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PPG Industries

NYSE:PPG
Snowflake Description

Established dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PPG
NYSE
$28B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials worldwide. The last earnings update was 1 day ago. More info.


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PPG Share Price and Events
7 Day Returns
0.4%
NYSE:PPG
0.3%
US Chemicals
-0.3%
US Market
1 Year Returns
11.9%
NYSE:PPG
-11.2%
US Chemicals
3.9%
US Market
PPG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
PPG Industries (PPG) 0.4% 1.6% -2% 11.9% 9.2% 12.5%
US Chemicals 0.3% 1% -4.5% -11.2% 16% 5.9%
US Market -0.3% 2.3% 2.3% 3.9% 36.7% 41.8%
1 Year Return vs Industry and Market
  • PPG outperformed the Chemicals industry which returned -11.2% over the past year.
  • PPG outperformed the Market in United States of America which returned 3.9% over the past year.
Price Volatility
PPG
Industry
5yr Volatility vs Market

Value

 Is PPG Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of PPG Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for PPG Industries.

NYSE:PPG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 22 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:PPG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.887 (1 + (1- 21%) (21.68%))
1.026
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.026 * 5.96%)
8.85%

Discounted Cash Flow Calculation for NYSE:PPG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for PPG Industries is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:PPG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.85%)
2020 1,598.25 Analyst x13 1,468.33
2021 1,624.67 Analyst x6 1,371.28
2022 1,912.00 Analyst x1 1,482.62
2023 2,003.03 Est @ 4.76% 1,426.96
2024 2,086.20 Est @ 4.15% 1,365.40
2025 2,163.91 Est @ 3.73% 1,301.15
2026 2,238.06 Est @ 3.43% 1,236.34
2027 2,310.08 Est @ 3.22% 1,172.40
2028 2,381.03 Est @ 3.07% 1,110.18
2029 2,451.72 Est @ 2.97% 1,050.22
Present value of next 10 years cash flows $12,984.89
NYSE:PPG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $2,451.72 × (1 + 2.73%) ÷ (8.85% – 2.73%)
$41,170.46
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $41,170.46 ÷ (1 + 8.85%)10
$17,635.85
NYSE:PPG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $12,984.89 + $17,635.85
$30,620.75
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $30,620.75 / 236.06
$129.72
NYSE:PPG Discount to Share Price
Calculation Result
Value per share (USD) From above. $129.72
Current discount Discount to share price of $117.51
= -1 x ($117.51 - $129.72) / $129.72
9.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price PPG Industries is available for.
Intrinsic value
9%
Share price is $117.51 vs Future cash flow value of $129.72
Current Discount Checks
For PPG Industries to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • PPG Industries's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • PPG Industries's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for PPG Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are PPG Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:PPG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $5.05
NYSE:PPG Share Price ** NYSE (2019-07-19) in USD $117.51
United States of America Chemicals Industry PE Ratio Median Figure of 67 Publicly-Listed Chemicals Companies 18.85x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of PPG Industries.

NYSE:PPG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:PPG Share Price ÷ EPS (both in USD)

= 117.51 ÷ 5.05

23.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PPG Industries is overvalued based on earnings compared to the US Chemicals industry average.
  • PPG Industries is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does PPG Industries's expected growth come at a high price?
Raw Data
NYSE:PPG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.25x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts
10.9%per year
United States of America Chemicals Industry PEG Ratio Median Figure of 49 Publicly-Listed Chemicals Companies 1.51x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:PPG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.25x ÷ 10.9%

2.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PPG Industries is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on PPG Industries's assets?
Raw Data
NYSE:PPG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $20.77
NYSE:PPG Share Price * NYSE (2019-07-19) in USD $117.51
United States of America Chemicals Industry PB Ratio Median Figure of 93 Publicly-Listed Chemicals Companies 2.11x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.8x
NYSE:PPG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:PPG Share Price ÷ Book Value per Share (both in USD)

