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PPG Industries
(NYSE:PPG)
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Rating:65Neutral
Price Target:
$128.00
▲(11.45% Upside)
Action:Reiterated
Date:04/29/26
PPG scores as a solid but not low-risk setup: strong profitability/cash generation and a constructive earnings outlook with reaffirmed EPS guidance and pricing/cost actions support the score. The largest offset is balance-sheet risk (negative equity with meaningful debt), while technicals are mixed/soft near term and valuation is reasonable with a ~2.6% dividend yield.
Positive Factors
Strong cash generation
PPG's TTM operating cash flow (~$2.0B) and free cash flow (~$1.6B) provide durable internal funding for capex, shareholder returns and strategic investments. Reliable cash generation supports deleveraging options, plant investments and resilience through cyclical soft patches without immediate external financing.
Negative Factors
Weak balance sheet (negative equity)
Negative shareholders' equity alongside sizable debt (~$7–$7.5B) materially reduces financial flexibility. This weak capital structure constrains M&A, raises refinancing and covenant risk, and leaves less room to absorb prolonged downturns or fund large strategic initiatives without increasing leverage or diluting shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
PPG's TTM operating cash flow (~$2.0B) and free cash flow (~$1.6B) provide durable internal funding for capex, shareholder returns and strategic investments. Reliable cash generation supports deleveraging options, plant investments and resilience through cyclical soft patches without immediate external financing.
Read all positive factors
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 (PPG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.45B
Dividend Yield2.71%
Average Volume (3M)1.91M
Price to Earnings (P/E)16.7
Beta (1Y)0.86
Revenue Growth-3.94%
EPS Growth18.25%
CountryUS
Employees43,500
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)7.04
Shares Outstanding222,900,000
10 Day Avg. Volume1,739,793
30 Day Avg. Volume1,909,879
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$127.27Price Target Upside10.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)7.88
Revenue Forecast (FY)$16.65B
PPG Industries Business Overview & Revenue Model
Company Description
PPG Industries, Inc. operates globally as a manufacturer and distributor of paints, protective coatings, and various specialty materials. Its Performance Coatings division offers an extensive range of products, including paints, solvents, adhesive...
How the Company Makes Money
PPG primarily makes money by manufacturing and selling coatings and related products to business customers and, in certain channels, to professional contractors and consumers. Its revenue model is largely transaction-based product sales, with pric...
PPG Industries Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call balanced several clear operational wins — solid top-line growth (7% sales increase), consecutive quarters of organic expansion (+1%, five in a row), strong aerospace and architectural performance, healthy margins in key segments, and a strong balance sheet with active capital returns — against notable near-term headwinds from raw material, energy and logistics inflation, China OEM softness affecting Industrial margins, and a pronounced refinish volume trough that pressures near-term results. Management emphasized proactive pricing, structural cost actions (including plant closures), share gains and aerospace capacity investments to offset inflation and support recovery in H2, and reaffirmed full-year guidance. Overall the positive operational execution, pricing actions and portfolio momentum modestly outweigh the challenges and uncertainties called out.Positive Updates
Top-line and EPS Growth
Net sales of $3.9 billion, up 7% year-over-year; adjusted EPS of $1.83, up 6% versus prior year; organic sales growth of +1%, marking the fifth consecutive quarter of year-over-year organic sales gains.
Negative Updates
Refinish Volume Weakness and Near-Term Declines
Automotive refinish organic sales decreased by a double-digit percentage in the quarter due to distributor order patterns; management expects year-over-year organic volume declines in refinish in Q2 (lapping strong prior-year patterns), with recovery pushed to the second half of 2026.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-line and EPS Growth
Net sales of $3.9 billion, up 7% year-over-year; adjusted EPS of $1.83, up 6% versus prior year; organic sales growth of +1%, marking the fifth consecutive quarter of year-over-year organic sales gains.
