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PPG Industries
(NYSE:PPG)
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Rating:62Neutral
Price Target:
$126.00
▲(8.62% Upside)
Action:Reiterated
Date:07/29/26
The score reflects a mixed fundamental setup: strong and improving free cash flow and supportive earnings-call execution/pricing progress are positives, while negative equity and elevated leverage are the primary risk and profitability has compressed versus recent history. Technically the trend is constructive (price above major moving averages), and valuation appears reasonable with a moderate P/E and a ~2.4% dividend yield.
Positive Factors
Free cash flow generation
PPG's strong cash generation is a durable strength: operating cash (~$1.57B TTM) and free cash flow (~$1.43B TTM) have improved conversion versus prior years, financing buybacks, selective M&A and deleveraging. Reliable FCF supports capital allocation and resiliency through cycles.
Negative Factors
Balance-sheet leverage & negative equity
Negative equity and elevated debt materially weaken financial flexibility. A deteriorated reported equity base complicates leverage metrics, increases refinancing and covenant risk, and constrains large strategic moves, making the company more vulnerable to macro shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
PPG's strong cash generation is a durable strength: operating cash (~$1.57B TTM) and free cash flow (~$1.43B TTM) have improved conversion versus prior years, financing buybacks, selective M&A and deleveraging. Reliable FCF supports capital allocation and resiliency through cycles.
Read all positive factors
PPG Industries Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across various business units, providing insight into growth drivers and areas where the company may face competitive pressures or expansion opportunities.
Breaks down sales across various business units, providing insight into growth drivers and areas where the company may face competitive pressures or expansion opportunities.
Data provided by:
The Fly
The FlyPPG Industries (PPG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.57B
Dividend Yield2.57%
Average Volume (3M)1.87M
Price to Earnings (P/E)15.7
Beta (1Y)0.85
Revenue Growth1.47%
EPS Growth23.56%
CountryUS
Employees43,500
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)7.02
Shares Outstanding222,300,000
10 Day Avg. Volume1,488,815
30 Day Avg. Volume1,871,999
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)-6.54
Price to Sales (P/S)1.46
P/FCF Ratio19.94
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$128.67Price Target Upside10.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)7.89
Revenue Forecast (FY)$16.75B
PPG Industries Business Overview & Revenue Model
Company Description
PPG Industries, Inc. (PPG) is a global manufacturer of coatings, paints, and specialty materials serving industrial and consumer end markets. The company develops and produces protective and decorative coatings used on products and infrastructure ...
How the Company Makes Money
PPG primarily makes money by manufacturing and selling coatings and related products to business customers and, in certain channels, to professional contractors and consumers. Its revenue model is largely transaction-based product sales, with pric...
PPG Industries Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
The call portrayed strong operational momentum and multiple areas of durable outperformance: sixth consecutive quarter of organic growth, top-line (net sales +7% to $4.5B), improved cash flow and balance sheet metrics, meaningful segment-level wins (Aerospace, Packaging, Industrial share gains), and faster-than-expected price realization (covered ~90% of COGS inflation and aiming for 100% by Q4). These positives were tempered by a sizable drag from Automotive Refinish (double-digit organic decline and a major contributor to the Performance segment EBITDA margin contraction of ~300 bps), ongoing raw-material inflation risk (mid- to high-single-digit COGS inflation expected Q2–Q4), and near-term margin pressure (Q3 EBITDA margin guided to be flat to down 100 bps). Overall, the company emphasized confidence in pricing execution, share gains, and the reaffirmed full-year EPS range, with clear plans to offset inflation and return to margin expansion in H2.Positive Updates
Consecutive Organic Growth
Sixth consecutive quarter of organic sales growth: organic sales +4% (equal contributions from volumes and selling prices); company outpaced the industry by 300 basis points and achieved organic growth in all 3 segments and 8 of 9 businesses.
Negative Updates
Automotive Refinish Weakness
Automotive Refinish organic sales decreased by a double-digit percentage in Q2; this drove much of the Performance Coatings year-over-year margin decline and was the primary cause of the segment EBITDA margin falling 300 basis points to 22.7%.
Read all updates
Q2-2026 Updates
Positive
Negative
Consecutive Organic Growth
Sixth consecutive quarter of organic sales growth: organic sales +4% (equal contributions from volumes and selling prices); company outpaced the industry by 300 basis points and achieved organic growth in all 3 segments and 8 of 9 businesses.
