PPG Industries (PPG) AI Stock Analysis

• Market Cap: $25.10B
• Dividend Yield: 2.52%
• Average Volume (3M): 1.78M
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.96
• Revenue Growth: -10.59%
• EPS Growth: -7.79%
• Country: US
• Employees: 46,000
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Chemicals - Specialty
• EPS (TTM): 2.22
• Shares Outstanding: 225,700,000
• 10 Day Avg. Volume: 1,229,958
• 30 Day Avg. Volume: 1,777,106
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 2.22
• Enterprise Value/Gross Profit: 5.42
• Enterprise Value/Ebitda: 13.18
• 1Y Price Target: $128.86
• Price Target Upside: 18.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 64 Neutral
• Price Target: $117.00 ▲(7.15% Upside)

PPG Industries' overall score reflects a mixed financial position with strong profit margins and cash flow, but significant risks from declining revenue and negative equity. The earnings call provided positive guidance, but technical indicators suggest caution. Valuation metrics are favorable, supporting a moderate investment outlook.

Positive Factors

Business Strategy

Exiting the US Architectural business is seen as a positive move to improve margins and growth for PPG.

Earnings

Performance exceeded expectations with sales up 7% vs expectations for 3-4%, while 30bps of margin lift to 25.7% also beat.

Strategic Moves

PPG's growth is expected to accelerate due to trends such as growth in electric vehicles and increased demand for sustainable packaging.

Negative Factors

Outlook

Management trimmed the outlook for organic growth in Global Arch and Industrial while Perf growth is intact.

Sales Forecast

A downward revision has been made to refinish volumes, impacting the overall sales forecast.

Sales Performance

Global Arch disappointed with sales down 5.0% vs the Street down 1.9% as 1.0% price was largely as we expected but the 2.0% vols decline was worse than expected.

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 shows solid profit margins and cash conversion capabilities, but faces challenges with declining revenue and negative equity. The high debt levels and negative stockholders' equity pose significant financial risks.

Income Statement

While PPG Industries shows a solid gross profit margin of 39.9% and a healthy EBIT margin of 13.2% for TTM, the company faces challenges with declining revenues, as evident from the revenue decrease from $15.845 billion in 2024 to $14.619 billion in TTM. The net profit margin stands at a reasonable 7.0%. Despite these strengths, the revenue growth is a concern, indicating potential market or operational challenges.

Balance Sheet

PPG Industries has a concerning negative stockholders’ equity of -$3.491 billion, leading to a high debt-to-equity ratio, which is problematic. The equity ratio is negative at -42.6%, indicating financial instability. The negative equity position suggests potential liquidity and solvency issues, posing significant financial risk.

Cash Flow

The TTM period shows strong free cash flow generation of $1.098 billion, and a good operating cash flow to net income ratio of 1.1. There is a notable decrease in free cash flow from $1.862 billion in 2023 to $1.098 billion in TTM, reflecting a free cash flow growth rate decline. Nonetheless, the company maintains a solid ability to convert its net income into cash, which is a positive sign for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.62B	15.85B	16.24B	15.61B	16.80B	13.83B
Gross Profit	5.97B	6.59B	6.56B	5.64B	6.52B	6.06B
EBITDA	2.46B	2.58B	2.45B	2.02B	2.50B	2.01B
Net Income	1.01B	1.12B	1.27B	1.03B	1.44B	1.06B
Balance Sheet
Total Assets	22.10B	19.43B	21.65B	20.74B	21.35B	19.56B
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.36B	1.57B	1.15B	1.07B	1.92B
Total Debt	7.95B	6.39B	6.60B	7.63B	7.47B	6.61B
Total Liabilities	14.36B	12.47B	13.62B	14.04B	14.94B	13.74B
Stockholders Equity	7.58B	6.79B	7.83B	6.59B	6.29B	5.69B
Cash Flow
Free Cash Flow	1.10B	699.00M	1.86B	445.00M	1.19B	1.83B
Operating Cash Flow	1.11B	1.42B	2.41B	963.00M	1.56B	2.13B
Investing Cash Flow	807.00M	107.00M	-556.00M	-461.00M	-2.40B	-1.45B
Financing Cash Flow	-1.24B	-1.43B	-1.55B	-409.00M	93.00M	-59.00M

PPG Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 109.19
• 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 109.19 is below the 20-day moving average (MA) of 110.40, below the 50-day MA of 112.05, and below the 200-day MA of 112.35, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.19 is Neutral, neither overbought nor oversold. The STOCH value of 11.63 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
RPM	78 Outperform	$16.08B	22.95	25.42%	1.66%	0.51%	17.21%
AXTA	74 Outperform	$6.72B	15.14	22.09%	―	-1.01%	50.58%
SHW	72 Outperform	$91.21B	35.84	62.43%	0.85%	0.31%	2.66%
EMN	69 Neutral	$8.08B	9.88	14.52%	4.75%	1.60%	-3.97%
DD	67 Neutral	$32.21B	40.24	0.31%	2.13%	4.55%	-130.25%
PPG	64 Neutral	$25.10B	19.43	16.88%	2.52%	-10.59%	-7.79%
Sector *	61 Neutral	$10.20B	6.09	0.72%	2.93%	3.45%	-36.02%

PPG Industries Corporate Events

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.