= 117.51 ÷ 20.77

5.66x

* Primary Listing of PPG Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PPG Industries is overvalued based on assets compared to the US Chemicals industry average.
X
Value checks
We assess PPG Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. PPG Industries has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is PPG Industries expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is PPG Industries expected to grow at an attractive rate?
  • PPG Industries's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • PPG Industries's earnings growth is positive but not above the United States of America market average.
  • PPG Industries's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:PPG Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:PPG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts 10.9%
NYSE:PPG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 22 Analysts 3.1%
United States of America Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:PPG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 weeks ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:PPG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 17,295 2,040 3
2022-12-31 16,785 1,907 3
2021-12-31 16,539 2,243 1,746 12
2020-12-31 15,948 1,961 1,602 22
2019-12-31 15,372 2,019 1,370 19
NYSE:PPG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 15,110 1,206
2019-03-31 15,217 1,629 1,307
2018-12-31 15,374 1,467 1,323
2018-09-30 15,411 1,203 1,215
2018-06-30 15,370 1,253 1,240
2018-03-31 15,043 1,331 1,366
2017-12-31 14,748 1,568 1,369
2017-09-30 14,483 1,607 1,308
2017-06-30 14,367 1,798 704
2017-03-31 14,345 1,281 546
2016-12-31 14,270 1,351 543
2016-09-30 14,405 1,627 751

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • PPG Industries's earnings are expected to grow by 10.9% yearly, however this is not considered high growth (20% yearly).
  • PPG Industries's revenue is expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:PPG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 weeks ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below

All data from PPG Industries Company Filings, last reported 2 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PPG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 9.40 9.40 9.40 1.00
2022-12-31 8.60 8.60 8.60 1.00
2021-12-31 7.65 8.16 7.39 6.00
2020-12-31 6.88 7.17 6.50 9.00
2019-12-31 5.73 6.30 5.42 6.00
NYSE:PPG Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 5.05
2019-03-31 5.43
2018-12-31 5.42
2018-09-30 4.91
2018-06-30 4.94
2018-03-31 5.37
2017-12-31 5.35
2017-09-30 5.07
2017-06-30 2.70
2017-03-31 2.08
2016-12-31 2.04
2016-09-30 2.81

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • PPG Industries is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess PPG Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
PPG Industries has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has PPG Industries performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare PPG Industries's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • PPG Industries's year on year earnings growth rate has been positive over the past 5 years.
  • PPG Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • PPG Industries's 1-year earnings growth is negative, it can't be compared to the US Chemicals industry average.
Earnings and Revenue History
PPG Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from PPG Industries Company Filings, last reported 2 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PPG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 15,110.00 1,206.00 3,538.00 431.00
2019-03-31 15,217.00 1,307.00 3,560.00 434.00
2018-12-31 15,374.00 1,323.00 3,566.00 441.00
2018-09-30 15,411.00 1,215.00 3,579.00 452.00
2018-06-30 15,370.00 1,240.00 3,661.00 456.00
2018-03-31 15,043.00 1,366.00 3,592.00 454.00
2017-12-31 14,748.00 1,369.00 3,563.00 451.00
2017-09-30 14,483.00 1,308.00 3,576.00 450.00
2017-06-30 14,367.00 704.00 3,512.00 451.00
2017-03-31 14,345.00 546.00 3,566.00 454.00
2016-12-31 14,270.00 543.00 3,612.00 453.00
2016-09-30 14,405.00 751.00 3,629.00 466.00
2016-06-30 14,470.00 1,377.00 3,611.00 468.00
2016-03-31 14,515.00 1,345.00 3,607.00 471.00
2015-12-31 14,241.00 1,311.00 3,584.00 466.00
2015-09-30 14,921.00 1,129.00 3,647.00 480.00
2015-06-30 15,131.00 1,091.00 3,713.00 483.00
2015-03-31 15,386.00 1,177.00 3,772.00 491.00
2014-12-31 14,791.00 1,052.00 3,696.00 483.00
2014-09-30 15,153.00 1,231.00 3,731.00 485.00
2014-06-30 14,992.00 1,032.00 3,700.00 482.00
2014-03-31 14,793.00 933.00 3,640.00 474.00
2013-12-31 14,265.00 851.00 3,486.00 463.00
2013-09-30 14,008.00 822.00 3,387.00 462.00
2013-06-30 13,642.00 929.00 3,256.00 457.00
2013-03-31 13,287.00 929.00 3,123.00 452.00
2012-12-31 12,686.00 557.00 2,987.00 430.00
2012-09-30 13,786.00 741.00 3,196.00 444.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst PPG Industries has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • PPG Industries used its assets more efficiently than the US Chemicals industry average last year based on Return on Assets.
  • PPG Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess PPG Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
PPG Industries has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is PPG Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up PPG Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • PPG Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • PPG Industries's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of PPG Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from PPG Industries Company Filings, last reported 2 weeks ago.

