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PPG

PPG IndustriesNYSE:PPG Stock Report

Market Cap

US$39.0b

7D

4.5%

1Y

13.5%

Updated

07 Dec, 2021

Data

Company Financials +
PPG fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance5/6
Financial Health3/6
Dividends5/6

PPG Stock Overview

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

PPG Industries Competitors

Sherwin-Williams

NYSE:SHW

US$88.8b

Celanese

NYSE:CE

US$17.2b

RPM International

NYSE:RPM

US$12.4b

Axalta Coating Systems

NYSE:AXTA

US$7.1b

Price History & Performance

Summary of all time highs, changes and price drops for PPG Industries
Historical stock prices
Current Share PriceUS$164.43
52 Week HighUS$182.97
52 Week LowUS$132.10
Beta1.15
1 Month Change0.82%
3 Month Change9.33%
1 Year Change13.48%
3 Year Change58.93%
5 Year Change66.68%
Change since IPO1,529.03%

Recent News & Updates

Dec 06

Give Your Portfolio A Fresh Coat Of PPG For The New Year

Like many analysts, we continue our bullish position for PPG Industries, Inc. Its share price is consistently stable. The pandemic and economic news are good signs for the paint industry. We see profitability and momentum continuing to improve in FY '22 for the nation's second largest paint producer in the US. The shares are not volatile and short interest is a de minimis 1.17%. The stock has upside potential of 14%-15% in the coming year.

Nov 28
Is PPG Industries (NYSE:PPG) A Risky Investment?

Is PPG Industries (NYSE:PPG) A Risky Investment?

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

Oct 29

PPG Has Underperformed - This May Continue

I've written about PPG industries a number of times - it's a great company. Unfortunately, this great company trades at a very expensive multiple. I own the stock - but at this valuation, I'm looking at my options. I tell you how to play this, and how to view PPG at this time.

Oct 25
PPG Industries' (NYSE:PPG) Shareholders Will Receive A Bigger Dividend Than Last Year

PPG Industries' (NYSE:PPG) Shareholders Will Receive A Bigger Dividend Than Last Year

PPG Industries, Inc.'s ( NYSE:PPG ) dividend will be increasing to US$0.59 on 10th of December. Despite this raise, the...

Shareholder Returns

PPGUS ChemicalsUS Market
7D4.5%-1.7%-2.7%
1Y13.5%18.0%16.5%

Return vs Industry: PPG underperformed the US Chemicals industry which returned 18% over the past year.

Return vs Market: PPG underperformed the US Market which returned 16.5% over the past year.

Price Volatility

Is PPG's price volatile compared to industry and market?
PPG volatility
PPG Average Weekly Movement2.9%
Chemicals Industry Average Movement5.6%
Market Average Movement6.2%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

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.

PPG Industries Fundamentals Summary

How do PPG Industries's earnings and revenue compare to its market cap?
PPG fundamental statistics
Market CapUS$39.04b
Earnings (TTM)US$1.43b
Revenue (TTM)US$16.37b

27.4x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PPG income statement (TTM)
RevenueUS$16.37b
Cost of RevenueUS$9.70b
Gross ProfitUS$6.67b
ExpensesUS$5.24b
EarningsUS$1.43b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)6.00
Gross Margin40.74%
Net Profit Margin8.71%
Debt/Equity Ratio105.9%

How did PPG perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

37%

Payout Ratio

Valuation

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

0.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PPG ($164.43) is trading below our estimate of fair value ($165.21)

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 (27.4x) compared to the US Chemicals industry average (21.2x).

PE vs Market: PPG is poor value based on its PE Ratio (27.4x) compared to the US market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: PPG is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: PPG is overvalued based on its PB Ratio (6.2x) compared to the US Chemicals industry average (2.5x).


Future Growth

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

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPG's forecast earnings growth (8.6% per year) is above the savings rate (2%).

Earnings vs Market: PPG's earnings (8.6% per year) are forecast to grow slower than the US market (13.8% per year).

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

Revenue vs Market: PPG's revenue (5.6% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: PPG's revenue (5.6% 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 (29.5%)


Past Performance

How has PPG Industries performed over the past 5 years?

8.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPG has high quality earnings.

Growing Profit Margin: PPG's current net profit margins (8.7%) are higher than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: PPG's earnings have grown by 8.8% per year over the past 5 years.

Accelerating Growth: PPG's earnings growth over the past year (32.1%) exceeds its 5-year average (8.8% per year).

Earnings vs Industry: PPG earnings growth over the past year (32.1%) exceeded the Chemicals industry 24.1%.


Return on Equity

High ROE: Whilst PPG's Return on Equity (22.48%) 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 ($7.3B) exceed its short term liabilities ($5.5B).

Long Term Liabilities: PPG's short term assets ($7.3B) do not cover its long term liabilities ($10.0B).


Debt to Equity History and Analysis

Debt Level: PPG's net debt to equity ratio (85.4%) is considered high.

Reducing Debt: PPG's debt to equity ratio has increased from 85.5% to 105.9% over the past 5 years.

Debt Coverage: PPG's debt is well covered by operating cash flow (30.5%).

Interest Coverage: PPG's interest payments on its debt are well covered by EBIT (20.1x coverage).


Balance Sheet


Dividend

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

1.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PPG's dividend (1.44%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: PPG's dividend (1.44%) is low compared to the top 25% of dividend payers in the US market (3.62%).


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 (36.9%), 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 (30.3% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Michael McGarry (63 yo)

6.25yrs

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 ($USD15.90M) is above average for companies of similar size in the US market ($USD11.15M).

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 (4.6 years average tenure).


Board Members

Experienced Board: PPG's board of directors are considered experienced (5.9 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$39.036b
  • Shares outstanding: 237.40m
  • 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 Analysis2021/12/07 00:19
End of Day Share Price2021/12/06 00:00
Earnings2021/09/30
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.