PPG Industries (PPG) AI Stock Analysis

• Market Cap: $23.20B
• Dividend Yield: 2.71%
• Average Volume (3M): 2.00M
• Price to Earnings (P/E): 18.3
• 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): 2.13
• Shares Outstanding: 224,400,000
• 10 Day Avg. Volume: 2,001,142
• 30 Day Avg. Volume: 2,002,391
• 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: 1.29
• Enterprise Value/Revenue: 2.12
• Enterprise Value/Gross Profit: 5.24
• Enterprise Value/Ebitda: 12.55
• 1Y Price Target: $117.92
• Price Target Upside: 14.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 7.65
• Revenue Forecast (FY): $15.73B

• Rating: 67 Neutral
• Price Target: $108.00 ▲(5.19% Upside)

PPG Industries' overall stock score is driven by stable financial performance and positive earnings call highlights, particularly in aerospace and marine coatings. However, technical indicators suggest potential short-term weakness, and challenges in revenue growth and cash flow generation need addressing for sustained long-term growth.

Positive Factors

Strong Performance in Aerospace and Marine Coatings

The strong performance in aerospace and marine coatings indicates a robust demand in these sectors, which can drive long-term revenue growth and market leadership in high-value segments.

Investment in Aerospace Growth

Significant investment in aerospace positions PPG to capture future growth in this expanding market, enhancing its competitive edge and long-term revenue potential.

Operational Excellence and Innovation

A focus on operational excellence and AI-driven innovation can improve efficiency and product offerings, fostering sustainable growth and competitive advantage.

Negative Factors

Revenue Growth Challenges

A decline in revenue growth suggests market challenges that could hinder long-term expansion and necessitate strategic adjustments to regain momentum.

Cash Flow Constraints

Low operating cash flow relative to net income may limit financial flexibility, impacting the company's ability to invest in growth opportunities and manage debt.

Challenging Macro Environment

Ongoing macroeconomic challenges can affect demand and profitability, posing risks to PPG's market position and financial performance in the medium term.

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

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: Neutral
• Last Price: 102.67
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPG, the sentiment is Neutral. The current price of 102.67 is above the 20-day moving average (MA) of 101.60, above the 50-day MA of 99.58, and below the 200-day MA of 105.81, indicating a neutral trend. The MACD of 1.18 indicates Negative momentum. The RSI at 57.36 is Neutral, neither overbought nor oversold. The STOCH value of 58.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$6.88B	15.48	21.75%	―	-1.83%	40.64%
EMN	72 Outperform	$7.22B	10.42	12.24%	5.33%	-3.33%	-19.59%
RPM	71 Outperform	$13.50B	19.68	24.05%	1.96%	3.09%	12.25%
PPG	67 Neutral	$23.20B	18.32	16.31%	2.71%	-12.98%	-11.34%
SHW	66 Neutral	$80.28B	31.64	59.94%	0.98%	0.96%	1.96%
DD	62 Neutral	$17.38B	-22.27	-0.46%	1.74%	2.42%	-196.54%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

PPG Industries Corporate Events

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.

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.