Reasonable Price-to-Earnings Ratio
Decent Price-to-Sales Ratio
Strong Gross Profit Margin
Good Return on Equity
Adequate Current Ratio
Strong Interest Coverage
🏆 Strong Market Position
📈 Record Performance
🔍 Focused Portfolio
💡 Technology-Driven Solutions
🌍 Growth in Emerging Markets
📊 Strategic Growth Initiatives
🛠️ Innovation in Product Offerings
High Price-to-Cash-Flow Ratio
Elevated Price-to-Book Ratio
Low Net Profit Margin
Moderate Operating Profit Margin
High Debt Level
Low Cash Ratio
⚠️ Economic Challenges
📉 Slow Start Anticipated for 2025
Overall, PPG demonstrates a strong business model with competitive advantages and a focused portfolio, although it faces economic challenges. The company has positive growth prospects driven by emerging markets and innovation, but anticipates a slow start in 2025.
Analysis Date: January 31, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$86.45
Current Market Price: $96.46
IV/P Ratio: 0.90x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-12.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for PPG
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (20.73)
P/B ratio ≤ 1.5 (3.41)
Current ratio ≥ 2.0 (1.31x)
Long-term debt < Net current assets (3.45x)
Margin of safety (-12.0%)
PPG does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
PPG demonstrates a solid gross profit margin of 39.72%, indicating effective cost management and pricing strategies.
A return on equity (ROE) of 14.74% signifies efficient use of equity capital to generate profits.
The net profit margin of 7.04% is relatively low, suggesting that the company may be facing challenges in controlling costs or generating strong profits.
An operating profit margin of 11.88% indicates that while the company is profitable, there is room for improvement in operational efficiency.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
14.74%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
-1.44%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
39.72%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
7.04%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
A current ratio of 1.31 suggests that PPG has a good ability to meet its short-term liabilities with its short-term assets.
With an interest coverage ratio of 7.81, PPG can comfortably meet its interest obligations, indicating strong earnings relative to interest expenses.
The debt-to-equity ratio of 0.94 indicates that the company is relatively leveraged, which could pose risks in unfavorable economic conditions.
The cash ratio of only 0.25 suggests that PPG may not have sufficient cash to cover short-term liabilities, indicating potential liquidity concerns.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.92x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.31x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
PPG holds a strong number one or number two position in over 15 countries within the Global Architectural Coatings segment, showcasing its competitive advantage and robust market presence.
Several of PPG's businesses, including aerospace coatings and automotive refinish coatings, achieved record results, indicating robust demand for their technology-advantaged products.
The recent divestitures of underperforming segments have streamlined PPG's operations, improving financial profile and enabling a more focused organizational strategy for growth.
PPG's emphasis on technology-advantaged products and services has enabled the company to capture market share and maintain strong customer relationships.
The company is facing headwinds from weak macroeconomic conditions, particularly in Europe and the global industrial landscape, which have led to low-single-digit organic sales declines.
PPG anticipates growth in regions like Latin America and Asia, with strong performance expected from Mexico and China, driven by robust consumer confidence and demand.
PPG's Enterprise Growth Strategy focuses on enhancing organic growth capabilities, cost reductions, and operational excellence, positioning the company for sustainable growth.
PPG continues to invest in innovation, with new products and digital solutions expected to drive productivity and enhance customer success, particularly in the Performance Coatings segment.
PPG expects a slow start in 2025 due to ongoing challenges in demand across Europe and industrial end-use markets, which could impact sales growth early in the year.