Ppg Industries Inc

Consumer Discretionary
Paints/Coatings
www.ppg.com

Earnings Score
Moat Score
Safety Score

Market Cap $29.13B
PE 20
Debt $6.81B
Cash $1.25B
EV $34.69B
FCF $1.28B

Earnings

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Sales & Net Margins

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Earnings	$1.49B
EBIT	$2.75B
ROE	19%
ROA	13%
FCF	$1.28B
Equity	$7.97B
Growth Stability	76%
PE	19.6
PEG	4.42
PB	3.65
P/FCF	22.74
P/S	1.62
Price/Cash	0.04
Debt/Equity	0.85
Debt/FCF	5.31
Net Margins	10%
Gross Margins	42%
Op. Margins	15%
Earnings CAGR	1%
Sales Growth YoY	-1%
Sales Growth QoQ	-5%
Sales CAGR	3%
FCF CAGR	-1%
Equity CAGR	5%
Earnings Stability	0.01
Earnings Growth YoY	10%
Earnings Growth QoQ	-11%
Earnings CAGR 5Y	4%

Sales CAGR 5Y	6%
FCF CAGR 5Y	-8%
Equity CAGR 5Y	11%
Earnings CAGR 3Y	2%
Sales CAGR 3Y	2%
FCF CAGR 3Y	51%
Equity CAGR 3Y	12%
Market Cap	$29.13B
Revenue	$18.03B
Dividend Yield	2%
Payout Ratio	42%
Assets	$21.86B
Total Debt	$6.81B
Cash	$1.25B
Shares Outstanding	232M
EV	34.69B
Earnings Score	6%
Moat Score	93%
Safety Score	82%
Final Score	60%
Working Capital	2.92B
Current Ratio	1.58
Gross Profit	$7.66B
Shares Growth 3y	-0%
Equity Growth QoQ	0%
Equity Growth YoY	0%

Assets & ROA

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Stockholders Equity & ROE

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PPG is a global producer of coatings. The company is the world's largest producer of coatings after the purchase of selected Akzo Nobel assets. PPG's products are sold to a wide variety of end users, including the automotive, aerospace, construction, and industrial markets. The company has a footprint in many regions around the globe, with less than half of sales coming from North America in recent years. PPG is focused on its coatings and specialty products and expansion into emerging regions, as exemplified by the Comex acquisition.

SEC Filings

Direct access to Ppg Industries Inc (PPG) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Ppg Industries Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Ppg Industries Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 1%

Stability 1%

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Ppg Industries Inc Discounted Cash Flow

Fully customizable DCF calculator online for Ppg Industries Inc.

Years

Calculation mode

= $12B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.3B	$1.3B	$1.2B	$1.2B	$1.2B	$1.2B	$1.2B	$1.2B	$1.2B	$1.1B	$1.1B	$11B
DCF		$1.1B	$1B	$927M	$832M	$747M	$670M	$602M	$540M	$485M	$435M	$4.4B
Value	$12B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	14%	9%	6%	11%	9%	8%	8%	9%	6%	7%	10%
ROA	-	14%	15%	14%	13%	13%	11%	10%	10%	12%	13%
ROE	-	28%	18%	28%	28%	23%	18%	22%	15%	16%	19%

Good Net Margins (10.2%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	3.36	5.36	3.44	5.26	3.32	3.24	5.53	16	3.41	5.31
Debt over Equity	0.83	0.9	1.01	0.73	1.2	1.03	1.02	1.03	1.06	0.79	0.85
Growth Stability	-	-	-	100%	100%	98%	76%	100%	82%	100%	76%

Bad Debt/FCF ratio (5.31)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.85)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (76%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-0%	-4%	-0%	4%	-1%	-9%	21%	5%	3%	6%
Earnings YoY growth	-	-33%	-38%	81%	-16%	-7%	-15%	36%	-29%	24%	4%
Equity YoY growth	-	-4%	-3%	15%	-17%	14%	8%	10%	5%	20%	11%
FCF YoY growth	-	12%	-32%	31%	-11%	55%	9%	-35%	-63%	318%	-8%