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PPG Industries (PPG)
NYSE:PPG
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PPG Industries
(NYSE:PPG)
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Rating:67Neutral
Price Target:
$108.00
▲(4.13% Upside)
PPG Industries' overall stock score is driven by stable financial performance and positive earnings call highlights, particularly in aerospace and marine coatings. However, technical indicators suggest potential short-term weakness, and challenges in revenue growth and cash flow generation need addressing for sustained long-term growth.
PPG Industries (PPG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.27B
Dividend Yield2.68%
Average Volume (3M)2.04M
Price to Earnings (P/E)18.5
Beta (1Y)0.89
Revenue Growth-12.98%
EPS Growth-11.34%
CountryUS
Employees46,000
SectorN/A
Sector StrengthN/A
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)2.13
Shares Outstanding224,400,000
10 Day Avg. Volume1,875,691
30 Day Avg. Volume2,038,382
Financial Highlights & Ratios
PEG Ratio-2.21
Price to Book (P/B)4.12
Price to Sales (P/S)1.76
P/FCF Ratio39.95
Enterprise Value/Market Cap1.29
Enterprise Value/Revenue2.12
Enterprise Value/Gross Profit5.24
Enterprise Value/Ebitda12.55
Forecast
1Y Price Target
$118.77Price Target Upside14.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)7.65
Revenue Forecast (FY)$15.73B
PPG Industries Business Overview & Revenue Model
Company DescriptionPPG 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. The company's Industrial Coatings segment offers coatings, adhesives and sealants, and metal pretreatments, as well as services and coatings applications for appliances, agricultural and construction equipment, consumer electronics, automotive parts and accessories, building products, kitchenware, and transportation vehicles and other finished products; and on-site coatings services. It also provides coatings for metal cans, closures, plastic tubes, and promotional and specialty packaging; amorphous precipitated silica for tire, battery separator, and other end-uses; TESLIN substrates for labels, e-passports, drivers' licenses, breathable membranes, and loyalty and identification cards; and organic light emitting diode materials, displays and lighting lens materials, optical lenses, color-change products, and photochromic dyes. The company was incorporated in 1883 and is headquartered in Pittsburgh, Pennsylvania.
How the Company Makes MoneyPPG generates revenue primarily through the sale of its coatings, paints, and specialty materials. The company operates through several key segments: Performance Coatings, Industrial Coatings, and Architectural Coatings. Each segment targets different markets, allowing PPG to diversify its revenue streams. The Performance Coatings segment serves industries such as aerospace and automotive, while the Architectural Coatings segment focuses on residential and commercial markets. PPG also benefits from strategic partnerships with manufacturers and distributors, enhancing its market reach. Additionally, the company invests in research and development to innovate and improve product offerings, which can lead to increased sales and customer loyalty.
PPG Industries Earnings Call Summary
Earnings Call Date:Oct 28, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 15, 2026
Earnings Call Sentiment Neutral
PPG's Q3 2025 earnings call reflects a positive performance in several segments, including record high EPS and strong growth in aerospace and marine coatings. However, challenges remain in the automotive refinish segment and macroeconomic environment, which are impacting overall performance and guidance.Q3-2025 Updates
Positive Updates
Record High Q3 EPS
PPG delivered a record high Q3 EPS with an adjusted earnings per share increase of 5% year-over-year, establishing a third quarter record of $2.13.
Organic Sales Growth
PPG achieved an increase of 2% in organic sales growth, marking the third consecutive quarter of sales volume growth despite a challenging macro environment.
Strong Performance in Aerospace and Marine Coatings
The Performance Coatings segment delivered outstanding results, including double-digit organic sales growth in both aerospace and protective and marine coatings.
Automotive OEM Coatings Outpaced Industry
PPG's automotive OEM coatings delivered an 8% increase in net sales, outpacing the global light vehicle industry production growth of 4%.
Investment in Aerospace Growth
PPG announced more than $0.5 billion in investments in aerospace to capitalize on significant multiyear growth opportunities.
