PPG Stock Overview
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$110.69|
|52 Week High||US$177.32|
|52 Week Low||US$107.06|
|1 Month Change||-10.56%|
|3 Month Change||-6.08%|
|1 Year Change||-23.14%|
|3 Year Change||-5.09%|
|5 Year Change||-2.29%|
|Change since IPO||996.62%|
Recent News & Updates
Is PPG Industries (NYSE:PPG) A Risky Investment?
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
PPG Industries: Buy This Dividend Giant On The Dip
Summary PPG is a moat-worthy company that has demonstrated pricing power. It has an impressive track record of shareholder returns via share buybacks and dividend growth. I believe the market is underestimating its earnings power and recent share price weakness presents a buying opportunity. Buying and holding onto moat-worthy and economically essential companies is generally a winning strategy for the long haul. What's even better is when these companies can be had at closer to their 52-week lows than their highs. This brings me to PPG Industries (PPG), which is now trading much closer to its 52-week low of $107 than its 52-week high of $177. In this article, I highlight what makes now a good time to pick up this quality name, so let's get started. Why PPG? PPG has been around for almost 140 years and became the world's largest producer of coatings, after its purchase of select Akzo Nobel assets. Its products are sold to a wide variety of end customers, including those in the industrial, aerospace, automotive, and construction markets. The company has a global footprint in over 75 countries, with less than half of sales coming from North America in recent years. This is exemplified by its Comex acquisition, which expanded PPG's coatings and specialty products into emerging regions. In 2021, PPG generated $16.8 billion in total sales. PPG continues to exemplify strong growth, with record sales of $4.7 billion in the second quarter, equating to 8% YoY growth from the prior year period. This was driven by higher selling prices, as a demonstration of PPG's pricing power in the market. Selling prices rose by a robust 11% YoY, which more than offset the 4% decline in product volume. Of course, PPG isn't immune to inflationary headwinds, as raw material costs are up 20% YoY, and energy and transportation costs remain elevated, but nevertheless, efficiencies in other areas enabled PPG to improve its segment operating margin by 200 basis points on a sequential basis. Moreover, I see supply bottlenecks and softened consumer demand in its DIY segment as being more transitory in nature, as that was due to lockdowns in China and geopolitical tensions in Europe. In addition, PPG's aerospace and traffic solutions segments saw a solid rebound with 10% and 15% volume growth, respectively. Looking forward, management expects this momentum to continue as it seeks to deliver a strong second half, as noted during the recent conference call: In the second half, year-over-year comparisons will be aided by the sharp declines we experienced last year during the height of the supply disruption that impacted several industries, particularly in the US. Outside of a few commodities, we expect supply chain conditions to continue to improve, including better raw material and transportation availability as our suppliers' production capabilities are returning to a more normal condition. Also, in the second half and specific to PPG, we expect several businesses, including automotive OEMs and Aerospace to deliver strong growth due to large supply deficits and low inventories in these end-use markets. Other PPG-specific positives for the second half are continuing acquisition synergy realization and additional cost savings from previously announced restructuring actions. Meanwhile, PPG sports a strong BBB+ rated balance sheet, it pays a well-covered 2.1% dividend yield that's protected by a 38.5% payout ratio. The dividend has a 7.7% 5-year CAGR and PPG is close to becoming a dividend king with 49 consecutive years of raises under its belt.
|PPG||US Chemicals||US Market|
Return vs Industry: PPG underperformed the US Chemicals industry which returned -15.4% over the past year.
Return vs Market: PPG matched the US Market which returned -23.2% over the past year.
|PPG Average Weekly Movement||4.5%|
|Chemicals Industry Average Movement||6.4%|
|Market Average Movement||6.8%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: PPG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: PPG's weekly volatility (5%) 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, adhesives, and purchased sundries for painting and maintenance contractors, and consumers for decoration and maintenance of residential and commercial building structures; and paints, thermoplastics, pavement marking products, and other technologies for pavement marking.
PPG Industries Fundamentals Summary
|PPG fundamental statistics|
Is PPG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|PPG income statement (TTM)|
|Cost of Revenue||US$11.04b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
Oct 19, 2022
|Earnings per share (EPS)||4.56|
|Net Profit Margin||6.10%|
How did PPG perform over the long term?See historical performance and comparison
2.1%Current Dividend Yield
Is PPG undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for PPG?
