📊 PPG Key Takeaways
Is Ppg Industries Inc. (PPG) a Good Investment?
PPG exhibits deteriorating fundamentals with stagnant revenue growth (+0.2% YoY), declining net income (-1.0% YoY), and critically negative free cash flow of -$163M despite positive operating income. The combination of weak capital returns (ROE 4.7%, ROA 1.7%), substantial debt burden ($7.1B), and minimal operating cash flow generation ($33M) indicates the business is struggling to create value.
PPG Industries shows solid core fundamentals, with healthy operating and net margins, strong returns on equity, and adequate free cash flow generation supported by good liquidity. However, revenue growth is essentially flat and net income declined slightly year over year, which suggests stable but not accelerating business momentum. The balance sheet is manageable, but leverage remains meaningful enough that future improvement depends on stronger organic growth and sustained margin execution.
Ppg Industries Inc. Key Strengths (PPG)
- Adequate operating margins at 16.2% reflect pricing power in specialty coatings
- Moderate leverage (0.88x debt/equity) with healthy interest coverage (10.4x) provides debt service cushion
- Acceptable liquidity position with current ratio of 1.61x to meet near-term obligations
- Solid profitability with 12.9% operating margin, 9.9% net margin, and 19.8% ROE
- Good financial health with 1.62x current ratio, 1.22x quick ratio, and 11.2x interest coverage
- Positive free cash flow of $1.16B provides flexibility for debt service, capital investment, and shareholder returns
PPG Stock Risks: Ppg Industries Inc. Investment Risks
- Negative free cash flow of -$163M signals unsustainable capital structure with high debt and weak generation
- Stagnant growth trajectory (0.2% YoY revenue) in mature paints/coatings industry limits expansion
- Severely depressed returns on equity (4.7%) and assets (1.7%) indicate persistent capital inefficiency
- Abnormally low operating cash flow ($33M) relative to $636M operating income raises earnings quality concerns
- Revenue growth is minimal at 0.2% YoY, indicating limited top-line momentum
- Net income declined 1.0% YoY, suggesting earnings quality is not clearly improving despite EPS growth
- Debt remains notable with $7.30B long-term debt and 0.92x debt-to-equity, limiting balance-sheet flexibility if conditions weaken
Key Metrics to Watch
- Free cash flow trend - must turn positive to sustain debt load
- Operating cash flow generation - significant disconnect from reported operating income needs explanation
- Revenue growth acceleration - current 0.2% is insufficient for growth investors
- Return on equity trajectory - 4.7% is well below cost of capital
- Organic revenue growth and operating margin trend
- Free cash flow conversion and net debt reduction
Ppg Industries Inc. (PPG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Ppg Industries Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
PPG Profit Margin, ROE & Profitability Analysis
PPG vs Market Sector: How Ppg Industries Inc. Compares
How Ppg Industries Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ppg Industries Inc. Stock Overvalued? PPG Valuation Analysis 2026
Based on fundamental analysis, Ppg Industries Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ppg Industries Inc. Balance Sheet: PPG Debt, Cash & Liquidity
PPG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ppg Industries Inc.'s revenue has remained relatively flat over the 5-year period, with a 3% decline. The most recent EPS of $5.35 reflects profitable operations.
PPG Revenue Growth, EPS Growth & YoY Performance
PPG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.7B | $373.0M | $1.63 |
| Q3 2025 | $4.0B | $453.0M | $2.00 |
| Q2 2025 | $4.2B | $450.0M | $1.98 |
| Q1 2025 | $3.7B | $373.0M | $1.63 |
| Q3 2024 | $4.6B | $426.0M | $1.79 |
| Q2 2024 | $4.8B | $490.0M | $2.06 |
| Q1 2024 | $4.3B | $264.0M | $1.11 |
| Q3 2023 | $4.5B | $329.0M | $1.39 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ppg Industries Inc. Dividends, Buybacks & Capital Allocation
PPG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ppg Industries Inc. (CIK: 0000079879)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 1, 2026 | 4 | xslF345X06/wk-form4_1780333411.xml | View → |
| Jun 1, 2026 | 4 | xslF345X06/wk-form4_1780333385.xml | View → |
| Jun 1, 2026 | 4 | xslF345X06/wk-form4_1780333350.xml | View → |
| Jun 1, 2026 | 4 | xslF345X06/wk-form4_1780333316.xml | View → |
| Jun 1, 2026 | 4 | xslF345X06/wk-form4_1780333285.xml | View → |
❓ Frequently Asked Questions about PPG
What is the AI rating for PPG?
Ppg Industries Inc. (PPG) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are PPG's key strengths?
Claude: Adequate operating margins at 16.2% reflect pricing power in specialty coatings. Moderate leverage (0.88x debt/equity) with healthy interest coverage (10.4x) provides debt service cushion. ChatGPT: Solid profitability with 12.9% operating margin, 9.9% net margin, and 19.8% ROE. Good financial health with 1.62x current ratio, 1.22x quick ratio, and 11.2x interest coverage.
What are the risks of investing in PPG?
Claude: Negative free cash flow of -$163M signals unsustainable capital structure with high debt and weak generation. Stagnant growth trajectory (0.2% YoY revenue) in mature paints/coatings industry limits expansion. ChatGPT: Revenue growth is minimal at 0.2% YoY, indicating limited top-line momentum. Net income declined 1.0% YoY, suggesting earnings quality is not clearly improving despite EPS growth.
What is PPG's revenue and growth?
Ppg Industries Inc. reported revenue of $3.9B.
Does PPG pay dividends?
Ppg Industries Inc. pays dividends, with $159.0M distributed to shareholders in the trailing twelve months.
Where can I find PPG SEC filings?
Official SEC filings for Ppg Industries Inc. (CIK: 0000079879) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PPG's EPS?
Ppg Industries Inc. has a diluted EPS of $1.70.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is PPG's fundamental grade?
Based on our AI fundamental analysis in June 2026, Ppg Industries Inc. has a C grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PPG stock overvalued or undervalued?
Valuation metrics for PPG: ROE of 4.7% (sector avg: 15%), net margin of 9.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is PPG's AI grade for 2026?
Our dual AI analysis gives Ppg Industries Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PPG's free cash flow?
Ppg Industries Inc.'s operating cash flow is $33.0M, with capital expenditures of $196.0M. FCF margin is -4.1%.
How does PPG compare to other Market stocks?
Vs Default sector averages: Net margin 9.7% (avg: 12%), ROE 4.7% (avg: 15%), current ratio 1.61 (avg: 1.8).