PPG Industries Inc (PPG) stock analysis

P/E below its 5-year median

PPG Industries's P/E of 17.9 is below its own 5-year median of 23.8.

P/E below the industry

PPG Industries's P/E of 17.9 is below the Chemicals and Allied Products median of 25.2.

EV/EBITDA below its 5-year median

PPG Industries's EV/EBITDA of 11.4 is below its 5-year median of 12.4.

P/B above the industry

PPG Industries's price-to-book of 3.25 is above the Chemicals and Allied Products median of 2.25.

Trading below fair value

The share price of $124.97 is below our fair value estimate of $148.49.

Margin of safety under 20%

The price is 15.8% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 0.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 17.1% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 57.6% over the last twelve months, against a 5-year average of 8.3% a year.

Growing faster than the industry

Revenue grew 6.4% over the last twelve months; the Chemicals and Allied Products median is 6.3%.

Guidance issued

The latest outlook (full-year adjusted earnings per share, Oct 27, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 40.9% over the last twelve months, against 41.3% a year earlier.

Return on equity over 15%

Return on equity was 19.3% over the last twelve months and averaged 18.9% over five years.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

PPG Industries's return on equity of 19.3% is above the Chemicals and Allied Products median of -49.9%.

Earnings grew over 5 years

Net income grew 8.3% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 9.4% over the last twelve months, against a 5-year average of 8.0%.

Net margin above the industry

PPG Industries's net margin of 9.4% is above the Chemicals and Allied Products median of -31.1%.

High debt

Debt is 80.6% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 101% five years ago to 80.6%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 29.9% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.58 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.56; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

PPG Industries paid dividends worth 1.7% of the share price over the last twelve months.

Yield below Treasuries

The 1.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; PPG Industries yields 1.7%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 40.9% of net income.

Covered by free cash flow

Dividends take 50.2% of free cash flow.