PPG Industries (PPG) AI Stock Analysis

• Market Cap: $28.26B
• Dividend Yield: 2.71%
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.88
• Revenue Growth: -12.98%
• EPS Growth: -11.34%
• Country: US
• Employees: 46,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.51
• Shares Outstanding: 224,400,000
• 10 Day Avg. Volume: 2,649,080
• 30 Day Avg. Volume: 1,913,873
• PEG Ratio: 0.32
• Price to Book (P/B): -6.54
• Price to Sales (P/S): 1.46
• P/FCF Ratio: -29.80
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: 5.81
• Enterprise Value/Ebitda: 13.90
• 1Y Price Target: $124.07
• Price Target Upside: -1.49% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 7.99
• Revenue Forecast (FY): $16.38B

• Rating: 68 Neutral
• Price Target: $124.00 ▼(-1.55% Downside)

The score is held back primarily by weaker financial resilience signals in the latest statements (negative equity and negative free cash flow), despite solid reported profitability. Technicals are supportive with a strong uptrend, and valuation appears reasonable with a mid-teens P/E and a ~2.4% dividend. The latest earnings call adds a moderately positive tilt via steady 2026 guidance and aerospace-driven momentum, tempered by near-term cost and demand headwinds.

Positive Factors

Aerospace & Marine Growth

Sustained double-digit growth in aerospace and marine coatings reflects structural end-market expansion and PPG's technology advantage. Coupled with record quarterly EPS and targeted investments in aerospace, this supports durable higher-margin revenue and long-term returns on invested capital.

Diversified End Markets and Share Gains

PPG's exposure across Performance, Industrial and Architectural segments plus documented share gains (industrial, packaging, OEM) reduces cyclicality. Structural market-share improvement enables volume-led growth, pricing leverage and resilience through uneven macro cycles, supporting steady revenue streams.

Balanced Leverage and Stable Margins

A moderate debt-to-equity ratio and mid-teens ROE indicate financial capacity to fund strategic investments while managing risk. This balance preserves flexibility for capex, targeted M&A or shareholder returns and underpins sustainable margin delivery despite revenue pressures.

Negative Factors

Declining Revenue Growth Trend

A persistent decline in reported revenue growth constrains operating leverage and reinvestment capacity. If revenues don't recover, margin maintenance and return on capital become harder, necessitating consistent share gains or product innovation to restore top-line momentum over the medium term.

Cash Flow Generation Weakness

Negative FCF growth and a very low operating-cash-to-net-income ratio signal earnings may not be converting into liquidity efficiently. This limits ability to fund large strategic investments, service debt, or sustain payouts without relying on external financing or working-capital improvements.

CFO Retirement and Transition Risk

A planned CFO departure creates near-term execution and governance risk during a critical financing and investment period. Succession risk can affect capital allocation, debt management and investor communication; an effective, timely successor is needed to preserve financial discipline and strategy continuity.

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 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 Financial Statement Overview

Summary

Income statement strength (stable revenue with a 2025 pickup and improved net margin) is offset by materially weaker financial resilience signals in the latest data: negative equity on the balance sheet and sharply deteriorated cash conversion (operating cash flow reported at 0 and negative free cash flow in 2025). Overall fundamentals read as mixed, with elevated balance-sheet and cash-flow risk despite solid profitability.

Income Statement

Revenue has been broadly stable over the last several years, with a modest pickup in 2025 (annual revenue growth ~12%). Profitability is solid for the group, with net margin improving to ~9.9% in 2025 from ~7.0% in 2024, and operating profitability remaining healthy. The main weakness is margin volatility (notably a lower gross margin in 2025 vs. 2024) and only moderate consistency in growth, which tempers the quality of earnings profile.

Balance Sheet

Leverage was reasonable in 2022–2024 (debt-to-equity roughly ~0.88–1.16), supporting acceptable shareholder returns. However, 2025 shows a major deterioration with negative equity, which makes leverage metrics unfavorable and suggests a significantly weakened capital position versus prior years. Total debt also increased in 2025, raising balance-sheet risk and reducing financial flexibility despite strong reported earnings.

