PPG Industries (PPG) AI Stock Analysis

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PPG Industries

(NYSE:PPG)

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Rating:68Neutral

Price Target:$124.00▼(-0.34% Downside)

Action:reiterated

Date:10/28/26

The score is anchored by elevated financial risk from the latest balance-sheet weakness (negative TTM equity) and softer recent operating cash flow, which offsets otherwise solid profitability. This is balanced by constructive technical momentum and a positive earnings call with raised EPS guidance and margin expansion signals, while valuation appears reasonable with a supportive dividend yield.

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 Key Performance Indicators (KPIs)

Revenue by SegmentBreaks down sales across various business units, providing insight into growth drivers and areas where the company may face competitive pressures or expansion opportunities.

Chart Insights

A structural reporting change in late‑2024 carved out Global Architectural Coatings from Performance Coatings—explaining the sudden step‑down in Performance and the emergence of a ~$1B Architectural line. Management confirms Architectural is a durable, higher‑margin contributor (organic growth +2%, EBITDA margin improvement), while underlying Performance Coatings still shows growth driven by aerospace and protective & marine but is being weighed down by Automotive Refinish destocking and near‑term margin pressure. Industrial Coatings delivers steady share and volume gains, yet raw‑material inflation and index timing are compressing margins until pricing fully catches up.

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The Fly

PPG Industries (PPG) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $27.48B
Dividend Yield: 2.33%
Average Volume (3M): 1.75M
Price to Earnings (P/E): 17.7
Beta (1Y): 0.82
Revenue Growth: 6.39%
EPS Growth: 27.29%
Country: US
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,...

How the Company Makes Money

PPG primarily makes money by formulating, manufacturing, and selling coatings and related products, earning revenue largely from product sales (recognized when control transfers to customers) across multiple end markets. Key revenue streams include:...

PPG Industries Earnings Call Summary

Earnings Call Date:Oct 27, 2026(Q3-2026)|% Change Since:10.33%|Next Earnings Date:Jan 21, 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 Financial Statement Overview

Summary

Operating performance is solid (steady profitability and an earnings rebound), and free cash flow remains positive with FCF exceeding net income in TTM. However, the balance sheet is the primary drag: TTM stockholders’ equity turning negative meaningfully increases financial risk and reduces flexibility, and operating cash flow has dropped sharply in TTM versus recent annual levels.

Income Statement

72Positive

Balance Sheet

34Negative

Cash Flow

56Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.69B	15.88B	15.85B	16.24B	15.61B	16.80B
Gross Profit	6.69B	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	1.57B	1.58B	1.12B	1.27B	1.03B	1.44B
Balance Sheet
Total Assets	22.57B	22.10B	19.43B	21.65B	20.74B	21.35B
Cash, Cash Equivalents and Short-Term Investments	1.64B	2.22B	1.36B	1.57B	1.15B	1.07B
Total Debt	7.46B	7.90B	6.39B	6.60B	7.63B	7.47B
Total Liabilities	13.95B	14.00B	12.47B	13.62B	14.04B	14.94B
Stockholders Equity	8.49B	7.94B	6.79B	7.83B	6.59B	6.29B
Cash Flow
Free Cash Flow	1.28B	1.16B	699.00M	1.90B	477.00M	1.19B
Operating Cash Flow	2.04B	1.94B	1.42B	2.41B	963.00M	1.56B
Investing Cash Flow	-936.00M	-700.00M	107.00M	-556.00M	-461.00M	-2.40B
Financing Cash Flow	-1.38B	-545.00M	-1.43B	-1.55B	-409.00M	93.00M

PPG Industries Technical Analysis

Technical Analysis SentimentPositive

Last Price124.42

Price Trends

50DMA109.61Positive

100DMA112.47Positive

200DMA111.43Positive

Market Momentum

MACD4.62Negative

RSI66.27Neutral

STOCH63.53Neutral

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 124.42 is above the 20-day moving average (MA) of 115.36, above the 50-day MA of 109.61, and above the 200-day MA of 111.43, indicating a bullish trend. The MACD of 4.62 indicates Negative momentum. The RSI at 66.27 is Neutral, neither overbought nor oversold. The STOCH value of 63.53 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 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

PPG against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPM	72Outperform	$13.50B	19.49	21.13%	2.07%	5.96%	0.68%
AXTA	68Neutral	$8.00B	23.96	13.48%	―	0.14%	-25.40%
PPG	68Neutral	$27.48B	17.67	19.05%	2.33%	6.39%	27.29%
EMN	65Neutral	$7.49B	11.54	10.63%	5.13%	0.40%	-6.58%
SHW	65Neutral	$85.85B	32.36	63.49%	0.90%	7.03%	5.95%
ESI	62Neutral	$7.95B	38.75	7.39%	0.98%	39.62%	-14.83%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

* Basic Materials Sector Average

Performance Comparison

PPG and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
PPG	Ppg Industries, Inc.	124.42	29.28	30.77%
EMN	Eastman Chemical Company	65.45	7.41	12.77%
RPM	RPM International	105.83	0.59	0.56%
SHW	Sherwin-Williams	355.34	13.86	4.06%
ESI	Element Solutions	32.75	5.49	20.14%
AXTA	Axalta Coating Systems	37.38	8.06	27.49%

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.

Date of analysis: Oct 28, 2026

PPG Industries AI Stock Analysis