One-glance verdict
Overvalued
$79.86 our estimate vs market $107.39
Wall Street consensus: $125.73 (57.4% higher than our fair-value estimate)
34% above our estimate, beyond the bull case
Fundamentals snapshot
PPG Industries, Inc.
PPG · NYQ · Basic Materials · Specialty Chemicals
Current price
$107.39
52-week range
$93.39 - $133.43
Market cap
$23.87B
Balance sheet
Watch
9.00x Adequate
Net debt $5.86B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 1.5% last year.
- Reward Returns 19.3% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Insider ownership is only 0.1% (peer median: 0.4%).
What this company does
PPG Industries, Inc.
PPG Industries is a global company that makes the paints and specialized coatings you see on everything from houses and cars to airplanes and soda cans. A large part of their business is selling directly to major manufacturers, making them a key part of the supply chain (the network of companies that create and distribute a final product) for the construction and automotive industries. Because their products are used in so many essential sectors, the company's performance can often provide a glimpse into the overall health of the economy.
How the company got here
PPG began its journey in 1883 as the Pittsburgh Plate Glass Company, becoming the first commercially successful plate glass factory in the United States. Over time, it expanded beyond glass, venturing into paints in the early 1900s and later into industrial chemicals and fiberglass. To reflect this broader business, the company changed its name to PPG Industries in 1968. Through key acquisitions (the process of buying other companies) and a focus on innovation, it has grown into one of the world's largest suppliers of paints and coatings.
What it actually does
At its core, PPG is a company that makes things look better and last longer by applying specialized surfaces to them. You might not always see the PPG logo, but their products are all around you, providing color and protection. Their coatings are on everything from the walls in your house and the car you drive to the airplanes you fly in and the beverage cans you drink from. The company creates a vast range of paints, industrial coatings, and specialty materials for both everyday consumers and large manufacturing companies.
Performance Coatings
This is PPG's largest business segment, making up a significant portion of its sales. It creates specialized coatings for things that need to perform under demanding conditions, like protecting an airplane from the elements or a ship from saltwater. This division sells aerospace coatings, automotive refinish paints for car repairs, and heavy-duty protective and marine coatings. It also makes traffic solutions, which includes the paints and materials used to mark roads, highways, and airport runways.
Industrial Coatings
This part of the business sells coatings directly to other manufacturers to use on their products during production. Think of it as a key ingredient that other companies need to finish their goods. A major customer group is carmakers, who use PPG's automotive OEM coatings (Original Equipment Manufacturer, meaning the parts and coatings used to build a new car) on vehicles coming off the assembly line. This segment also makes protective coatings for the inside and outside of food and beverage cans, as well as coatings for appliances and other industrial products.
Global Architectural Coatings
This segment produces the paints, stains, and sealants that people buy for their homes and buildings, including well-known brands like Glidden and Olympic. These are the products you would find at home improvement stores or professional paint dealers for decorating and maintenance. Recently, PPG has been reshaping its business and sold its architectural coatings operations in the U.S. and Canada to focus on what it sees as higher-growth areas. However, it remains a major paint supplier in other parts of the world, especially in Latin America, Europe, and Asia.
What management is betting on now
The company's leadership is focusing its resources on businesses they believe have the best potential for growth and higher margins (the portion of sales that turns into profit). This strategy involves investing heavily in areas like aerospace, automotive, and packaging coatings, where specialized technology is key. As part of this focus, PPG has been making strategic divestitures (selling off parts of the company) like its U.S. and Canada architectural paint business to streamline operations. Management is also pushing for innovation in sustainable products and using digital tools like artificial intelligence to develop new coatings and improve efficiency.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$247.00M
FY2024 Q3
$620.00M
FY2024 Q4
$148.00M
FY2025 Q1
$-227.00M
FY2025 Q2
$266.00M
FY2025 Q3
$538.00M
FY2025 Q4
$586.00M
FY2026 Q1
$-163.00M
Revenue
$3.93B
Net income
$382.00M
Diluted EPS
1.70
Operating cash flow
$33.00M
Free cash flow
$-163.00M
Fetching…
Sources
Revenue
$3.91B
Net income
$300.00M
Diluted EPS
1.33
Operating cash flow
$887.00M
Free cash flow
$586.00M
Fetching…
Sources
Revenue
$4.08B
Net income
$453.00M
Diluted EPS
2.00
Operating cash flow
$685.00M
Free cash flow
$538.00M
Fetching…
Sources
Revenue
$4.20B
Net income
$450.00M
Diluted EPS
1.98
Operating cash flow
$387.00M
Free cash flow
$266.00M
Fetching…
Sources
Revenue
$3.68B
Net income
$373.00M
Diluted EPS
1.63
Operating cash flow
$-18.00M
Free cash flow
$-227.00M
Fetching…
Sources
Revenue
$2.17B
Net income
$-280.00M
Diluted EPS
-1.18
Operating cash flow
$346.00M
Free cash flow
$148.00M
Fetching…
Sources
Revenue
$4.58B
Net income
$468.00M
Diluted EPS
2.00
Operating cash flow
$769.00M
Free cash flow
$620.00M
Fetching…
Sources
Revenue
$4.79B
Net income
$528.00M
Diluted EPS
2.24
Operating cash flow
$365.00M
Free cash flow
$247.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $79.86 vs current price $107.39
Wall Street consensus is the average analyst price target: $125.73 (57.4% higher than our fair-value estimate).
Our most-likely fair value is $79.86 a share — about 25.6% below today's price of $107.39, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $5.9B. Interest coverage 9.0x.
Net debt
$5.86B
Interest coverage
9.00x
PPG Industries, Inc.'s profit covers its interest bill about 9.0 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
PPG
BASELINE
PPG Industries, Inc.
Total debt $7.47B Interest coverage 9.00x This is the baseline the peer rows are being compared against.
Total debt $15.03B Interest coverage 8.16x -9% vs PPG Has roughly the same debt cushion as PPG.
Total debt $3.07B Interest coverage 4.18x -54% vs PPG Carries about 2.2x less debt cushion than PPG.
Total debt $2.74B Interest coverage 8.66x -4% vs PPG Has roughly the same debt cushion as PPG.
Total debt $7.41B Interest coverage 5.52x -39% vs PPG Carries about 1.6x less debt cushion than PPG.
Total debt $3.49B Interest coverage 12.41x +38% vs PPG Carries about 1.4x more debt cushion than PPG.
What you should know
The case for and against PPG
3 Rewards
1 Risk
Rewards
-
Revenue grew 1.5% last year.
-
Returns 19.3% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Insider ownership is only 0.1% (peer median: 0.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
15.43x
Forward P/E
12.46x
P/B
2.83x
P/S
1.45x
EV/EBITDA
11.07x
PEG ratio
1.53x
Profitability
How much profit each dollar creates
Gross margin
41.2%
Operating margin
14.0%
Net margin
9.6%
ROE
19.3%
ROA
6.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.87x
Current ratio
1.58x
Quick ratio
1.05x
Total debt
$7.47B
Total cash
$1.61B
Growth
How the business has been compounding
Revenue TTM
$16.12B
Revenue 5Y CAGR
-1.4%
EPS TTM
6.96
EPS 5Y CAGR
17.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.99B
Free CF TTM
$1.16B
FCF margin
7.2%
Dividend
Shareholder payout
Yield
2.8%
Payout ratio
40.8%
Last ex-div date
2026-11-10