Read all positive updates
Company Guidance
PPG reaffirmed full‑year adjusted EPS of $7.70–$8.10 and gave Q3/near‑term revenue and margin guidance: company organic sales are expected to be low‑single to mid‑single digit percentage growth in Q3, with company adjusted EBITDA margin (including corporate) flat to down 100 basis points year‑over‑year; Q3 segment guidance includes Global Architectural Coatings organic sales flat to positive low‑single digits (EBITDA margin relatively flat), Performance Coatings organic growth mid‑ to high‑single digits (with H2 EBITDA margin expansion expected), and Industrial Coatings aggregate Q3 organic sales flat to positive low‑single digits (H2 modest organic growth but EBITDA margin compression due to index timing). On cost recovery they said pricing covered ~90% of Q2 COGS inflation (net selling price +2% in the quarter, 3% exit run rate in June), they expect to reach 100% coverage by Q4, and estimate Q2–Q4 COGS inflation in the mid‑single to high‑single digit range. They also cited aerospace strength (order backlog ≈ $300M; > $0.5B incremental capacity investment) and reiterated liquidity/capital metrics (cash & short‑term investments $1.6B, net debt 1.9x adjusted EBITDA, YTD operating cash ≈ $600M, Q2 share repurchases $75M, YTD repurchases $175M).PPG Industries Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
28
Negative
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.42B | 15.88B | 15.85B | 16.24B | 15.61B | 16.80B |
| Gross Profit | 6.58B | 6.03B | 6.59B | 6.56B | 5.64B | 6.52B |
| EBITDA | 2.78B | 2.81B | 2.58B | 2.45B | 2.02B | 2.50B |
| Net Income | 1.57B | 1.58B | 1.12B | 1.27B | 1.03B | 1.44B |
Balance Sheet | ||||||
| Total Assets | 22.53B | 7.96B | 19.43B | 21.65B | 20.74B | 21.35B |
| Cash, Cash Equivalents and Short-Term Investments | 1.59B | 2.22B | 1.36B | 1.57B | 1.15B | 1.07B |
| Total Debt | 7.46B | 7.45B | 6.39B | 6.60B | 7.63B | 7.47B |
| Total Liabilities | 13.94B | 11.50B | 12.47B | 13.62B | 14.04B | 14.94B |
| Stockholders Equity | 8.44B | -3.54B | 6.79B | 7.83B | 6.59B | 6.29B |
Cash Flow | ||||||
| Free Cash Flow | 1.41B | 1.16B | 699.00M | 1.90B | 477.00M | 1.19B |
| Operating Cash Flow | 2.16B | 1.94B | 1.42B | 2.41B | 963.00M | 1.56B |
| Investing Cash Flow | -870.00M | -700.00M | 107.00M | -556.00M | -461.00M | -2.40B |
| Financing Cash Flow | -1.36B | -545.00M | -1.43B | -1.55B | -409.00M | 93.00M |
PPG Industries Technical Analysis
Negative
116.00
Price Trends
116.04
Negative
110.93
Negative
108.67
Positive
Market Momentum
-0.30
Positive
48.57
Neutral
32.78
Neutral
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 116 is below the 20-day moving average (MA) of 116.08, below the 50-day MA of 116.04, and above the 200-day MA of 108.67, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 48.57 is Neutral, neither overbought nor oversold. The STOCH value of 32.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PPG.
PPG Industries Risk Analysis
PPG Industries disclosed 34 risk factors in its most recent earnings report. PPG Industries reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PPG Industries Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $82.74B | 31.13 | 62.12% | 1.00% | 5.76% | 7.42% | |
72 Outperform | $7.66B | 21.97 | 15.85% | ― | -0.92% | -20.25% | |
69 Neutral | $13.68B | 20.63 | 20.93% | 2.02% | 6.66% | -3.58% | |
66 Neutral | $8.00B | 18.07 | 6.77% | 4.91% | -4.33% | -46.24% | |
65 Neutral | $18.50B | -761.06 | -0.16% | 1.68% | -22.51% | 63.46% | |
62 Neutral | $24.57B | 15.74 | 68.36% | 2.45% | 1.47% | 23.56% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
PPG
PPG Industries
110.52
8.24
8.06%
EMN
Eastman Chemical
69.95
12.06
20.82%
RPM
RPM International
107.07
-9.18
-7.89%
SHW
Sherwin-Williams Company
340.85
-3.78
-1.10%
AXTA
Axalta Coating Systems
35.81
7.73
27.53%
DD
DuPont de Nemours
137.00
49.64
56.83%
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.