NYSE:PPG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 5,010.00 6,013.00 843.00
2019-03-31 5,010.00 5,267.00 843.00
2018-12-31 4,732.00 5,004.00 967.00
2018-09-30 5,078.00 5,034.00 1,164.00
2018-06-30 4,983.00 5,058.00 1,087.00
2018-03-31 5,467.00 5,202.00 1,408.00
2017-12-31 5,672.00 4,146.00 1,495.00
2017-09-30 6,010.00 4,705.00 2,332.00
2017-06-30 5,735.00 4,617.00 1,621.00
2017-03-31 5,286.00 4,421.00 1,393.00
2016-12-31 4,915.00 4,416.00 1,867.00
2016-09-30 5,121.00 4,404.00 979.00
2016-06-30 5,433.00 5,083.00 1,673.00
2016-03-31 5,248.00 4,264.00 1,034.00
2015-12-31 5,069.00 4,307.00 1,459.00
2015-09-30 5,196.00 4,552.00 1,419.00
2015-06-30 5,256.00 4,515.00 1,187.00
2015-03-31 5,158.00 4,644.00 1,175.00
2014-12-31 5,265.00 4,014.00 1,188.00
2014-09-30 6,205.00 3,348.00 3,043.00
2014-06-30 6,321.00 3,383.00 2,918.00
2014-03-31 6,089.00 3,392.00 3,039.00
2013-12-31 5,198.00 3,406.00 1,750.00
2013-09-30 5,481.00 3,395.00 2,254.00
2013-06-30 5,301.00 3,379.00 1,786.00
2013-03-31 5,041.00 3,401.00 2,380.00
2012-12-31 4,322.00 4,010.00 2,398.00
2012-09-30 4,132.00 4,001.00 2,011.00
  • PPG Industries's level of debt (105.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (53.5% vs 105.4% today).
  • Debt is well covered by operating cash flow (30.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 16.9x coverage).
X
Financial health checks
We assess PPG Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. PPG Industries has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.74%
Current annual income from PPG Industries dividends. Estimated to be 1.84% next year.
If you bought $2,000 of PPG Industries shares you are expected to receive $35 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • PPG Industries's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • PPG Industries's dividend is below the markets top 25% of dividend payers in United States of America (3.74%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:PPG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
United States of America Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 56 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:PPG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 2.89 1.00
2022-12-31 2.61 1.00
2021-12-31 2.29 9.00
2020-12-31 2.14 15.00
2019-12-31 1.99 12.00
NYSE:PPG Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-07-18 2.040 1.740
2019-04-18 1.920 1.680
2019-01-17 1.920 1.747
2018-10-18 1.920 1.860
2018-07-19 1.920 1.772
2018-04-19 1.800 1.722
2018-01-18 1.800 1.579
2017-10-19 1.800 1.547
2017-07-20 1.800 1.686
2017-04-20 1.600 1.463
2017-01-19 1.600 1.555
2016-10-20 1.600 1.675
2016-07-21 1.600 1.564
2016-04-21 1.600 1.485
2016-01-21 1.440 1.414
2015-10-15 1.440 1.433
2015-07-16 1.440 1.468
2015-04-16 1.440 1.258
2015-01-15 1.340 1.170
2014-10-16 1.340 1.257
2014-07-17 1.340 1.344
2014-04-17 1.340 1.333
2014-01-16 1.220 1.281
2013-10-18 1.220 1.322
2013-07-18 1.220 1.501
2013-04-18 1.220 1.602
2013-01-17 1.180 1.723
2012-07-19 1.180 1.988
2012-04-19 1.180 2.284
2012-01-19 1.140 2.459
2011-07-21 1.140 2.854
2011-04-21 1.140 2.568
2011-01-20 1.100 2.478
2010-10-22 1.100 2.749
2010-07-15 1.100 3.145
2010-04-15 1.080 3.313
2010-01-21 1.080 3.426
2009-10-16 1.080 3.607
2009-07-16 1.060 3.794
2009-04-16 1.060 4.816
2009-01-16 1.060 5.833
2008-10-17 1.060 4.845

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of PPG Industries's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess PPG Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can PPG Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. PPG Industries has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of PPG Industries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Michael McGarry
COMPENSATION $11,784,405
AGE 61
TENURE AS CEO 3.8 years
CEO Bio

