PPG Industries, Inc. (PPG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

WD-40 Co.

UFP Technologies, Inc.

CSW Industrials, Inc.

Olin Corp.

RPM International, Inc.

Axalta Coating Systems Ltd.

The Sherwin-Williams Co.

H.B. Fuller Co.

PPG Industries, Inc.

Montauk Renewables, Inc.

Chase Corp.

Why is PPG Industries, Inc. ?

High Management Efficiency with a high ROCE of 15.96%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 10.15

Poor long term growth as Operating profit has grown by an annual rate 7.86% of over the last 5 years

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 1,484 MM
NET PROFIT(9M) At USD 858.35 MM has Grown at -23.8%
ROCE(HY) Lowest at 16.88%

With ROCE of 18.20%, it has a expensive valuation with a 5.62 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -20.63%, its profits have fallen by -5.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -20.63% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to PPG Industries, Inc. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is PPG Industries, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

PPG Industries, Inc.

-20.63%

-0.73

29.62%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.10%

EBIT Growth (5y)

7.86%

EBIT to Interest (avg)

10.15

Debt to EBITDA (avg)

2.22

Net Debt to Equity (avg)

0.79

Sales to Capital Employed (avg)

1.24

Tax Ratio

25.70%

Dividend Payout Ratio

44.60%

Pledged Shares

Institutional Holding

91.14%

ROCE (avg)

15.96%

ROE (avg)

20.33%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

9.29

EV to EBIT

30.89

EV to EBITDA

25.02

EV to Capital Employed

5.62

EV to Sales

4.16

PEG Ratio

Dividend Yield

0.69%

ROCE (Latest)

18.20%

ROE (Latest)

20.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 4.18

DIVIDEND PAYOUT RATIO(Y)

Highest at 34.41%

RAW MATERIAL COST(Y)

Fallen by 0.77% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 18.71 %

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 1,484 MM

NET PROFIT(9M)

At USD 858.35 MM has Grown at -23.8%

ROCE(HY)

Lowest at 16.88%

INTEREST(Q)

At USD 63 MM has Grown at 12.5%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.41 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.18 times

Here's what is working for PPG Industries, Inc.

Dividend per share

Highest at USD 4.18 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit Margin

Highest at 18.71 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Dividend Payout Ratio

Highest at 34.41%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.77% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for PPG Industries, Inc.

Interest

At USD 63 MM has Grown at 12.5%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Profit

At USD 858.35 MM has Grown at -23.8%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 1,484 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Inventory Turnover Ratio

Lowest at 4.41 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.18 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio