PPG Industries (PPG) AI Stock Analysis

• Market Cap: $21.30B
• Dividend Yield: 2.9%
• Average Volume (3M): 1.83M
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.97
• Revenue Growth: -12.98%
• EPS Growth: -11.34%
• Country: US
• Employees: 46,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 2.13
• Shares Outstanding: 224,400,000
• 10 Day Avg. Volume: 2,313,151
• 30 Day Avg. Volume: 1,834,792
• PEG Ratio: -2.21
• Price to Book (P/B): 4.12
• Price to Sales (P/S): 1.76
• P/FCF Ratio: 39.95
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 2.12
• Enterprise Value/Gross Profit: 5.24
• Enterprise Value/Ebitda: 12.55
• 1Y Price Target: $120.27
• Price Target Upside: 24.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $108.00 ▲(12.21% Upside)

PPG Industries' overall stock score reflects a stable financial performance with some challenges in revenue growth and operational efficiency. The technical analysis indicates bearish momentum, but the valuation is fair with a reasonable P/E ratio and attractive dividend yield. The positive sentiment from the earnings call, highlighting record EPS and strategic investments, supports future growth prospects.

Positive Factors

Strong Cash Flow Generation

PPG's ability to generate strong free cash flow indicates robust operational efficiency and provides financial flexibility for strategic investments and debt management.

Aerospace and Marine Coatings Growth

Strong growth in aerospace and marine coatings highlights PPG's competitive edge in these sectors, supporting long-term revenue stability and market leadership.

Operational Excellence and Innovation

PPG's emphasis on operational excellence and AI-driven innovation enhances its product offerings, ensuring sustained competitive advantage and market relevance.

Negative Factors

Declining Revenue

The decline in revenue suggests potential challenges in market demand or operational execution, which could impact long-term growth and profitability.

Negative Stockholders’ Equity

Negative equity indicates financial instability, posing risks to liquidity and solvency, which may limit PPG's ability to invest in growth opportunities.

Challenging Macro Environment

Persistent macroeconomic challenges could hinder PPG's growth prospects and operational performance, affecting its ability to achieve strategic objectives.

PPG Industries Business Overview & Revenue Model

Company Description

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. 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 Money

PPG Industries generates revenue primarily through the sale of its coatings and specialty products across multiple sectors. The company operates through several segments, including Performance Coatings and Industrial Coatings, which contribute significantly to its earnings. Key revenue streams include sales to customers in the automotive, aerospace, and construction industries, among others. PPG also benefits from long-term relationships and partnerships with major manufacturers, providing tailored solutions that enhance customer loyalty and repeat business. Additionally, the company invests in research and development to innovate new products and improve existing ones, which helps maintain its competitive edge and drive sales growth.

PPG Industries Financial Statement Overview

Summary

PPG Industries demonstrates a stable but slightly declining financial performance. The income statement shows consistent profitability, but revenue growth challenges are evident. The balance sheet reflects moderate leverage and stable asset management, while cash flow analysis indicates potential liquidity concerns. The company needs to address revenue growth and operational efficiency to enhance its financial health.

Income Statement

PPG Industries shows a mixed performance in its income statement. The company has maintained a stable net profit margin around 7% in the TTM period, which is consistent with previous years. However, the revenue growth rate has declined by 3.37% in the TTM, indicating potential challenges in revenue generation. The gross profit margin remains healthy at over 40%, but the declining EBIT and EBITDA margins suggest pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is slightly below 1, indicating a balanced approach to leverage, but it has increased over the years. Return on equity has decreased slightly in the TTM period to 13.7%, which is a concern compared to previous years. The equity ratio remains stable, suggesting a consistent asset base.

Cash Flow

Cash flow analysis reveals some weaknesses. The free cash flow growth rate has decreased significantly by 21.88% in the TTM period, indicating potential cash generation issues. The operating cash flow to net income ratio is low at 0.06, suggesting limited cash flow relative to net income. However, the free cash flow to net income ratio is strong at 1.81, indicating efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.13B	15.85B	16.24B	15.61B	16.80B	13.83B
Gross Profit	5.72B	6.59B	6.56B	5.64B	6.52B	6.06B
EBITDA	2.39B	2.58B	2.45B	2.02B	2.50B	2.01B
Net Income	996.00M	1.12B	1.27B	1.03B	1.44B	1.06B
Balance Sheet
Total Assets	22.14B	19.43B	21.65B	20.74B	21.35B	19.56B
Cash, Cash Equivalents and Short-Term Investments	1.91B	1.36B	1.57B	1.15B	1.07B	1.92B
Total Debt	7.91B	6.39B	6.60B	7.63B	7.47B	6.61B
Total Liabilities	14.19B	12.47B	13.62B	14.04B	14.94B	13.74B
Stockholders Equity	7.80B	6.79B	7.83B	6.59B	6.29B	5.69B
Cash Flow
Free Cash Flow	725.00M	699.00M	1.90B	477.00M	1.19B	1.83B
Operating Cash Flow	1.40B	1.42B	2.41B	963.00M	1.56B	2.13B
Investing Cash Flow	201.00M	107.00M	-556.00M	-461.00M	-2.40B	-1.45B
Financing Cash Flow	-1.08B	-1.43B	-1.55B	-409.00M	93.00M	-59.00M

PPG Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 96.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPG, the sentiment is Negative. The current price of 96.25 is below the 20-day moving average (MA) of 100.33, below the 50-day MA of 104.68, and below the 200-day MA of 108.96, indicating a bearish trend. The MACD of -2.18 indicates Positive momentum. The RSI at 35.96 is Neutral, neither overbought nor oversold. The STOCH value of 11.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PPG.

PPG Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXTA	75 Outperform	$5.88B	13.22	21.75%	―	-1.83%	40.64%
SHW	72 Outperform	$85.02B	33.49	59.94%	0.92%	0.96%	1.96%
RPM	69 Neutral	$13.86B	20.18	24.05%	1.91%	3.09%	12.25%
PPG	67 Neutral	$21.30B	16.94	16.31%	2.90%	-12.98%	-11.34%
EMN	67 Neutral	$6.97B	10.14	12.24%	5.43%	-3.33%	-19.59%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
DD	61 Neutral	$15.81B	―	0.31%	1.70%	4.55%	-130.25%

PPG Industries Corporate Events

PPG Industries Reports Steady Q3 2025 Growth

PPG Industries, Inc. is a global supplier of paints, coatings, and specialty materials, operating in more than 70 countries and serving various markets, including construction, consumer products, industrial, and transportation. In its third quarter of 2025, PPG Industries reported net sales of $4.1 billion, marking a 1% increase from the previous year, alongside a record adjusted earnings per share of $2.13, reflecting a 5% year-over-year growth. The company achieved a segment margin of 17% and an EBITDA margin of 20%, with significant contributions from its aerospace, protective and marine, and packaging coatings segments. PPG Industries highlighted its strategic focus on operational excellence and cost management, resulting in substantial restructuring savings and continued shareholder returns through share repurchases and dividends. Looking ahead, PPG Industries anticipates continued organic growth despite a challenging macroeconomic environment, driven by its technology-advantaged products and strong commercial execution.

PPG Industries Announces Leadership Transition Plans

On August 7, 2025, PPG Industries announced that Anne M. Foulkes, Senior Vice President and General Counsel, will retire on August 31, 2026. To ensure a smooth transition, she will serve as Senior Vice President, Legal and Special Projects from January 1, 2026. Concurrently, Joseph R. Gette will be promoted to Senior Vice President, General Counsel and Secretary effective January 1, 2026, as announced on August 11, 2025.

The most recent analyst rating on (PPG) stock is a Buy with a $166.00 price target. To see the full list of analyst forecasts on PPG Industries stock, see the PPG Stock Forecast page.

PPG Industries Reports Q2 2025 Financial Results

PPG Industries, Inc., a global leader in paints, coatings, and specialty materials, operates across more than 70 countries, serving various markets including construction, consumer products, industrial, and transportation.

PPG Industries’ Earnings Call Highlights Growth Amid Challenges

PPG Industries, Inc. recently held its earnings call, revealing a broadly positive sentiment despite facing certain challenges. The company showcased robust performance in key segments like Aerospace and Protective & Marine Coatings, which contributed to positive organic sales growth. However, difficulties in the Architectural Coatings segment and softening demand in Europe and Asia presented some headwinds. Nevertheless, PPG’s strong shareholder returns and optimistic outlook for earnings growth in the latter half of the year helped maintain an overall positive sentiment.