PPG Industries (0KEI) AI Stock Analysis

PPG Industries

(LSE:0KEI)

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Positive Factors

Organic Growth and Market OutperformanceSustained organic growth across seven consecutive quarters indicates broadening demand and execution rather than a single-period benefit. Outperformance versus the industry, supported by volume gains, can strengthen customer relationships and reinforce PPG’s competitive position over coming quarters.

Negative Factors

Stressed Balance SheetNegative reported equity makes leverage measures less informative and signals a materially less flexible capital structure. Meaningful debt can constrain capital allocation and reduce the company’s ability to absorb operating volatility or fund strategic initiatives if conditions weaken.

PPG Industries (0KEI) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: $26.57B
Dividend Yield: 2.41%
Average Volume (3M): 889
Price to Earnings (P/E): 17.0
Beta (1Y): 0.98
Revenue Growth: 6.39%
EPS Growth: 27.29%
Country: UK
Employees: 43,500
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals - Specialty

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, adhesives,...

PPG Industries Earnings Call Summary

Earnings Call Date:Oct 26, 2026(Q3-2026)|% Change Since:10.65%|Next Earnings Date:Jan 20, 2027

Earnings Call SentimentPositive

The call was strongly positive overall. PPG reported record third-quarter earnings, sustained organic growth, margin expansion in its Architectural and Performance Coatings businesses, strong aerospace and packaging momentum, robust cash generation, shareholder returns, and raised full-year EPS guidance. These strengths outweighed challenges from industrial price-cost timing, elevated raw-material inflation, lower automotive builds, European uncertainty, and demand levels that remain below pre-COVID in some markets.

Positive Updates

Record Third-Quarter Results

PPG delivered record third-quarter earnings. Net sales grew 7% year over year to $4.4 billion, adjusted earnings per share increased 6% to a third-quarter record of $2.25, and total company adjusted EBITDA margin was above 18%.

Negative Updates

Industrial Coatings EBITDA Decline

Industrial segment EBITDA declined 11% and EBITDA margin decreased 260 basis points to 14.4% because cost of goods sold inflation outpaced the timing of index-based pricing. Management said most of the index-pricing benefit will come in the first and second quarters of next year.

Company Guidance

For the fourth quarter, PPG expects total company organic sales growth of a low-single-digit percentage and total company adjusted EBITDA margin to range from a flat to an increase of 100-basis-points year over year; global architectural coatings organic sales are expected to be in the range of flat to up a low-single-digit percentage with EBITDA margin expansion versus prior year, Performance coatings organic sales are expected to grow by a low- to mid-single-digit percentage with further EBITDA margin expansion versus prior year, and industrial coatings organic sales are expected to be in the range of down to up a low-single-digit percentage, with the pace of EBITDA margin compression to moderate sequentially. Cost of goods sold inflation is expected to be in the high-single-digit range in the fourth quarter, and full year adjusted earnings per share guidance is $7.90 to $8.10 per share; this year, aerospace sales are expected to generate more than $2 billion, while about $100 million combined between restructuring and productivity actions is expected in 2026 and 2027.

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.

Macro & Political - Risks related to catastrophic events or geopolitical conditions that may disrupt the company’s business

Latest Risks Added

0 New Risks

PPG Industries Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

GB:0KEI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPM	72Outperform	$13.06B	18.86	21.13%	2.14%	5.96%	0.68%
AXTA	72Outperform	$7.29B	21.84	13.48%	―	0.14%	-25.40%
SHW	69Neutral	$80.35B	30.29	63.49%	0.96%	7.03%	5.95%
EMN	65Neutral	$7.61B	11.73	10.63%	5.05%	0.40%	-6.58%
ESI	62Neutral	$8.31B	40.55	7.39%	0.93%	39.62%	-14.83%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

* Basic Materials Sector Average

Performance Comparison

GB:0KEI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:0KEI	Ppg Industries, Inc.	119.29	26.93	29.16%
EMN	Eastman Chemical Company	66.53	11.40	20.67%
RPM	RPM International	102.44	-3.61	-3.41%
SHW	Sherwin-Williams	332.61	-9.78	-2.86%
ESI	Element Solutions	34.27	7.41	27.57%
AXTA	Axalta Coating Systems	34.07	5.97	21.25%

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.

PPG Industries AI Stock Analysis