Read all positive updates
Company Guidance
PPG reaffirmed full‑year 2026 adjusted EPS guidance of $7.70–$8.10 while forecasting mid‑single‑digit COGS inflation for the remainder of the year that it expects to offset with low‑single‑digit net price realization (company noted price actions up to ~20% on some products and said realization will occur in months, not years); Q1 results included net sales of $3.9B (+7% y/y), organic sales +1% (fifth straight quarter), adjusted EPS $1.83 (+6%), and segment EBITDA margins above ~19% (Architectural sales $965M, +13% with +2% organic and +230 bps margin improvement; Performance Coatings $1.3B, +5% with PMC EBITDA ~24%; Industrial Coatings $1.6B, +4% with flat organic sales and packaging up double digits and volumes +20% on a 2‑year stack); aerospace backlog remained ~ $350M; company expects Q2 organic sales to be flat to +low‑single‑digits and Q2 adjusted EPS growth flat to +low‑single‑digits; balance‑sheet highlights: cash & short‑term investments ≈ $1.6B, $700M debt repaid in Q1, ~$260M returned to shareholders, and planned H2 2026 actions (4 EMEA plant closures) targeting roughly $25M in fixed‑cost reduction with ~$50M of structural benefits this year and another ~$50M next year.PPG Industries Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
28
Negative
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.12B | 15.88B | 15.85B | 16.24B | 15.61B | 16.80B |
| Gross Profit | 6.54B | 6.03B | 6.59B | 6.56B | 5.64B | 6.52B |
| EBITDA | 2.85B | 2.81B | 2.58B | 2.45B | 2.02B | 2.50B |
| Net Income | 1.58B | 1.58B | 1.12B | 1.27B | 1.03B | 1.44B |
Balance Sheet | ||||||
| Total Assets | 22.15B | 7.96B | 19.43B | 21.65B | 20.74B | 21.35B |
| Cash, Cash Equivalents and Short-Term Investments | 1.62B | 2.22B | 1.36B | 1.57B | 1.15B | 1.07B |
| Total Debt | 7.73B | 7.45B | 6.39B | 6.60B | 7.63B | 7.47B |
| Total Liabilities | 13.90B | 11.50B | 12.47B | 13.62B | 14.04B | 14.94B |
| Stockholders Equity | 8.10B | -3.54B | 6.79B | 7.83B | 6.59B | 6.29B |
Cash Flow | ||||||
| Free Cash Flow | 1.23B | 1.16B | 699.00M | 1.90B | 477.00M | 1.19B |
| Operating Cash Flow | 1.99B | 1.94B | 1.42B | 2.41B | 963.00M | 1.56B |
| Investing Cash Flow | -811.00M | -700.00M | 107.00M | -556.00M | -461.00M | -2.40B |
| Financing Cash Flow | -1.58B | -545.00M | -1.43B | -1.55B | -409.00M | 93.00M |
PPG Industries Technical Analysis
Positive
114.85
Price Trends
114.27
Positive
111.12
Positive
107.93
Positive
Market Momentum
0.25
Positive
50.31
Neutral
34.24
Neutral
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 114.85 is below the 20-day moving average (MA) of 119.14, above the 50-day MA of 114.27, and above the 200-day MA of 107.93, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 50.31 is Neutral, neither overbought nor oversold. The STOCH value of 34.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPG.
PPG Industries Risk Analysis
PPG Industries disclosed 34 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $83.40B | 31.43 | 58.23% | 0.98% | 3.90% | -1.60% | |
70 Outperform | $7.04B | 18.91 | 15.85% | ― | -2.57% | -16.43% | |
65 Neutral | $26.45B | 16.67 | 31.80% | 2.71% | -3.94% | 18.25% | |
65 Neutral | $7.91B | 19.66 | 6.77% | 5.33% | -7.41% | -56.10% | |
65 Neutral | $18.13B | -751.61 | -0.16% | 1.74% | -22.51% | 63.46% | |
64 Neutral | $13.57B | 20.13 | 21.80% | 1.96% | 5.68% | 3.81% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
PPG
PPG Industries
117.36
5.80
5.20%
EMN
Eastman Chemical
68.60
-5.46
-7.37%
RPM
RPM International
105.08
-4.14
-3.79%
SHW
Sherwin-Williams Company
331.32
-5.60
-1.66%
AXTA
Axalta Coating Systems
32.34
2.64
8.89%
DD
DuPont de Nemours
135.29
42.22
45.36%
PPG Industries Corporate Events
Business Operations and StrategyExecutive/Board Changes
PPG Industries Announces Appointment of New Chief Financial Officer
Positive
Apr 28, 2026
On April 28, 2026, PPG Industries announced that Jamie A. Beggs will become senior vice president and chief financial officer effective July 6, 2026, succeeding retiring CFO Vincent J. Morales on the same date. Beggs, 49, currently CFO of Avient C...
Executive/Board ChangesShareholder Meetings
PPG Shareholders Endorse Governance, Approve New Incentive Plan
Positive
Apr 21, 2026
On April 15, 2026, PPG’s board compensation committee approved new performance-based Market Stock Unit awards for certain executive officers, notably granting $1.5 million target MSU awards to K. Henrik Bergstrom and Kevin Braun while exclud...
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.