Why is PPG Industries, Inc. ?
1
High Management Efficiency with a high ROCE of 15.96%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 10.15
3
Poor long term growth as Operating profit has grown by an annual rate 7.86% of over the last 5 years
4
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%
5
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 -16.18%, its profits have fallen by -5.8%
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -16.18% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
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.
12.37%
-0.68
29.61%
S&P 500
21.51%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
2.79%
EBIT Growth (5y)
5.15%
EBIT to Interest (avg)
10.15
Debt to EBITDA (avg)
2.22
Net Debt to Equity (avg)
0.79
Sales to Capital Employed (avg)
1.20
Tax Ratio
25.70%
Dividend Payout Ratio
40.19%
Pledged Shares
0
Institutional Holding
95.16%
ROCE (avg)
15.96%
ROE (avg)
20.33%
Valuation Key Factors 
Factor
Value
P/E Ratio
37
Industry P/E
Price to Book Value
7.43
EV to EBIT
29.84
EV to EBITDA
23.80
EV to Capital Employed
4.88
EV to Sales
4.04
PEG Ratio
3.39
Dividend Yield
0.81%
ROCE (Latest)
16.34%
ROE (Latest)
19.91%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 2,164 MM
DIVIDEND PER SHARE(HY)
Highest at USD 4.21
DIVIDEND PAYOUT RATIO(Y)
Highest at 36.21%
DEBT-EQUITY RATIO
(HY)
Lowest at 69.47 %
NET SALES(Q)
Highest at USD 4,495 MM
PRE-TAX PROFIT(Q)
Highest at USD 593 MM
-3What is not working for the Company
INTEREST(Q)
Highest at USD 72 MM
Here's what is working for PPG Industries, Inc.
Dividend per share
Highest at USD 4.21 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Cash Flow
Highest at USD 2,164 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 4,495 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Pre-Tax Profit
Highest at USD 593 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Debt-Equity Ratio
Lowest at 69.47 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend Payout Ratio
Highest at 36.21%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Depreciation
Highest at USD 160 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for PPG Industries, Inc.
Interest
At USD 72 MM has Grown at 16.13%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest
Highest at USD 72 MM
in the last five periods and Increased by 16.13% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)