Other financial metrics that can be useful for relative valuation.
|What is PPG's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does PPG's PE Ratio compare to its peers?
|PPG PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
DD DuPont de Nemours
PPG PPG Industries
Price-To-Earnings vs Peers: PPG is good value based on its Price-To-Earnings Ratio (24.3x) compared to the peer average (50.3x).
Price to Earnings Ratio vs Industry
How does PPG's PE Ratio compare vs other companies in the US Chemicals Industry?
Price-To-Earnings vs Industry: PPG is expensive based on its Price-To-Earnings Ratio (24.3x) compared to the US Chemicals industry average (13.9x)
Price to Earnings Ratio vs Fair Ratio
What is PPG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||24.3x|
|Fair PE Ratio||23.8x|
Price-To-Earnings vs Fair Ratio: PPG is expensive based on its Price-To-Earnings Ratio (24.3x) compared to the estimated Fair Price-To-Earnings Ratio (23.8x).
Share Price vs Fair Value
What is the Fair Price of PPG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: PPG ($110.69) is trading below our estimate of fair value ($204.25)
Significantly Below Fair Value: PPG is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is PPG Industries forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PPG's forecast earnings growth (16.4% per year) is above the savings rate (1.9%).
Earnings vs Market: PPG's earnings (16.4% per year) are forecast to grow faster than the US market (14.8% per year).
High Growth Earnings: PPG's earnings are forecast to grow, but not significantly.
Revenue vs Market: PPG's revenue (2.8% per year) is forecast to grow slower than the US market (7.7% per year).
High Growth Revenue: PPG's revenue (2.8% 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 (27.7%)
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How has PPG Industries performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PPG has high quality earnings.
Growing Profit Margin: PPG's current net profit margins (6.1%) are lower than last year (9.7%).
Past Earnings Growth Analysis
Earnings Trend: PPG's earnings have grown by 0.7% per year over the past 5 years.
Accelerating Growth: PPG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PPG had negative earnings growth (-29.6%) over the past year, making it difficult to compare to the Chemicals industry average (21.1%).
Return on Equity
High ROE: PPG's Return on Equity (17.4%) is considered low.
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How is PPG Industries's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: PPG's short term assets ($7.8B) exceed its short term liabilities ($5.2B).
Long Term Liabilities: PPG's short term assets ($7.8B) do not cover its long term liabilities ($10.1B).
Debt to Equity History and Analysis
Debt Level: PPG's net debt to equity ratio (96.6%) is considered high.
Reducing Debt: PPG's debt to equity ratio has increased from 80.1% to 112.5% over the past 5 years.
Debt Coverage: PPG's debt is not well covered by operating cash flow (11.9%).
Interest Coverage: PPG's interest payments on its debt are well covered by EBIT (16.6x coverage).
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What is PPG Industries's current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|PPG Industries Dividend Yield vs Market|
|Company (PPG Industries)||2.1%|
|Market Bottom 25% (US)||1.7%|
|Market Top 25% (US)||4.7%|
|Industry Average (Chemicals)||2.4%|
|Analyst forecast in 3 Years (PPG Industries)||2.3%|
Notable Dividend: PPG's dividend (2.13%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: PPG's dividend (2.13%) is low compared to the top 25% of dividend payers in the US market (4.73%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (52.2%), PPG's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (157.6%), PPG's dividend payments are not well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Michael McGarry (64 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
|Michael McGarry's Compensation vs PPG Industries Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$13m||US$1m|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$16m||US$1m|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$15m||US$1m|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$12m||US$1m|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$14m||US$1m|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$12m||US$1m|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||n/a||n/a|
|Dec 31 2015||US$6m||US$846k|
Compensation vs Market: Michael's total compensation ($USD13.20M) is about average for companies of similar size in the US market ($USD13.04M).
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 (4.7 years average tenure).
Experienced Board: PPG's board of directors are considered experienced (6.3 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.
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||102,939||0.04%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
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
- Implied Market Cap: US$26.012b
- Shares outstanding: 235.00m
- Website: https://www.ppg.com
Number of Employees
- PPG Industries, Inc.
- One PPG Place
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|PPG||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 1968|
|PPQ||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1968|
|PPQ||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||Jan 1968|
|PPG *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jan 1968|
|0KEI||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 1968|
|PPQ||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||Jan 1968|
|PPG||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Jan 1968|
|P1PG34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 2 REPR 1 SHS UNSPON||BR||BRL||Jan 2020|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/02 00:00|
|End of Day Share Price||2022/09/30 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.