PPG Industries (PPG)
NYSE:PPG
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PPG Industries
(NYSE:PPG)
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Rating:68Neutral
Price Target:
$113.00
▲(8.80% Upside)
Action:DowngradedDate:01/29/26
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 Growth
Aerospace is a high-growth, higher-value end market for PPG with record sales and strong momentum. Durable demand from aircraft production and MRO supports multi-year organic growth and margin expansion, providing a structural growth engine that can lift company-wide revenue and EPS over time.
Negative Factors
Balance Sheet Weakness
Negative equity and increased debt materially weaken financial resilience, limiting flexibility for acquisitions, capex, or buffer against downturns. Higher leverage raises refinancing risk and interest sensitivity, constraining capital allocation choices and elevating long-term funding costs if not remedied.
Read all positive and negative factors
Positive Factors
Negative Factors
Aerospace Growth
Aerospace is a high-growth, higher-value end market for PPG with record sales and strong momentum. Durable demand from aircraft production and MRO supports multi-year organic growth and margin expansion, providing a structural growth engine that can lift company-wide revenue and EPS over time.
Read all positive factors
PPG Industries (PPG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.21B
Dividend Yield2.71%
Average Volume (3M)2.21M
Price to Earnings (P/E)14.7
Beta (1Y)0.87
Revenue Growth-12.98%
EPS Growth-11.34%
CountryUS
Employees46,000
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.51
Shares Outstanding223,494,720
10 Day Avg. Volume2,317,852
30 Day Avg. Volume2,213,533
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 Cap1.21
Enterprise Value/Revenue1.77
Enterprise Value/Gross Profit4.38
Enterprise Value/Ebitda10.00
Forecast
1Y Price Target
$121.86Price Target Upside17.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)7.83
Revenue Forecast (FY)$16.42B
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 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 Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call presented a balanced but overall constructive picture: the company delivered solid full-year results with strong cash generation, disciplined capital returns, segment margin improvements, notable share gains (packaging, automotive OEM, aerospace), and tangible early wins from AI/digital initiatives. Near-term headwinds remain—most notably refinish destocking, increased corporate and interest costs, industry softness in Europe and industrial end markets, and aerospace capacity constraints—but management expects normalization and stronger volume/margin leverage in the second half of 2026. On net, positive operational momentum and financial flexibility outweigh the short-term challenges.Positive Updates
Full-Year Revenue and Organic Growth
Net sales for 2025 were $15.9 billion with 2% organic growth driven by higher selling prices and volume gains across segments.
Negative Updates
Refinish Destocking and Sales Pressure
Automotive refinish experienced high-single-digit organic sales declines in 2025 with multi-quarter destocking (double-digit down earlier in Q3, high-single-digit in Q4), creating margin pressure because refinish is a higher-margin business; normalization expected in second half of 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue and Organic Growth
Net sales for 2025 were $15.9 billion with 2% organic growth driven by higher selling prices and volume gains across segments.
Read all positive updates
Company Guidance
PPG guided 2026 to organic sales growth of flat to positive low‑single‑digit percent, driven by high‑single‑digit aerospace growth, roughly $100M of industrial share gains (including $50M carryover), modest volume gains in architectural (Mexico) and auto OEM, and overall positive pricing (with modest industrial/China auto pressure); management expects raw material costs to be flat for the year, about $50M of additional operational‑excellence cost savings, and capex to pace back toward ~3% of sales by 2027 (2025 capex ≈ $780M). They expect EPS to be flat to low‑single‑digit in H1 and increase to high‑single‑digit in H2, with the midpoint of the guidance implying mid‑single‑digit EPS growth, while noting higher interest expense and a slightly higher tax rate will temper near‑term leverage. For context, FY25 included net sales of $15.9B with 2% organic growth, adjusted EPS $7.58, operating cash flow $1.9B (free cash flow yield ~5%), FY25 segment EBITDA margin ~19% (Q4 segment margin 18%), industrial coatings EBITDA margin 15.1%, year‑end cash $2.2B, net debt $5.1B and $700M of debt maturing in 2026.PPG Industries Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
38
Negative
Cash Flow
27
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 15.88B | 15.85B | 16.24B | 15.61B | 16.80B |
| Gross Profit | 6.03B | 6.59B | 6.56B | 5.64B | 6.52B |
| EBITDA | 2.81B | 2.58B | 2.45B | 2.02B | 2.50B |
| Net Income | 1.58B | 1.12B | 1.27B | 1.03B | 1.44B |
Balance Sheet | |||||
| Total Assets | 7.96B | 19.43B | 21.65B | 20.74B | 21.35B |
| Cash, Cash Equivalents and Short-Term Investments | 2.22B | 1.36B | 1.57B | 1.15B | 1.07B |
| Total Debt | 7.45B | 6.39B | 6.60B | 7.63B | 7.47B |
| Total Liabilities | 11.50B | 12.47B | 13.62B | 14.04B | 14.94B |
| Stockholders Equity | -3.54B | 6.79B | 7.83B | 6.59B | 6.29B |
Cash Flow | |||||
| Free Cash Flow | 1.16B | 699.00M | 1.90B | 477.00M | 1.19B |
| Operating Cash Flow | 1.94B | 1.42B | 2.41B | 963.00M | 1.56B |
| Investing Cash Flow | -700.00M | 107.00M | -556.00M | -461.00M | -2.40B |
| Financing Cash Flow | -545.00M | -1.43B | -1.55B | -409.00M | 93.00M |
PPG Industries Technical Analysis
Negative
103.86
Price Trends
114.09
Negative
107.97
Negative
107.29
Negative
Market Momentum
-2.47
Negative
43.23
Neutral
53.88
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 103.86 is above the 20-day moving average (MA) of 103.51, below the 50-day MA of 114.09, and below the 200-day MA of 107.29, indicating a neutral trend. The MACD of -2.47 indicates Negative momentum. The RSI at 43.23 is Neutral, neither overbought nor oversold. The STOCH value of 53.88 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 17 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $23.21B | 14.71 | 33.60% | 2.71% | -12.98% | -11.34% | |
68 Neutral | $8.36B | 15.45 | 8.09% | 5.33% | -3.33% | -19.59% | |
67 Neutral | $78.39B | 31.08 | 58.53% | 0.98% | 0.96% | 1.96% | |
65 Neutral | $5.63B | 18.46 | 16.86% | ― | -1.83% | 40.64% | |
63 Neutral | $12.46B | 21.09 | 22.70% | 1.96% | 3.09% | 12.25% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | $18.63B | -21.54 | -3.77% | 1.74% | 2.42% | -196.54% |
* Basic Materials Sector Average
PPG
PPG Industries
103.86
14.55
16.30%
EMN
Eastman Chemical
73.29
4.00
5.77%
RPM
RPM International
97.26
2.13
2.24%
SHW
Sherwin-Williams Company
316.39
5.66
1.82%
AXTA
Axalta Coating Systems
26.39
-2.10
-7.37%
DD
DuPont de Nemours
45.57
22.98
101.70%
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.