PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials worldwide.
PPG Industries Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$146.74|
|52 Week High||US$116.95|
|52 Week Low||US$182.97|
|1 Month Change||-8.94%|
|3 Month Change||-12.72%|
|1 Year Change||16.67%|
|3 Year Change||26.52%|
|5 Year Change||42.09%|
|Change since IPO||1,353.77%|
Recent News & Updates
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...
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...
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.
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...
|PPG||US Chemicals||US Market|
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.
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
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.
Is PPG Industries undervalued compared to its fair value and its price relative to the market?
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).
How is PPG Industries forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
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%)
How has PPG Industries performed over the past 5 years?
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.
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 ($10.5B).
Debt to Equity History and Analysis
Debt Level: PPG's debt to equity ratio (111.5%) is considered high.
Reducing Debt: PPG's debt to equity ratio has increased from 93.5% to 111.5% over the past 5 years.
Debt Coverage: PPG's debt is well covered by operating cash flow (33.4%).
Interest Coverage: PPG's interest payments on its debt are well covered by EBIT (19.4x coverage).
What is PPG Industries's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PPG's dividend (1.61%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: PPG's dividend (1.61%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: PPG's dividends per share have been stable in the past 10 years.
Growing Dividend: PPG's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (33.7%), PPG's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PPG's dividends in 3 years are forecast to be well covered by earnings (27% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Michael McGarry (63 yo)
Mr. Michael H. McGarry serves as Chairman of the Board for Tikkurila Oyj since June 14, 2021. He has been the Chief Executive Officer and Chairman of the Board at PPG Industries, Inc. since September 1, 20...
CEO Compensation Analysis
Compensation vs Market: Michael's total compensation ($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.
Experienced Management: PPG's management team is considered experienced (4.3 years average tenure).
Experienced Board: PPG's board of directors are considered experienced (5 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
PPG Industries, Inc.'s employee growth, exchange listings and data sources
- 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
- PPG Industries, Inc.
- One PPG Place
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/18 22:03|
|End of Day Share Price||2021/09/17 00:00|
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.