Negative Updates
Automotive Refinish Sales Decline
Organic sales decreased by a double-digit percentage in the automotive refinish segment due to lower sales volumes in the U.S., driven by distributor order patterns and lower collision claims.
Lower Volumes in Architectural Coatings EMEA
In Architectural Coatings EMEA, organic sales growth in Eastern Europe was offset by lower demand in Western Europe, with volumes remaining lower in the quarter.
Challenging Macro Environment
The macroeconomic environment remains choppy, with PPG not expecting much improvement and continued uncertainty affecting business spending.
Company Guidance
In the PPG third quarter 2025 earnings call, the company reported several key performance metrics, highlighting a record high Q3 EPS of $2.13 and an organic sales growth of 2%. The Performance Coatings segment recorded a 2% increase in organic sales with double-digit growth in aerospace and protective and marine coatings, although this was offset by a decline in automotive refinish sales. The Industrial Coatings segment outpaced industry demand with a 4% increase in sales volumes, driven by share gains in automotive OEM and packaging coatings. Despite a challenging macro environment, organic sales in the U.S. and Canada grew, marking the third consecutive quarter of year-over-year increases. PPG also updated its full-year guidance for adjusted earnings per diluted share to a range of $7.60 to $7.70. The company emphasized its focus on operational excellence and innovation, particularly in the use of AI for product development, and announced significant investments in its growing aerospace business, expecting strong returns from these strategic actions.PPG Industries Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
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PPG Industries Technical Analysis
Positive
103.72
Price Trends
99.20
Positive
103.47
Positive
106.02
Negative
Market Momentum
1.22
Negative
64.22
Neutral
90.34
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPG, the sentiment is Positive. The current price of 103.72 is above the 20-day moving average (MA) of 99.84, above the 50-day MA of 99.20, and below the 200-day MA of 106.02, indicating a neutral trend. The MACD of 1.22 indicates Negative momentum. The RSI at 64.22 is Neutral, neither overbought nor oversold. The STOCH value of 90.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPG.
PPG Industries Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
74 Outperform | $6.70B | 15.30 | 21.75% | ― | -1.83% | 40.64% | |
71 Outperform | $13.71B | 19.96 | 24.05% | 1.94% | 3.09% | 12.25% | |
67 Neutral | $7.26B | 10.61 | 12.24% | 5.21% | -3.33% | -19.59% | |
67 Neutral | $23.27B | 18.51 | 16.31% | 2.68% | -12.98% | -11.34% | |
66 Neutral | $81.28B | 32.02 | 59.94% | 0.96% | 0.96% | 1.96% | |
62 Neutral | $16.95B | -22.04 | -0.46% | 1.76% | 2.42% | -196.54% |
* Sector Average
PPG
PPG Industries
103.72
-12.72
-10.92%
EMN
Eastman Chemical
63.93
-22.12
-25.71%
RPM
RPM International
106.91
-16.21
-13.17%
SHW
Sherwin-Williams Company
327.95
-11.41
-3.36%
AXTA
Axalta Coating Systems
31.90
-2.54
-7.38%
DD
DuPont de Nemours
40.60
9.14
29.05%
PPG Industries Corporate Events
Executive/Board Changes
PPG Industries CFO Retirement Announcement
Neutral
Dec 1, 2025
On November 28, 2025, PPG Industries announced that Vincent J. Morales, their Senior Vice President and Chief Financial Officer, plans to retire on July 1, 2026. This announcement may impact the company’s operations as it prepares for a leadership transition.
Private Placements and FinancingBusiness Operations and Strategy
PPG Industries Completes $700 Million Notes Offering
Neutral
Nov 3, 2025
On November 3, 2025, PPG Industries completed a $700 million offering of 4.375% Notes due 2031, with plans to use the proceeds for general corporate purposes. The issuance, conducted under an underwriting agreement with major financial institutions, aims to support the company’s financial flexibility and strategic initiatives.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.