Ppg Industries, Inc. (PPG)
NYSE:PPG
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PPG Industries
(NYSE:PPG)
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Rating:65Neutral
Price Target:
$116.00
▲(1.00% Upside)
Action:Reiterated
Date:04/29/26
PPG scores as a solid but not low-risk setup: strong profitability/cash generation and a constructive earnings outlook with reaffirmed EPS guidance and pricing/cost actions support the score. The largest offset is balance-sheet risk (negative equity with meaningful debt), while technicals are mixed/soft near term and valuation is reasonable with a ~2.6% dividend yield.
Positive Factors
Cash generation
Consistent, sizable operating cash flow and meaningful free cash flow provide durable internal funding for capex, aerospace investments, dividends and buybacks, and enable ongoing debt paydown. This cash generation underpins strategic flexibility even with cyclical end markets.
Negative Factors
Balance sheet weakness
Negative equity and sizable debt materially weaken financial flexibility and elevate refinancing, covenant, and rating risk. In downturns this balance‑sheet profile can constrain capital allocation, limit strategic M&A options, and increase sensitivity to cash flow volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent, sizable operating cash flow and meaningful free cash flow provide durable internal funding for capex, aerospace investments, dividends and buybacks, and enable ongoing debt paydown. This cash generation underpins strategic flexibility even with cyclical end markets.
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
$23.11B
Dividend Yield2.71%
Average Volume (3M)1.95M
Price to Earnings (P/E)15.6
Beta (1Y)0.90
Revenue Growth-3.94%
EPS Growth18.25%
CountryUS
Employees46,000
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)7.04
Shares Outstanding222,900,000
10 Day Avg. Volume1,601,496
30 Day Avg. Volume1,948,924
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 Cap1.25
Enterprise Value/Revenue1.79
Enterprise Value/Gross Profit4.41
Enterprise Value/Ebitda10.32
Forecast
1Y Price Target
$122.75Price Target Upside6.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)7.88
Revenue Forecast (FY)$16.63B
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 ...
How the Company Makes Money
PPG primarily makes money by formulating, manufacturing, and selling paints and coatings to business customers and consumers, generating revenue from the sale of finished coating products (and, in some cases, related services) across multiple end ...
PPG Industries Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call balanced several clear operational wins — solid top-line growth (7% sales increase), consecutive quarters of organic expansion (+1%, five in a row), strong aerospace and architectural performance, healthy margins in key segments, and a strong balance sheet with active capital returns — against notable near-term headwinds from raw material, energy and logistics inflation, China OEM softness affecting Industrial margins, and a pronounced refinish volume trough that pressures near-term results. Management emphasized proactive pricing, structural cost actions (including plant closures), share gains and aerospace capacity investments to offset inflation and support recovery in H2, and reaffirmed full-year guidance. Overall the positive operational execution, pricing actions and portfolio momentum modestly outweigh the challenges and uncertainties called out.Positive Updates
Top-line and EPS Growth
Net sales of $3.9 billion, up 7% year-over-year; adjusted EPS of $1.83, up 6% versus prior year; organic sales growth of +1%, marking the fifth consecutive quarter of year-over-year organic sales gains.
Negative Updates
Refinish Volume Weakness and Near-Term Declines
Automotive refinish organic sales decreased by a double-digit percentage in the quarter due to distributor order patterns; management expects year-over-year organic volume declines in refinish in Q2 (lapping strong prior-year patterns), with recovery pushed to the second half of 2026.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-line and EPS Growth
Net sales of $3.9 billion, up 7% year-over-year; adjusted EPS of $1.83, up 6% versus prior year; organic sales growth of +1%, marking the fifth consecutive quarter of year-over-year organic sales gains.