Mr. Michael H. McGarry has been the Chief Executive Officer and Chairman of the Board at PPG Industries, Inc. since September 1, 2015 and since September 1, 2016 respectively and served as its President since March 1, 2015 until August 2016. Mr. McGarry served as Chief Operating Officer of PPG Industries Inc. from August 1, 2014 to September 1, 2015. He served as an Executive Vice President of PPG Industries Inc. since September 1, 2012 until August 1, 2014. Mr. McGarry served as the Head of Architectural Coatings for Americas, Asia Pacific & EMEA at PPG Industries Inc. since February 21, 2013. Mr. McGarry has leadership responsibility for PPG's Asia Pacific region, its global aerospace products and automotive refinish businesses and its commodity chemical business, which merged with Georgia Gulf to become Axiall. His responsibilities also include corporate oversight for all PPG environmental, health and safety activities and the global information technology function. He served as Senior Vice President of Commodity Chemicals at PPG Industries Inc., from July 1, 2008 to September 1, 2012 and was responsible for its Commodity Chemicals reporting segment and chlor-alkali and Derivatives Business Unit. He served as the Managing Director of PPG Europe and Vice President of Coatings Europe of PPG from July 1, 2006 to June 2008. Mr. McGarry served as Vice President of Chlor-alkali and Derivatives of PPG Industries Inc. from March 1, 2004 to July 1, 2006 and served as its General Manager of Fine Chemicals since 2000. He joined PPG in 1981 as an Engineer at Chemicals Complex of PPG Industries Inc. Mr. McGarry served through a series of management assignments of increasing responsibility, including Market Development Manager of Silica Products, Operations Manager of Silicas, Thailand, Business Manager of Teslin Sheet and Product Manager in the Derivatives, Chlorine, Liquid and Dry Caustic Soda Businesses. He serves as the Director of Eagle Spinco Inc. He has been a Director of PPG Industries Inc. since July 16, 2015. He has been Director at Axiall Corporation (formerly known as Georgia Gulf Corporation) since January 31, 2013. Mr. McGarry holds a Mechanical Engineering degree at the University of Texas.

CEO Compensation
  • Michael's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Michael's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the PPG Industries management team in years:

3.3
Average Tenure
53
Average Age
  • The tenure for the PPG Industries management team is about average.
Management Team

Michael McGarry

TITLE
Chairman & CEO
COMPENSATION
$12M
AGE
61
TENURE
3.8 yrs

Vince Morales

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
53
TENURE
2.3 yrs

Tim Knavish

TITLE
Senior VP of Architectural Coatings & President PPG EMEA
COMPENSATION
$2M
AGE
53
TENURE
3.3 yrs

Rebecca Liebert

TITLE
Senior Vice President of Automotive Coatings
COMPENSATION
$6M
AGE
51
TENURE
1.1 yrs

David Bem

TITLE
VP of Science & Technology and CTO
TENURE
3.3 yrs

John Bruno

TITLE
Director of Investor Relations
TENURE
2 yrs

Anne Foulkes

TITLE
Senior VP & General Counsel
AGE
56
TENURE
0.9 yrs

Peg Curry

TITLE
Head of Corporate Business Communications & Administrative Secretary

Jeffrey Davies

TITLE
Vice President of Corporate Development
TENURE
5.9 yrs

Hervé Tiberghien

TITLE
Chief Human Resources Officer & VP of Human Resources
TENURE
3.4 yrs
Board of Directors Tenure

Average tenure and age of the PPG Industries board of directors in years:

8.6
Average Tenure
64.5
Average Age
  • The tenure for the PPG Industries board of directors is about average.
Board of Directors

Michael McGarry

TITLE
Chairman & CEO
COMPENSATION
$12M
AGE
61
TENURE
2.8 yrs

Jim Berges

TITLE
Independent Director
COMPENSATION
$290K
AGE
72
TENURE
18.8 yrs

Victoria Haynes

TITLE
Independent Director
COMPENSATION
$285K
AGE
72
TENURE
15.8 yrs

Hugh Grant

TITLE
Independent Lead Director
COMPENSATION
$325K
AGE
61

Martin Richenhagen

TITLE
Independent Director
COMPENSATION
$295K
AGE
66
TENURE
11.8 yrs

Michele Hooper

TITLE
Independent Director
COMPENSATION
$270K
AGE
67
TENURE
24.5 yrs

Stephen Angel

TITLE
Independent Director
COMPENSATION
$280K
AGE
63
TENURE
8.6 yrs

John Faraci

TITLE
Independent Director
COMPENSATION
$280K
AGE
69
TENURE
6.8 yrs

Mike Lamach

TITLE
Independent Director
COMPENSATION
$270K
AGE
55
TENURE
4.3 yrs

Melanie Healey

TITLE
Director
COMPENSATION
$270K
AGE
58
TENURE
3 yrs
Who owns this company?
Recent Insider Trading
  • PPG Industries individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
24. May 19 Sell Victoria Haynes Individual 24. May 19 24. May 19 -674 $107.16 $-72,263
X
Management checks
We assess PPG Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. PPG Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

PPG Industries, Inc. (NYSE:PPG): Does The -3.4% Earnings Drop Reflect A Longer Term Trend?