Cash Flow

Cash generation weakened materially in 2025, with operating cash flow reported at 0 and free cash flow negative (-$778M) versus positive free cash flow in prior years (e.g., $699M in 2024 and $1.895B in 2023). The cash flow trajectory is volatile, including a sharp decline in 2025, indicating reduced ability to self-fund reinvestment and shareholder returns. Prior periods show the business can generate solid free cash flow, but the latest year is a clear setback.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.13B	15.88B	15.85B	16.24B	15.61B	16.80B
Gross Profit	5.72B	6.03B	6.59B	6.56B	5.64B	6.52B
EBITDA	2.39B	2.81B	2.58B	2.45B	2.02B	2.50B
Net Income	996.00M	1.58B	1.12B	1.27B	1.03B	1.44B
Balance Sheet
Total Assets	22.14B	7.96B	19.43B	21.65B	20.74B	21.35B
Cash, Cash Equivalents and Short-Term Investments	1.91B	2.22B	1.36B	1.57B	1.15B	1.07B
Total Debt	8.37B	7.45B	6.39B	6.60B	7.63B	7.47B
Total Liabilities	14.19B	11.50B	12.47B	13.62B	14.04B	14.94B
Stockholders Equity	7.80B	-3.54B	6.79B	7.83B	6.59B	6.29B
Cash Flow
Free Cash Flow	725.00M	-778.00M	699.00M	1.90B	477.00M	1.19B
Operating Cash Flow	1.40B	0.00	1.42B	2.41B	963.00M	1.56B
Investing Cash Flow	201.00M	0.00	107.00M	-556.00M	-461.00M	-2.40B
Financing Cash Flow	-1.08B	0.00	-1.43B	-1.55B	-409.00M	93.00M

PPG Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 125.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 125.95 is above the 20-day moving average (MA) of 111.99, above the 50-day MA of 106.02, and above the 200-day MA of 106.54, indicating a bullish trend. The MACD of 4.15 indicates Negative momentum. The RSI at 80.18 is Negative, neither overbought nor oversold. The STOCH value of 88.45 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXTA	77 Outperform	$7.31B	16.44	21.75%	―	-1.83%	40.64%
SHW	73 Outperform	$91.45B	35.05	59.39%	0.98%	0.96%	1.96%
EMN	72 Outperform	$8.95B	18.51	―	5.33%	-3.33%	-19.59%
RPM	71 Outperform	$14.87B	21.38	22.72%	1.96%	3.09%	12.25%
PPG	68 Neutral	$28.26B	17.22	―	2.71%	-12.98%	-11.34%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
DD	60 Neutral	$20.04B	-25.96	-0.46%	1.74%	2.42%	-196.54%

PPG Industries Corporate Events

PPG Industries Elects Todd Schneider as New Director

On December 11, 2025, PPG Industries announced the election of Todd M. Schneider as a director, effective January 14, 2026. Mr. Schneider, who is the President and CEO of Cintas Corporation, will join the Nominating and Governance Committee and the Sustainability and Innovation Committee. This appointment is part of PPG’s ongoing efforts to enhance its governance and sustainability initiatives, potentially influencing its strategic direction and stakeholder engagement. The financial transactions between PPG and Cintas in 2024 and 2025 were minimal and conducted in the ordinary course of business.

The most recent analyst rating on (PPG) stock is a Hold with a $108.00 price target. To see the full list of analyst forecasts on PPG Industries stock, see the PPG Stock Forecast page.

PPG Industries CFO Retirement Announcement

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.

The most recent analyst rating on (PPG) stock is a Buy with a $123.00 price target. To see the full list of analyst forecasts on PPG Industries stock, see the PPG Stock Forecast page.

PPG Industries Completes $700 Million Notes Offering

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.

The most recent analyst rating on (PPG) stock is a Buy with a $118.00 price target. To see the full list of analyst forecasts on PPG Industries stock, see the PPG Stock Forecast page.