PPG Industries (PPG) AI Stock Analysis

• Market Cap: $24.64B
• Dividend Yield: 2.52%
• Average Volume (3M): 2.56M
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.90
• Revenue Growth: -7.67%
• EPS Growth: -0.58%
• Country: US
• Employees: 46,000
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): 1.72
• Shares Outstanding: 227,000,000
• 10 Day Avg. Volume: 2,022,157
• 30 Day Avg. Volume: 2,559,894
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.73
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $121.64
• Price Target Upside: 12.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

PPG Industries' overall stock score reflects its strong cash flow and profitability, tempered by high leverage and declining revenue. The stock shows moderate upward momentum and is fairly valued. Earnings call insights reveal resilience in parts of the business, but global challenges remain. Investors should consider the company's ability to address leverage and sustain revenue growth for long-term stability.

Positive Factors

Business Strategy

PPG’s increasingly asset-light model allows for more dynamic cost reductions in the event of lower demand in architectural markets.

Earnings Outlook

PPG maintained its FY earnings guide, but analysts find PPG’s more credible given more modest expectations and greater end market and geographic exposure.

Market Performance

PPG recently attracted interest from value investors due to significant multiple contraction and improved FX, drawing attention to its potential.

Negative Factors

Market Share

PPG's growth in the OEM sector appears to be below market, while competitors like Axalta have been gaining share.

Sector Challenges

Declines in Architectural and Industrial sectors were due to a construction slowdown in Mexico, weaker EMEA architectural demand, and softer auto OEM builds.

Stock Performance

PPG has been a weak equity performer, lower by 18% over the past year versus gains for the S&P Index and other competitors.

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 Industries generates revenue primarily through the sale of its paints, coatings, and specialty materials. The company operates through two main segments: Performance Coatings and Industrial Coatings. The Performance Coatings segment includes products for automotive refinish, aerospace, protective and marine coatings, and architectural coatings. The Industrial Coatings segment provides coatings for automotive original equipment manufacturers (OEM), industrial equipment, packaging, and specialty coatings. PPG's revenue streams are bolstered by strategic partnerships with automotive manufacturers, construction companies, and industrial clients. Additionally, the company invests in research and development to innovate and enhance its product offerings, ensuring competitiveness and meeting evolving customer needs. PPG's extensive global distribution network and strong brand recognition further contribute to its earnings.

PPG Industries Financial Statement Overview

Summary

PPG Industries shows solid profitability with a strong EBIT margin and healthy cash flow generation. However, challenges include declining revenue and high leverage, highlighted by negative stockholders' equity and unstable financial risks. Improvement in revenue growth and addressing leverage are key to enhancing financial stability.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
15.85B	18.25B	17.65B	16.80B	13.83B
	Gross Profit
6.59B	7.55B	6.56B	6.52B	6.06B
	EBIT
2.29B	2.78B	1.72B	1.82B	1.79B
	EBITDA
2.61B	2.60B	2.38B	2.57B	2.08B
	Net Income Common Stockholders
1.12B	1.27B	1.03B	1.44B	1.06B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.36B	1.59B	1.15B	1.07B	1.92B
	Total Assets
19.43B	21.65B	20.74B	21.35B	19.56B
	Total Debt
6.39B	6.87B	7.63B	192.00M	180.00M
	Net Debt
5.13B	5.36B	6.54B	-813.00M	-1.65B
	Total Liabilities
12.47B	13.62B	14.04B	14.94B	13.74B
	Stockholders Equity
6.79B	7.83B	6.59B	6.29B	5.69B
Cash Flow		Free Cash Flow
699.00M	1.86B	445.00M	1.19B	1.83B
	Operating Cash Flow
1.42B	2.41B	963.00M	1.56B	2.13B
	Investing Cash Flow
107.00M	-556.00M	-461.00M	-2.40B	-1.45B
	Financing Cash Flow
-1.43B	-1.55B	-409.00M	93.00M	-59.00M

PPG Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 108.61
• 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 Positive. The current price of 108.61 is above the 20-day moving average (MA) of 103.88, above the 50-day MA of 107.45, and below the 200-day MA of 118.50, indicating a neutral trend. The MACD of 0.79 indicates Negative momentum. The RSI at 55.48 is Neutral, neither overbought nor oversold. The STOCH value of 64.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPG.

PPG Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHW	78 Outperform	$88.34B	34.05	70.22%	0.83%	0.26%	12.82%
AXTA	76 Outperform	$7.27B	18.73	23.59%	―	0.96%	82.78%
RPM	69 Neutral	$13.97B	22.02	25.53%	1.82%	-0.61%	15.06%
EMN	68 Neutral	$8.79B	9.71	16.16%	4.36%	2.78%	1.50%
PPG	63 Neutral	$24.64B	18.67	18.47%	2.52%	-7.67%	-0.58%
DD	63 Neutral	$27.22B	40.24	0.06%	2.40%	4.51%	-121.68%
Sector *	49 Neutral	$1.94B	-1.23	-21.28%	3.73%	1.19%	-29.73%

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.

Spark’s Take on PPG Stock

According to Spark, TipRanks’ AI Analyst, PPG is a Neutral.

PPG Industries’ overall score is bolstered by strong financial performance and positive earnings guidance. However, technical indicators signal a bearish trend, and valuation is moderate. Macro challenges and cash flow volatility pose risks, but strategic efforts in portfolio optimization and shareholder returns provide a positive outlook.

To see Spark’s full report on PPG stock, click here.