Read all positive updates
Company Guidance
PPG reaffirmed full‑year 2026 adjusted EPS guidance of $7.70–$8.10 while forecasting mid‑single‑digit COGS inflation for the remainder of the year that it expects to offset with low‑single‑digit net price realization (company noted price actions up to ~20% on some products and said realization will occur in months, not years); Q1 results included net sales of $3.9B (+7% y/y), organic sales +1% (fifth straight quarter), adjusted EPS $1.83 (+6%), and segment EBITDA margins above ~19% (Architectural sales $965M, +13% with +2% organic and +230 bps margin improvement; Performance Coatings $1.3B, +5% with PMC EBITDA ~24%; Industrial Coatings $1.6B, +4% with flat organic sales and packaging up double digits and volumes +20% on a 2‑year stack); aerospace backlog remained ~ $350M; company expects Q2 organic sales to be flat to +low‑single‑digits and Q2 adjusted EPS growth flat to +low‑single‑digits; balance‑sheet highlights: cash & short‑term investments ≈ $1.6B, $700M debt repaid in Q1, ~$260M returned to shareholders, and planned H2 2026 actions (4 EMEA plant closures) targeting roughly $25M in fixed‑cost reduction with ~$50M of structural benefits this year and another ~$50M next year.PPG Industries Financial Statement Overview
Summary
Income Statement
74
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 | 16.12B | 15.88B | 15.85B | 16.24B | 15.61B | 16.80B |
| Gross Profit | 6.54B | 6.03B | 6.59B | 6.56B | 5.64B | 6.52B |
| EBITDA | 2.79B | 2.81B | 2.58B | 2.45B | 2.02B | 2.50B |
| Net Income | 1.58B | 1.58B | 1.12B | 1.27B | 1.03B | 1.44B |
Balance Sheet | ||||||
| Total Assets | 22.15B | 7.96B | 19.43B | 21.65B | 20.74B | 21.35B |
| Cash, Cash Equivalents and Short-Term Investments | 1.62B | 2.22B | 1.36B | 1.57B | 1.15B | 1.07B |
| Total Debt | 7.73B | 7.45B | 6.39B | 6.60B | 7.63B | 7.47B |
| Total Liabilities | 13.90B | 11.50B | 12.47B | 13.62B | 14.04B | 14.94B |
| Stockholders Equity | 8.10B | -3.54B | 6.79B | 7.83B | 6.59B | 6.29B |
Cash Flow | ||||||
| Free Cash Flow | 1.23B | 1.16B | 699.00M | 1.90B | 477.00M | 1.19B |
| Operating Cash Flow | 1.99B | 1.94B | 1.42B | 2.41B | 963.00M | 1.56B |
| Investing Cash Flow | -811.00M | -700.00M | 107.00M | -556.00M | -461.00M | -2.40B |
| Financing Cash Flow | -1.58B | -545.00M | -1.43B | -1.55B | -409.00M | 93.00M |
PPG Industries Technical Analysis
Negative
114.85
Price Trends
105.82
Negative
110.14
Negative
106.08
Negative
Market Momentum
-1.21
Positive
40.14
Neutral
9.68
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 114.85 is above the 20-day moving average (MA) of 106.78, above the 50-day MA of 105.82, and above the 200-day MA of 106.08, indicating a bearish trend. The MACD of -1.21 indicates Positive momentum. The RSI at 40.14 is Neutral, neither overbought nor oversold. The STOCH value of 9.68 is Positive, 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $19.94B | 29.17 | -0.16% | 1.74% | -22.51% | 63.47% | |
68 Neutral | $74.68B | 36.82 | 58.23% | 0.98% | 3.90% | -1.60% | |
65 Neutral | $23.11B | 15.65 | 31.80% | 2.71% | -3.94% | 18.25% | |
65 Neutral | $8.11B | 20.33 | 6.77% | 5.33% | -7.41% | -56.10% | |
65 Neutral | $5.91B | 16.44 | 15.85% | ― | -2.57% | -16.43% | |
64 Neutral | $12.39B | 70.63 | 21.80% | 1.96% | 5.68% | 3.81% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
PPG
PPG Industries
101.70
-9.14
-8.24%
EMN
Eastman Chemical
68.15
-10.34
-13.18%
RPM
RPM International
95.00
-17.34
-15.44%
SHW
Sherwin-Williams Company
299.05
-57.65
-16.16%
AXTA
Axalta Coating Systems
27.76
-4.08
-12.81%
DD
DuPont de Nemours
46.56
18.42
65.45%
PPG Industries Corporate Events
Business Operations and StrategyExecutive/Board Changes
PPG Industries Announces Appointment of New Chief Financial Officer
Positive
Apr 28, 2026
On April 28, 2026, PPG Industries announced that Jamie A. Beggs will become senior vice president and chief financial officer effective July 6, 2026, succeeding retiring CFO Vincent J. Morales on the same date. Beggs, 49, currently CFO of Avient C...
Executive/Board ChangesShareholder Meetings
PPG Shareholders Endorse Governance, Approve New Incentive Plan
Positive
Apr 21, 2026
On April 15, 2026, PPG’s board compensation committee approved new performance-based Market Stock Unit awards for certain executive officers, notably granting $1.5 million target MSU awards to K. Henrik Bergstrom and Kevin Braun while exclud...
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.