Quality Investor

PPG Industries, Inc.

Rank #228Capital Return

PPG · NYSE · Basic Materials

PPG Industries, Inc. (PPG) — Rank #228 by gross profitability (GP/assets 0.30) · ROE 19.4% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0000079879 · all metrics point-in-time as of the filing date.

About

PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa.

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It operates through three segments: Global Architectural Coatings, Performance Coatings, and Industrial Coatings. The Global Architectural Coatings segment supplies a variety of decorative coatings, adhesives, sealants, and finishes, as well as paint strippers, stains, and related chemicals. Its Performance Coatings segment offers aerospace coatings, automotive refinishing coatings, protective and marine coatings, and traffic solutions comprising paints, thermoplastics, raised pavement markers, and other technologies for pavement marking. The Industrial Coatings segment provides automotive OEM coatings, industrial coatings, and packaging coatings, as well as specialty products, such as optical monomers and coatings, low-friction coatings, and other specialty products. The company delivers its products to company-owned stores, home centers and other consumer retail outlets, paint dealers, concessionaires and independent distributors, company-owned distribution networks, and directly to manufacturing companies and retail customers. PPG Industries, Inc.

was incorporated in 1883 and is headquartered in Pittsburgh, Pennsylvania.

Industry
Specialty Chemicals
Sector
Basic Materials
State
PA
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
ppg.com

Price History

PPG-24.6% · -5.5% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$23.19B

P/E (annual)

15.0

P/S (annual)

1.5

P/B

2.9

P/OCF (annual)

11.9

Shareholder Yield

-43.7%

Employees

43,500

Industry

Specialty Chemicals

Exchange

NYSE

Signal Flags

2 green2 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

GP / assets
0.30
Return on equity
19.4%
Gross margin trend
N/A

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.68
Current ratio
1.61×
Net cash
-$5.17B

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
0.3%

Growth

1/2 pass
Revenue growth
17.5%
Piotroski F-Score
N/A
Share dilution
46.4%

Terry Smith quality gate

Passes 0/5 Terry Smith thresholds

3 of 5 thresholds not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

8.0%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 46.4% — per-share value needs a total required return of 54.4% once share-count change is priced in.

vs. own 6-year median revenue growth: 10.9%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

3.6%

r = 10% (base)

8.0%

r = 12%

11.7%

Net debt / market cap: 21.8%

Note: current FCF margin is 2.2σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $1.2B3Y mean FCF: $1.2B

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

30.6xExpensive
4.2xmed 19.0x33.7x

P / S

Price / revenue per share

2.3xExpensive
0.5xmed 1.3x2.3x

P / B

Price / book value per share

5.7xExpensive
2.0xmed 3.9x6.1x

P / FCF

Price / free cash flow per share

17.8xFair
6.8xmed 13.9x30.3x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.30

Primary signal (Novy-Marx).

67th pctl of 34 SIC 28 peers

Return on equity

19.4%

Gross margin

41.3%

42nd pctl of 34 SIC 28 peers

Revenue growth (YoY)

17.5%

Gross margin improving

Margin trend vs prior year.

N/A

Operating Leverage

2011201220132020
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

Revenue CAGR (5Y)

2.8%

Earnings CAGR (3Y)

15.4%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.68

3rd pctl of 31 SIC 28 peers (best = lowest)

Current ratio

1.61×

15th pctl of 34 SIC 28 peers

Quick ratio

0.89×

Net cash

-$5.17B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$1.16B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.26

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.3%

Stock-based comp intensity.

Dividend safety

Composite score

3.2 / 5

Good
Payout ratio
39.8%4/5 Strong
FCF coverage
1.85×3/5 Good
Dividend growth streak
10 yr5/5 Strong
Balance-sheet health
D/E 1.68 · IC N/A1/5 Weak

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20092020
Capital Return
Value