After reading PPG Industries, Inc.'s (NYSE:PPG) latest earnings update (31 December 2018), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … PPG's trailing twelve-month earnings (from 31 December 2018) of US$1.3b has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 3.3%, indicating the rate at which PPG is growing has slowed down

Simply Wall St -

A Closer Look At PPG Industries, Inc.'s (NYSE:PPG) Impressive ROE

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.24. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Interested In PPG Industries Inc (NYSE:PPG)? Here's How It Performed Recently

Below, I will run you through a simple sense check to build perspective on how PPG Industries is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its chemicals industry peers. … PPG's trailing twelve-month earnings (from 30 September 2018) of US$1.2b has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 3.5%, indicating the rate at which PPG is growing has slowed down

Simply Wall St -

PPG Industries Inc (NYSE:PPG) Delivered A Better ROE Than The Industry, Here’s Why

PPG Industries Inc (NYSE:PPG) outperformed the specialty chemicals industry on the basis of its ROE – producing a higher 25.31% relative to the peer average of 13.49% over the past 12 months. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden. … Peeling the layers of ROE – trisecting a company’s profitability

Simply Wall St -

Does PPG Industries Inc (NYSE:PPG)'s Capital Return Make The Cut?

and want a simplistic look at the return on PPG Industries Inc (NYSE:PPG) stock. … Owing to this, it is important that the underlying business is producing a sufficient amount of income from the capital invested by stockholders. … To understand PPG Industries’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

Should You Be Happy With PPG Industries Inc's (NYSE:PPG) Performance Lately?

Today I will assess PPG's recent performance announced on 31 March 2018 and weigh these figures against its long-term trend and industry movements. … Were PPG's earnings stronger than its past performances and the industry. … PPG's trailing twelve-month earnings (from 31 March 2018) of US$1.37b has

Simply Wall St -

Should You Sell PPG Industries Inc (NYSE:PPG) At This PE Ratio?

PPG is priced at a steep multiple of 18.98x based on its prior year’s earnings,. … But can investors make a closing judgement of the company’s value based on this bigger multiple. … Below, I will lay out some important considerations to help determine which multiple best suits

Simply Wall St -

Estimating The Intrinsic Value Of PPG Industries Inc (NYSE:PPG)

How far off is PPG Industries Inc (NYSE:PPG) from its intrinsic value? … by estimating the company's future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Does PPG Industries Inc's (NYSE:PPG) Debt Level Pose A Problem?

the key to their continued success lies in its financial health. … This article will examine PPG Industries’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further

Simply Wall St -

PPG Industries Inc (NYSE:PPG): A Fundamentally Attractive Investment

PPG Industries Inc (NYSE:PPG) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of PPG, it

Simply Wall St -

Company Info

Description

PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials worldwide. The company’s Performance Coatings segment offers coatings, solvents, adhesives, 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, 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; and paints, wood stains, and purchased sundries for painting and maintenance contractors, and consumers for decoration and maintenance of residential and commercial building structures. The company’s Industrial Coatings segment provides coatings, adhesives and sealants, and metal pretreatments, as well as services and coatings applications for automotive original equipment manufacturers; appliances, agricultural and construction equipment, consumer electronics, automotive parts and accessories, building products, transportation vehicles and other finished products; and on-site coatings services. It also provides coatings for the protection, performance, and decoration of metal cans, closures, plastic tubes, industrial packaging, and promotional and specialty packaging. In addition, this segment offers amorphous precipitated silicas for tire, battery separator, and other end-uses; TESLIN substrates for labels, e-passports, drivers’ licenses, breathable membranes, and other loyalty and identification cards; and organic light emitting diode materials, displays and lighting lens materials, and optical lenses and color-change products. The company was founded in 1883 and is headquartered in Pittsburgh, Pennsylvania.

Details
Name: PPG Industries, Inc.
PPG
Exchange: NYSE
Founded: 1883
$27,739,406,252
236,059,963
Website: http://www.ppg.com
Address: PPG Industries, Inc.
One PPG Place,
Pittsburgh,
Pennsylvania, 15272,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE PPG Common Stock New York Stock Exchange US USD 02. Jan 1968
DB PPQ Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0KEI Common Stock London Stock Exchange GB USD 02. Jan 1968
BMV PPG * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
Number of employees
Current staff
Staff numbers
47,300
PPG Industries employees.
Industry
Specialty Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 23:42
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/19
Last earnings filing: 2019/07/18
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.