysis

Short Term Liabilities: PPG's short term assets ($7.4B) exceed its short term liabilities ($5.5B).

Long Term Liabilities: PPG's short term assets ($7.4B) do not cover its long term liabilities ($10.5B).


Debt to Equity History and Analysis

Debt Level: PPG's debt to equity ratio (111.5%) is considered high.

Reducing Debt: PPG's debt to equity ratio has increased from 93.5% to 111.5% over the past 5 years.

Debt Coverage: PPG's debt is well covered by operating cash flow (33.4%).

Interest Coverage: PPG's interest payments on its debt are well covered by EBIT (19.4x coverage).


Balance Sheet


Dividend

What is PPG Industries's current dividend yield, its reliability and sustainability?

1.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PPG's dividend (1.61%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: PPG's dividend (1.61%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

Stable Dividend: PPG's dividends per share have been stable in the past 10 years.

Growing Dividend: PPG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.7%), PPG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PPG's dividends in 3 years are forecast to be well covered by earnings (27% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Michael McGarry (63 yo)

6yrs

Tenure

US$15,903,993

Compensation

Mr. Michael H. McGarry serves as Chairman of the Board for Tikkurila Oyj since June 14, 2021. He has been the Chief Executive Officer and Chairman of the Board at PPG Industries, Inc. since September 1, 20...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD15.90M) is above average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PPG's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: PPG's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PPG Industries, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: PPG Industries, Inc.
  • Ticker: PPG
  • Exchange: NYSE
  • Founded: 1883
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$34.830b
  • Shares outstanding: 237.36m
  • Website: https://www.ppg.com

Number of Employees


Location

  • PPG Industries, Inc.
  • One PPG Place
  • Pittsburgh
  • Pennsylvania
  • 15272
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.