PPG Industries (PPG) AI Stock Analysis

• Market Cap: $24.14B
• Dividend Yield: 2.59%
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.93
• Revenue Growth: -10.59%
• EPS Growth: -7.79%
• Country: US
• Employees: 46,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 2.22
• Shares Outstanding: 225,700,000
• 10 Day Avg. Volume: 2,577,163
• 30 Day Avg. Volume: 1,911,501
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 2.22
• Enterprise Value/Gross Profit: 5.55
• Enterprise Value/Ebitda: 15.43
• 1Y Price Target: $126.38
• Price Target Upside: 18.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 55 Neutral
• Price Target: $108.00 ▲(0.98% Upside)

PPG Industries' overall score is hampered by financial instability and technical weakness. Despite strong earnings call guidance and a reasonable valuation, challenges such as declining revenue and high debt levels diminish the stock's attractiveness.

Positive Factors

Innovation and Sustainability

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

Organic Growth

PPG delivered organic/volume top-line growth, a trend that some questioned if possible in this environment, and Perf profit growth was strong.

Strategic Business Moves

The exiting of the U.S. Architectural business is a positive that should help the company improve margins and growth and eventually lead to multiple expansion.

Negative Factors

Cost and Expense Challenges

Lower margins are anticipated in the Performance Coatings segment and higher Corporate expenses are expected.

Market Forecast Adjustments

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. is a global leader in the coatings, paints, and specialty materials sectors. Founded in 1883 and headquartered in Pittsburgh, Pennsylvania, PPG operates in various markets including automotive, aerospace, industrial, and architectural coatings. The company offers a wide range of products, including protective and decorative coatings, paints, and related products that enhance and protect surfaces. PPG serves customers across the globe, leveraging its extensive research and development capabilities to drive innovation and sustainability in its offerings.

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 profitability with robust cash flow generation, despite high leverage and negative equity which pose financial risks. The company's performance is hindered by inconsistent revenue growth.

Income Statement

The income statement shows moderate profitability with a Gross Profit Margin of 54.25% and a Net Profit Margin of 7.20% for TTM. Revenue growth has been inconsistent, with a decline to $15.218 billion from $15.845 billion in the previous period. Despite a strong EBIT margin of 13.76%, the decline in revenue and net income suggests pressures on top-line growth.

Balance Sheet

The balance sheet indicates high leverage with a negative Stockholders' Equity of -$3.51 billion, resulting in an undefined Debt-to-Equity ratio. The equity ratio is also negative due to the deficit in equity, highlighting significant financial risks and instability.

Cash Flow

Cash flow analysis reveals strong free cash flow generation with a Free Cash Flow of $1.224 billion for TTM. The Operating Cash Flow to Net Income ratio is healthy at 1.35, indicating efficient cash generation relative to net income. Free Cash Flow to Net Income is also robust, reflecting strong cash flow performance despite some fluctuations in revenue.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.62B	15.85B	18.25B	17.65B	16.80B	13.83B
Gross Profit	5.84B	6.59B	7.55B	6.56B	6.52B	6.06B
EBITDA	2.10B	2.58B	2.45B	2.02B	2.50B	2.01B
Net Income	1.02B	1.12B	1.27B	1.03B	1.44B	1.06B
Balance Sheet
Total Assets	8.19B	19.43B	21.65B	20.74B	21.35B	19.56B
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.36B	1.59B	1.15B	1.07B	1.92B
Total Debt	7.47B	6.39B	6.87B	7.63B	192.00M	180.00M
Total Liabilities	11.68B	12.47B	13.62B	14.04B	14.94B	13.74B
Stockholders Equity	-3.49B	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: 106.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 106.95 is below the 20-day moving average (MA) of 111.32, below the 50-day MA of 112.42, and below the 200-day MA of 114.09, indicating a bearish trend. The MACD of -2.32 indicates Positive momentum. The RSI at 38.86 is Neutral, neither overbought nor oversold. The STOCH value of 27.15 is Neutral, 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	76 Outperform	$15.36B	22.36	25.42%	1.70%	0.51%	17.21%
AXTA	73 Outperform	$6.15B	13.95	22.09%	―	-1.01%	50.58%
SHW	72 Outperform	$87.81B	34.97	62.43%	0.85%	0.31%	2.66%
EMN	63 Neutral	$7.08B	8.66	14.52%	5.36%	1.60%	-3.97%
DD	61 Neutral	$29.51B	40.24	0.31%	2.24%	4.55%	-130.25%
PPG	55 Neutral	$24.14B	18.96	16.88%	2.59%	-10.59%	-7.79%
Sector *	44 Neutral	C$920.61M	-8.58	-0.23%	2.70%	20.10%	-40.92%

PPG Industries Corporate Events

PPG Industries Elects Leon Topalian to Board

On April 17, 2025, PPG Industries‘ Board of Directors elected Leon J. Topalian as a director, effective July 16, 2025, with his term expiring at the 2026 Annual Meeting of Shareholders. Mr. Topalian, who is also the CEO of Nucor Corporation, will join the Audit and Sustainability and Innovation Committees, bringing his expertise to PPG’s strategic operations.